oriecat

I think you have two sections in play here:

Here are the regs: http://www.changeofstatus.com/resources/regs.asp

(f)(2)(ii) is Significant Cost Increases - this would allow the spouse to drop their coverage through their employer due to the cost changes, provided of course that the plan document allows such changes

then (f)(4) Change in coverage of spouse or dependent under other employer's plan should then allow the employee to pick up the coverage under their plan, provided that the plan doc allows it of course...

We had a similar question last week on another board I frequent. I looked around online and could not find any information about when the final regs are scheduled to be issued.

I need to file a 5558 extension for the 5500, for plan year ending 9/30/03. We have changed who the plan sponsor is since the last 5500, so I am not sure if the old or the new plan sponsor should file the extension.

Also, we changed the name of the plan. Which name should be on the extension form?

Thanks! Sorry if this is a simple question.

That looks like a good site!

www.msabank.com

Agreed. The pretax amount for a medical FSA doesn't even have to show on the W-2, only DCAP amounts do, so how would this 'tax advisor' deal with it then?

I'm curious what this advisor is thinking... if the ee wasn't able to pretax the $300, not only would she be losing the $300 that she didn't claim reimbursement, she would then owe taxes on it, since it couldn't be pretaxed, so she would end up losing out of probably $400 instead. Sometimes I start to think anyone can just call themselves a 'tax advisor' and start screwing up everyones returns...

Agreed. Each company can write their vacation policies as they see fit. So if the company policy says that you start over like a new employee since you were gone for two years, then that is what happens. We have a similar rule here. If you are gone less than one year, then we will reinstate your previous service for PTO purposes, but if the break is greater than one year, you start over.

There is also a separate section under the Supplemental Wages section that is specifically about vacation pay, which PTO is considered a form of.

Vacation Pay

Vacation pay is subject to withholding as if it were a regular wage payment. When vacation pay is in addition to regular wages for the vacation period, treat it as a supplemental wage payment. If the vacation pay is for a time longer than your usual payroll period, spread it over the pay periods for which you pay it.

Would there be any sort of discrimination issue or other problem if you require documentation for people to add coverage because of a special enrollment event, but you don't require it if people want to drop or reduce coverage because of one?

Here's a previous thread with the same subject:

http://benefitslink.com/boards/index.php?showtopic=21691

Well stated papogi. I was trying to figure out how to phrase it all...

Also any claims for the spouse would also have to be incurred after the date of the status change.

Thank you!

My head is swimming from all the HIPAA lately... I should know these things but I just can't think anymore...

Does the SPD for a self-insured plan need to be changed to reflect the plan amendment? Or is sending the NPP all you need to do? Can you incorporate the NPP into the SPD, instead of sending both?

Thanks!

How are the plans funded? Employee money or employer money? I believe HRA's have to be 100% employER money. If it's employEE money, then it sounds like a section 125 plan, at least for the current ee's. I don't know anything about retiree benefits tho.

You need to contact your husbands employer and ask about the amount. He may have had something withheld incorrectly, or they may have completed the W-2 wrong. You need to talk to them first to find out. If the W-2 is wrong, then they will need to issue a W-2C for him.

I would think the plan administrator would be responsible, but I'm not positive. Yes, a TPA can be used.

I agree it would seem rational to allow changes in those instances,such as a large change in deductible or copays. Unfortunately when is the IRS ever rational?!

No. The applicable section of 1.125-4 is (f) Significant cost or coverage changes. It specifically says "This paragraph (f) does not apply to an election change with respect to a health FSA (or on account of a change in cost or coverage under a health FSA)."

Here's a Q&A from EBIA on the subject:

http://www.ebia.com/static/weekly/question.../Caf021107.html

Actually the election change regs (1.125-4) specifically say that the commencement or end of an unpaid leave of absence is a change of employment status. So if the changes to be made were consistent with the change of status, then it seems to me it should be allowed?

How long should copies of COBRA notices be kept?

Well I can't explain why, other than HHS says so.

http://answers.hhs.gov/cgi-bin/hhs.cfg/php...hZ2U9MQ**&p_li=

Yes, HIPAA applies then.

Here's a Q&A from EBIA about experience gains.

http://www.ebia.com/static/weekly/question.../Caf021107.html

The 125 regs on changes (1.125-4) include judgment, decree or order as a qualifying event, but only in regards to health coverage. It doesn't mention anything about DCAP coverage. I would say it is probably not an event that would allow him to change his coverage, but I wouldn't be surprised if someone has additional information...