We have an employee that contributed to his HSA after he signed up for Medicare. We have requested the return of the excess contribution. When we receive the funds back, we will pay him and withhold the proper taxes. I don't know what I need to do in Box 12 of his W-2 since the contributions will show up there. All of this has or will be done in the same tax year.

We have a potential takeover of a safe harbor 401(k) plan and a cash balance plan.

The safe harbor 401(k) plan has a safe harbor match. For 2012, it appears they used the safe harbor match and profit sharing contribution to satisfy the minimum gateway. We don't believe the the safe harbor match can be used for gateway purposes.

Does anyone agree or disagree?

Thanks.

Is it possible to add mandatory (required) employee contributions to a 401(k) plan?

I know some straight Profit Sharing plans add this but wasn't sure if this could be added for 401(k) plan.

Is there any federal statute, regulation, rule, law or holding that would attribute funding liability of a non-governmental pension plan to a governmental entity if the non-governmental entity failed to fund its pension plan under a controlled group/joint and several liability theory? Assume the pension plan is subject to the funding requirements under IRC 412 and ERISA 302 and that the governmental entity is in the same controlled group as the non-governmental entity.

Common sense tells me this: Since governmental entities that maintain governmental plans are not required to fund their own plans under IRC 412 and ERISA 302, it follows that a governmental entity would not be required to fund a non-governmental entity's plan via a controlled group liability theory.

But, 412 and 302 state that there is joint and several liability within the controlled group for pension obligations, so this gives me some pause (despite that the sections state that the funding obligations do not apply to "governmental plans"). In my facts, we don't have a governmental plan, just a governmental entity, potentially within the controlled group of a non-governmental entity/plan.

And, of course, there are other issues like, how do you determine whether the governmental entity is in the same controlled group as the non-governmental entity? Is it even possible for a governmental entity to be in the same controlled group with a non-governmental entity? And, if you determined that they were in the same controlled group, would that necessarily mean that the non-governmental entity is also governmental (I don't think so - would be based on the facts and circumstances).

Any thoughts would be appreciated.

Is any type of notice required to participants in a plan that has simply an ACA? I believe the answer is no and notice requirement only applies to EACA and QACA per IRS website

Under just an ACA, can a participant request refund of their elective within the first 90 days or is that just under an EACA? It appears this is just under an EACA (and the 10% early withdrawal penalty does not apply).

Can the participant request a distribution of elective in the first 90 days under an ACA at all? My thought would be, No, their funds have to stay in the plan until there is a distributable event.

Thanks!

401k plan with 1 Year, 1000 hours for eligibility. Entry is quarterly. Deferrals changes are allowable on monthly basis, or the next administratively feasible payroll date.

Participant A hired 4/28/2012, fulfilled the 1000 hours, therefore is participant 7/1/2013. Did not sign up for deferrals until 10/15/2013. TPA and recordkeeper will not allow to defer until 1/1/2014 because the participant never signed up at 7/1 or 10/1.

Is this right?

I say it's not right, and the participant should have been able to defer the next administratively feasible payroll after 10/15/2013.

I'm trying to understand some of the fine points about this....

1st, the whole plan passes 410(b).

2nd, I split the plan into two groups. each group passes it's own 410(b) ratio test.

3rd, i test half the hces on an accrual basis and half the hces on an allocation basis.

My question is if for the each group of hces, if i can't pass the ratio % of the rate group test, do i use the Plan Total 410(b) ABP% for accrual, for allocation or each has to use the 410(b) ABP% based upon testing method used for that restructured group?

Is a self-funded plan allowed to rent hotel meeting rooms to hold enrollment meetings? The plan has participants in multiple contractor sites across a state, so they don't have their own buildings in those locations.

Does the notice need to be specific regarding the fees charged by the different vendors?

For example if the RIA is paid 0.10% does the notice have to state this amount. The TPA is paid from the plan the actual amount will vary depending on the participant count. A specific amount is not known.

Is it sufficient if the notice includes a general statement that the plan incurs expenses for general administration such as legal, accounting or recordkeeping services . Fees charged are reflected on the quarterly statement

thanks

Last I checked on this if we used the various proposed reg options to credit theoretical accounts with an interest credit equal to actual rate of return on plan investments, you had to use that annual rate (not an average) in your DB/DC combo testing. Is that still the case or has there been anything new on this that would allow an "average" of multiple years' returns to be used instead of each year's ? Thanks.

Working on a 3/31/13 plan year end 401(k) non-standardized plan. This plan has elected to use the determination period for compensation as the calendar year coinciding with or ending within the plan year. The limitation year is then the same as the determination period.

For ADP testing purposes, we are using the 2012 calendar year compensation and the 3/31/13 plan year deferrals.

The 402(g) deferral limit for 2012 is $17,000 and the 402(g) deferral limit for 2013 is $17,500.

What deferral limit is used for the 3/31/13 ADP test to determine the amount of the catch up contributions?

Hi,

One of my employees would like to participate in the Dependent Care Account. However, her spouse doesn't work. He is not a full-time student, not disabled and he does not take care of the kids. They go to daycare. I'm fairly certain she can't participate but there was a reference to someone who is "married, filing separately" being able to participate in some of the references I was able to find. Does anyone know if there are any circumstances under which a married couple where only one works may utilize the Dependent Care Account.

He volunteers 20 hours per week but it's unpaid.

Thanks!

Sorry if this is simple, but it's Friday and my brain has stopped working.....

Suppose the following

1/1/2013 Valuation Date.

Hypothetical Account Balance as of 1/1/2013 = $5,000

IC = 4%

Pay Credit = 3%

If I'm doing the valuation during 2013 and I don't yet know the 2013 pay, how do I determine the Target NC? Do I look at last years pay and estimate the accrual of the pay credit plus the interest credit to get the accrual for the year?

I'm almost certain that's it (unless I have a salary scale in which case I would apply that for one year), but just need to check since I'm doubting myself.

Got a judgement for divorce that required the QDRO for my ex's retirement fund be carried out within 45 days. That day came and went and I've now filed for contempt. I'm due to receive 50% of the fund during the marital coverture period.

It's a substantial amount of money and what I can't seem to find an answer to is this:

Is the interest being earned now on 100% of the money ALL going to him, or will I receive interest on the portion that was deemed to be mine by the court? I want to know if I need to ask the court for financial damages due to him dragging his feet. I calculated that even at a modest interest rate of 4% compounded weekly, I'm losing about $800 a month.

Does anyone know the answer?

Thanks in advance!

Here are the basic facts:

• Start up Plan effective 10/1/2012
• One employee that owns >5%, was hired 8/2/2012 (deferring 10%) - the only HCE for 2013
• No other employee owners
• No Employees had comp over $115,000 in 2012

If the 2013 ADP test is run using Otherwise Excludable method (using statutory entry date of 7/1/2012), are all employees excluded - even the HCE?

I cannot seem to find anything in Tripodi, or from the TPA (yet). Thank you!

Hello,

There is a current employee who is over the age of 70 ½ .

This employee would like his entire account balance insured to him.

(The ESOP Plan Document is silent on this matter.)

Questions

Is the company obligated to pay him?

Are there regulations specific to this situation?

Thank you for your time.

Lisa

An employer maintains a 125 plan which includes pre-tax insurance premiums, health FSA (funded solely by salary reduction) and dependent FSA (funded solely by salary reduction). The plan passes the 25% concentration test and the utilization test when aggregating all benefits, and it also passes the separate DCAP tests. Is there separate testing required for the health FSA in addition to the aggregated tests?

thanks.

Hello, everyone

A question for you all. Under IRC 280G, the shareholders of a privately held company can agree to exempt a private company's payments from the 280G golden parachute provisions, and also avoid the gross-up (which is provided for in the company's current golden parachute provisions). The company is contemplating sale, and wants to ease its own financial burdens, such as the gross-up. The golden parachute payment must be approved by more than 75% of the company's owners in order for it to be exempt from 280G. However, if the payment is not approved, the payee gets nothing, and thus surely won't waive any contractual right to payment prior to the vote in such a case.

Does anyone know of any risk minimization strategy (or any authoritative pronouncements or discussion on the subject) in such a case that could ensure (or maximize) passage of the vote? Perhaps a voting trust of some kind? I feel this might run into a substance over form problem, since the approval vote has to be a voluntary decision of the shareholders.

Any thoughts you have would be much appreciated. Thanks!

If a plan is filing under the DFVCP for a 5500 that was not filed, does the 8955 come under that too, or will that penalty be separate? Seems like it is separate, but just wanted to ask. Would it be worse just to not file an 8955 this year, and file it for 2013 instead?

We need to file a new DB Cash Balance Plan for an IRS Determination Letter (with no Demos) using Form 5300. The plan is under 100 participants with at least 1 NHCE.

Is this plan exempt from the $2,500 user fee?

I just re-read IRS Notice 2011-86 and it looks like it is exempt from the fee, but in the back of my mind I am thinking the exemptions ended with the EGTRRA remedial amendment period last year. However, I see the exemption option is still on the new Form 8717 (rev. 2-2013).

Thanks.