What is an employer's responsibility to notify former employees when the employer moves the company's 401(k) plan to a different company (i.e., Aetna to Fidelity)? And, if they are not required to notify the former employees, who determines what funds the former employees' money is invested in?

I just need some clarification on Late Enrollees. An employee waived coverage through her employer due to having coverage through her husband's employer. The husband's benefit plan changed at the last open enrollment to higher copays and employee contribution. This couple has now realized that the benefit plan through the wife's employer is a better deal and want to enroll. Is this a qualifying event under late enrollee provisions? If so, doesn't enrollment have to happen within 30 days of the qualifying event?

A company currently sponsors a non-safe harbor 401k plan where very few NHCEs defer, limiting the owner to very small deferrals and matching contributions for himself. Present match is 100% up to 3% of comp with a 2/20 vesting schedule. It would appear amending the plan to a safe harbor design where the match would be 100% vested and be increased for an additional 50% match on the deferrals between 3 and 5% of comp. would be worthwhile so that the owner could defer $11,000 next year and receive the full match.

Since the owner stands to significantly benefit while contributing a match to a very small portion of the employees, would the plan have to be cross-tested for 401(a)(4), or does the safe harbor design eliminate this concern?

The plan has about 20 employees and is currently not top-heavy, but if the owner will be making maximum deferrals and receiving full matches, he will have to provide all participants a min. TH benefit of 3% of comp. in an estimated eight years.

Have found next to nothing with regard to and have no prior experience with "multiple employer plans". I would appreciate any and all comments from my "esteemed and learned peers" regarding the following situation:

"Dad's" company sponsors a 401(k) Plan. Dad's adult "Son" owns his own small business. No overlapping ownership interests, so I am assuming (hoping?!) not a controlled group.

Dad wants to let Son's company become an adopting employer of Dad's company's 401(k) Plan (to save start up document costs and to help defray ongoing admin costs).

Would this be a "multiple employer plan"?

What are the considerations, ramifications, benefits, downsides, etc., of such an arrangement (e.g., recordkeeping, testing, 5500, etc.)?

Thanks to all for your valued input!

Assume client owns 100% of company A and 50% of company B. Must these clients be combined for tax qualification (i.e. non-discrimination,etc.) testing purposes by the contract administrator?

A company provides a group health plan to its employees through a cafeteria plan. The benefits of the group health plan are fully insured. Both the group health plan and the cafeteria plan pass applicable nondiscrimination tests.

The company wants to give its executives (all of whom are HCEs) the opportunity to take an annual physical on a strictly voluntary basis. This physical is not provided by the medical insurance purchased by the company for purposes of its group health plan. Instead, executives will take physicals at a hospital, and the company will pay the cost of the physicals to the hospital. The company will not receive any information regarding the physicals except that they have been taken.

No employees other than executives will be given the opportunity to take the annual physical at company expense.

1) Does this arrangement for executive physicals constitute a self-insured medical reimbursement plan within the meaning of Code Sec. 105(h)(6)?

2) Is it per se discriminatory?

3) Could the cost of the physical be justified as an ordinary and necessary business expense and therefore beyond the scope of Code Secs. 105/106?

4) If the arrangement is a self-insured medical reimbursement plan and is discriminatory, is the consequence merely that the cost of the physicals would be includible in compensation for the executives?

Thank you.

John

While completing the 2000 5500, I noticed that the financial information on the 1999 Schedule I is incorrect.

When filing an amended return, Should I send a 1999 5500 with box B(2) marked, along with a corrected Schedule I? Or should I include all Schedules, even those that required no corrections?

What penalties are imposed when a "top hat plan" is deemed to have failed and is no longer considered a top hat plan?

Also, what rights, if any, do other employees (who were not part of the "select group" in the plan) have against the employer since the "top hat plan" is no longer deemed such a plan?

I converted my IRA to a RothIRA the year before last, I think. Sorry to be unsure, but I don' t have my paperwork at hand.

My question is, what restrictions are there for contributing on an annual basis? I didn't make a contribution for 2000 because my accountant said our income was too high. I'm really confused about possible restrictions.

If you can't easily explain, could you point me to a place where I can read about it?

Thanks much.

Totally confused...... Susan

Now that delinquent 5500 forms (even for pre-99 years) are filed with the DOL rather than the IRS, what will your procedures be when filing a delinquent 5500 form?

Will you always use the DOL's Delinquent Filers Voluntary Compliance Program (DFVC)? Why or why not?

Will you send a letter of explanation with the delinquent filing?

Will you send a request for waiving fees or penalties with the delinquent filing?

Will your procedures change from whatever delinquent filing procedures you used when filing with the IRS?

Do the answers depend on the reason the filing is delinquent?

As long as a plan does not provide for hardship withdrawals, does not provide for different distribution options depending on source, and the plan accounts for deferrals long enough to do annual testing each year:

Is there any reason a plan has to keep track of how much of a participant's account balance is from deferrals versus how much is from employer contributions? Why?

For determing the safe and unsafe harbor percentages for rate group testing, is it permissible to round the NHCE concentration percentage to the nearest whole percentage?

For example, the NHCE concentration percentage is 74.74%. Should I use the safe and unsafe harbors for 74% or 75%.

Thanks.

I have heard Suze mention on several occasions about a 9% interest rate on IRA's. In one of the books, she speaks of a 8% return rate. Where are these rates found? I have searched banks and other financial institutions on the internet and have only found in the 4-5.6 range.

For those of you who were wondering where the documentation is for the change in the amended or delinquent forms for pre-1999 years, you will find it on page 11 of the "Troubleshooter's Guide to Filing the ERISA Annual Report". It is at the bottom of the page as a Caution. You will find this on the EFAST website.

By the way, this took 3 conversations with the DOL to determine where this was in writing. I had seen it here, but it seemed so casual that I expected a more formal announcement from the PWBA. Apparently not. So now we get to be hypervigilant, too.

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

One-man Corporation had a DB plan terminated a few years back in which the benefit had been distributed and the employer-owner paid taxes on. Now, he wants to start a new DB. Since he has already paid taxes on the previous DB, can the dollar limit be restarted (instead of being offset by the accrued benefit of the prior DB) as if the previous DB had never existed? Do you have a citation on your answer? Thanks.

Our company has changed health care providers from a regular BCBS to a government BCBS plan. Some of the employees have declined coverage and are being told they have to take the coverage if they are either not insured or have not provided a letter from their current insurance company. I declined and provided a copy of my insurance card and am told this is not sufficient. What is the length of time you should be allowed to review a policy to determine if you want to accept it and can a company deduct payments from your check if you have declined the insurance? Is it legal for the company to require proof in order to decline their coverage?

Thanks

Five or six years ago, at some conference at which the IRS was presenting, a question was asked about whether a frozen profit sharing plan could continue to exist indefinitely. The IRS's response was that without the possibility of future contributions, it could not. Since then, we have been restating our frozen profit sharing plans as 0% money purchase plans, since IRS indicated that this did not present the same problem.

However, we have seen no mention of this position either formally or informally since then. Is anyone familiar with this issue or does anyone have any direct or indirect evidence of the IRS's position? It is a pain in the neck to restate them if we don't need to.

Thanks for any input,

M.