We file a Schedule F for the cafeteria plan benefits with our health benefit plan Form 5500 rather than filing a separate Form 5500 for the cafeteria plan.

Is this ok?

I need some guidance on if/how I need to file for my employers health plan.

According to documents received from the insurance company, our plan is a self-funded group contract. We pay the insurance company a "premium/fee" each month based on the number of employees we have. A portion of this fee is funded by our employees. And, we are billed monthly for the benefit checks the insurance company writes each month. We have about 25 employees.

According to 29CFR 2520.104-20, it would seem that we may be exempt from filing form 5500. However, I'm not sure that reimbursing the insurance company for claims paid qualifies us under item (B)(2)(ii) of that section (discusses benefits being paid solely from the general assets of the employer). I am leaning towards being exempt since it would seem we are just hiring the insurance company to administer the plan rather than having them "fund" it.

Any thoughts?

We have read many of the messages from the message board regarding whether an MPP contribution must be made in year of plan termination/merger. However, we are not sure we fully agree with the analysis of a standardize plan. Our standardized prototype says if you terminate, you must work 500 hours to receive a contribution. This would mean then that someone who received a contribution last year, is eligible in the current year, employed on the last day of the current year and worked only 300 hours would receive a current year contribution.

Therefore, under our standardized plan, if we terminate the MPP after the first of the year, we feel that an MPP contribution will need to be made based on compensation up until the termination date even though participants haven't worked 500 hours.

Is this correct?

Report this post to a moderator |

01-07-2002 12:36 PM

Does anyone have any information/source material on California's reported non-conformance with recent federal changes on IRA and 401K deductions? Any advice on how to manage the state/federal discrepancy, potential problems and liabilities, prospects and/or timing of change at the state level etc.? Why am I seeing virtually no information on this problem?

Under the new rules effective 1/1/2002, can a government employee (city) rollover or transfer an amount from her city-sponsored 457 plan to her city-sponsored 401(a) defined benefit plan to purchase years of service (from when she was working for the city but was not participating in the DB plan) towards retirement eligibility while she is still working for the city? That is, assuming the DB plan accepts such a rollover.

Under the new rules effective 1/1/2002, can a government employee (city) rollover or transfer an amount from her city-sponsored 457 plan to her city-sponsored 401(a) defined benefit plan to purchase years of service (from when she was working for the city but was not participating in the DB plan) towards retirement eligibility while she is still working for the city? That is, assuming the DB plan accepts such a rollover.

If an Employee is terminated and elects COBRA continuation coverage and then is given severance pay provided he signs a general release, does the signing of this general release give the Employer the right to terminate the Emoployees COBRA Coverage?

We have updated to Relius version 7.0 with the new 8.5 Crystal Reports. I have many "custom" reports that I keep in my Crystal Directory. Is there an easy way to update these reports from the old Crystal version? I started to open each report, verify the databases, and update, but it seems to me that there ought to be an easier and faster way to do this. Any ideas? Thanks in advance.

What do you do when an employee refuses to set up an IRA?

:confused: Well, the lines have been drawn in the sand here. We have both an e-mail monitoring and an internet tracking software in place (2 unrelated pieces of software). Our IT department selected and implemented without any input from HR or any written policy in place.

Reporting is worthless in both pieces of software and HR is peeved because we can SEE the abuse, but because of the poor reporting, there is not really enough written documentation to do anything about it.

What does this mean? Time (already) for new software. I've seen ICaughtYou.com, but what other solutions have you seen out there or what is being done where YOU work???

Thanks in advance for any help I can get...

Our firm is consulting with a client about establishing a cafeteria plan for benefits the employees currently pay for after-tax. Management is concerned that a cafeteria plan would be a disservice to employees since it would reduce their Social Security benefits. We have provided some analysis, using data from the SSA website, showing that the impact on SSA benefits is minor (even for a older participants) compared to the tax savings.

Now the client is considering developing a cafeteria plan to take advantage of the income tax savings, but reporting the benefits for FICA tax purposes. I think it's strange, but I don't want to blow-off the client. I'd appreciate any suggestions on how to design the plan to minimize the impact on SSA benefits and/or convince the client to get past the issue.

Looking for some help in understanding the employer's required contributions in a Simple 401K plan.

If an eligible employee elects to not have contributions withheld from his/her salary, is the employer required to make any contributions into that employee's account?

Thanks for the help!

Can anyone direct me to a primer on 412(i) plans? I know that they are exempt from section 412,but what about other issues,like 415 limits,topheavy accruals,and minimum distributions?Thank you.

This year I converted my traditional IRA to a Roth IRA. This happened early November when the market was very low and I made contributions when the market was very high (97 - 00) I had a capital loss in the conversion. Both the traditional and Roth IRA were the same fund. Can I claim this loss on my taxes?

Participant retired January 4th and has elected to receive pension (DB Plan) as an immediate annuity ie first payment Feb 4th. Client (not the participant) is purchasing required annuity (10 C&C) from insurance company.

Participant will reach 70 1/2 in June 2002. Insurance company is saying the participant must receive a minimum distribution before we purchase the annuity.

My reaction (1) This is not a rollover distribution, but the purchase of an annuity to provide the participants required benefit.(2)we are distributing the entire annuity contract to the participant before she is 70 1/2, (3) I did not stop to do any caculations but at 70 1/2 the current monthly benefit payments should exceed the RMD

Did I miss something?:confused:

We just found out - by way of an obscure link on our company's intranet site - that they will be holding their promised contribution to our pension plan until 12.31.02 instead of making bi-weekly contributions as done in the past. AND if we leave employ before 12.31.02 - we lose their portion of the contributions!!

We're RIPPING mad!!

#1 because we'll lose anything we might have earned on that money during the year, while they collect interest on it.

#2 because if we leave (or get laid off like they did to people this year) on 12/30/02 we lose ALOT of money! and

#3 - almost as importantly, they have not notified us!! Someone accidentally came across a notation on the company's intranet site and passed it around.

Is it legal for them to change our plan like that - to withhold money they previously promised to us? And aren't they required under ERISSA to notify each of us in writing if they're going to do this to us??

Sympathy welcomed!! :mad:

what are the income limits for a roth in 2002?

johnny been

Participant is married to H1 at her annuity starting date and begins to receive benefit payments in the form of a QJSA. Participant then divorces H1 and marries H2. Participant then dies. There is no QDRO between H1 and participant.

Is there no survivor annuity payable? Or, do H1 or H2 have a right to the survivor annuity?

Thank you in advance for any response.

I am a Canadian citizen that has been working a Texas company for a 1.5 years and I am about to be laid off due to the lack of work. I am on a non-immigrant visa for Canadian professionals called TN (Trade NAFTA). Will I be eligible for a COBRA coverage if I stay in the US as a visitor? My visa is tied to my employment and I lose my TN visa the day I will be laid off.

Any help will be greatly appreciated.

A client is looking for a Trustee for an in-kind transfer from a qualified plan to an IRA. Assets include a mortgage. Anyone know trust company(ies) that will accept it?

Thanks.