Did the IRS give ANY indication of when document approval might be expected? I'd sure love to be able to start planning next year's work projects....

Employer A requires 30 hours eligibility for health insurance, and offers FSA. Employee of A works 20 hour weeks for Emp A, but is covered under Spouse's Employer Health Plan. Can Employer A allow 20 hour Employee to participate in A's FSA?

Say that an ERISA attorney has a plan sponsor adopt a volume submitter plan that has just enough modifications to it to support a determination letter request (intentionally), but not enough to render it an individually designed plan.

Then, some time after receiving the letter, there is an an amendment, but not to the modified content. Is the plan sponsor eligible to apply for a new determination letter?

We are seeing lots of imaginative ways to get around the usual restrictions on getting a determination letter on a pre-approved plan or an amendment to an individually designed plan.

Never heard this type of corporation.

How does this work when it comes to retirement plans (i.e., sponsorship, wages, etc.)? I'm taking over qualified retirement plans for a one-person plan.

From what I've read, the corporation is established and employs the person. The employee is then paid by the corporation. I'm assuming the corporation sponsors the plan.

Who owns the corporation?

Thanks

Non-profit organization has several semi-permanent part time employees to do fill-in for vacations, sick leave, scheduling etc.. They want to use one for a longer term fill-in that would put them over 1000 hours in the current plan year then return to part time in the following year.

Plan calls for 1000 hours/one year eligibility.

Is there any simple language that could be added to the document that would allow this?

I was under the impression there is a 12 month window between the time an employer terminates a 401(k), and establishes a new 401(k).

Is there such a cite and where?

I have a heavy hitter of a broker I deal with that is telling me her checked this out, and, as long as the existing plan is terminated and everyone rolls over to an IRA before 12/31/, the employer can establish a new 401(k).

Sponsor wants to amend the SEP to make eligibility more restrictive. Can that be done midyear, or does it have to wait until the start of the new year? I don't know yet what kind of SEP. Thanks.

Employee elects family HMO coverage. Has a new child mid-year. Cost of plan to the employee does not change as he already has family coverage. As a result of the birth, now wants to change to High Deductible plan because premium is lower.

Some here say changing plans in this case is not consistent since there is no change in cost or coverage. Others say birth is a "free pass" for whatever you want to do. Plan document is generally ambiguous, thus providing no specific guidance.

What's your take on this request? Any cites appreciated. Thanks for your input!

I could use some input on how to correct this unique situation please...

An employee was deferring pretax $750 per paycheck and submitted a request on 3/15/16 to change the election to $350 pretax and $10 roth. The change was not actually implemented until 10/31/16.

The employee confirmed that they would like the contributions returned.

Would you return $390 per paycheck and recategorize $10 as roth and have the client fix payroll to add $10 of her pretax as taxable wages since a 1099 will be issued for the $340 being distributed?

Any suggestions?

This might be old news to some; I've never seen it before.

Sponsor has more than one DB plan, and is planning to offer a VT window in both plans. Is the Settlement threshold (service cost + interest cost) based on (a) the sum of all plans, or (b) per-plan basis?

I can see an argument in favor of (a) or (b). Anyone with experience on point?

Hi,

Have the 2017 limits officially come out for FSA's, Transit and Parking?

We have a plan for a company that went out of business in 2015. Plan terminated, and final distributions were done in 2016.

However, the forfeiture account was never liquidated. There are no more fees to be paid.

How do I reallocate the forfeiture account now, being that the date for which annual additions for 2015 has passed on 10/15. I obviously have no comp for 2016.

Do I just reallocate it on 2015 comp and move on?

The MEWA definition in ERISA 3(40) (29 USC 1002(40)) provides that a MEWA is an employee welfare benefit plan established/maintained for the purpose of offering/providing any welfare plan benefit to the employees of two or more employers (including one or more self-employed individuals)...

My question is how to define "self-employed individuals" for MEWA purposes. 401© defines the term, but I'm unsure whether that can properly be incorporated into the MEWA definition.

Thank you in advance for your assistance.

Can someone point me to some guidance that says if I want to have a plan effective 1/1/2017 I can send out my initial notices after 11/1? I get that for an existing plan I need to have the notice out by 11/1 but it seems to me that if the plan does not yet exist there should be some room.

This is what it says under 408(p):

© each employee eligible to participate may elect, during the 60-day period before the beginning of any year (and the 60-day period before the first day such employee is eligible to participate), to participate in the arrangement, or to modify the amounts subject to such arrangement, for such year.

The IRS FAQ's don't seem to address what to do in November and December. And I can't find any articles!

Company with 10 employees fails to file a final 5500 in 2013. In 2015 they receive letter from IRS stating the 2013 5500 was not received. Company responds to IRS by sending IRS a 2013 5500 EZ, signed and dated in 2015. The 2013 5500 shows $0 for the beginning of the year assets and 0 employees in the beginning of the year. Company gets letter from IRS assesing $15,000 penalty.

I was going to amend the erroneously filed 5500 and ask IRS to reduce the penalty to $750. Thoughts? Thanks in advance.

So it has been discovered that payroll did not make the percentage change for 2 participants. Both participants increased their deferral contribution but the increase never happened. As a result we need to make the monetary correction on each participant's behalf.

My question is... do we need to give these 2 participants a notice stating what we are doing to correct the issue? If so, does anyone have an example?

Thanks

Participant has a life insurance policy as an asset in her 401(k) account. (Plan is the owner.)

It is my understanding that the ownership of this policy can be changed from the plan to the participant/individual. The participant would be taxed on the cash surrender value. Is this correct?

If this is correct, can the cash surrender value be “counted” as part of her RMD due for the year?

Example: Participant’s RMD for 2016 is $10,000. Cash surrender value of life insurance policy is $2,000. The plan would issue a distribution check in the amount $8,000 to the participant. Is this permitted?

Thank you.

What charges, if any, do you put in the SAR for copies of the paper 5500 for the per page and full copy items?

I usually put $0.25/page and $0.75/$3.00 for full copies of SF/5500, respectively.

What you you put in your SARs?

I just read an email where the person was telling a client that fiduciary relief under 404© is fiction (no plans comply), and that benchmarking is required by law. To be clear, the email did not say 404© Protection is hard to get. It does not exist? Also, while benchmarking makes sense for reviewing your Plan, required by law? Where is that cite?

Client is looking at changing cafeteria plan (currently part of a wrap document) to a POP (premium only plan) as they no longer have a Flexible spending account. They currently file 1 tax return with all the wrap benefits.

They've been advised no need to restate and amend the cafeteria plan but just to terminate the plan and adopt a new plan. Is it a simple resolution to make the change or is there a need to send out notices to the participants? Plan is funded by general assets of the employer and insurance, over 500+ employees.

In addition, do the form 5500 filing requirements follow the wrap plan and not the cafeteria plan....so that in this instance no final form 5500 would be filed as the wrap plan itself is still the same.

Thanks for any help!