Anyone aware of a discussion of impact of ACA on the future of welfare plan 5500 reporting?

I have the situation below: I have determined this is an Affiliated Service Group.

Company A Company B
Employee 1 Employee 1
Employee 2 Employee 2
Employee 3 Employee 3

Employee 2 owns 0% of Company A and owns 10% of Company B. He is not an officer of company A and is not an employee of company B.

Because of required aggregation for Top Heavy is he a Key Employee?
I have seen in the regs that a person must be an employee to be a key and therefore he is not a key. I have also seen some language that says ownership will transfer to company A making him a key??

Thoughts?

We have a client that reinstated their match in the middle of the plan year. The employer would like to add an additional discretionary match now that their plan year has completed. Is it possible to only include the period of the plan year in which the employer reinstated in calculating the discretionary match amount?

Thanks

I have a client with employees in California. They generally don't provide medical coverage for same-sex spouses, but they just got a request for a California employee. If California employers offer spousal coverage, do they have to cover same-sex spouses or can they limit coverage to opposite-sex spouses.

Any thoughts would be great. Thanks!

I'm inclined to think this is ok, but thought I'd solicit opinions.

Client establishes a DB plan at age 62, with NRA of 65/5. One-person plan. Anticipating huge income for three years, then income dropping off.

At age 65, decides she is tired of it all, and closes up her business to retire, and wants to terminate the plan.

I know this is a "facts and circumstances" issue, but my inclination is that this should be an acceptable reason to terminate. Any thoughts?

Hello,

Is a distribution from an LLC to a member (owner) a permissable basis for making a deferral or employer contribution to a tax qualified retirement plan?

Thanks for the help!

Is this forum still being monitored? I have some questions about fee processing on Relius Admin and could use some help from my peers. Thanks.

Here's the notice.

http://www.irs.gov/pub/irs-drop/n-13-71.pdf

Why can't the Service issue anything without complicating other things?

Participants can now roll over up to $500 to a new year, but the exceptions and restrictions make it almost useless.

Just came across a new 403b client that has a contribution formula that says:

< 3 years = 0%

4-6 yrs = 3%

6+ years = 6%

Seemed like a sneaky (maybe illegal?) way to get over the 2 year eligibility requirement. But if the plan can pass coverage testing at the three benefit levels, is this okay? Thanks.

It looks to me like this is the end of any type of individuly health policy being pre-taxed through a Flex Plan. Does anyone see this differnetly--I hope?

Quick question,

I have a plan with 3 people, two owners, one non-owner employee. All are HCE. The non-owner EE (we'll call them EE1) receives a large bonus, the owners do not. The plan wants to exclude bonus. Since all are HCE, it would pass 414(s). The plan does a 3% safe harbor to satisfy top heavy. They used to have NHCE, but don't any more, but kept the 3% SH.

As far as I know, since the compensation would pass 414(s), the 3% SH contribution on just the non-bonus compensation would be fine. Anyone disagree?

My concern is the top heavy. Does anyone know, or know where I can find, some guidance on this? Would the change of the plan definition of compensation, no longer allow the SH 3% to do double duty and satisfy the Top Heavy minimum?

What I read in 416©(2) requires 415 comp. But 416(H)(i) provides the Safe harbor contribution exception. which defines comp 401(k)(9) as 414(s).

Slightly different option(I think is simpler):

The owners really seem to like receiving their own 3%. But lets assume they didn't mind not receiving it. Is there any problem with using the ability to exclude the HCE from receiving the 3%SH?

Exclude HCE from SH

SH would satisfy ADP, owners could defer max.

Plan would still satisfy TH with SH contribution, though none would actually be given unless a NCHE was hired.

Thoughts? Something I'm missing?

A participant will be retiring later this year and is living back in Japan. He has elected a cash distribution - but the Recordkeeper cannot wire funds to a Japanese bank.

As an alternative, the Employer is asking if the retired participant can have his distribution sent to the Employer; and, in turn, the Employer has the ability to wire the funds to him.

Is this legal?

Lets say that you have a 401k plan and a 403b plan in the same controlled group. Both plans have deferrals, match and nonelective. The 401k plan can satisfy coverage for purposes of deferrals and match under 1.410(b)-6(g) by excluding the 403b plan. However lets say the 401k plan has a tiered nonelective formula requiring 401(a)(4) testing. When running the average benefits percentage test, do you pull in the match and nonelective - ie all employer contributions, even though you were allowed to exclude the match doing the coverage test? I think deferrals continue to be excludable.

Thanks for any thoughts!

Can anyone give me some feedback on the 401k Workflow Management software that is currently available in the 401(k) Market, specifically, to manage a new plan conversion process?

Any help would be greatly appreciated.

Lets say that you have a 401k plan and a 403b plan in the same controlled group. Both plans have deferrals, match and nonelective. The 401k plan can satisfy coverage for purposes of deferrals and match under 1.410(b)-6(g) by excluding the 403b plan. However lets say the 401k plan has a tiered nonelective formula requiring 401(a)(4) testing. When running the average benefits percentage test, do you pull in the match and nonelective - ie all employer contributions, even though you were allowed to exclude the match doing the coverage test? I think deferrals continue to be excludable.

Thanks for any thoughts!

Someone in my office seems to think April 15 is an important date for ADP refunds of Roth deferrals, ut they can't put their finger on it.

Leafing through (though not perusing) the EOB, I just see that Roth ADP refunds just go on a separate 1099-R from regular deferrals as the basis is not taxed. I do not see any reference to April 15 anywhere for ADP refunds of any sort.

Googling "ADP Roth Refund April 15" gave me this nugget:

http://www.ars401k.com/Roth401k.pdf

On slide 8, referring to ADP refunds, it says:

Roth 401(k) contributions would not be
includable in income, though earnings on
the contributions would be includable in
income (if refunded by April 15).

Is that right? All the other links lead to discussions on 402(g) excess deferrals, not ADP refunds.

As always, your thoughts are appreciated.

Employer sponsors a 403(b) plan that was treated as subject to ERISA discontinues all contributions prior to 1/1/09. The plan solely maintains individual annuity accounts in which the employer has no authority. It is my understanding that the assets of the individual contracts are not treated as plan assets for form 5500 reporting purposes. Does this mean that the employer does not need to continue to file a form 5500, or does it file a 5500 but indicate that the plan has no assets? It does not appear that the plan can be terminated as the employer has no authority over the individual contracts. If you think there is a way to formally terminate it let me know.

Can Employers/Trustees e-sign Plan Documents and Amendments? Is it still necessary for the Plan Sponsor to retain an original signature copy?

I met with a charter school that has had a 403b plan for about 10 years. They've always made matching contributions; and they've always considered themselves to be an ERISA plan. Their document is completed as such, and they've always filed 5500s as such.

But as a public school, I believe they should be Non-ERISA. They stated that they recently reached this same conclusion themselves, and they mentioned it to their current provider. The provider told them that since they had filed as an ERISA plan for more than five years, they cannot reverse course now and be a Non-ERISA plan.

I can't find any rule about five years. Are they stuck as an ERISA plan? Or is there some action they need to take to become a Non-ERISA plan?

Owner of Plan Sponsor (he was trustee and plan administrator) died suddenly on 06/01/13. His sole heir seems to be his son - no spouse and no other children. The son and his attorney have had ongoing contact with us and has provided death certificate and some pages from his father's trust, as well as attorney letter saying he now manages his father's company. Company has closed doors and plan is terminating. Plan is a 401(k).

We are having trouble distributing funds to participants. Monies are with AXA Advisors. They have already allowed son to roll over his father's money into an IRA - a large amount. But they will not distribute to any other participants because they will not accept son's signature as plan administrator. They have provided us with a list of what they need to appoint the son as plan administrator, and the son's response to this was: "I don't have time for all of that, I'm sorry."

I can call his attorney - which I have already done once - but of course that costs him and so I must be careful about that.

Any suggestions on how to proceed.