Do all members of a controled group have to offer a medical plan to its employees ... just because the parent corp offers its employees a self-insured medical plan ?

I realize that a self-insured medical welfare benefit plan can't discriminate ... but what does that have to do with subsidiary employees not having medical coverage ?

I always thought that there were no "controlled group" effects, rules, requirements etc .... in regards to welfare benefit plans. (I realize that there are always important

controlled group aspects regarding retirement plans).

If an individual reached his required beginning date in 1998 and received the correct required minimum distributions for 1998, 1999 and 2000, but dies during 2001 before he receives the required minimum distribution for 2001, how is the 2001 required minimum distribution reported? Specifically,

(1) Is the 2001 required minimum distribution paid to the decedent's estate or the designated beneficiary?

(2) Is the 2001 required minimum distribution IRD?

Example:

IRA owner dies in 1999. His bene was a qualified trust (under D-5 & D-6). Under the Trust his designated bene's were his wife and child.

Assume bene's take their share outright from the trust before 12/31/2000.

Questions:

1. What life expectancy tables do we use for the bene's. New Regs or Old Reg tables?

2. When are the designated bene's determined: DOD (Old regs) or 12/31/2000 (New Regs)?. If 12/31/2000 (New Regs) can we use separate accounting for exp lifetimes.

Quick Thoughts:

I thought #1 was "New Regs" but in talking to a CPA he thinks that #1 is yet to be decided by the IRS. Do we need to wait for the June 2001 meeting for the IRS's final regs. If so, I find it incredible that this issue isn't decided by now.

For #2 I think IRS is still undecided.

I'd be interested in thoughts of anyone who has talked to the IRS about these issues. Thanks.

I am doing some career research in the field of employee benefits. Admittedly, this is a new field for me, but one that interests me greatly so I hope that these questions aren't overly simplistic. What are some of the different paths that can be taken in this field? From talking to some people I have gathered that I could work in a "niche" area of HR for a company or for a consulting firm that designs employee benefits packages. Are there any other ideas?

I have a degree in Economics and my previous work background is mostly in the financial services-area(insurance and securities sales). The generalized skills that I have are: problem-solving, planning and quantitative/analytical skills, as well as being in an advisor's role. The key thing in my next career is my desire to get out of commission work/sales and to be on a salary system of compensation. What job or jobs should I pursue? Any help would be much appreciated. Thanks in advance. Can use email: GBGAMB@aol.com.

Mike Berninger

My company will be opening an off-site childcare facility for its employees. The expense paid by the company is well over what we can reasonably expect our employees to pay. Can or should the difference be considered taxable income to the employee. My understanding is that the expense is made up of building, redesign, playground equip, etc. not the day to day expenses. Please help.

Code section 401(a)(11) provides that any benefit paid from a defined benefit plan or a defined contribution subject to the minimum funding standards of section 412 must be paid as a qualified joint & survivor annuity.

Reg. §401(a)-11 provides that a participant may elect not to take a joint and survivor annuity. The election period must be at least 90 days following the furnishing of all applicable information. It then says that in no event may the election period end earlier than the 90th day before the commencement of benefits.

This seems to indicate that the election period must be at least 90 days long and must end no less than 90 days before the commencement of benefits so the required notice here would need to be furnished at least 180 days before the commencement of benefits.

This appears to be in sharp contrast to §1.417(e)-1(B)(3)that says that written consent of the participant and the participant’s spouse must be made not more than 90 days before the annuity starting date.

What does Reg. §401(a)-11 really mean?

If I wish to permissively aggregate two 401(k) plans for coverage testing, are there any special requirements that I need to be aware of? It appears that both plans may need to have the same plan year and it also appears that the plans must meet the requirements of 401(a)(4) on an aggregated basis.

Anything else that I am missing? What if the plans have different match formulas and or different withdrawal features (benefits, rights and features)????

Sponsor of DB plan attempted to terminate the plan in 1995. Form 500 was filed with PBGC and participants were notified of termination, but no other steps were taken. Plan assets were never distributed, and no Forms 5500 were filed after the attempted termination.

Employees were hired (and some have left employment) after the attempted termination who have accrued service entitling them to participant status under the plan. Is the vesting status of those participants also 100%, or does their length of service and the plan's vesting schedule determine their vesting?

All replies appreciated.

As a Plan Administrator who would you contact to take action in face of a Corporate Merger or Tender Offer affecting your Corporate plan?

Can anyone give me a primer on the difference between fidelity bonds vs. ERISA/Fiduciary bonds? Are both required to be 10% of assets? Do both need to be in place before the beginning of the plan year in order to avoid an audit if the plan is small enough? What happens if a plan doesn't have a fidelity bond? Is it true that fiduciary bond is often covered under the umbrella of the company's general insurance coverage?

Thanks.

In order to qualify for the 1042 rollover, the selling shareholder to an ESOP can invest in stocks and bonds of US-based operating companies. Let's suppose Joe Seller buys 10,000 shares of GE as QRP. If Joe sells any of the GE QRP, will he trigger capital gains taxes on the entire ESOP transaction amount, or only on a proportional amount? Moreover, if the value of the GE shares grows, can he cash in on a portion of the gains, or is he locked into holding the shares and gains to his death? If this is the case, it appears the only logical investment for QRP would be in dividend-paying stocks, or interest-paying debt instruments.

My parents have set up an irrevocable living trust and are starting to place assets in it. They now have Roth IRAs with their 3 children as beneficiaries. Should these be changed so that the trusts are the beneficiaries?

My parents have set up an irrevocable living trust and are starting to place assets in it. They now have Roth IRAs with their 3 children as beneficiaries. Should these be changed so that the trusts are the beneficiaries?

I am a county employee whose department has found her unfit for duty, and put me on medical leave pending disability retirement. Now the retirement board sent me to a different psychiatrist and he says I should be able to return to work soon. So the retirement board is leaving the decision up to my treating psychiatrist. He says this is not his job and he won't get involved. What are my options?

I am in the Army currently serving a peacekeeping mission in Kosovo. This means I receive pay without taxes. My question is a longshot, but I'll try it anyway. I have approximately $10,000 I want to convert from a traditional to a Roth IRA. Does my situation exempt me from the taxes involved in the transaction?

My COBRA should have ran out in October 1999. I have paid my premiums during the entire period. The insurance company sent me a letter on April 30, 2001 that they should have discontinued my coverage in January 1999. They are going to cancel my policy effective June 1, 2001. I have applied for individual coverage, but the 30 day notice does not give me enough time to get coverage by June 1, 1999. Is there any regulation that requires at least a 60 day notice?

I am relocating to South Carolina, and will be taking a leave of absence from My current employer the, State Of Maryland. How much will will my health care cost me under COBRA and for how long. Can I continue my life insurance and 401 plans as well?

Where can I find information on the tax implications if one chooses to keep the shares of company stock which is a part of ones 401(k)?

My employment ended on Dec 31,2000. I informed my former employer to set me up with COBRA coverage for my wife and me. At that time the Health Plan was a PPO with Empire BLue Cross. I was advised that the premium would be $548.00 monthly . At that time the companies policy was that the employee paid 30% of single coverage and would absorb any additional cost for family coverage. The employer picked up 70% of Single coverage.I made 4 payment of $548 to date.

The company went into a partial self insured program March 1,2001 and i have now been advised that family coverage will now run over $1000 per month for essentially the same coverage. Contributions by employees are about the same as before, $240 a month for family.

I know this company well and there is no way they are going to increase their contribution to the tune of $7000 a year for each employee covered for family. They went into self-insured to save money. I am told that actuarials were used to come up with the premiums. I believe that something is wrong here. I would appreciate input from anyone that has a comment.By the way this is a company with about 500 employees,of which 150 employees in about 15 different states are enrolled in the health insurance plan.Thanks

I'm always at a loss for good, detailed secondary source material on qualified defined benefit plans with mandatory employee contributions. Can anyone recommend a sourcebook?