Do any companies offer this type of benefit?

We've had inquiries about it from employees but believe it is probably uncommon.

I don't know about the 1 in 4 not having coverage, but I do agree wholeheartedly that mandate increase premiums. How can they not? Usually the mandates are for high-dollar coverage (if they weren't expensive, they'd be in plans already). Also, many carriers have left states with certain mandates (Kentucky and Washington are two I know of personally), so the competition is reduced which drives up premiums even more. I know mandates are supposed to help, but KY's was such a fiasco they had a special session of the legislature to try to fix the fix. Without mandates, small companies could provide basic coverage at reasonable rates. Isn't some coverage better than none?

The IRS has released final regulations under section 3121(v)(2)

of the Internal Revenue Code that provide guidance as to when

amounts deferred under or paid from a nonqualified deferred

compensation plan are taken into account as wages for purposes

of the employment taxes imposed by the Federal Insurance

Contributions Act (FICA). Section 3121(v)(2), relating to

treatment of certain nonqualified deferred compensation, was

added to the Code by section 324 of the Social Security

Amendments of 1983.

The final regs are quite similar to the proposed regs, but

appear to reflect many helpful tweaks that had been suggested by

employers and practitioners in comments to the proposed version.

The final regs are online at http://www.benefitslink.com/taxregs/31.3121v2.shtml (click)

If a calendar year plan was top heavy for 1997, but the employer did not make the required contribution, can this defect qualify as signficant under APRSC thus allowing the employer until 12/31/99 to make the contribution?

Should the employer also make an additional contribution to cover lost earnings? If it doesn't, what must the employer do?

My supervisor has asked be to do some research regarding the number of Human Resource staff employees needed to administer benefits at companies similar to ours. We are trying to provide justification for hiring an additional person. I would like to find a survey that may indicate typical averages. For example - Company with 1000 employees typical requires 2-3 employee benefits staff members, etc. Any suggestions?

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kdavis@atlanticmarine.com

Unfortunately my brain is frozen on an issue. Applies to self-funded ERISA plans. 1) Can a plan have different age limitation for dependent children based on hourly vs salary basis? (ie, no extension for full time students, over the age of 19, for hourly ee's; salaried ee's full time students covered up to age 23).

Thanks!

I have a client that would like to amend their MP Plan to a Safe Harbor 401(k) for 1999. I believe this can be done if the plan is amended by 4-1-99 and the safe harbor notice is given by 3-1-99. Of course the MP would have to funded through the amendment date and the document would have to cover the MP distribution and J&S rules. I would greatly appreciate other opinions.

In a non-qualified deferred compensation plan, when is FICA tax payable on employee deferrals?

For example, in our plan, we allow key ees to defer their annual bonus (paid in March). If an ee elects to defer their bonus in its entirety, are they required to pay the FICA on the bonus immediately? or can they elect to pay the FICA at a later time, say out of some future earnings that year?

[This message has been edited by BLee (edited 01-28-99).]

It appears that Roth IRAs are subject to the mandatory withholding requirements of regular IRAs. Is this true? If not, please provide cite. If it is true, do we withhold on the full amount of the distribution (i.e., including those portions aready taxable to the partiicpant) or only on the taxable portion? Cite would be appreciated.

An employee (not eligible for FMLA) is suspended for a positive drug test. He no longer qualifies for benefits under the plan because he is no longer an active full-time employee as defined by the plan. COBRA is offered and elected. He completes a rehab program but fails the drug test again upon return to work from the suspension, at which time he is terminated. Can COBRA be terminated? Does theemployee handbook need to state that failure of a second drug test, after a suspension, is considered gross misconduct and COBRA continuation would be terminated at the time of termination of employment?

Unique situation. Employer has 2 sets of employees, Federal and Non-Federal. When calculating MEA for 403(B) test, how do we count years service if person was Federal (not eligible for 403(B) Plan) and then moved into a Non-Federal position within the same Employer? Do we count just the years they were eligible for the 403(B) or all the time they were with the Employer?

[This message has been edited by jgroves (edited 02-01-99).]

In 1998 I had a 401-K which I converted to a Rollover IRA. It was then converted to a Roth IRA also in 1998.

I just received 2 Form 1099-R's for 1998. One is for the conversion to the Rollover and another for the conversion to the Roth. Excluding my account number, the information on them is identical. The distribution code in Box 7 is G on both, etc..

The financial institution who sent them said I need both and the boxes are checked off correctly. I don't feel

comfortable with this explanation and am leary that the IRS may want to tax me twice on the amount. Does anyone know about the logistics of getting 2 of these Form 1099-R's?

Thanks.

Under Canadian tax laws, do CODA contributions made by Canadian participants to their 401(k) plan reduce their taxable income? Thanks in advance.

The answer has gotta be "No" but here's the question. Can I fund my newly created Roth IRA with stock shares? If so, am I allowed to do so on the BASIS price of the share (what I paid for it), or do I have to use the price of the share as of the day of funding. If the day of funding, do I use the closing price, or can I use anything in that day's trading range?

I converted my IRA to a Roth, recharacterized during the stock market crash and converted back with lower share prizes. Now my 1099-R shows a distribution and taxable amount that is way to high and I don't know how to put the numbers into my tax return without messing myself up. How do the different transactions get transferred into the form 8606?

Do you "lock in" your tax bracket in 1998 or does it change each year?

i.e., Convert 100K, 25 each year. Tax bracket in '98 is 15% and jumps to 28% in '99, '00, and '01. Do you pay 15% of 25k all 4 years or 15% in '98 and 28% of 25k the other 3 years?

We administer a plan where the sponsor has been over reporting hours for at least the last 5 years. Many participants who did not work 1,000 hours were reported as doing so, and incorrectly given a year of vesting service. About 30 terminated participants are involved with total overpayments of $8,000. Of course, these funds should have been allocated as forfeitures.

Total plan assets exceed $1,000,000,

so no single person is significantly impacted. Short of trying to collect small sums from all the overpaid former participants, what corredctive action would be appropriate? Would all the prior years need to be re-allocated if the employer deposits the funds? All ideas welcome!

Hi! My employer sent me the following letter with regard to health benefits for my spouse:

"In order to keep our health plans compliant under ERISA, the eligibility

for a participant to add a dependent is either at open enrollment (usually

around Nov/Dec of each year) or as a result of a change in family status in

which you have 30 days from the effective date of that change. In your

case unfortunately you missed out on adding your husband to your health

plan under both arrangements. We cannot make exceptions as it would make

our plan out of compliance under ERISA (federal law)." We were married last December 18. Is there any way I could still add my husband to my health benefits? -- Girlie

I am looking for a good COBRA/HIPPA seminar to attend. There are so many to choose from, and I want to make sure that I get my money's worth. Thanks in advance for your help!

How does one terminate a SEP (not a SARSEP)? Can a SEP be terminated on the last day of a plan year effective as the first day of the plan year, or do employees have an accrued benefit which must be funded? Thank you in advance.