Final Regs. 54.4980B-6 Q&A 6

States that “each qualified beneficiary must be offered the opportunity to make an independent election to receive COBRA continuation coverage.”

In a scenario where an employee who covers his spouse only as a dependent and the employee terminates employment, can the spouse and the employee elect to be covered separately under single COBRA coverage as apposed to jointly under family coverage? Single coverage for each would be the cheapest way to obtain COBRA coverage.

Some insurers are saying they cannot elect single coverage on an individual basis, but must be covered by a family contract (or two-person contract). My contention is that they should be allowed to have single coverage, because of the above referenced Q&A 6.

Anyone have a decision on this?

2 401k prototype plans are adopted. One plan

covers non-union only. In operation it is intended that the second plan covers only union (although not an option to exclude nonunion). There are no HCE in union. If both plans provide for same salary deferral but "union only" receives match and /or profit sharing, will this pass 410(B) if the nonunion do not receive the same match or profit sharing?

Client was under the age of 55, retired from her employer. The 401k plan has before and after tax contributions. The before tax dollars and all earnings are going to an IRA. The after tax dollars can not be rolled, but what about the 10% penalty? A CPA is stating that she is subject to the penalty because she didn't retire at age 55 or any other 10% penalty exception.

Sorry...I'm not experienced enough to create hyperlinks. Here's the address:

http://wire.ap.org/APnews/center_story.htm...ID=APIS6V6PAQG0

Why is Rep. Bernie Sanders only looking at

what IBM did to its older workers.

DADE-Behring did it to its workers and

admitted giving them the Smallest amount

allowed under this Law. My Pension was cut

by about 60%.

An employee's son is diagnosed with dyslexia and dysgraphia. It was suggested by the physician/speech pathologist that her son use a laptop for school. The question is can she use this required purchase of a laptop, for her dyslexic son, towards her health care flexible spending account?

If an employee is covered elsewhere and declines coverage by employer, can the premium be reallocated? For example, could the employer use the $$'s to increase the employee's wages?

A 1999 required minimum distribution should be made if the decedent's required beginning date was reached prior to death.

Did the beneficiaries rollover their portion of the inherited IRA to their own IRA with the use of their own life expectancies in the computation of their own required minimum distributions? Please advise.

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An insured group health plan wants to exclude dependent spouses if they are eligible for coverage under their own employers' plans. Dependent children can be covered regardless of other plans. Alternatively, allow all dependent spouses to participate but impose a higher charge on spouses who have alternative coverage available. Excluding any discrimination issues based on marital or family status, is this a problem? I am aware of the case law against "escape clauses" applicble in the coordination of benefits ("COB") area and am wondering if the concept extends from the participant to beneficiary level.

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What is the maximum contribution an owner employer can make to a Keogh. Is it 25% of income?

Thanks for your help.

I'm trying to find out which fianicial management companies (fidelity, merrill lynch, etc.) provide IRAs and to how many people - a market survey or sorts. Does anyone know where/how I might find such information? The information can but does not need to be limited to Roth IRAs. Please share any thoughts on the subject.

Child is 10, and has earned income. Does the AGI limits apply to the child or the parents of the child since the child is still a dependent? The regs address earned income and maritial status.

A DB Plan document allows for an employee who has reached NRA under the Plan to segregate the PVAB in the Plan. How does this impact funding of the plan. Can you run a seperate cost caculation for this individule? What the client woulf like to do is have the segreagted assets only available to pay benefits for the doctor who has reached NRA. Is this possible.

I have a regular IRA with a online broker which I want to convert to a Roth IRA. I know I have to pay taxes on the value of my present IRA but I don't know when I have to pay them. I don't know at what point in time the value of my present portfolio of stocks is valued to determine the amount I owe. Information as to how the switch is made will be greatly appreciated. Also, are there considerations to be concerned about as to when the switch is made?

If a participant takes a hardship distribution from a 401(k) plan that has life insurance, how does the life insurance premium get paid for the year in which they are not deferring any money? Can the employer 3% contribution go towards this premiums in order to keep the policy current?

Company reimburses employees for fees they incur for stop smoking and weight loss programs. These expenses are not submitted through either the flex health care spending account or other insured health care expenses. Isn't this just taxable income to the employee? If so, may the same expense be submitted to the flex health care account?

[This message has been edited by wwest (edited 09-01-1999).]

The deduction limit for a combination DB/MP plans is the greater of 25% or the DB minimum required funding.

If the DB plan is over 25% does the MP plan have to make the requried contribution on a nondeductible basis (and therefore subject to penalty of 10%)?

Can this be limited by wording in the plan document of the MP plan?

Does it have to be written in the MP plan or can the contibution be ignored since not deductible?

Thanks, in advance

Bob

I would like to make a direct transfer of existng funds in my 403b account under rev.rul.90-24.The company holding the funds and the new company to which they are being tranferred agree that it is pemissible under rul.90-24.The plan administrator at my employment has to sign the tranfer form.The consultant that my employes uses, has told my employer not to sign the form. They say it is illegal to make a direct transfer involving 403b plans when it is not made to an employer approved vendor.If they were a vendor i would already be putting my money there.What can I do? The companies invoved are TIAA_CREFF and MET LIFE.

What is the "compensation" in 401(a)(17) (currently $160,00 limit for ADP testing)? The regulations do not seem to define "compensation" as well as 415©(3) or 414(s) does. Are nonqualified deferrals included in the 401(a)(17) limit?

Can a PEO (Professional Employee Organization) sponsor a master cafeteria plan for a number of employers? The PEO employs the workers and then leases them back to the employer. The PEO is responsible for the hiring, firing, payroll, benefits, etc.? Or should each of the employers have their own plan? Also, if it is ok for the PEO to sponsor the plan, what if one of the employers is an Scorp. Can the owners participate in the plan? Any help would greatly be appreciated!