if an employee is on LTD, is an employer obligated by any law to contiue their health insurance? can we allow them to "just go on" medicare/medicaid.

What are the most recent COBRA law changes? COBRA has to be offered to employees on Medicare - what are the details? Are there any other changes? Where is there a good place to find these types of changes to the COBRA law?

When HIPAA took effect, did the "look-back" period that could extend up to 12 months, change to only 6 months? E.g. The plan that I am on looked back 1 year for pre-existing conditions. With HIPAA is the llok back limited to only 6 months?

Who is responsible for determining the qualified status of a domestic relations order when it pertains to a 403(B) plan that is not subject to ERISA. Is it the custodian, or the plan's responsiblity?

Need information on how(if)matching contributions can be applied toward topheavy 3% for NHCE. If ACP is passed using Zero for all NHCE can match be used toward 3%. Also, if first year plan, ACP is deemed to be 3% for NHCE.Is this a loophole for using match or too good to be true. Thanks

Is it the concensus that an affirmative election to decline an RMD is required for those who turn 70.5 in 1998? I know we can't refuse to give them a benefit, but can't we require that they affirmatively elect to get a benefit? Do you even have to notify them or can you wait for them to come forward?

Our plan is rather simple so this should be easy to figure out, but I just want to make sure that I am doing this correctly. Employees can defer up to 20% of their pay into our 401(k) plan. There is no employer match and we have no other pension plan. We do have a 125 Cafeteria Plan for medical and dependent care expenses.

To figure out the 415 Annual Additions Limit I can first throw out the $30,000 limit because no one can contribute more than $10,000 in 1998. So now I just take 25% of their W-2 taxable income. Is it really that simple?

For example, someone making $50,000 contributes 20% to the 401(k) plan.

W-2 taxable income is $40,000 X 25% = $10,000. This person has not exceeded the 415 limit.

BUT if this person also contributes $5,000 to the 125 plan, W-2 taxable income would be $50,000-10,000-5,000=35,000 X 25% = $8,750. So this person would exceed the 415 limit.

The most this person could contribute to their 401(k) plan would be $9,000. ($50,000-9,000-5,000 =$36,000 X 25% =9,000).

We have a catch-up clause which allows people to defer up to 100% of their pay in December. So I have to keep an eye on this 415 limit to make sure that no one exceeds it. I want to make sure that I am doing this correctly and that my logic makes sense.

Thanks in advance for your help.

When an employee becomes eligible for a SIMPLE IRA and enters on July 1, does the employer have to make their required matching contribution on compensation for the entire calendar year or just on the compensation while eligible? My understanding is that's it's on the calendar year compensation. Thank you.

Our firm is establishing a formal training program for employees hired that are new to 401(k)/Pensions. We currently are thinking of hiring trainees in groups of 3 or 4 and sending them through a "training school". Does anyone have a program that works at their firm that they would be willing to share ideas?

Any opinions on whether the following two plan designs would satisfy safe-harbor 401(k)?

#1 Design: 401(k) Plan -low match (not safe-harbor) and a leveraged ESOP (covering same ee's) with a 4% of pay (P+I) repayment?

#2 Design: Profit Sharing Plan w/401(k) Provision 2% of pay Profit sharing contribution. ESOP (covering same ee's) with a 2% of pay (P+I) repayment?

If you are a law firm between 400 and 700 total lives, would you take a moment to answer a few questions regarding your next renewal? For confidentiality, you can email me directly at: john_redding@mckennacuneo.com. Thanks:

1. At what percentage increase do you expect to renew your healthcare contract: a/no increase

b/1 to 3%

c/4 to 6%

d/7 to 8%

e/9 to 10%

f/more than 10%

2. Being plan specific, what have you realized is the major contributing factor(s) to this increase?

3. Has this increase cause you to consider other healthcare carriers for 1999? for 2000?

4. Are you instituting any cost containment or adjunct plans to lessen an increase for PY2K?

5. For PY98, did your firm pay the entire cost for self only coverage on your healthcare coverage?

6. Are you planning to continue this practice for 99?

a/If not, what percentage of the self only cost are you asking your employees to pay?

7. For PY98, did your firm pay the entire cost of family coverage on your healthcare coverage?

a/If not, what percentage of the family coverage did you ask your employees to pay?

8. Are you planning to continue this practice in PY99?

a/If not, what perentage of the family coverage will you ask your employees to pay?

9. Is there is a change in policy with regard to self only coverage cost sharing, what prompted the change?

10. If there is a change with regard to gamily coverage cost sharing, what prompted the change?

Please let me know the size of your law firm and the general location. Thanks.

A company excludes overtime earnings from its 401(k) calculations, but includes overtime for purposes of discrimination testing and determining HCEs. Is this appropriate?

What is the future for 401k plan sponsors and their fiduciary responsibilities in regard to providing investment advice to plan participants?

Will plan participants be relegated to seeking/paying for outside financial advice for more in depth analysis and suggestions on their respective 401k plan?

[This message has been edited by MLB (edited 10-14-98).]

We have a number of employees and/or families that are covered for medical/dental insurance through a spouses coverage. We are thinking about sharing with them the premium savings. (We do no have a cafeteria plan.) Does anyone share these savings with employees and how is the amount calculated.

Employer closed out a 403(B) plan, with transfers to individual annuities. Certain transfers were incorrect (too small) for certain participants, due to a clerical error. Employer now wants to make these people whole and was planning on issuing checks and reporting via 1099-R, however checks would be drawn on general account of employer, not on any tax-qualified source. Is there any way to make the corrections to a tax-qualified vehicle for these persons (403(B)/IRA)? The insurance company that maintained the group annuity does not hold any accounts for these individuals. Any comments or ideas are suggested.

Can SAR-SEP IRA contributions be rolled over to a conduit IRA and then into a 401(k)? Would this transaction be permitted by IRS regulations.

Does anyone have the 1999 colas???

Can an active participant default on a loan if they no longer authorize payroll withholding for the loan payments? Does this present any other problems other than a deemed distribution? This is a NHCE.

Would like to hear how you manage benefits for part-timers? Exempt vs non-exempt?

Pro-rate across the board? Anything not offered to Part Timers?

I am reprogramming a pension system for my employer and I want to do it only once so I want to make sure we have got all the possible data items up front for QDRO's. What are the necessary data items for QDRO's that need to maintained in the database other than the identifying items like name, SS#, and address? All data items you have seen would be great. Thanks for any help.!