401k deferrals through 125 plan subject to FICA? Code and Regs are unclear. In other words, if a 401k is included as a cafeteria plan benefit, are those deferrals subject to FICA or not?

401k's within cafeteria plans: what is the tax treatment of 401k deferrals through 125 plan? subject to FICA or not?

Jones (single) died leaving a brokerage account and an IRA, about $4 mil in total. Both consisted of very large holdings of the same 3 stocks. Since his death, last month, the values have dropped substantially, and the executor is selling shares to raise $$$ to pay PA inheritance tax, and Federal Estate Tax.

The IRA is left to the same 8 beneficiaries, and each will then be the beneficiary of a Jones IRA for the benefit of......., when the custodian decides to divide the plan, and will make elections or liquidate.

The issue is how the alternate valuation date for the estate will be affected by the actions of the beneficiaries, when or whether they liquidate the stocks in their accounts, which is of course beyond the control of the executor.

The rules are clear as to how to arrive at the AVD for the brokerage account, but do any of you know how to include the IRA assets in the calculation? I will appreciate being directed to any treatises, rulings, or articles on point. Thank you very much.

I have an ESOP that I'm separately tracking two different 1042 sales to the ESOP. The employer has repurchased shares from the ESOP. Which shares did the employer purchase, or does it matter? Can I just assume it was pro-rata from each?

Can anyone provide me evidence (ammunition) that will allow me to roll over my 401(k) assets to a conduit IRA without requiring my spouses notorized signature.

For the record I'm not trying to cheat my spouse, but rather trying to expedite the distribution!

A plan sponsor wants to pay an annual per participant charge for active participants but wants to have terminated participants who leave their accounts in the plan pay those same expenses. Would this have to be tested as a BRF? Other comments?

the following inquiries are in reference to the plan document, the adoption agreement.....

1. situation: a plan sponsor with three adopting employers has been allowing mpre-tax denatl premiums for one of the control groups and not the others.....does this sponsor have to adopt a separate plan for the control group with dental insurance? and why...thanks

2. situation: a plan sponsor with multiple adopting employers offers a select group of the employers to have dental insurance with orthodontia. The others have no orthodontia provision. the sponsor's plan document/adoption agreement says the plan includes dental insurance premiums as a pre-tax benefit......does the sponsor have to adopt a separate plan for the groups with the ortho dental policy ? and why?

3. situation: a client has called to inform us as their TPA that they have added a supplemental and dependent life insurance policy to their cafeteria plan and they want us to do the paperwork......are these benefits eligile for pre-tax status?

4. situation: same as # 3 but the client is beginning a ltd/std policy....same question...

The tribe I am working with already has a 401(k) plan for its employees. Can the tribe set up another plan within its present 401(k) plan for only members of the Tribal Council (who are also salaried employees) using non-elective employer contributions?

How can I find a missing beneficiary (401k plan) for whom I have a social security number? (This is not a terminating plan.)

What is our obligation to do so if we have made a reasonable effort,(And what constitutes a reasonable effort?) Do we need to hire a locator firm? The plan document is silent for this matter. I am wondering if I can put the proceeds in the forfeiture account as the plan document directs to do when we are unable to locate "participants." I sure would appreciate anyone's suggestions!

I am a little confused on the filing of Schedule P with the 5500 forms. I have a client who has multiple plans participating in the same trust with each filing their own 5500. Based on my reading and interpretation of the 5500 instructions, I think I need to compelte individual Schedule P's to attach to each 5500. However, there is one sentence that throws my thinking off. It reads "If the trust or custodial account is used by more than one plan, file one Schedule P." This sentence would seem to limit the work I need to do as their is only one trust, but it would also seem to leave many "plans" without an attached Schedule P.

Any thoughts?

In a couple posts here, I've noted that plan termination fees may not be paid from plan assets. We're terminating a Plan and the Trustee asked that our fee be taken from the assets. This is a new experience. So, is it the IRS rules that prohibit termination fees being paid from Plan Assets or is it some Trust documents? Thanks in advance.

Would like to know what others are offering,if anything, as an incentive for waiving health care benefits. What opinion do you have for offering money for someone to waive taking health care insurance?

Would like to know what, if anything, others are offering as an incentative for not "calling off" within a three (3) month period. We have PTO and cannot carry over any unused time into the next anniversary year. This makes it so that at the end of one's anniversary year, you could possibly have quite a lot of PTO left and end up taking time off (so it's not lost) just when you need to be at work (behind, audits, special projects). Most staff do take theirs throughout the year but some find it hard to take off.

A company maintains a self-insured health plan. A 53 year old highly compensated employee who has MS is retiring. The Company would like to have the employee continue to be covered under the self-insured health plan until such time as the HCE is eligible to receive Medicare. The HCE is willing to pay the COBRA costs associated with this coverage. Are there any Code Section 105(h) issues if this coverage is provided under a severance agreement? Any thoughts?

A profit sharing plan terminated in 1997. A determination letter was received on the termination. No distributions have been made since the termination. All 5500s since 1997 have indicated that the plan is terminated. The plan sponsor now wants to "reinstate" the plan. Can the plan be un-terminated? If so, what is the procedure?

The plan document limits a participants deferral amount to a maximum of 10% of compensation, however, one HCE and one NHCE defer in excess of that amount. When performing the 401(k) test, what amounts would be included in the test? Would you include the amounts in excess of the plan limit, not include or include for one and not the other like a 402(g) violation? Please state any cites to back up your response, or perhaps any opinions from the IRS you have heard.

I understand that the plan sponsor can limit the amount an employee may elect under a medical FSA due to the financial risk the uniform coverage rule poses. However, are there any limits set forth under the Code I need to be aware of? Cites would be appreciated.

Can a 401(k) plan accept a rollover from a keogh? The CEBS textbook says yes, and give no qualifications. However, if a Keough can be set up as either a DB or a DC plan, wouldn't there be restrictions?

I have a client with Safe Harbor 401(k) and Age Weighted Profit-Sharing. One of the employees is currently deferring 20% of pay and getting a 3% non discretionary match.

Their plan document and the prototype I use both seem to say the same thing:

If the Employer Contribution would put ANY participant over the maximum permissible amount, the contribution must be scaled back.

Does this sound right? Sounds like the tail wagging the dog.

(The Plan doesn't have a maximum deferral percentage hard coded into it.)

I have a client that has no elligibility requirements. Participants enter the plan on the first of the month coinciding with or next following their date of hire. When the ADP/ACP test is run I can restructure the plan to use the statutory minimum age or service eligibility conditions (age 21 and one year of service). My question is can I go as far to say that I will use semi entry dates versus the currently monthly entry dates? I know if you use age 21 with 1 year of service you must provide at least 2 entry dates. If someone knows where I can find some information on this question I would love to know. So far everything I read does not mention anything about the entry dates. Should I presume that since it is not mentioned there should be no change to the plans entry dates when applying the statutory minimums?