If I opened a Roth IRA with my former employer's pension check, would it be considered taxable income?

I am looking at a prototype flex plan document that calls for the plan sponsor to "advance a sufficient amount to make the required contribution" in the event a plan participant does not have sufficient compensation to make his or her flex plan election contributions. Advanced amounts are to be recovered by way of future salary reductions.

Is this kosher? I can see state wage and hour law problems with the increased deduction from pay. And if this is meant to address an unpaid leave situation, wouldn't it be trumped by the FMLA/Flex plan regs that were issued some time ago?

My question is this.

I am a full time salaried employee who does not recieve benefits. I have worked for the same company for two years and now am realizing the necesity for health insurance. Other employees of the company are offered health insurance and when I questioned my avalibility for it I was giving the run around. I live in New York and I'm wondering if they have to offer it to me?

Any help would be great

Thanks, Kevin

I know this may be a non-issue next year.

Corporation S (seller) sponsors a 401(k) plan. Division D participates in the plan. Corporation S sells all assets of Division D to an unrelated Corporation B (buyer). Corporation B also maintains a 401(k) plan.

Under 401(k)(10)(A)(ii), a distribution may be made from Seller's plan to participants in Division D.

QUESTION: Does Seller still have the option to transfer the accounts to Buyer's plan in a trust-to-trust transfer? Or since 401(k)(10) applies, may the Division D participants demand a distribution? What gives the Seller the right to transfer and not distribute?

Even in 2002, would the Seller have the right to transfer and not distribute?

If it makes any difference, the asset purchase agreement included language that no distributions would be made, but the accounts would be transferred to the buyer's plan.

Thanks for any insight.:confused:

Have taken over a plan where 22% was contributed in 99 and

23 % in 2000. The contributions are made up of deferrals & employer money. Problem is in early 2001 a hce employee was paid out and part of the money was this excess. I do not know how to correct. Should I put this through EPCRS?

We have a medical practice that was bought out by the hospital. The group of doctors at the practice have incorporated and now lease the NHCE's from the hospital. The hospital has a 401k plan with an employer match which the NHCE's participate in. There is no employer discretionary contribution from the hospital.

The doctors have set up their own 401k plan. There is no match, but they do have an employer discretionary contribution. Would the doctors have to make a discretionary contribution for all of the eligible leased employees?

Does the doctors 401k stand on its own for testing? I need help in understanding how all this works (in plain English, please).

Just about every plan I've ever seen has stated that Advisory or Administrative Committee members shall serve without compensation. However, I have a couple of situations where some of the comittee members are not currently on the employer's payroll. They are retirees, and they have asked whether it is permissable for them to receive compensation for their services.

I cannot find anything precluding their receiving reasonable compensation, although there is that worrisome plan language about serving without compensation, that must have come from somewhere. Anyone know WHERE?

My client wishes to augment their flex plan and offer a 50% match of Medical Expense to $125 max, and Day Care to $208 max if the employees elect not to participate in the Health Plan. Is this leagal? I forsee that there will be employees drop coverage alltogether just to get the 50% match. Can you please advise?

Does anyone know whether loans can be made under a frozen plan? I believe that frozen plans are still considered on-going plans, but wasn't sure whether this meant that loans could be taken and repaid through salary reduction.

Our health care plan is a self-funded governmental plan not subject to ERISA. For many years, this plan has enforced a subrogation clause. Anti-subrogation rules apply in our state (NC) but may be preempted by ERISA for self-funded plans.

Since we are not an ERISA plan, but are self-funded, can we enforce our subrogation clause?

Technically, must the top-heavy contribution allocation in a defined contribution plan meet 410(B) coverage testing? I know it would be extremely unusual for the plan to not meet it, but is there any exemption from coverage testing? I'm thinking in particular of a 401(k) plan in which the only contribution other than the deferrals is the top-heavy contribution, and there is a last day requirement for top-heavy.

What are the potential consequences to the sponsor of a 457(B) plan that has not yet put plan assets in trust, as required by 457(g)?

I know that under current law that if an employee does not render services to the employer at any time during the five year period ending on the determination date his/her balance is disregarded from the top heavy test. We have a situation where the owner of an s-corp took herself off the payroll five years ago. She still is somewhat involved in daily operations, she just doesn't take a salary. Can we exclude her from the top heavy test?

With the call-up of the reserves, we have a lot of companies asking questions of continuation coverage. I know it has to be provided under USERRA and that it is very similar to COBRA. Couple of questions: Is it OK to use a modified COBRA notice to provide notice? If the employer voluntarily contributes partial or total cost of coverage, are there any discrimination issues I should be aware of?

Recently purchased Relius Adm System and attended training seminar. Encountered several unexpected problems, such as:

1. Apparently the program can not solve for net compensation in the case of a Sole Proprietor or Partnership.

2. Because the above, it seems impossible to run New Comp PSP for such plan sponsors.

Multiple conversations w/technical support confirmed the above.

Can hardly describe our frustration and disappointment. If anyone was able to run plans for SP or Partnerships....pleaseet us know how did you manage it. Thanx...AC

I was laid off by my company and they are withholding HCSA deductions from my lump-sum severance. I read somewhere that once there is a severance of employment, the company can no longer withhold pay. Does anybody know if this is true? I can't convince them, and I thought a cite would help.

As a result of EGTRRA. For death distributions after 2001 will the surving spouse of a 457 plan participant be eligible to roll such distribution to an IRA ?

Any good links, websites, previous posts, books, etc. to find out more information on the proper way to start a TPA. Things to consider, pro's and con's, type of organization, yadda yadda yadda.....

Thanks,

JimJ

PS - daily environment, web & vru capabilities. DC only.

Question: If an employee is called to active military duty and has an outstanding loan in his 401k, what are the ramifications?

Do we just pick up where they left off when they return to work (assuming they do return)? Is there any time frame? (i.e.- in the case of a normal LOA, if they return within the quarter and make a loan payment, the loan will not be defaulted.)

Also, are there any other special considerations re: Benefits for military leave?

We are a TPA in Missouri and have a client who does not have an Actively-at-Work clause in the plan document. Here is our situation:

Employee's date of hire was 5/9/01. The plan has a waiting period of 90 consecutive days, then they are eligible first of the month. Therefore, his effective date would be 9/1/01.

He worked from 5/9/01 to 8/17/01 at which time he was diagnosed with a brain tumor and has not returned to work. The client has already deducted a month's worth of premium from his payroll check.

Regarding the new HIPPA nondiscrimination regs which were effective 7/1/01 - I have a couple of questions:

1. Do they have to let him on the plan effective 9/1/01, and if so what would be his termination date as he is not going to be returning to work?

2. With the client not having an actively-at-work clause in their plan document, how do the new regs affect this situtation?

Thank you for your responses.