A client has a cafeteria plan with premium conversion, Medical FSA and DCAP accounts. The company manages convenience stores and has employees in upwards of 50 locations across several states. There are 2-4 ees at each location and they all work different shifts. When plan was installed last year, there were all employee "seminar" type meetings to explain the program. We finally got all the enrollment forms and participation waivers (when applicable.) New employees coming in have been enrolled and completed forms, etc. Now it is open enrollment. I know we will need new elections for anyone who wants to use the FSAs next year. Is there any requirement that we get an annual waiver from people who do NOT want to use the FSAs? We have always had our clients go through the entire process each year but, in this case, with the logistics involved, it could take forever to get all the forms again. There are only about 10 people who actually used an FSA this plan year. The Plan Administrator would like to just send out a notice that anyone who wants to use an FSA next year needs to complete the proper forms before 12/31. Thanks for any input.

Employer properly includes all cash & charged tip income in compensation paid to wait staff, for purposes of FICA, FUTA, and income tax.

However, wait staff has practice of forwarding some of the after-tax tip money to the sub-wait staff, such as busboys, dishwashers, etc.

Presumably, the sub-wait staff would report this forwarded tip income on their individual 1040 returns. However, how should transmission of the forwarded tip income be reported? Via 1099 from wait staff to sub-wait staff?

Any comments welcome.

Tech Companies with approx. 300 employees:

Do you offer a company match on your 401k Plan, if so how much?

If not, what other incentives do you offer?

Thanks

Barb5494

Can a Roth IRA be opened as an UGMA/UTMA account? If so, how should it be titled?

I know very little about 403(B) plans but can someone explain the reasoning and mechanics of the old 402(g)(8) catch up and how it is effected by EGTRRA if at all.

Anyone seen or drafted a 401(k) enrollment and salary deferral election to include a participant's election for the catch-up? Anyone willing to share samples of language or refer to me something? Any help? Thanks.

An IRA holder has been receiving required minimum distributions for several years. In the year of his death, is the minimum distribution still required? If so, is it based on the deceased age or the beneficiary's age?

I have a 403(B) plan currently sponsored by a 501©(3) organization. If the sponsor changes to a 501©(3) governmental entity will the government status enable the plan to rely on a deemed pass of all group compliance testing? Also the plan will go from ERISA covered to Non-ERISA covered. It is my assumption that the assets in the plan prior to the change in sponsor will continue to be subject to ERISA therefore the funds will have to be accounted for separately. Is that an accurate assumption?

Does anyone have any good references for the laws in each state for STD, i.e. which states have programs and which don't?

If you are part of a multi-state company, do you have insurance for the STD for all states involved?

If an office has an early closing, for example if you close at 1:00 on Christmas Eve, do you charge employees 1/2 day vacation or a full day vacation if they are out that day? We've always done a full day because of the reason most of our employees are exempt, and with exempt employees, we believed it wasn't proper to "hours count". Were we correct? What does your company do?

Looking for some comparisons...does your Tuition Assistance Plan have a waiting period for new employees and if so, how long?

What kind of approval process does one need to go through to have all courses relating to a degree covered under the TAP?

I am trying to find find copies of multi-employer plans on line. Any suggestions?

We are administering an ESOP paired with a 401(k) plan administered by a well known insurance company. I calculated 415 refunds based on their being returned from the 401(k) plan. In several instances involving HCE's the amount of 415 excess causes the employee to be reduced below the matching percentage (50% up to 6%). So I calculated the deferral plus matching percentage that would cause the employees to max out their 415 and suggested the employer return the deferrals with earnings and use the match with earnings to offset future contributions.

However, they propose to return only salary deferrals. My contact at the TPA says their prototype basic savings plan was approved by the IRS and they are following the document.

If the 415 excess is corrected in this manner there are several HCE's who will be receiving a discriminatory matching amount as they will receive more than 50% up to 6%.

I am using The ERISA Outline Book and corresponding IRS code as my source - Chapter 5 Section II D2c (Suspense account method (Method #3) page 5.41, Chapter 5 Section II Part E #5 (amount of excess attributable proportionately to elective deferrals and matching contributions) page 5.45, and Chapter 11 Section XII part E 3 page 11.247.

Additionally, the TPA believes that due to SBJPA deferrals to the non-qualified plan should be included in the Gross Compensation for 415 purposes. I understand SBJPA changed 415 compensation definition to include elective deferrals described in 402(g)(3) (i.e. elective deferrals under a 401(k) plan, 403(B) plan, SIMPLE-IRA, SARSEP, 125 Plan or 457 Plan).(ERISA Outline Book p 1.64 Compensation definition Part A 6) Include deferrals to a non-qualified plan. I think not.

I appreciate your help and input.

What items should I be cautioned with when creating a Safe-Harbor Match plan with a P/S New Comp Plan for our company?

I understand the "free ride" for testing with the safe harbor plan but I am more concerned with the P/S plan beneifiting the HCE level group by no more than 1/3 of the lowest NHCE.

e.g. Group 1 = 6%

Group 2 = 4%

Group 3 = 2%

I am trying to arrive at the owners of the company (Group 1) get most of the "extra" P/S money, if any, at year end.

I understand the guarantee of the 4% total match is close to being the minimum getway allocation of 5% thus just move the entire plan to new comp. Also, it is a small number of employees (10) and I think all would participate and think about the 3% non-elective. At least this way the only guarantee from the employer would be a minimum 3%.

What am I missing with structuring a plan of this type? Am I going about creating this properly?

Thank you for your input.

Are after tax contributions able to be used to pay insurance premiums inside a qualifed plan?

When a sole proprietor dies, who takes over the duties of trusteeship?

Does the plan become and Orphan Plan?

Is the plan required to be terminated immediately since there is no longer anyone to continue the administrative duties?

Thanks

What are the 2002 DB limits?

We have just engaged an outside provider to manager our long term disability program. They will manage the payments, FICA deductions and W2s to those on LTD. How does the employer wind up paying their portion of the FICA? We currently use ADP to manager our payroll.

Does anyone know of good reference material for Prevailing Wage Plans? I have just a limited understanding of such plans and need to learn more.

We have an individual that worked for a state government for much of 2001. He maxed out under the 457 plan. He quits his job with the government and is now self employed. Can he establish a SEP for the self employment during 2001? I don't see why not, but I am not confident with my knowledge about SEP plans.