We are considering a wellness reimbursement program. We would reimburse employees up to a certain dollar amount per year for things covered under our wellness program. Do you know of any limitations as to what we can reimburse for? We will consider gym memberships, massage therapy, smoking cessasion programs, weight loss programs, purchase of home fitness equip. What are your thoughts on mountain/street bikes? I feel this should not be a reimbursable item under the plan. Any suggestions?

If an employer who has a SIMPLE IRA in place,lets an employee defer $6500 instead of $6000 (it was supposed to be $250 for 24 pay periods, but they have 26 pay periods), does the W-2 need to be corrected to reflect the $6000 max allowed? It seems if the W-2 gets corrected AND a 1099 is issued, the employee will be double taxed on the excess.

My question is based on the idea that it states in our company plan along with our enrollment form that the company has the right to take a negative balance out of an individual's last paycheck. This enrollment form is signed by the individual as they enroll in the plan. Does this give the company the right to request this money back?

Is it possible to divide a Roth into separate accounts for each Grandchild to avoid distribution ,based on age od oldest. For adminstrative reasons I don't want to create separate accounts with 9 grandchildern.

All employees of C corp (including shareholders) are covered by 125 plan. In future, C corp's business will be conducted by a new LLC whose members are the shareholders and which will hire employees of C corp. As members of LLC, shareholders are self-employed and can't participate in LLC's 125 plan. Can shareholders stay employed by C corp, be leased to LLC and continue to particpate in C corp's plan? If so, will C corp's plan pass concentration test (even though it has no non-key employees) because it is aggregated with LLC's plan under 414© and(m)?

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Has anyone had a plan disqualified because the Employer failed to file the required 5500 for two years in a row? Also, does anyone know where you can obtain a good indemnification document? I have been asked to prepare the '96 and '97 5500s for this plan and have serious concerns about my liability. Does anyone have any thoughts on the chances that both the IRS and DOL will audit this plan? The Employer claims that they thought the insurance company where the funds were invested was acting as their TPA. Thanks!

We have an omnibus ESOP -- the exec gets the stock as compensation - would a restricted stock plan (eg. vesting 3 months) allow for deferrment of tax to exec until the stock is sold? the stock is part of the exec compensation

is the a less restrictive way to get a grant as compensation and pay tax only when the stk is sold and keep the basis as of the time of grant?

This is very complex and any advice would be most welcomed. As usual, I am pressured to get an answer, so, any help is truly appreciated.

My question is related to what is "includible compensation" as referred to in the regulations at section 1.457-2(e)(2). Specifically, are tax-deferred amounts taken from a participants gross income for a defined benefit plan included for the includible compensation calculation?

We have a self insured health plan that covers QDP's. As a "dependent" do you give COBRA notification at time of enrollment? By giving the COBRA notice - are we saying that he is entitled to COBRA? Partner/employee has just asked us to eliminate coverage for his QDP because of cost. Has anyone else encountered this? Any advices?

What about onsite fitness centers vs. fitness club membership discounts? How do you go about setting up an onsite fitness/wellness center?

I am trying to evaluate whether my company is behind on holiday offerings. I would love to hear if anyone offers a floating holiday and if not what holidays do you allow? What city/type of business are you in? Thanks so much!!!

Can someone point me in the right direction for some terminology on the penalties, if any, for not funding a Profit Sharing Plan. And also what the employers options are at this point?

Their investment advisor is worried because they have not made a contribution for the past three years and now he wants to know what needs to be done about it.

[This message has been edited by Theresa (edited 01-06-2000).]

I have a Plan with daily trades where each participant is charged a $20.00 quarterly fee on the last day of each quarter. The $20.00 is prorated among the different funds owned at the time. How do I handle a participant who decides to move all of hos money from one fund to another on the same day as the quarterly fee? Should I disallow trades on the last day of each quarter? We are currenlt using the Quantech system if this helps.

Thanks for any information

I have a question about FICA and qualified governmental excess benefit plans. My thinking is as follows:

1. Section 3121(a)(5)(E) excludes from wages (and therefore FICA) payments made to an employee under an exempt governmental deferred comp plan.

2. Section 3121(v)(3) defines an exempt governmental deferred comp plan, for purposes of Section 3121(a)(5), as any deferred comp plan maintained by a governmental entity. There is an exception in Section 3121(v)(3)(A) for plans to which Section 83, 402(B), 403©, 457(a) or 457(f)(1) applies. The additional exceptions in Section 3121(v)(3)(B) and © are not relevant in this instance.

3. Imagine a qualified governmental excess benefit plan that meets the requirements of Section 415(m) (no election, no trust, etc.). Such a plan would not be subject to Section 457(f)(1) because Section 457(f)(2)(E) excludes plans described in Section 415(m) from the reach of Section 457(f)(1).

4. My question: based on the foregoing, could a qualified governmental excess benefit plan, as described in Section 415(m), also satisfy the Section 3121(v)(3) definition of an exempt governmental deferred comp plan and, therefore, could payments to the plan be exempt from FICA? The exception in Section 3121(v)(3)(A) wouldn't necessarily apply, because the qualified governmental excess benefit plan would not be subject to Section 457(f)(1), thanks to Section 457(f)(2)(E). If none of the other Code Sections listed in Section 3121(v)(3)(A) applied, could the qualified governmental excess benefit plan also be an exempt governmental deferred comp plan?

If I am correct, this must be an unanticipated consequence of the SBJPA, which, after all, aimed in part to equalize the income tax treatment of governmental and for-profit employers' excess benefit plans. For some governmental plans to enjoy a FICA loophole must be an oversight. An equally plausible scenario is that I am missing something fundamental in this analysis. I'd appreciate any insight anyone could provide.

Starting this year, all retirement plans are required to be ammended within 12 months of their plan year-end. What is required to fulfill this obligation? Is the current vendor responsible for initiating the process?

Does the sponsor of a self-insured group health program (the sponsor carries stop-loss) have to provide notice to plan participants (or others, such as state departments of insurance) prior to, or in conjunction with, the complete termination of the program? Thanks in advance

I have a top-heavy plan. Participant is now working one day a week only. Can she paid out now?

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Can a qualified retirement plan accept 414(h)(2) Pick-Up contributions and interest as in incoming rollover contribution?

We had a question arise as to what needed to be done with a profit sharing plan that has not been funded in three years. What are the penalties, if any, and what are the employers options.

Mainly what I'm looking for is some terminology and where it might be found.

I'm not sure exactly all the particulars of the situation, like I mentioned above I'm just looking for some general terminology.

[This message has been edited by Theresa (edited 01-05-2000).]

[This message has been edited by Theresa (edited 01-06-2000).]

Is IRC 105 discrimination testing required for all self-funded group health plans?