If an employee purchases on his own a health insurance policy (e.g., Blue Shield) that covers the employee for expenses of medical care, can the employee be reimbursed for his premium payments under his employer's cafeteria plan? Prop Regs under section 1.125-2 Q&A 7 state that "health FSA may not treat participant's premium payments for "other health coverage" as reimbursable expenses" -- but, I don't know what is meant by "other health coverage". It seems to me that premium is a "medical expense" under Code section 213. Any thoughts, comments? Thanks.

Reg 54.4974-2 Q-1A states that the RMD for a calendar year to be distributed during the calendar year. If the RMD's were processed from the Recordkeeping system in 98 but the checks are dated in 99, does this comply with 54.4974-2? Where else may this be clearly defined?

Client with 401(k) plan will merge into another employer with its own 401(k) plan. Client's employees prefer not to merge plans since investment funds available under survivor's plan are unattractive. I am considering terminating client's plan and making distributions before merger. However, Reg 1.401(k)-1 (d)(3) appears to prohibit this since the employer (ie, the survivor) would maintain a successor DC plan (ie, the survivor's 401(k) plan) within 12 months after termination. Any ideas? The reg doesn't seem to make much sense in a merger of unrelated employers. What would we have done if client had terminated plan for reasons unrelated to the merger and then entered into merger talks? Would the merger have retroactively invalidated the distributions?

I'm gettng married soon. I understand that married couples can only contribute $3000.00 jointly. Would it be wise to each start one now and would this allow us to continue to contribute $2000.00 each after we get married or does anyone know how this works? Thanks...

Met a prospect last week that has a SARSEP for 1997; his accountant just told him that testing had to be done!! (not surprised).

I think it's some sort of prototype, with a 3 month eligibility. I'm used to the qualified rules, whether the eligibility was met as of the plan entry date, whiuch is usually the first day of the plan year.

How do you determine eligibility under the SARSEP rules???

Would prescribed weight loss drugs be a reimbursable expense under a cafeteria plan? Thanks.

In an acquisition where a target company ("Target") maintains a cafeteria plan, what is Acquirer's potential liability if Acquirier assumes liability for the plan and the Target cannot produce documentation for the cafeteria plan. It is my understanding that there is no VCR or CAP-type program with respect to Cafeteria Plans, and even if there were, what application with respect to a plan with no documentation?

Has anyone decided to go ahead and stop withholding on these distributions despite Notice 99-5's extention to January 1, 2000? In addition, my reading of the notice would indicate participant's may still elect to roll this money over until the end of 1999, despite the plan's election on how to treat withholding. Any insight?

A major mutual fund company will let me open a Roth IRA for my 17 yr old daughter (most interpret the eligibility as one must be of legal age). She has eligible 1998 W-2 earnings. Is it beneficial to use my after-tax money to open a Roth IRA account in her name? After all, if she were open it with her money, she would virtually pay no income tax on the initial amount (since the earnings are less than the standard deduction of $4250). She does not currently have the funds, but I don't want her to miss this opportunity to bypass all future taxes on this investment vehicle.

I want to open new Roth IRA accounts, one as a brokerage acct and one with Mutual fund company. Is this permitted?

I want to start with $2K for me and $2K for my wife. Do they need to be set up seperately or can they be joint accounts?

I am redesigning our FMLA policy, procedures and forms. Does anyone have samples they can share? If so, please email to cmarkman@dreamscape.com. I am also looking for help in the gray areas. Such as why does the government form say "Reply to Request" for FMLA, when it's possible for an employer to designate an FMLA without an employee ever actually applying for one?

Many major corporations have found a golden egg in traditional pension plans. They have created "personal retirement accounts" as a replacement for defined benifits plans. This "plan" earns approximately 4-8% per year and is great for a 25 year old exec. However the funding for the 50 year old falls short and virtually never reaches the defined plan's heights. Also all earnings above the 4-8% funding requirements are owned by the corp or its trustee. The last 4 years have been great for the custodians. Does this move not constitute some form of age discrimination? My pension has been frozen for the last 4 years with no chance for recovery. Thank God for the 401k.

Does the 1 year rule apply to roth trustee to trustee custodianship (If dissatisfied with one trustee's performance)?

any comments for using this as a voluntary employee benefit on payroll deduction??

I have checked with numerous websites only to find the information not available.

I need to know what the average participation rates for 401(k) plans in the "Long Term Care" sector might be. Any thoughts would be appreciated.

Does anyone know how the State of MA is dealing with the Tax situation and the Roth IRA...?

Are they allowing 4 year distribution of the tax or not?

Thanks...

Please excuse the ignorance, I am a 26 year old new investor, interested in opening up multiple roth IRA's, and I was wondering if anyone knew how many IRA's it is possible to open, and if there is any kind of limit on how many to open a year...thanks for the info sean

Are conversion and contributory amounts (that have had the tax paid on them)to a Roth subject to the premature withdrawal penalty if withdrawn after the five year holding period, but before the taxpayer is 59.5?

I thought it would be useful to have a discussion thread examining all of your experiences/info with attorney fee awards to plaintiffs in ERISA cases.

What is your experience within Circuits and Federal District Courts with regards to this? (e.g., are fees awarded absent a showing of the defendants bad faith, are fees chopped down significantly, what about expert costs.) Please name the Circuit and Jurisdiction.

The 8th and 9th circuits presumptively award attorney's fees to prevailing ERISA Plaintiffs. I have seen expert fees awarded in excess of the $45 per day perdium in the 8th circuit, but I also think there is contrary authority for that in this circuit (or perhaps in the 9th).

[This message has been edited by MattNewman (edited 12-31-98).]

The children (no matter what age) of the owner of 50 percent or more of the Employer are included as a "party in interest" under ERISA and a "disqualified person" under IRC 4975 - check these out and see what you think.

It appears quite likely this is a prohibited transaction.