I am preparing Form 5500 for 3 companies who are all under the same self-insured health plan, but have their own cafeteria plans. I need help deteriming what to report on which Schedule F. I have reported the employee and employer contributions on each of the three companies' separate Forms 5500. Then I reported the re-insurance premiums plus the claims paid on the Form 5500 of the company who is the sponsor of the self-insured plan. Is this correct?

I am attempting to obtain requirements for non-elective contributions to a 403b plan. Time is unfortunately of the essence and I have been unable to locate much authority. Any information is helpful. My personal email is AIsraeltax@earthlink.net. Thank you.

An employer maintains both a 401(k) plan and a recently acquired 403(B) plan (acquired entity). What are the aggregation rules for testing these plans? Mandatory? Permissive? Cites? Thank you very much...

Maxwell

I'm trying to write a brief description of the interplay between the continuation of health coverage under COBRA and USERRA for large employer groups. The 1999 Final COBRA Regulations indicate COBRA's "alternative coverage" rules apply to USERRA continuation coverage. (I assume USERRA should be treated as "identical" alternative coverage. ) However, after reading the COBRA regulations I still find myself confused. At this point, I believe that both USERRA and COBRA must be offered when the military leave begins even though they are basically the same. I also believe the USERRA period runs concurrently with COBRA for the first 18 months. My question is whether COBRA can be obtained for a period of time after the 18 months of USERRA is exhausted. For example, COBRA runs 18, 29 or 36 months under certain circumstances. If a person who elected USERRA later becomes disabled, can he/she elect 11 months of COBRA coverage at the end of the 18 month USERRA period? If the employee dies, are the dependents entitled to elect 36 months of coverage from the date of death? (not the date the military leave began?) Thank you!

Any ideas as to the going rate to amend and restate PSP for GUST/EGTRRA including determination letter filing? Also, any differences between volume submitter and prototype plans???

Hello everyone!! I am new to this forum so please bear with me. I have a question concerning the leaseback provisions in IRC 514©(9)(G)(i)--this section allows a qualified organization to leaseback to a related party if the lease is not more than 25% of the space in the building or "complex of buildings"--is there any guidance on defining "complex of buildings"--i.e. does it include several buildings by the same seller, although not connected?

Thanks.

Is it 12/31/01 (for calendar year plans), or the 2001 tax return deadline for employer sponsoring the plan?

I want to roll over an IRA into I bonds. I need a custodian to maintain the bonds. Is there a list of possible custodians that can hold I bonds or will any brokerage firm work?

Question regarding a partnership's Profit Sharing Plan.

Facts:

a) Only discretionary contributions are made to the PSP.

b) The plan has 8 participants ...(3 are partners & 5 are regular employees).

c) The plan year end is 12/31/00.

d) No contributions are made during year 2000.

e) In January 2001, the contribution $amount for year 2000 is determined ($ 8,500). Also, its allocation among the 8 participants is properly computed ($ 2,000 for each partner and $500 for each regular employee). [3 @ $2000 = $6000 and 5 @ $500 = $2500].

QUESTION (concerning the payment of the contribution).

Can the partnership contribute $2500 to the plan trust in January 2001 for the 5 regular employees .... and then in March 2001 each of the partners write a personal check for $2000 to the plan trust ? (In other words: Can a partner fund his Keogh with a personal check ....or must an employer check be used ?).

Anyone know of a tax code or reg that addresses this issue?

A plan I am working on only allows for a terminated employee to receive a lump sum payout after a break in service has been incurred. This means that some former ee's must wait a lengthy period of time (some more than 1 year) before receiving their final distribution.

My question is whether a terminated participant, who is not yet eligible to withdraw his account because of the break in service rule, may still be eligible to use the hardship withdrawal as a means to get to their money (as long as they qualify on account of immediate and heavy financial need).

I cannot find anywhere in the Plan document that says this is disallowed, however, I was always under the impression that a hardship was only an in-service withdrawal, and that in-service meant the participant was employed. What are your thoughts on this?

I received a call from a client who said they want to terminate their 401(k) plan and start a 403(B) plan because it will be better for them. I am not familiar with 403(B) plans and I am hoping that someone on these boards who is familiar with them can fill me in a little bit about why a 403(B) plan would be preferable to a 401(k)? I have a feeling that this client has been approached by a salesperson to make this change and I want to make sure they are making the right decision.

Thank you.

I understand from Section 4302(a) of USERRA that USERRA does not supersede, nullify or diminish any Federal or State law that establishes a right or benefit that is more beneficial to, or is in addition to, a right or benefit provided under the specific provisions of USERRA.

My question is this: What if you have an employer who sponsors an ERISA plan and the state statute provides that continuation coverage must continue as long as the employee is out on military leave? USERRA would only grant the individual 18 months. Suppose an employee is out for 4 years.

In this case, does the state law apply so that the employee gets to elect continuation coverage for the entire 4 years? Looking at 4302(a), you would think yes, but what about COBRA? COBRA, as a federal statute, in my opinion, would preempt the state law. If preemption did not work here, then any state health or welfare laws having anything to do with military service would ALWAYS preempt an ERISA rule. How can this be? Has anyone had this issue come up?

As always, thanks for any comments.

Does anyone know of a company that sells insurance to cover the loss which might occur when a participant terminates with a "balance due" on their medical reimbursement account. I have a law firm client that won't consider the medical FSA unless they can be assured of not incurring a loss.

I need an answer yesterday, if anyone can help. Thanks

Under the proposed Reg's issued 1/17/2001, 1.401(a)(9)-7 Q-1 and 2, it clearly indicates that the RMD may be rolled over from a qualifed plan to another plan and that the receiving plan does not consider this amount in the determination of the amount of RMD to be issued by the receiving plan. There seems to be quite a bit of confusion here. Clearly in IRA's, the rollover of an RMD is not permitted. It seems that the proposed Reg's, recently upheld, now allow for qualified plans to rollover the RMD. This effectively "buys" a year for the participant from taxation, and is basically a tax dodge in the early years. Anyone have any thoughts on this. If correct, this is a major "loophole" in the issuance of the RMD from a taxation point of view from qualifeid plans.

We have a plan that has traditionally been top heavy. In 2001, the president of the company, who had always been considered a key employee, terminated employement. His 2001 compensation was under $130,000. It is a calendar year plan. It seems to me that he would not be considered a key employee in the top heavy determination for the 2002 plan year, as he doesn't meet any of the three definitions during the determination year ending 12/31/2001. My colleagues & I have some reservations though, as he was a key employee in 2001. I think I remember reading about "ex-key employees" somewhere. Can anyone else give me a second opinion here?

thanks

Grant

A money purchase plan was frozen 2 years ago. Now the plan is going to be terminated. The participants were given a notice when the plan was going to be frozen. Is a notice to participants now required for the plan termination?

My firm is contemplating adding to our program for our clients to offer special discounts on mortgage loans to their employees that people don't normally receive. The company can use this as an employee "perk", "benefit".

Is this something that companies would be interested in offering to their employees?

What would some of the critical points be that an HR Director would be looking for from the mortgage company in order to create this kind of partnership?

I don't want to come to the table unprepared. I appreciate any input. Thanks.

I have been asked whether it is lawful for a self-insured medical plan to charge different premiums to employees on the basis of their incomes: the higher the income, the higher their premiums. It seems to me that nothing prohibits this practice as it discriminates against the highly compensated employees. Any thoughts?

As I always undertood it the reason for excluding 125 Plan salary reductions under the definition of compensation for deductibility under 404 was that since 401(k) elective deferrals were employer contributions and therefore excluded from the definition of comp under the language of 404 and 1.404(a)-(9)(B)(2) and since amounts under a 125 salary reduction were kinda-like 401(k) deferrals they should also be excluded in the definition of comp. The only thing I ever found on this was PLR 9225038 Was there ever anything else?

Now, under EGTRRA it is clear that elective deferrals are not taken into account in determining the amount of contribution subject to the 15% limit, but I assume the rule relating to the definition of compensation remains the same--elective deferrals and salary reductions to a 125 plan are excluded from the definiition of compensation for 404? Is this correct?

Hi,

I wasn't sure where to post this, but thought this would be a good place to start as I see other agents/broker's posts regularly. I currently work at an agency and am building my book of business. I primarily do group health but also ancillaries (dental, life, disability). I came into the agency two years ago having spent the prior 18 with a major health carrier. The agency principal is nearing retirement and we have discussed me taking over the business. His book is also primarily group health with many of his clients my old clients when I was at the carrier. The current income breaks down approximately 55% group, 20% individual health, 15% P&C, and 10% life commissions.

I've done some research and most of what I see on the internet focuses more on buying p&c agencies or finacial planning practices. Does anybody have experience either buying or selling a practice where the bulk of the income is group health. One time fee / multiple of income? Percent of renewals? I'm open to any advice.

Thanks