Tuition reduction plans under Code section 117(d) refer to employees of organizations under Code section 170(B)(1)(A)(ii)[educational orgs.] Code Sec. 117(d) does not refer to Code section 170(B)(1)(A)(i)[ a church or a convention or association of churches]. A church-affiliated school would like to sponsor a tuition reimbursement plan under section 117(d) - will this have the intended tax effect (exclusion of amount of tuition reimbursement from employees' income)?

Our business had utilized an employee-leasing service which provided very limited benefits packages, but did include a 401(k) program with the Cafeteria plan. We would now like to set up a 401(k) with Cafeteria plan (contributions before taxes) on our own for our employees -- currently just 2. How might we set-up such a plan with mutual fund and/or IRA providers?

I recently started a new job and wanted to rollover my 401(k) to the new employers plan. However, after receiving the distribution check from my old plan and sending it the new plan administrator, I found out that the new employer has elected not to roll 401(k) funds into their 401(k), but rather into the pension fund. I had planned to take a loan as a downpayment on a home, since I have accumulated about $50,000, and would be eligible to take up to $25,000 for a downpayment. Unfortunately, I don't qualify for a ROTH IRA. Any advice for other ways to reapply my 401(k) so that I can use it or ways to convince my current employer to change the plan?

I have a client who might not have all the data to file a 5500. They are on extension to 10/15 (using form 5558).

What form is used to requesta second extension? How much time do you get and is the request generally granted?

HCE has personal account and directed investment account at same brokerage firm. HCE directed broker to sell investment x in directed investment account. Broker executed sale of investment x in directed investment account. Meanwhile, at some point, HCE had instructed broker to purchase investment y in personal account. Broker transferred sales proceeds from HCE's directed investment account into HCE's personal account inadvertently and the funds were used to purchase investment y in HCE's personal account. Although HCE signed authorization to transfer funds, HCE was not aware that funds were being moved from directed investment account to personal account.

Any advice as to how to correct this error under APRSC or otherwise?

Yes. If the aggregate amount of matching contributions under an alternative formula at any given rate of salary deferrals is at least equal to 100% of the first 3% deferred and 50% of the deferral between 3% and 5%, then the alternative formula will satisfy the safe harbor. However, an alternative formula will not satisfy the safe harbor if the rate of matching increases as the rate of deferrals increases (ie. 100% of the first 3% and 125% of the deferrals between 3% and 5%).

If a 401(k) plan matches deferrals in excess of 6% of compensation, the safe harbor no longer applies to the matching contribution, and those contributions together with any after-tax contributions are subject to discrimination testing. However, the safe harbor still applies to the salary deferral part of the plan.

Please note that the safe harbor requirements do not allow the "last day rule" or the requirement to complete 1,000 hours of service during the plan year to receive the match.

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[This message has been edited by Greg (edited 10-29-98).]

An employee terminates employment and the employee could have taken his vested value when he left employment but did not take the distribution. Should the employee receive a QPSA or QJSA notice? If the employee dies after such termination of employment do QPSA rules still apply?

We have a 401(k)/ESOP where co. match is in stock. We match dollar for dollar up to 4%. We always fail ADP/ACP test. I read somewhere that beginning in 1999 if a co matches dollar for dollar up to 3% and 50 cents on next two percent that we will no longer be subject to ADP/ACP testing. Is this true and when is it effective. Quick response please as Board of Directors sets annual match percent at the 10/29 meeting.

Wife covers husband under health plan under a cafeteria arrangement. Husband is hired by same employer. Son comes into the US as an alien. Husband desires to stay on wife's plan and add son. (Husband could always elect his own coverage, drop out of his wife's coverage, and husband could pick up the son -- if no issue with son's alien status) May wife pick up son under CIFS rules? Issues: (1) under pre/post 11/97 cafeteria regulations? (2) is the husband's new hire status sufficiently related to adding on the son for coverage?

What is the income tax impact on S Corp shareholders in a self funded (or partially self funded) plan? Several folks have told me that they thought the rules were changed under HIPAA.

We are a TPA firm with no asset or insurance affiliate. For the plans that we administer who are self trusteed, we file the federal withholding, prepare the 1099's, 1096, and 945's. We currently get one trust number for each of these plans, get a coupon book, and file when there is a distribution. Does anyone else do this, or do they set-up one trust number and file all distribution withholding through that one number? Thanks.

Has anyone had experience with converting a year end transaction file from Equitable/Momentum Services, so that it imports electronically to Quantech? I would apreciate any direction, advice, import routines, or other resources to guide me. Thank you.

My employer has indicated that our group life insurance policy does not cover suspended employees because the LI carrier says that suspended employees do not fit the definition of "actively at work." YET, our bargaining agreement says that the employer will provide LI for all employees. A suspended employee is still an employee, no? Does anyone have an opinion on this? Are there other locals that have come across this problem? Our LI carrier says that excluding suspended employees from coverage is an industry norm. Thank you in advance for any help you can provide.

I am an employee who is interested to get my company to go into the POP plan. Can anyone tell me the cost, limits, and repercussion for misuse.

Thanks,

Kev.

I am looking for articles/example policies regarding the benefits/policies/procedures of employees who are rehired by a company.

Is anyone familiar with the hybrid DB/DC plan set up by NationsBank as a Cash Balance plan in which plan participants can roll over 401(k) balances into the Cash Balance plan and direct investments? I am interested in any information you might have on how they have addressed issues such as separate account requirements and crediting the underlying pension plan return to the cash balance accounts.

We are hiring a third party administrator to pass all eligibility to our HMOs and pay our premiums with a charge back to us. Can we add the monthly per employee fee from this administrator to the HMO premiums (and then load 102%) for COBRA. Does anyone have any experience with this?

Its late, but there is still time to register

Fall Training Meeting / Southern Users Group

Fri Nov 6 12:30 - 5:15

Sat Nov 7 8:30 - 4:30

Nashville

Marriott Hotel

$109 through Oct 14th

(800) Marriott or

(615) 883-9500

$150 for members of Southern User Group

$175 for other user group members

$200 for non members

FRIDAY:

12:30 - 1:45 Crystal Reports

Terri Ely, Lorraine Dorsa & Associates

1:45-2:00 Break

Choose one of the following

2:00 - 3:15 Non-discrim, cross testing plans

Tom Poje, LD & A

2:00 - 3:15 Quantech Hardware and Networking issues, Mitch Ely from Corbel

3:15 - 4:00 Break

Pick one of the following sessions

4:00 - 5:15 Nondisrcim continued

4:00 - 5:15 Defined Benefit Plan Administration for Defined Contribution Administrators

Lorraine Dorsa, LD & A

5:30 - 6:00 Reception

SATURDAY

All topics taught by Quantech instructor

8:00-8:30 Continental Breakfast

8:30 - 10:10 Employers with Multiple Divisions or plans

also Eligibility issues

10:25-12:05 Transaction posting

12:05 - 1:00 Lunch

1:00 - 2:40 Reporting options

Security/Data Management

2:40 - 2:55 Break

2:55 - 4:30 Loan processing

Questions? Call Maggie Heffernan (770) 641-1429

or Lorraine Dorsa (User Group Empress) 904 249-9171

The organization I work for currently pends all health insurance claims during the COBRA election period to ensure that we don't pay claims for an individual who may later decide to waive coverage. I have heard that it may be legal to send a sort of denial during this time frame stating that coverage has been suspended. Can anyone tell me if this is true, and what you do? Thanks in advance for your help.