Hey everybody,

I've been running into a problem latly,maybe someone knows how to make it eisier on participant's in a Sec. 125 Plan.

Here it is. What can be done when people are billed to their home for medical services? When this is done they write in the amount they are paying (like a phone bill) and send me a copy. Now I know these people paid these bills but I don't have an actual receipt as being paid for reimbursment.

Any advice?

Employer does not make full contribution as required under MPPP document. Employer does, however, make a partial contribution. MPPP does not pass 410(B). If employer contributes the remainder, files Form 5330, and pays the 10% tax associated with the underfunding, will the 410(B) coverage issue be solved?

The plan in question is a target benefit plan. Employer paid premiums on insurance for 3 HCE's but not on 2 NHCE's who were also participants in the plan. Employer says MPPP was terminated in 1997 and that payroll employee just kept paying the premiums as the bills came in. No 5500's filed since 1996. Now the IRS has sent notices regarding some of the 5500's.

Employer adopted a standardized prototype maintained by an ins. co. in 1987. The opinion letter does not consider TRA '86. Doesn't appear that the plan is eligible for voluntary correction programs under Rev. Proc. 2001-17. Thus, thought was to at least get contributions made up through year of termination, file requisite 5330's (and pay the 10% or whatever applies), file all outstanding 5500's and then go from there...?? Any comments or suggestions?

DOES IT COST AN ARM AND A LEG!?

I work for an agency that assists persons with disabilities in finding jobs. Recently I assisted an individual with finding a job, and now he is at threat of losing his job because the employer is afraid that if the employee does not work out in the long run then the employee might claim and receive unemployment benefits which the employer claims will cost him an arm and a leg. The employee has been there just under a month and the employer says that once he has been there for a month then he becomes eligible for claiming unemployment benefits. Is this the case? I really need to know because this individual is in dire need of keeping his job!

DOES IT COST AN ARM AND A LEG!?

I work for an agency that assists persons with disabilities in finding jobs. Recently I assisted an individual with finding a job, and now he is at threat of losing his job because the employer is afraid that if the employee does not work out in the long run then the employee might claim and receive unemployment benefits which the employer claims will cost him an arm and a leg. The employee has been there just under a month and the employer says that once he has been there for a month then he becomes eligible for claiming unemployment benefits. Is this the case? I really need to know because this individual is in dire need of keeping his job!

What happens to unused funds in a Medical Savings Account at the end of a year? Who owns those funds? Are there restrictions on how the employer may use those funds? Can they be bonused back to an employee?

Is a church profit sharing plan organized under 401a also exempt from non-discrimination and coverage rules (like in a 403b)? We only want to cover full time employee, and cover different positions at different percentage rates for the contributions. Thanks in advance.

Rev. Proc. 2001-17 seems to require that a plan have, at the least, an opinion/notification/determination letter that considered TRA '86 in order to correct. What about situation where last letter did not consider TRA '86??? The opinion letter employer has with respect to prototype clearly says it is not considering TRA '86.

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?