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  1. Plan has been operating like an ESOP by issuing participants employer stock (not publicly traded) that is not funded. When an employee terminates his / her employment, the stock is not returned to the company but is reallocated to remaining participants. No written procedures on how the stock is managed. Now having trouble paying distributions. Can such issues be corrected although not specifically contemplated under the VCP or DOL VFCP?
  2. Changing the facts a bit. An employee participates in two 401(k) plans within the same plan year. Each plan is sponsored by a related employer. Can the compensation limit be applied separately to each plan for purposes of determining matching contributions? I believe the answer is yes, but want to confirm.
  3. For HRAs that reimburse employees for premiums, is it acceptable to specify the maximum dollar amount as follows: "the amount of premiums that the employee incurs during the coverage period," or does have to be an actual dollar amount?
  4. Anyone aware of any DOL or IRS enforcement actions concerning employee assistance programs? Specifically instances in which the DOL or IRS found that an EAP was not an excepted benefit?
  5. Company A and Company B are a part of the same controlled group. Company A has a 401(k) Plan and Company B has a 401(k) Plan. C is employed by Company A and participates in Company A and Company B's 401(k) Plan. Company B leaves the controlled group, but C remains employed by Company A and has a balance in Company B's 401(k) Plan. Can C receive a distribution from Company B's 401(k) Plan after Company B leaves the controlled group? Is the departure of Company B from the controlled group considered a distribution event?
  6. How is a buyer to treat cobra continuation coverage under the following circumstance: Seller has former employees who have elected mini-COBRA coverage pre acquisition. Seller will terminate the benefit plans so Buyer will have the obligation to provide COBRA to all M&A qualified beneficiaries which would include those individuals currently receiving mini-COBRA. Does Buyer continue to provide coverage for the mini-COBRA period (12 months) even if Buyer is a large employer and not eligible for mini-COBRA or does the COBRA continuation period increase for those already receiving mini-COBRA because Buyer is subject to the federal COBRA regulations? If you're aware of any guidance, PLRs, cases, please share.
  7. For merged plans, I agree that they would not be considered newly established because the effective date would not be the date of the merger. But for plans that are spun-off, the effective date is the date of the spin-off. So if a plan is spun off after January 1, 2025, would it not be treated as "newly established" for purposes of new Code section 414A?
  8. When considering spinoffs and plan mergers, what would be considered the date of establishment for the plan that is spun off or for plans that merge. Would it be the establishment date of the original plan? Would these plans be considered new for purposes of the new auto enrollment requirement?
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