If an employer offers a vision plan to their employees, must they offer them Cobra for the vision plan? The final regulations do not make this clear, (to my way of thinking any way). I have a client who will be laying off about 5 employees and they asked this question and I wasn't sure if it was at their discretion or if it is now required.

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S. Ostrowski

Can anyone give me information/advice on whether retirement benifits can be withdrawn early due to medical hardship. I am 48 and have been medically disabled for 10 years. I am currently receiving SSI and long term disability, since workers comp. benifits ran out. Thanks in advance-DWest

I'm reading contracdictory definitions for the vesting computation period when plan year end is amended thus creating a short plan year (my case is 10/1/98-12/31/98). Does VCP for short PY run from 1/1/98-12/31/98 (overlapping with 10/1/97-9/30/98 plan year) or does VCP for short PY run from 10/1/98-9/30/99 (overlapping with 1/1/99-12/31/99 plan year? Situation is that I have an employee who terminated in 5/98--credited with a YOS @ 9/30/98; I say vesting as of 9/30/98 is it!--do not increment for short plan year (terminated prior to beginning of short plan year).

I found the answer.

Thanks!

[This message has been edited by cgc (edited 05-12-99).]

Within the past year I have had to deal with several p/s plans in which forfeitures were returned to the plan sponsor to offset plan expenses. To me this appears to be a prohibited transaction, plain and simple. Is there something I am missing?

Employee terminates but employer fails to terminate health coverage with the insurance carrier. The employee is rehired, does not reenroll or waive health coverage and no deductions are taken. However, the old coverage is still in force. Employee says she wanted coverage all along and had assumed deductions were being taken (they were not). Do you make the employee make up the deductions (5 months worth)? Are there any pre-tax rule problems with catching up retro deductions or allowing a mid-year "change" to elect coverage even if it's retro'd to the start of the plan year.

Could you give me the basic low down of VEBA's. Like what one is, how you set one up? Maybe an e-mail address where I could get specifics so I don't take up too much of your time. Thanks.

Can anyone recommend a good source for newsletters? We currently use West Lawn - they write it and put "compliments of ABC Company" on the quantity you order - but we wondered if there was anyone else we should be looking at. We aim these at plan sponsors rather than participants so a small degree of technical info is okay. Thanks!

I've had a couple people tell me that a distribution fee can't be deducted from a participant's account. This is a minimal processing fee to cover the 1099 and other paperwork associated with the distribution. I've looked at 404© regs and looks to me like it would be OK. Anyone have any specific cites or rulings that would indicate otherwise?

Has anyone set up or heard anything regarding pension plans for volunteer firefighters? There is no salary, and the township wants to contribute an annual discretionary amount without the firefighter paying taxes on it? This is new to me. Any ideas?

(1) My wife, who is a resident (british) (non-US citizen) and I (a US citizen) am planning to open a joint-Roth IRA account for me and her? Is there any IRA caveats for resident aliens??

(2) Is there any advantages or disadvantages in having a joint or individual IRA account??? I noticed that some answers on the board indicated "No" but it appears to me that having the option to "violate" one account is better than not having any choice at all???? or am I not making any sense???

(3) Are there any hidden charges to promotions claiming no-fee IRA's??

(4) Can I trade my funds in an IRA account as if it is a brokerage account?? Trade in stocks??

(5) Should I be concerned with whom I open my IRA account with?? Seem like anyone with a well-known name would do??? or is there more homework to do than I realize??

(6) Given that retirement accounts are so important in one's life...it boggles my mind that the government has made this area into one of the most difficult to understand and to navigate especially with so many traps!!! Am I the only one who feels this way??

Thanks for any replies

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andrew

A proposal is on the table at our company, which essentially would work as follows:

For administrative convenience, the company would pay ALL expenses relating to our 401(k) plan, pension plan, and ESOP from the general assets of the company as these expenses became due. Shortly thereafter, the plan administrator would determine which of these expenses were properly allocable to the various plans. Subsequently, each plan would be required to reimburse the company for its respective expenses.

Assuming we overcame the fiduciary hurdle of determining which expenses are properly payable by the plan, does this proposal run afoul of the prohibited transaction rules?

Anyone seen a decent publication on the tax (or other) rules associated with domestic partners participating in cafeteria plans?

I have a question on a possible new 401K plan. A corporation (temp agency) has 16 permanent employees plus about 50 temp positions. The temps do normally work over 1,000 hours. If the owners of the corp (as the only HCE) elect out of the plan, can the temps be excluded? Point me in the right direction and I can do the research if this is feasible.

I am interested in proposing a pilot wellness program for our company. I've always had a hunch that this must be where the real healthcare cost savings lie. There are reams of anecdotal evidence to support the notion that wellness programs drastically reduce health care expenses (and increase employee productivity). Many companies now do the obligitory wellness thing (a cholesterol screening here, a blood pressure check-up there. . .), but no real follow-up or commitment to longitudinal success. But where are the examples of companies that have succesfully rolled out more intensive programs (and have been able to capture their success in dollars)? Can anybody point me to a solid body of evidence and/or best practices? Your input is greatly appreciated.

PLEASE TAKE A LOOK AT THE "RETIREMENT PLANS IN GENERAL" MESSAGE BOARD. THEN LOOK FOR THE TOPIC: "WHAT QUALIFIES A DISTRIBUTION FOR ROLLOVER TREATMENT?

IS THERE ANYONE OUT THERE THAT DISAGREES WITH THE DECISION REACHED BY THE SECOND CIRCUIT?

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1997 tax year I purchased a Nondeductable IRA and rolled it into a Roth in 1998. But I did not file an 8606. How do I fix this?

When calculating the Maximum yearly contribution limit, Adding Contributions to 401k's and a Roth IRA, the total is over 10,000. Do Roth IRA's count towards this limit or is it only for deferred income like a traditional IRA.

Fact situation: Employer has small group health plan for employees (@6 members). Employee is terminated and is treated by physician pursuant to group helth plan within the month terminated, after termination but with confirmation that insurance coverage in effect through end of month.

Two months later employeer retroactively cancels that former employee's coverage to before termination date. Treating physician now insists that employee pays the bill for the medical services rendered.

Who is liable:employer, health plan, physician and is ERISA applicable to this group health coverage and if so how? Former employee never received notice of cancellation but ceased using medical services after the month terminated as instructed.

Thank you very much.

Question: If there are four employers participating in a 401(k)plan, three are members of the same control group, does the fourth employer (who is not a member of the control group)need to file for a separate determination letter? See Reg. 1.413-2(a)(3)(iv).

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[This message has been edited by Wineman (edited 04-01-99).]