One site I found that helps me with benfits is

www.iworkwell.com

they have a lot of good articles and guidelines in their HR 101 section.

I emailed them with a few questions and they sent me a code for a free trial. With it you can access the whole site.

gehrett

Is anyone aware of IRS guidance re: at what point a self-insured welfare plan is discriminatory when the contributions made by highly compensated employees are lower than those made by other plan beneficiaries? I'm looking for a formula for a mechanical (rather than conceptual) analysis. I.e., how is Reg. 1.105-1(e) actually implemented? All leads are appreciated

Assume plan sponsor has adopting employers of a 401(k) plan, but there isn't common control within the meaning of Section 1563. Each adopting employer utilized a different matching contribution rate. Is there any requirement that the matching contribution rates be disclosed to other adopting employers?

Is the result different if the plan is a multiple employer plan of totally unrelated employers?

Accumulated sick leave is paid after an employee terminates. Can sick leave be used as part of a 457 deferral even though the employee does not receive payment until no longer being an employee?

We are enrolled in a 125 plan that includes a premium conversion plan (POP) and FSA with a plan year of 1.1.0x - 12.31.0x. We are a county that has a self-funded insurance fund for all health, life and 125 contributions. Our plan administrators are considering raising the employee contribution (which is currently offered with the 125 plan on a pre-tax basis.) sometime within the next year, possibly before the new plan year and possibly after the new plan year begins to assist with the funding issues we are facing.

Would the difference of premium still qualify for the pre-tax deductions or would the difference be an after-tax deduction? Do the employees who have an increase in their contribution rate need to submit a salary redirection form authorizing the increase?

We are trying to determine if we can raise the 401(k) rate for our HCEs beginning in 2002.

Due to the increased compensation limit for next year, we fail the 125% ACP test because we have an after-tax feature in our plan. I was told that I can use the Alternate (+2%) Rule, but can't really find anything in plain English to explain. Everything I find dates back to 1990, and I know there were changes from the small business act a few years ago. If we can use it, we pass.

Can someone point me in the right direction, or give an easy to understand explanation of the various ways to perform ADP/ACP tests and the choices you have?

A public school district is setting up a 403(B) plan for administrators. The district will be providing a matching contribution which will vest over time. After 3 years, the district's contribution will be 60% vested. After 4 years, it will be 80% invested. After 5 years, it will be 100% vested. The District was told to set up two accounts for the 403(B) contributions. The administrator's contributions would go into one account and the District's contributions would go into the other account.

The District has asked whether it has to file the simplified ERISA 5500 form. I know that generally a public school district's plan would not be subject to ERISA because it would be considered a governmental plan. Does this situation change that general rule?

Does the provisions of the Soldiers' and Sailors' Civil Relief Act (Relief Act) apply to participant loans from qualified plans?

The Relief Act was enacted in 1940 and has been updated since then. Among its provisions is the requirement that there is a 6% interest cap on mortgages, credit card debt and "other loans" entered into before being called to active duty. In effect we are looking at the "military leave" period.

Some practioners have been concluding it does apply and others take the opposite approach.

Keep in mind that there was no mention of this, to the best of my recollection, during Desert Storm in 1991. In addition the services covered under The Relief Act are less inclusive than those covered under USERRA.

Do the QJSA requirements apply to a participant's Other Investments Account in a mppp ESOP? I realize that Code section 401(a)(11)© provides an exception to the QJSA requirements for the portion of the P's accrued benefit to which the requirements of sec. 409(h) apply, but it has alway been my understanding that this does not except the portion of a mppp ESOP that is not invested in employer securities. I am restating an ESOP for GUST using the Corbel doc., and Corbel insists that the QJSA rules do not apply to any portion of a mppp ESOP. I don't think that is true, but if it is, can I now eliminate the annuity option from the plan?

Can an employee have COBRA payments for medical insurance deducted from his/her paycheck on a pre-tax basis to pay for a former-dependent's COBRA premium? The daughter's qualifying COBRA event was college graduation and no longer qualifies as a dependent as defined in the medical SPD.

I believe the answer is no since the daughter no longer qualifies as a dependent as defined by the IRS, but I have a client that wants me to show them "where it states that."

Thanks!

I am aware that starting in 2002, rollover contributions from a governmental 457 plan may be rolled over into a qualified plan provided that the qualified plan separately account for the 457 rollover. I have three questions:

1) I assume that the reason for the "separate accounting" rule is because upon distribution of the 457 rollover from the qualified plan, the 457 rollover is exempt from the 10% early distribution tax under 72(t). Can someone please confirm?

2) Will the exemption from the 10% early distribution tax apply to the principal amount of the 457 rollover only, or to the earnings on the 457 rollover as well? In other words, if a participant rolls over $20,000 into a qualified plan in January 2002 and the money has appreciated to $30,000 when it is distributed in December 2002 upon the participant's termination, what amount is exempt from the 10% early distribution tax?

3) Do you expect a new Box 7 code on the Form 1099-R to identify distributions of 457 money?

Thanks for your help.

If an employee has taken a plan loan and then requests a hardship withdrawal, do they continue to make the loan payments?

We have been contacted by the United States Attorney's Office, N/D of Oklahoma concerning paying out $6,000 of a participant's balance. The participant is in jail. Apparently MVRA does not exempt money belonging to a criminal defendant which is held in an ERISA qualified pendion fund. Is this correct, that we would have to pay out the requested amount to the court?

In testing a tiered allocation in a safe harbor 401(k) plan you cannot impute disparity on the deferrals or the 3% safe harbor contribution, only on the "pure" employer contribution. For a participant whose only employer contribution is the safe harbor (forget the 2002 gateway) when you calculate the adjusted EBARs, his A-rate = 2 x unadjusted EBAR,based on the 3% safe harbor, and his B-rate = unadjusted EBAR + permitted disparity factor. The pdf = 0 so his B- rate = unadjusted EBAR.Or do you pull the safe harbor contribution out entirely which leaves A-rate = B-rate =0 ?

I have an unfortunate set of facts. A long term Post Office employee and his spouse divorced in April, 2000. In the marital settlement agreement (which was incorporated into the final judgment), the parties agreed that "Wife is entitled to one half of Husband's pension from the United States Postal Service. Said pension shall be payable by QUADRO (sic)." I'm sure they meant "QDRO" but they really should of said by "Order Assigning Civil Sservice Retirement Benefit to Former Spouse."

For some reason, the parties waited a year to ask me to draft the "Order." When I asked for information, the former-wife's family lawyer contacted the former husband's family lawyer for the information and was informed that the Post Office employee (the husband) had died several months earlier.

Although the ex-wife was named as the "survivor beneficiary" the Office of Personnel Management said she could not get a survivor benefit because the divorce decree makes no reference to any survivor benefits.

I've also was informed that OPM would not accept the "Order" now because the husband/employee was deceased.

I'm looking for someone with experience with this type of situation specifically or at least a good deal of experience dealing with the OPM and the CFR provisions dealing with former spouse benefits. I'd be more than happy to refer the right person to the lady and her family lawyer.

This is a sad situation for this older lady.

If a particpant in a DB planis in a coma, what is the procedure as far as getting the participant to waive the J&S for distribution purposes?? The spouse would like to roll the money from the plan. Does she need power of atty?? or a court order?? Any help would be appreciated. Thanks.

if a 5500 is filed on time but with a missing scedule (CPA audit report), what are the ramifications? the cpa report will be filed eventually but it is currently not complete. would the DOL consider the 5500 in fact filed or is an incomplete 5500 mean a late 5500? Is there anything that can be done besides filing the CPA report to minimize the damage?

The IRS instructions for filing IRS Form 1099-R states that the box ' Total distributions' must be checked if the distribution closed the IRA.

What happens ( i.e. are there penalties etc.) if the box is not checked?

__________________

WANNABE A RETIREMENT PLAN GURU

The IRS instructions for filing IRS Form 1099-R states that the box ' Total distributions' must be checked if the distribution closed the IRA.

What happens ( i.e. are there penalties etc.) if the box is not checked?

Company is terminating an overfunded DB plan. Plan assets will be used to purchase paid-up annuities for all participants, balance of assets revert to Company. Query: Do all the Prohibited Transaction rules apply to commissions paid on the annuity purchase ?? --- I'm thinking 'the Company is actually paying since the commission merely reduces the reversion amount.' Thanks for any assistance.