A while back, ndt123 asked:

It appears that the notice requires the match to be calculated on annual contributions and annual compensation. For plans that match on pay period by pay period basis, this would require a "true up" match at the close of the year.

Any thoughts?

I didn't see any responses. Does anyone have any comments? Do you have to top-up all employees or just NHCEs? What about if a participant front-loads deferrals?

I am currently using Quicken to administer the cafeteria plans my company handles. I would like to switch to using Quickbooks as of the first of the year but I have no idea exactly how to track them. Any ideas on how to do this or anyone using Quickbooks now?

Does anyone know of a readable document that accurately summarizes the various remedial amendment period deadlines (TRA'86, GATT/USERRA/SBJPA, and TRA'97) for amending plan documents for nongovernmental 403(B) plans?

There was an article in the CCH Pension Plan Guide, No. 1239 dated 11/2/98, that paraphrased an attorney's verbal comments, but it didn't seem to pick up the first day of the 1998 plan year requirement for GATT/USERRA/SBJPA from IRS Notice 97-41, unless (unknown to me) the IRS extended that deadline. While, we're on the topic, if anyone knows why the IRS thought 403(B) plans should be subject to an earlier deadline than 401(a) plans, please speak up.

Thanks in advance for any help you can offer.

I am curious about on line transactions for enrollment forms etc on a web site (either provided by a broker or consultant or by a health plan carrier) I have heard nightmares re online bill reconciliation and consolidated billings. Any experiences pro or con? Thanks.

Is it possible for COBRA premiums for a qualifed beneficiary to be paid for through the premium coversion portion of the cafeteria plan. For example: Employee is paying the COBRA premiums for is ex-wife or employee paying COBRA premiums for aged out dependent.

I thought I had read that this would be allowable under a new regulation beginning next year????

I have had an inquiry from a colleague in Japan who is a member of the equivalent of our FASB. He is eager to learn about the accounting methods and disclosures for "cash balance" plans. It is unclear to me whether they should be accounted for as defined contribution or defined benefit plans. Any advice would be appreciated.

I have been given a new assignment and I need some help on where to start. The company I work for has never done benefit planning and they want me to develop a project schedule that will lay out the planning process to take place over the next few months. Has anyone out there gone through this process, and if so, what key areas are best to concentrate on and what should be avoided. Would greatly appreciate any help anyone can give.

A qualified retirement plan is allowed to pay certain legal and/or administrative fees out of Plan assets. Other types of fees probably should not be paid out of the trust.

Is anyone aware of a good article that discusses how to determine when to pay a fee from the Plan and when not to?

As an example, if an employer hires a consultant to create a benefit formula in an existing qualified plan to maximize benefits to the HCE's (to the detriment of the NHCE's)and then hires an attorney to amend the plan for the new benefit formula, I generally believe that the employer, not the Plan, should pay such fees because they were beyond "normal" administrative practice.

Conversely, when the consultant charges the plan to prepare the annual 5500, it is probably appropriate for the Plan to pay the consultant's fees as the 5500 filing is necessary to the administration of the plan.

Work at at computer software firm of about 120 people. Interested to know what other companies provide in their tuition reimbursment programs to employees. How and how much do you cover?

I am currently a Human Resources Coordinator for a computer consulting firm with about 120 employees and almost 3 years old. We are coming up on the completion of our 1 year with a 401k plan and do not match. I am looking for info about other companies and what they do in terms of matching (percentages and such), and what your plans provide. Any information would be much appreciated. We are hoping to start matching at the first of the year.

Thanks.

401(k) Plan has employee deferrals and match contributed. In calculating the maximum employer contribution for the 15% limit, I am using taxable wages of eligible participants excluding 401(k) deferrals and cafeteria plan deferrals; also excluding any participant's wages if not employed on the last day of the year; also excluding any participants wages above the $160,000 limit. I multiply this figure by 15%, then subtract the elective deferrals and employer match which then gives me the net profit sharing contribution allowable for the employer's fiscal year.

Is this correct?

Need help determining the treatment of 402(g) violations not returned by April 15th.

My office has been struggling with what health benefits,if any, we are legally required to offer to our part-time employees (we have one 20 hr./wk. employee and one 30 hr./wk. employee). We pay the full health insurance premium for our full-time employees (40 hr./wk.) but have not offered any health insurance to our part-time employees. I have searched ERISA, the IRS Code,etc. and cannot seem to find guidance with regard to this issue. I would appreciate any input you might have.

It seems that there is very little technical information out there on SEPs. Does anyone know of a comprehensive text or resource that can be used for SEP research? I've seen the BNA Portfolio on SEPs, IRS publication, limited exam guidelines, but nothing that gets very detailed.

Company A is considering purchasing substantially all of the assets of Company B. Company B is currently involved in liquidation proceedings under the bankruptcy laws. Following the asset purchase, Company A will terminate 10% of the employees formerly employed by Company B. Does Company A have any successor liability with respect to providing these individuals with COBRA coverage. Any thoughts? Thanks. Ed

Clearly, a plan that wishes to satisfy a safe harbor must amend the plan to include a plan provison setting forth the safe harbor the plan intends to use. Does anyone read section 401(k)(12) or Notice 98-52 to require a plan provision stating that participants will be given written notice of their rights and obligations within a reasonable period before the beginning of the plan year?

IRC 457(g) requires that governmental plans will not be treated as eligible deferred compensation plans unless all ""assets and income" of the plan ... are held in trust for the exclusive benefit of participants and their beneficiaries." Ms. Calhoun has written an excellent article on this topic that I recommend reading.

There seems to be a conflict as to the meaning of the term "assets and income". One of my colleagues has indicated that several commentators have indicated that the term assets only applies to amounts actually deferred from employees salary (similar to 402(g) deferrals) and to employer contributions that have previously been placed in a trust, a custodial account, or in an annuity policy. The contention is that employer sponsored 457 plans with no employee salary deferrals and only a promise to pay on the part of the employer are not subject to the trust requirement.Further, the contention is that the legislation adding 457(g) to the Code was never intended to require the funding of plans that previously had no "assets" and that the funding requirement for these plans was not changed by 457(g).

Unfortunately, I cannot find support for this position in either the statute, the Committee Reports or in Notice 98-8. However, Paragraph 19 of Notice 98-8 does refer to "amounts deferred" when discussing the trust requirement.

To what plans does the trust requirment apply? Does the trust requirement apply only to employee salary deferrals as "amounts deferred" or does it apply to all "book accounts" under 457 plans? If it only applies to salary deferrals , is there a pass through trust requirement when an individual is to receive a distribution because assets have been identified to pay the distribution?

I would appreciate any clarification which anyone could provide. References and citations would be fantastic.

Thank you for your assistance.

JDC

[Note: This message was edited by CVCalhoun]

Is there anyway for an employer to offer health insurance to early retirees (55 - 65 years old)? The emp would be responsible for the premium. Also the company does not want the liabilty for these emps (FASB). The group is self-funded and does not want to put these emps on the current SF plan.

Question:

A deceased's account in a money-purchase pension plan is transferred to the IRA of the surviving spouse. Is there any special creditor protection afforded these assets that may be an exception from the lack of creditor protection generally afforded IRA's?

Is there any difference if the only assets in the spouse's IRA are those incident to this transfer?

Thanks for any help!!

After TRA '97 employers are now permitted to pay parking benefits in lieu of compensation to employees. I have heard that the IRS prefers that the employee make an election at the beginning of the year based on how much he expects the month to month parking expenses to be. May the employee avoid making an election without violating any constructive receipt rules?

What if it is not feasible to make the election? One company has employees who park all over the city. The easiest way to administer under the new rules to have the employee first incur the expense, then have the EE turn in the receipt for a pretax deduction in the following month.

EX:

Jan. $100 expense incurred for parking.

Feb. EE turns in receipt for $100 to ER who then takes a pretax deduction for that amount from the EE's paycheck, and also a $100 reimbursement to net pay (since the EE has already paid his own money to pay for the parking).

ER cannot set up monthly parking with the garages for all of its EEs since there are so many EEs and so few large blocks of parking available within walking distance of the ER.

Also, the expenses for monthly parking may easily change from month to month. Can we cross over months to take the pretax deduction? We most likely cannot cross over years.

Any problems with this type of administration of the new "in lieu of" parking benefits?