We handle three separate plans of three dentists who share a dental office, as well as a few employees. For purposes of eligibility and contribution, we are using RR 73-447 and RR 67-101 which basically says that although the employee works PT for each employer, she must participate and receive a contribution in each employer's plan if she is employed by that employer whether FT or PT

We have one employee who works for two dentists. She "terminated" employment with one of the dentists and now works FT and exclusively for one of the other dentists.

She wishes to rollover her vested account balance to the other plan. She already has an account in the other dentist's plan.

The plans are all safe harbor 401Ks with a discretionary PS contribution. She is not yet 100% vested in the profit sharing portion of either employer's plan.

Question #1 - is she entitled to a distribution, i.e. did she "terminate from service"

Question #2 - would she now become 100% vested in the profit sharing account balance in the first employer's plan?

Final regulations allow the common law large employer to take credit for health coverage provided by a staffing company or PEO but only if the staffing company charges a higher fee for workers for whom it's providing coverage.

Does the higher fee have to be charged with respect to all workers OFFERED ACA compliant coverage or only those who actually ENROLL in the coverage?

It would seem logical that the fee should attach to any worker offered coverage since that dovetails with the common law employer's obligation but the reg language seems to say the fee applies with respect to the workers "actually provided" coverage.

Can an employee cover their working spouse, at the same employer, as a dependent in their health plan? Both are eligible for benefits. I thought it might be some kind of irs pretax problem. I just saw this when someone tried to elect family coverage but their spouse (open enrollment) is being added to their coverage and spouse is dropping their individual coverage.

In one of our plans, we have a distribution pending for a U.S. citizen who's currently living abroad, but is planning to return to U.S. at some point in time. She requested a direct distribution. Should the federal withholding be 20% or 30%. I know's it's 30% for non-resident aliens, but since she's technically a U.S. citizen, should it be just 20%?

Can anyone point me to a regulation regarding the beginning and ending of a coverage period for a health plan that does not coincide with a calendar year?

A local school district has a coverage period beginning 9/1 and ending 8/31. How normal/common is it to use a coverage period that does not coincide with a calendar year? This is the first time for me to come across this.

If I have a QACA plan using a 2 year cliff vesting schedule, can I apply forfeitures to reduce the QACA matching contribution? I know the IRS position on not using forfeitures to fund vested contributions because the forfeitures are from non-vested amounts when a participant terminates employment. Thus for QNEC's and traditional safe harbor plans that require 100% vesting, you should not use forfeitures to fund the safe harbor (based on the terms of the document -ie some EGTRRA pre approved plans allowed this are are ok until the PPA document is used.

Thanks for any insight!

Have a plan w/ no HCE's so coverage is not an issue. Can I exclude from the Plan anyone who was hired after 10/1/2014? Or could that be considered a violation of 410(a)? I know DB plans do it all the time so I assume it is ok, but just thought I should double check with y'all.

Thank you.

Client should have made minimum quarterly contributions by 4/15/2014 and 7/15/2014 based upon 1/1/2013 and 1/1/2014 valuations that were performed pre-HATFA. Of course, client was instructed to but failed to make contributions so should have notified participants and possibly PBGC (at some later date). We just found out about this.

And then? And then? And then? Eh, eh. Along came HATFA with the result that the 2014 MRC=0, so in fact, no quarterlies were required in 2014. Perhaps, this question is no different than if we were just preparing 1/1/2014 valuation now (and there was no HATFA) and we discovered 2014 MRC=0 even though 2013 suggested the safe-harbor quarterly.

Not sure how the rest of you would treat this but I'm going nighty night.

Hi all,

I have a plan that is in the process of moving its assets to another platform.

The new account is set up with a different plan name since the Plan Sponsor changed the name of the company.

A new EIN was also issued in the process.

Now, the vendor is refusing to transfer the asset unless a distribution form is filled out.

Their reasoning is that the new plan has a new EIN, so they cannot transfer the assets.

I have provided them with documents stating the change of the plan name and EIN.

They are still refusing to do the transfer.

Has anyone been through this before?

Employer is a non-profit ("NP") with several units under the non-profit umbrella. Two of the units (Unit A and Unit B) participate in a multiemployer pension plan. One of the units has to close down as the NP is no longer providing the service that Unit A provides. This is a partial withdrawal. NP is selling Unit A to a non-related party and wants to use 4204. However, since Unit A provides in-patient health care the buyer must apply to the state to get approval to continue to provide in-patient care. The approval process could take from 12 to 18 months. NP will shut down Unit A in November regardless. If the sale doesn't close for 12-18 months does NP have withdrawal liability until buyer takes over? Buyer won't take on the withdrawal liability until buyer knows that the sale will be approved by the state. Does anyone know if NP is liable for the withdrawal until the sale closes? Can 4204 still be used when there is this time delay between shutting down Unit A and the closing of the sale? Any authority that is on point or close to this fact pattern. Sorry this is so long.

Not sure how this one happened, but have a new plan established in 2013. Have already filed the 2013 initial 5500-SF filing, see no errors in filing (checked as initial filing, effective date 1/1/2013, assets beginning of year all $0). Plan sponsor received letter from IRS asking for information on the 2012 filing for plan #002 (number assigned to new plan). Did check to see on DOL EFAST search to see if plan sponsor had some prior plan 002, don't see any prior 002 filings (our firm has had plan 001 forever, 001 2012 filing in place).

Wrote response to IRS to check their records as erroneous notice. Given past experience with IRS sending out wrong notices on plan filings, just wanted to put this one out there in case anyone else starts seeing bogus notices on missing filings for years prior to the establishment of the plan.

Do I need to use APR when calculating EBAR in my ABT as long as I am using 8.5 interest rate?

http://www.employeebenefitslawreport.com/2014/08/dol-updates-missing-participant-guidance/

Does anyone know which "free websites" in particular the DOL has in mind?

client received a notice from the IRS the 12/31/2012 return was filed late and accessed a penalty of $6,175.00

The return was filed late - not sure why.

Question, even though the penalty has been accessed, can the plan sponsor still file under the Delinquent Filer Program, or does the letter prevent the use of the program. The Delinquent Filer program is not addressed in the IRS penalty letter.

thanks

I have some news plans coming in with insurance and though we do not sell products ourselves we're try to accommodate the client and make sure the insured death benefit is within the incidental benefit limits and constitute definitely determinable benefits. I did a google search on IRS LRMs for DB plans and found their language. If I'm interpreting it correctly a plan using the 2/3rd ILP method for the maximum insurance would provide the following maximum benefit (please confirm or correct):

QPSA + Incidental Reserve (if Incidental Reserve is a positive value).

Incidental Reserve: Proceeds from Life Insurance plus Theoretical ILP reserve minus (CSV of policy + QPSA).

Does this sound correct ? I'm not promoting life insurance just trying to deal with it correctly. Thanks for any help.

Single employee Plan. Owner is age 49, NRD is age 62, end-of-year val.....so Target Normal cost is about $125,000. 78% of his pay however is $159,900. So $159,900 is the IRC 430 amount. Does IRC 430 required contribution amount trump TNCost calculation and would it be deductible??

Does the 401(a)(17) compensation limit apply when determining the top paid group of employees (for HCE definition)? Thanks.

US company sponsors a plan in New England.

The new president of the company is a Swiss Citizen here on a 2 year visa.

After reading Treas Reg 301.7701-7 - I get the impression he can not be the sole Trustee of the Plan. Furthermore even if there were two other Trustees ( total of 3) he still could not be Trustee since the us Trustees would not control all of the substantial decisions by the Trustees.

Is this correct?

Does this rule prevent him from being an authorized signer on the plan?

Or as long as there is one other Trustee ( US Citizen) he can be named Trustee and authorized signer.

thanks

so confused!!

We have a non-ERISA 403(b) plan that wants to add a match. We would like to add a 4% enhanced safe harbor match, thereby making it subject to ERISA. The question is, can this be done mid-year?