Employer allows broker to promote "voluntary" insurance products (AFLAC type junk) to employees and accommodates payment of premiums via payroll deduction (no employer contribution).

Are these "employee welfare benefit plans" subject to ERISA and requiring filing of 5500s if large enough?

Does it matter whether the premiums are being deducted pre-tax pursuant to a cafeteria plan or after-tax?

Thanks

DB plan (takeover, data issues) requires QJSA notice given prior to NRD, and if election is not made or a written election to defer (no later than RBD) is not made, then benefits are required to commence in the normal form as of the 60th day of the year following the year in which NRD occurs.

Person's NRD was 7/1. Takeover data issues delayed calculation of benefit and delivery of QJSA forms until after 7/1. There is no RASD in the plan. Do we prepare QJSA for 9/1 ASD with two month actuarial increase or do a "corrective" QJSA back to 7/1? 

Suppose a plan allows for an unreduced early retirement benefit as early as age 55. Normal Retirement Date is age 65. The plan was frozen a couple of year's ago. A participant is currently working and is now eligible to receive an unreduced pension benefit, but the plan does not allow for in-service distributions. Assume that 415 limits don't apply to this person. If this participant waits until a later date (perhaps age 65) to commence their benefit then there has clearly been some benefit "left on the table", but has an impermissible forfeiture of benefits occurred? What if the plan offered in-service distributions? Does it make a difference if the participant is a former participant who consequently is not currently receiving a paycheck from the plan sponsor?

I'm trying to figure out the best way to word this arrangement. The underlying concept is pretty straightforward and I have seen it done many times: The employer has a COLI policy (which it owns, pays all premiums on, and is the beneficiary of) that accrues cash value. The employer enters a separate deferred compensation agreement with the employee saying if you work until age 65, the employer will pay the employee compensation equal to the cash value of the policy on the date the employee turns 65.

Generally the deferred compensation plan (like all plans) will say the employee has rights no greater than an unsecured creditor, the employer is not required to set aside any assets, etc. Obviously the language is in there to keep the plan unfunded for tax and ERISA purposes, but the deferred compensation plan never acknowledges what will happen if, for example, the employer defaults on premiums, surrenders the policy, draws down policy loans, etc. So the employee could reach age 65 and become entitled to benefits, but the employer could have let the policy lapse years before. There is nothing else stating the dollar amount of the benefit. (I know the agreement can set a fixed dollar amount projected to be covered by the cash value, but they want to pay the cash value, no more, no less.)

What's the solution here? Put a restriction on the policy saying the employer cannot surrender, withdraw cash value, or take loans? I think this would be fine as long as it didn't create any rights enforceable by the employee. What if the employer fails to pay premiums and the cash value cannot support the premiums, causing surrender of the policy? Draft the deferred compensation benefit to equal the cash value at age 65 plus any withdrawals or outstanding loans? That still doesn't solve surrender. Take the employer's word? Anything else enforceable by the employee or shielding the policy from the employer's creditors would upset the tax/ERISA status.

Thoughts?

The company puts 50% of the profit sharing contribution into the plan.   The other 50% the participant may take in cash or defer into the profit sharing plan.  Is the 50% that is deposited into the plan tested as a regular profit sharing contribution and would the additional amount that the participant elects puts into the plan treated as a pre-tax deferral?    If it is a pre-tax deferral, what year would it be applied to the limits?  The year it is for (2016) or the year it is deposited (2017)?   

I have run into a situation where the employee became a participant while unmarried, and selected his mother as his beneficiary (awww, how nice).  He has recently married.  We all know that this means that his spouse is now his primary beneficiary... but where is that stated in the law?  The mother is reluctant to no longer be the beneficiary, and the participant, who could choose to solve this by just completing a new form listing his wife, is not doing so.

This is a 403(b) plan - I don't think that matters, except that the document language isn't pre-approved and therefore maybe isn't as 'tight' as I'd like it to be.  It says that if there is no designation in effect, the spouse is the default beneficiary unless he/she waives that right.  But it doesn't specifically say that becoming the spouse supersedes other beneficiary forms in effect.  And it's not subject to QJ&SA for anything (which I think rules out IRC 411 and 417).  So where in the 

Thanks.

When seller is required to terminate its 401k plan prior to the close of a merger/acquisition (stock deal), what date is typically used for the termination date?  Is it typically the day immediately prior to close? Or a date further in advance of close?  I've been using the date immediately prior to close, as plan termination is generally subject to close, and this allows participants to continue their deferrals as long as possible. However, this seems to complicate the actual administration of the termination re: timing of last contributions, etc.

Any thoughts would be appreciated!

When seller is required to terminate its 401k plan prior to the close of a merger/acquisition (stock deal), what date is typically used for the termination date?  Is it typically the day immediately prior to close? Or a date further in advance of close?  I've been using the date immediately prior to close, as plan termination is generally subject to close, and this allows participants to continue their deferrals as long as possible. However, this seems to complicate the actual administration of the termination re: timing of last contributions, etc.

Any thoughts would be appreciated!

Welfare Plan, covering a division of larger employer, terminated on 12/31/16 and brought into the larger plan effective 1/1/17, according to the plan resolutions. 

So at 12/31/16 there were participants in the original plan but at 1/1/17 there were none.

Is this how to finalize the 5500 - For 2016 include all Schedule A's to show premiums, commissions, etc., but show zero participants? If they file a 2017 5500, the beg of yr count is zero.

I am unable to see the posts on the "Securities Law Aspects of Employee Benefit Plans" board.  When I click on it, I just get the heading but no posts.  The other boards seem to be working fine.  Is anyone else having this problem?

I'm working on a PYE 9/30/16 401(k) plan where the employer is just not giving us what we need to complete the ADP Test.  I know it's going to fail, but I can't even get in the ballpark of completing the test.

Since we're past 2.5 months after the end of the plan year, the 10% penalty will apply.  Now that the next plan year end is looming, I'm trying to scare the employer into getting us the data or else.  If we cross 9/30/17, then the correction is an EPCRS issue and the plan sponsor has to deposit a QNEC equal to the amount refunded.  But what about the 10% penalty - is that still applicable?  Or does that go away somehow?

Thanks.

What is the objective of a Wellcare 401(k) plan?

Can I have a pooled trustee directed 403b Plan?  It will be funded via Custodial Accounts/mutual funds.  for the micro  market it can be darn near impossible to find a home...

I have the following two questions regarding exchange open enrollment periods and termination of an employer contribution towards a former-employee's COBRA coverage. I have also provided additional information and references to relevant information. Thanks in advance!

Does termination of an employer contribution towards a former employee’s COBRA coverage create a special enrollment period to enroll in exchange coverage for the former employee?

Information on the healthcare.gov website indicates that an individual may change from COBRA to a Marketplace plan outside of an open enrollment period if the individual’s COBRA costs change because his former employer stops contributing towards the COBRA coverage, and the individual is required to pay the full cost (see https://www.healthcare.gov/coverage-outside-open-enrollment/special-enrollment-period/ and https://www.healthcare.gov/unemployed/cobra-coverage/). This is inconsistent with the regulations, which provide that termination of employer contributions can create a special enrollment period “in the case of an employee or dependent who has coverage that is not COBRA continuation coverage.” 26 CFR 54.9801-6(a)(3)(ii), which is incorporated by reference into 45 C.F.R. §155.420 regarding special enrollment periods. 

Assuming the former employee drops the COBRA coverage once the employer contributions end and is otherwise eligible for advance payments of the premium tax credit, does termination of employer contributions towards a former employee’s COBRA coverage that results in the COBRA coverage being “unaffordable” under Code section 36B and 26 C.F.R. § 1.36B-2 create a special enrollment period to enroll in exchange coverage for the former employee because the former employee would be newly eligible for advance payments of the premium tax credit (which creates a special enrollment period pursuant to 45 C.F.R. §155.420(d)(i)(6)(iii))?

REGTAP FAQ ID 1496 provides that “f they are voluntarily dropping coverage outside of Marketplace open enrollment (their COBRA has not yet expired), they would not qualify for a special enrollment period. During the next open enrollment period or when their COBRA expires, they could enroll in a QHP and may be eligible for APTC;” however, must the former employee wait until the next open enrollment period if termination of the employer contribution results in the coverage no longer being “affordable,” and therefore, would be newly eligible for advance payments of the premium tax credit because the individual is ineligible for qualifying coverage in an eligible-employer sponsored plan in accordance with 26 CFR 1.36B-2(c)(3).
 

Are unpaid minimum contributions used as receivables when determining minimum contribution for the following year?

Can a governmental plan permit a participant to purchase an enhanced benefit without relying upon section 415(n) if it otherwise complies with section 415?

Curious as to any opinions here. Suppose you have to terminate an ERISA 403(b) plan. As with most of them, an old document that was tossed together in 2009. 403(b) plan terminations are a bit "gray" at the best of times, but there's an additional issue now.

Do you have to restate it prior to termination? Or, do you interpret things such that as long as it is restated prior to the end of the restatement window, you don't have to? While it is clearly the safe approach to restate, I'm just curious as to how folks are approaching this question. Thanks.

P.S. FWIW, in the absence of additional guidance/information, I would always restate.

I'm getting ready to do the DOL filing for the Top Hat Exemption and noticed that the DOL has a means for electronic filing.  But I can't tell if e-filing is now required or is still optional.  I have a mailing address that I used a few years back, but not sure if that's still the right address if we can still do a paper filing.

have a part time employee who earned more than $5000 in 2015 and 2016 but was not employed by us on January 1, 2017.  our first plan year started January 1, 2017.  It was reasonable to say that the employee was not expected to earn $5000 for 2017 since he was not employed by us.  We did rehire the person in March and is expected to be with us until the end of the year.  Is this person eligible to join the plan or is the eligibility only established as of January 1, 2017.

Can a household employer establish a 401(k) plan on behalf of the household employees & be exempt from the 4972 10% excise tax on nondeductible contributions if the plan restricts contributions to only elective deferrals? Elective deferrals are not taken into account for purposes of Sec 404 deduction limits, so I'm assuming this can be done.

A Simple plan would be the alternative, but they require employer contributions.