I work for a PEO and we have Co-sponsorship Agreements in place and in our Co-sponsorship Agreement is a clause allowing clients and their employees to enroll in our Cafeteria Plan Section 125. Is there a law that requires PEO's to offer the Section 125 when co-sponsoring a clients benefits? OR if you offer the Cafeteria Plan, can we exclude the Section 125 Plan?

Is there any reason a c-corp of lawyers couldn't have a loan provision in a standardized document? I can't think of any, but the original questioner seemed doubtful.

Has anybody heard anything further on when the IRS plans to release the revised Form 5310? I have heard the deadline to use the old form has been extended to March 2002 but would like to use new form if it will be available in the near future. Thanks in advance for any information.

We've got a client that allows participants that have account balances of at least $10,000 the opportunity to self direct their accounts. Another client is thinking about adopting this policy also but only allowing those participants with balances of at least $25,000 to self direct their accounts. Is there any problem establishing a threshold this high for self direction to occur?

I have reviewed information on all of the "Big 5" on the new content requirments for health plan SPDs. Each of them has failed to address the "provider listing" requirement.

I have contacted the DOL with question and requested an answer by phone " a complete provider listing is required as part of or an attachment to the SPD".

However can not find anything in writing to that effect.

I need to provide info to client regarding this. One client is one the of "Big 5".

Any help?

I am looking for a health care coverage plans for small not for profits. Chicagoland area.

Does anyone have any experience with moving a 403b over to a 457 plan? What are the conseqeunces and costs? How difficult is it? Thanks.

Good Day All.

Can anyone offer some guidance on this please

Do the PARTY IN INTEREST provisions under ERISA have any analogous rules governed by the SEC?

as always, thanks for any relevant thoughts.

How will disbursements from a 457 Governmental Plan be reported in the future? There is disagreement as to whether distributions will be reported on Form 1099-R or W-2.

Previously, distributions were reportable on W-2. With new portability rules - it is assumed that Form 1099-R will now be required. We have not received firm confirmation as such.

Lastly, if the 1099-R is to be used, what of annuities in payout under settlement provisions of the contract? Would these also begin being reported on Form 1099-R? We have a running second conversation that these would be continued to be reported on Form W-2, regardless.

With the mad rush of merging MPP's with existing Profit Sharing plans, we were looking for some clarification.

Our stance is not to step up the vesting once the MP is merged with the PS Plan and to track as a Money Purchase source for J&S reasons. We use a prototype, the question is when someone is paid out of the PS plan and has a non-vested interest in the MP source, what happens to the forfeitures? I didn't see anything in the document that references that. Does it become a forfeiture like the Profit Sharing? Follow the what the document says about non-elective contribution forf?

Thanks

Hello Everyone--

How do you all collect the correct information from your clients about their employees who fall into key and highly compensated categories? We used to use a worksheet/questionnaire--but it is rather old.

Would anyone out there be willing to share how they gather this data, how often and so forth.

Thanks

We are self administering a 401a and just processed first loan. Our question is about the interest that is paid back by the employee. When the money is finally paid out at retirement or termination, how is the interest payback handled on the 1099-R since it is being paid back with after-tax money? Seems like it may be double-taxed?

My employer offers me an ESOP plan. Each year depending on our vested percentage, we get as dividend check from our stock. I'm thinking of putting it into an IRA as oppsed to putting it into the ESOP. Would I be better off with a regular IRA, a Roth IRA, or just leaving it in the ESOP?

Also, is there a minimum amount I will have to put into an IRA each year?

Thanks for any advice.

Are there any restictions on an employees right to change elections for a health plan that is not a part of a cafeteria plan? I can't seem to find any legal reason why they couldn't change their election since the Section 125 regulations only apply to cafeteria plans.

Does an employee have any right to enroll in a health/welfare plan if he/she is called up to active duty prior to enrolling in the plan? USERRA only seems to apply to individuals who are already enrolled in a plan.

I've been online for several hours trying to understand - this is the best site I've seen and I hope someone can help a beginner.

We are a new, charitable, tax-exempt enity organized as a trust. We have a single employee. We'd like to offer him health insurance as a benefit. However, we're building everything from the ground up, and are not in a position to arrange a formal group plan with an insurance company, or analogous solutions yet.

I gather that our trustees could set up a "plan" under which we agree to pay the insurance premium of our single employee's existing, individual insurance plan, and that he, therefore, would not have to consider those payments as income. We would pay it directly to his insurance company on a policy that he owns himself. Does anyone know of anywhere I could get some practical guidance on what such a "plan" should look like?

And could we also begin making his COBRA payments for him until we get going?

Extreme appreciation, in advance

Glenn Conrad - Shanti Foundation

Say a 2000 calendar limitation year is changed to a limitation year of 7/1/00 to 6/30/01. Is the 415 dollar limit prorated for the period 1/1/00-6/30/00 or 1/1/01 to 6/30/01? Before you answer, please read the following excerpt from IRS Reg. 1.415-b(4):

(4) Effect of change of limitation year.

...

(ii) Any change in the limitation year must be a change to a twelve-month period commencing with any day within the current limitation year.

(iii) For purposes of this paragraph, the limitations of section 415 are to be applied in the normal manner to the new limitation year. Moreover, the limitations of section 415 are to be separately applied to a “limitation period” which begins with the first day of the current limitation year and which ends on the day before the first day of the first limitation year for which the change is effective. The dollar limitation with respect to this limitation period is determined by multiplying (A) the applicable dollar limitation for the calendar year in which the limitation period ends by (B) a fraction, the numerator of which is the number of months (including any fractional parts of a month) in the limitation period, and the denominator of which is 12. This adjustment of the dollar limitation only applies to a defined contribution plan.

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It appears to me that "the day before the first day of the first limitation year for which the change is effective" in my answer above is 6/30/00.

What is the point in giving historical information about ADP/ACP testing in a GUST document?

If that information is not completed in a protoype and the plan is audited or submitted for a determination letter, what are the likely consequences?

Note that I am not saying that testing wasn't completed but, at this point, it cannot be determined if current or prior year data was used.

Thanks.

I need info on how to terminate a 403b and move it over to a 457 plan. I have a copy of Rev Proc 2001-17. I could use some help in gleaning what I actually need to submit for correction. The problem is that the 403b is with a city which is an ineligible employer. Thanks.

I need info on how to terminate a 403b and move it over to a 457 plan. I have a copy of Rev Proc 2001-17. I could use some help in gleaning what I actually need to submit for correction. The problem is that the 403b is with a city which is an ineligible employer. Thanks.