Anyone experience issues with DOL assertion that company acquiring assets (not stock) of another company has liability to provide benefits to selling company's COBRA participants. Current IRS regs are vague on the subject and IRS has issued proposed regs that address topic. But what has DOL done in terms of current enforcement??

Can a wholly owned subsidiary have different benefits from the main corporation?

Chris, yes, it seems to me to be an accurate interpretation. This is an interesting question. It appears to me that the immediate vesting requirement only applies to the contributions used to satisfy the ADP test safe harbor. In the situation you describe, obviously the matching contributions are not being used to satisfy the ADP safe harbor.

It appears that the only restrictions on the matching contributions to satisfy the ACP test safe harbor are the formula limitations described in Section VI.B. I do not see anything in VI. that would prevent the use of a vesting schedule or last day rule for matching contributions that are not being used to satisfy ADP. One thing I'm curious about: do you have any idea when the following requirement of Section VI.A. would NOT be met: "(i) each NHCE eligible to receive an allocation of matching contributions under the plan is also an eligible employee under a CODA that satisfies the ADP test safe harbor of section V" ?

What are the rules regarding purchase/sale of equity and index options in Roth IRAs?

I am working for an employer who wants to deduct insurance premiums from employee's salary before the premium is due. In other words, the employer wants the employee to pay 13 months premiums during 12 months...so that the employee will always be one month ahead in premium deductions. I think he should pay the monthly premium and then deduct the amount from the pay checks during that specific month. Are there any rules or regs. regarding how the premiums are deducted from employee salary in this case?

Any prohibition against using cross-tested class allocations in both paired MPP & PSP (e.g., MPP = 10% to HCEs, 3% to NHCEs ; PSP 15% to HCEs, minimum % to NHCEs to "pass")? I have a situation where I need paired plans to get the owners (2) to their maximum annual additions.

Can a participant NOT a 5% owner who elected to receive the MRD after the 1996 change now elect to stop receiving the distributions?

Participant has defaulted on loan in M/P and will be treated as deemed distribution under 72(p). Adoption Agreement allows offset only upon normal retirement age or termination of service.

The plan has terminated. Is that enough to offset loan from account balance now? Or am I missing something here?

Thanks for any thoughts.

Due to my very limited experience with SARSEPS, am looking for some guidance on potential issues to address with my situation, of which I don't have a lot of details, unfortunately.

Client has existing SARSEP. Implemented 401(k) Plan in July, 1998. SARSEP has not been terminated. Should it be? Can it be?

Presumably, client has suspended deferrals to SARSEP in lieu of 401(k) Plan as of July, 1998. What if they didn't? Ramifications?

I don't know why you would want to, but if you could, can you maintain a SARSEP & a 401(k) simulataneously?

Please pardon the perceived ignorance of my questions. I am trying to be painfully basic, and almost clueless, to make sure I gather all possible info from someone with SARSEP expertise.

Thanks to whoever can help!

I have tried reading the code defintions and still am confused. Can someone provide me with a general definition and explanation of what it means to be a member of a controll group or affilitated service group?

Thanks

WSJ article of 10/06/99 indicated IRS would permit owners to amend forms to correct problem. Would welcome any comments as to wording and avoiding other problems in the forms.

How do the spousal consent rules apply in the following situation: married participant has $4,000 vested balance in a money purchase plan, $4,000 profit sharing balance plus $4,000 deferral balance in a 401(k)/profit sharing plan that is subject to J&S rules?

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For 401(k) plans should this line include participant distributions and plan contributions? Has anything been published to clarify this? My client's auditors continue to ask this question? Thanks for your help.!

Can any health plan contain or require an actively-at-work provisions for employees and nondisability provision for dependents?

We are currently a stand alone system, still on GUPTA & 4.0. We are about to upgrade to a multi-user (3 stations). Would love some suggestions about the logical order of upgrading. We are about to enter our most demanding period for the next six months. Should we go ahead an upgrade to the multi-user and wait on Oracle and 5.0 - or do it all at once? We cannot afford to be caught up in the problems of conversion to 5.0 as I have seen with the reports. All of our reports are in crystal. HELP??

Anyone experience issues with DOL assertion that company acquiring assets of another company has liability to provide benefits to selling company's COBRA participants. Current IRS regs are vague on the subject and IRS has issued proposed regs that address topic. But what has DOL done in terms of current enforcement??

Is it possible to terminate a SEP/SARSEP?

I am going to the Ali-Aba Health Care Law and Litigation Seminar in D.C. next week and I was wondering if anyone I "know" from the Benefitslink message boards is going too.

An accountant called and said that there were new regulations regarding the amount of company stock that is now allowed inside a 401(k) plan. More specifically, the amount that officers can hold. He referenced SEC regulation 16B3. I have not heard of anything new, nor can I find this regulation. Has anyone else come across this issue? Thank you.