jala

I have a cafeteria plan that is on a calendar year basis. The client's insurance policies are on a fiscal year basis (5/1-4/30). I am aware of how to file Form 5500 with these policies. The question was asked as to how to handle the "lock in" period. The employees should be able to enroll and make changes for 5/1 open enrollment. The cafeteria plan has a January to December term on their forms and would normally be "locked in" for this period unless they had a Change in Status. What are your thoughts on this considering the two different periods? I suggested changing the cafeteria plan year to match the insurance policy years to make it less confusing. Thank You,

The description for Characteristic Code 2A changed a little from 2014 to 2015. It was just noted when preparing the 2016 return. I contacted EBSA who referred me to IRS since they created the codes. Neither EBSA or IRS would commit to a definition of Code 2A. I am interested in how Code 2A is being interpreted by those of you preparing Form 5500. In the past, if the plan document had a new comparability profit sharing allocation method, we coded Form 5500 with "2A" regardless of whether the profit sharing component was funded for that year. Since it was a plan characteristic, we coded accordingly. The new description reads, "Use this code if the employer contributions in the return year were based on one of the following allocation types-Age/service weighted or new comparability or similar plan, etc. 1) Do you interpret this to mean that you code with "2A" only IF the employer makes a profit sharing contribution IN THE RETURN YEAR? 2) Or do we continue to code with "2A" if the plan document has a new comparability profit sharing contribution provision and it does not matter whether this component is funded in a plan year? My thoughts are if the plan has the provision, that is how it should be coded. We don't go back and forth with the code 2K when an employer match is made or not made from one year to the next. Your thoughts please....Thank You!

We have just acquired a client that has a safe harbor retirement plan. We were told that one of the doctors elected to "opt out" of the plan back in 2008. The doctor is now wanting to participate in the plan. The plan administrator has changed and cannot find a signed copy of the election form reflecting the "opt out". The prior TPA and prior investment advisor do not have copies of the signed "opt out". What would your thoughts be on allowing him to participate if a signed document cannot be provided showing his election to "Opt Out"? At the same time, the plan is a safe harbor plan with a non-elective contribution. If the doctor were allowed to participate at this time, would the employer be responsible for going back and giving him his share of the safe harbor non-elective contributions for the past years? I would appreciate your input on this issue. Thank You

Solo 401(k) plan was established 6/1/2013. Trust ID was obtained. The plan was never funded so balance has been $0.00 since inception. Form 5500EZ never required to be filed since balance was under $250,000. Client now wants to terminate the Plan. Is a Form 5500EZ required to be filed as a FINAL since it is terminated even though the plan was never funded and Form 5500EZ was never filed in the past? Thanks for any guidance.

Even though the supplemental plans are under the cafeteria plan and have more than 100 participants?

Company has a cafeteria plan. The health plan is a benefit under the cafeteria plan and has less than 100 participants. The company offers supplemental insurance. Some of the supplemental insurance plans have over 100 participants and the employee pays the entire amount on a pre-tax basis. My thought is they should file Form 5500 to report the supplemental insurance policies that have over 100 participants. Their TPA feels that a filing is not required. Their argument is that this is a Premium Only Plan for which the employee pays the entire premium. Can someone please help clear up our confusion on whether Form 5500 should be filed in this case? Thank You.

"They can print the signature pages, sign them, and scan back in". Correct, this is our intention. As a result, they would end up with a scanned copy...not an original. "I don't think "original" signatures are necessary. A full scanned copy of the document should suffice. Every document I ever sent to the IRS or DOL was a copy. Good Luck!" And you are comfortable with the fact that if an IRS agent that would show up at the plan sponsor's office for a random audit would accept a scanned copy of the document rather than a fully executed document with original signatures? Thank you both for responding to this issue. I appreciate it.

We were considering the delivery of the restated PPA document by electronic delivery as opposed to a bound paper copy. One concern is that no one will have an original signature on the documents. With so many clients going paperless, is it still required that the client maintain a copy of the plan document with original signatures? Will this "pass" in an audit?

New TPA started filing in 2012. Employees started paying the premiums beginning in 2012.

We currently have a client that is inquiring whether her prior TPA should have filed form 5500 for their disability welfare benefit plan if more than 100 participants were enrolled. The disability plan premiums were paid 100% by the employer. The disability plan was not under a cafeteria plan arrangement. This could go back as far as 2003 to about 2011. Would a filing have been required if the employee did not pay for any part of that premium? I would appreciate your guidance with this. Thank You,

We recently viewed a webcast regarding Participant Fee Disclosures and it indicated that plan sponsors could deliver the 404(a)(5) Notice by electronic delivery "under the DOL rules". We looked at the DOL rules, and it was pretty extensive. We previously understood that the notice had to either be hand delivered or mailed. To satisfy both IRS and DOL rules, is electronic delivery of this notice allowed?

With all of the recent changes, I wanted to make sure I have the most recent information regarding a cafeteria plan sponsored by an S-Corp. Are the greater than 2% shareholders still ineligible to participate under a cafeteria plan? Under the attribution rules, are the spouse, children, grandchildren and parents of a greater than 2% shareholder still ineligible to participate under the cafeteria plan? Thank You.

My understanding that a severance pay plan that is filed as a welfare plan need only complete Form 5500. Schedule As are not required since there are no insurance providers. Schedule C and Schedule H are also not required. The severance plan assets, in this plan, remain a part of the general assets of the company (no Trust). My question is: Is a Summary Annual Report required to be distributed to employees or would a severance plan be exempt from the SAR? Since there are no Schedule As, Schedule C, Schedule H, the financial information would not flow through to a SAR which would make it appear inaccurate. Thank You

I'm new to this plan so I would appreciate your experience with this. I have a new severance pay plan, effective 1/1/2012, for a large company. The assets of the severance pay plan will remain a part of the general assets of the company, NO Trust. What do I file with the Form 5500? There are no insurance contracts, so no Schedule A. There is no Trust, so no Schedule H. Do I file Form 5500 without any attachments? How do you count participants? All officers and non-officers working more than 14 hours are eligible. This would put them over the 100 threshold by counting eligible employees. In a welfare benefit plan, you count actual participants on the first day of the plan year. How/what do you count in a severance pay plan? Thanking you for any help and guidance.

As a result of the changes under the Health Care Reform Act, I need to make sure I am am up to date on the following: Can the expenses for exercise classes/gym membership be reimbursed from an HSA account if the doctor prescribes due to obesity? A claim will first be filed with the insurance company to see if they will pay for all or part of it. If a balance remains after the insurance processes, can it be filed under her HSA? I would appreciate any guidance in this. Thank You