Dentist client uses temp service, but the service requires that all temps be on the Dentist's payroll from day 1. The Dentist withholds taxes, pays FICA etc. Dentist pays the agency a fee each month for these temps. If one of these temps is hired by the Dentist on a permanent basis, what is the date of hire?

An employer decides to change all of their insurance carriers (health, life, dental, etc). They provide for an open enrollment period mid year, which does not coincide with their open enrollment for cafeteria plan. Is this a problem, or is this considered a change for which employees can make a corresponding change in the cafe plan? This is a premium only plan.

Thanks.

What regulations, if any, restrict employers from requiring that employees bear the financial responsibility, in whole or in part, for expenses incurred for activities (such as travel on Company business) undertaken at the explicit request or direction of the employer for the employer's benefit?

Can an employer penalize an employee for declining to engage in an activity when said activity would require the expenditure of personal funds which the employer has established will not be subject to reimbursement?

Doesn't such a policy amount to defacto wage garnishment?

I have someone who is taking a distribution of their after-tax contributions and associated earnings. The earnings are included as taxable income, but I can't find guidance on whether there is a penalty tax on those earnings? Can anyone point me in the right direction? Thanks.

As a TPA, we are considering offering daily recording in addition to balance forward. We would prefer to outsource the daily valuation, 800 # and quarterly statements and retain the document and othe compliance work. Anyone know of a vendor providing this service? Thanks.

What are the regulations re: Bank Owned Life Insurance (BOLI) on the Officers and Directors of Regional Banks.

What Insurance Companies are offering a product in this area?

Can a company have two dc plans covering identical employee group and thereby increase deduction limit for employer to 25%? not using mp/ps combination?

ex.

PS plan 001 contribute 15% of eligible comp.

401k/match plan 002, match and deferral = 10% of comp.

If so, why not the design of 2 ps plans vs. typical mp/ps combo?

G

Company A acquires Company B (asset sale). Company's B's employees become employees of Company A as a result of the sale. Company A sponsors a 401(k) plan. Company B had no plan. Company A wishes to grant the new employees coming from Company B credit for service with Company B for eligibility and vesting purposes under the Company A 401(k) plan. Any problems or issues in doing do?

I have an interesting situation: a client has two employees that cannot be reached to find out if they would like to make elective deferrals. Both participants entered the plan 7/1/00. One is in the hospital and the other is in the military. Both are still receiving pay (I don't know how, maybe direct deposit, but the client says they cannot be reached). What must be done? Can it be assumed that they will not defer? If not, what legal steps must be taken to give them the option to defer? Please cite any sources I can use. Thanks.

Would a Defined Benefit or Defined Contribution plan with Life Insurance features ever show Code 4B on Form 5500 Line 8? Because 4B is a Welfare Benefit Feature, I would think no. But I seem to recall hearing Janice Wegesin (speaker for the ASPA Form 5500 Webcast) say that 4B possibly should be used for DB and DC plans. Did anyone else hear that? Has there been any decision?

I have a client who has a safe harbor 401(k) plan giving the 3% non-elective contribution to all eligible participants. currently, employees must wait 12 months to enter the plan. they would like to allow employees in immediately for deferrals but restrict the 3% non elective to those with 1 year of service.

can they have this dual eligibility with a safe harbor 401(k) plan?

On Form 5500 Schedule T, is there any requirement or preference as to which disaggregated part of a plan is shown on lines 4c and 4d? What are others using most commonly and why?

401(k) Plan A is merged into 401(k) Plan B. 401(k) Plan A permits recalculation of minimum distributions to be made monthly and provides for monthly installment. 401(k) Plan B permits only annual recalculation and provides for annual installments.

Minimum Distribution Recalculation. Under Code Section 401(a)(9)(D), recalculation is permitted no more frequently than annually. Thus, it appears that monthly recalculation is illegal and annual recalculation can be permitted going forward.

Anti-Cutback Rule. The tricky issue is this: the current final anticutback regs permit an amendment to an optional form of distribution affecting timing only to no more than two months of the timing of a pre-amendment distribution form (6 months for in-service distributions). Thus, it appears that 401(k) Plan B would be permitted to change the availability of minimum distributions to former 401(k) Plan A participants to quarterly installments. My question is, can this amendment also apply to participants currently receiving minimum distributions?

Can a participant take a total distribution without paying federal and state taxes even if they are not rolling it over? They want to pay the taxes at the end of the year.

We are a 580 employee company. We have sights in about 7 states. We are having problems with our EAP plans. We pay a lot of money and do not see the employees using this benefit. Do you know of any EAP's that go fee for service? Is this a good idea?? ANy other options out there?

Can a participant of a Nonqualified Deferred Compensation plan purchase/invest their assets under the plan in individual stocks?

Link to the opinion is at http://www.benefitslink.com/links/20000801...01-006422.shtml

Anybody think the Tax Court got anything wrong, in its reasoning or result?

Can a 457 Governmental (or non-governmental for that reason) hold individual stocks in a brokerage account?

Our plan makes everyone over 21 eligible on date of hire. We have 7 employees who choose not to participate. We match $ for $ up to 3%. There were some forfeitures last year, and the TPA allocated the forteitures to all eligible participants which included the 7 who do not participate. I questioned this and was told that the definition of participants is the same as eligible participants as our plan does state in the prototype that I neglected to read thoroughly that "an eligible employee who has become eligible to be a participant shall become a participant effective as of the day specified in the adoption agreement." Notwithstanding this, I still protested that allocating forfeitures to employees who choose not to be in the plan is illogical and absurd. We could have elected to use forfeitures to reduce the match. If so then these 7 would have gotten nothing. Can someone help me with this as I have a real problem setting up an account and allocating dollars to individuals who consciously decide not to participate. Any ideas other than using forfeitures to reduce match?

The following article is from Sal Tripodi's TRI Pension Services web site ( http://cybERISA.com ) and is reprinted here with Sal's permission. Copyright 2000 TRI Pension Services, all rights reserved. Post a reply to this thread if you would like to discuss comments or questions about this article with other users of BenefitsBoards.net!

Final Regulations Issued: Repayment of Previously-Taxed Participant Loan

* * *

Repayment of previously-taxed loan. If the loan is repaid after the deemed distribution has occurred, the repayments (including repayments of interest) are treated as tax basis. See http://www.benefitslink.com/taxregs/72p-final.shtml#QA21 . To the extent a previously-taxed loan is repaid, that portion is no longer a receivable, but reflects part of the non-loan assets included in the participant's account balance (or accrued benefit, in the case of a defined benefit plan). That portion is part of the reportable gross distribution, so the tax basis generated from those repayments is taken into account to determine the taxable portion of that gross distribution. Note that loan repayments are not treated as employee contributions for purposes of the nondiscrimination test under §401(m) nor for purposes of the §415 limits, even though tax basis is generated by such loan repayments. See the last sentence of Q&A-21(a).

<UL>Example. Suppose in the earlier example; click that Bill recommenced loan payments in 2002. By the time the plan makes the lump sum distribution to Bill, the loan receivable balance is only $10,400. The total loan payments made by Bill after the deemed distribution totaled $5,920, which included additional interest. Now Bill's account consists of $10,400 loan receivable and $69,115 cash. The cash consists of the $61,300 assumed in the prior example, plus the loan repayments of $5,920, plus an additional $1,895 of investment earnings that were generated because of the loan repayments made by Bill. The plan reports a gross distribution of $69,115, but the taxable portion of that distribution is only $63,195. Bill has tax basis of $5,920, which represents his total loan repayments following the deemed distribution of the loan.</UL>