Under the mid-year election change rules, could coverage that a self-employed spouse obtains (e.g., through an individual policy) constitute "coverage under another employer plan"? See 1.125-4(f)(4).

If there is a change in Plan Year for a safe harbor 401(k) plan, does the plan automatically have to do ADP/ACP testing for the short plan year created, and then automatically resume non having to do ADP/ACP testing for the next full 12 month plan year?

Is the plan automatically exempt from the safe harbor notice and contribuiton requriements for the short plan year created by the plan year change?

I have a calendar 401(k) plan with 6 months of eligibility, quarterly entry dates. This client's industry is such that employees are constantly coming & going. If an employee works for 2 months, leaves and returns 2 months later, do I have to count the original two months? I was under the impression that the employee "starts over" since they never became a participant. If you look at a calendar year, let's say an employee works Feb, Mar and April, leaves, then returns Oct, Nov & Dec. Do they enter January 1st or can I wait until April 1st (provided they remain employed)? The document is using the elapsed time" method. Any input is appreciated.

An employee works a year of service (12 months/1000 hrs) and becomes a participant on January 1, 2001. The new participant defers in the company's 401(k) plan for 2001, but only worked 500 hours. In 2002, the participant will only work 500 hours. Is the participant still eligible to participate in the 401(k) plan??

Given all of the different discrimination testing which applies to the different types of benefit plans, what are the possibilities where a personal service corp has 4 e/ee's -- 3 of which are HCE's and 1 who is NHCE????

Thanks for your help.

I have an Union 401K Plan in which only union members are eligible to participate... There are two union members who earned in the prior plan year (12/31/2000) salaries in excess of $85,000.00.

Would these two participants be considered Highly Compensated Employees even though they are part of a union??????

Given the expanded rollover rules in EGTRRA, can an individual who turned 70 1/2 in 2001, is still employed, and is not a 5% owner roll amounts from his traditional (non-conduit) IRA into his employer plan to avoid any future MRDs (other than the one for 2001) until he actually retires. This assumes that the plan in question will adopt a good faith EGTRRA amendment to accept transfers from non-conduit IRAs.

Somebody told me that AIG used to provide this product, but will no longer provide it. Does anyone else?

I have an employee who owns 4.22% of the stock in the company. Another 3.46% of the stock is in trust for him. Is he an HCE for ADP testing purposes? If stock is held in a trust, does it count for ADP testing purposes? This company (a family-owned business) changed its ownership percentages last year and put most of the stock in separate trusts.

We are in the process of designating a Privacy Officer for HIPAA

What have others been doing?; i.e. who in your firm is the "designee"? We have

come to the conclusion that we may need to create a new position for this

We are an employer who sponsors a health plan; we are not a healthcare entity

Would anyone have a good job description for a Privacy Officer

Thanks

I have a client who participates in a 403(B) plan. He also has a sole prop business and would like to know if he can have a SEP based on his sole prop business?? Thanks.

I have a question I hope someone can provide some information on. We offer employees that leave the company with a minimum years of service to continue their medical coverage until age 65 (until they are eligible for Medicare) and life insurance for 10 years after they retiree.

Are either of these items considered retiree benefits that are subject to FASB 106 ?

I recently took a position with a company. When I arrived I

ask the previous Benefts person for the Section 125 plan document. She handed me the plan document for the Flex Spending Account. I have asked the Accounting, Finance and HR

people and no one knows where the plan document for the section 125 plan, meanwhile pre-tax employee deductions are being deduction from employee paychecks.

I would appreciate any feedback from others that I have found themselves in this position. How do you break it to the management that we could be in alot of trouble if the IRS was ever to audit us ! How do we do this - do we adopt it retroactively?

Also, based on the research I have done: We need a master plan Section 125 document, a Premium only plan (to take the employee deductions pre-tax) and a Life Insurance plan document (since we are providing $50,000 in life insurance to employees on a tax free basis.

Any help is appreciated. Thank you very much.

Anybody see a problem with an employer paying out a terminated participant with a company check and counting that distribution as a contribution?

The concern is that the money is not being run through the trust.

Client has a "traditional" 401(k) that they want to terminate as of 12/31/02. Do 100% of the assets have to be out of the plan by 12/31/02 in order for them to set up a SIMPLE plan 1/1/03? All employees will probably roll their plan balances into the SIMPLE, but that can't happen until early January 2003. Thanks. Maverick

Some years have passed since I looked at this type of plan as a viable form of NQDC. However, I now have an application and I am hoping for some advice/direction on the following issues:

1.RP 92-64 appears to be the clearest Fed guidance to date. It does not appear that Rabbi Trusts have been codified - have I missed anything?

2.My intended application is for a employee contributory plan, however, the literature only deals with situations where the employer makes the contributions. Any thoughts on the pitfalls of an employee pay all plan within the context of a Rabbi Trust?

Thanks for your help! - monty

Assume that an employer does not have an open enrollment period, but that they do operate under a Section 125 flex plan. Since flex plans have the 12 month rule and require annual elections, does this overide the employer's desire not to have open enrollment, and basically force them to adopt an annual open enrollment coinciding with the flex plan's plan year?

If a 401(k) plan follows a safe harbor match formula and it intends to match age 50 catch up deferrals, is there any IRS guidance to suggest that the match on the age 50 amounts will be subject to special nondiscrimination testing?

It appears that a cash balance plan cannot provide different contribution rates for a select group (even if passes nondescrimination rules) due to uniformity requirements. It also appears that a new cash balance plan cannot arbitrarly grant past service credits to individuals (i.e., the opening account balance)...seems like must grant past service on a uniform basis or the opening balance must be from a DB conversion. Please let me know if I'm wrong on either or both ascertions.

I'm a sole prop and had opened a SIMPLE IRA. If I file my taxes on a 1040-C where do I report the contribution, Sal Def and employer match contribution? Does anyone know??????????