masteff

What about amending the plan and using them up to pay plan expenses (ie your fees)? We did that to a frozen plan that had accumulated forfeitures over the 8 or so years between freezing and amendment.

Just thinking out loud but if the State knows what's in box 13 and 14 then they most likely also have access to box 7 which indicates it was rolled over.

Do they become ineligible to be covered by the health plan while they are out of the country for those two months?

See Q&A-7 (b) here: http://www.ecfr.gov/cgi-bin/retrieveECFR?r=SECTION&n=26y17.0.1.1.5.0.1.35 And the way I read comparable contribution, if you go outside the 125 plan at all, then you have to be comparable for everyone regardless of whether they're inside or outside the 125.

IRS Notice 2013-54 and DOL Release 2013-02 use the term "makes available" under question 7. But you should read it yourself to make sure it actually answers your specific question. http://www.irs.gov/pub/irs-drop/n-13-54.pdf http://www.dol.gov/ebsa/newsroom/tr13-03.html

Some people overlook that employee theft and crime coverage under their commercial insurance may cover them without any extra paperwork. In such a case, it can take a year or three for plan assets to get large enough to require a separate rider or policy.

Off the cuff: recognition as a surviving spouse, such as for a preretirement survivors benefit.

Are these current employees? You have very little room to exclude anyone from a SIMPLE (of either type); in short: under $5K comp, collectively bargained, nonresident alien w/ no US comp. See IRS Pub 560.

Why not put it back on them to define their terms?

http://www.irs.gov/uac/Answers-to-Frequently-Asked-Questions-for-Same-Sex-Married-Couples Q 18 &19 here say basically the same

A number of articles on the topic in general... http://www.journalofaccountancy.com/Issues/2013/Sep/20137412.htm http://www.aicpa.org/publications/taxadviser/2013/november/pages/taxtrends_nov2013.aspx http://www.sirote.com/blog/tax-controversy/irs-unreasonable-compensation-challenges-likely-to-increae/ http://www.wolfandco.com/solutions/insights/645-colleges_universities_take_heed_the_irs_and/view

Since this thread is in the 403(b) forum, by "govt plan" do you mean 403(b)? Per Announcement 2009-89: "Accordingly, employers should not request ruling or determination letters on the form of their § 403(b) plans at this time, pending publication of the revenue procedure for pre-approved § 403(b) plans and additional procedures on applying for individual determination letters for § 403(b) plans." http://www.irs.gov/irb/2009-52_IRB/ar25.html http://www.irs.gov/Retirement-Plans/IRC-403(b)-Tax-Sheltered-Annuity-Plans-%E2%80%93-Guidance-Affecting-403(b)-Plans EDIT: even better.... http://www.irs.gov/Retirement-Plans/Apply-for-an-Opinion-or-Advisory-Letter--Pre-Approved-403(b)-Plans "Please note that the IRS does not intend to establish a determination letter program for individually designed 403(b) plans at this time."

SEP IRA http://www.irs.gov/pub/irs-pdf/p560.pdf Minimal paperwork and accomplishes what is desired.

I got curious, here's at least one such PLR http://www.irs.gov/pub/irs-wd/0124028.pdf

I fully disclaim this and do not offer an opinion as to whether it is correct for the scenario you have presented. Here is the logic trail I found: Section 7703 says marriage status is determined at year end for purposes of part V of subchapter B of chapter 1. Part V of subchapter B of chapter 1 includes section 152 which defines a dependent. Section 152 is crossreferenced by section 105. It is section 105 and 106 which result in the imputed income.

Okay, I've read 2013-74 and 2010-84 and I see nothing that makes me think it would be coded any differently. In fact, in 2013-74, they refer to it as an expansion of the IRR, suggesting to me that it's otherwise the same.

It's taxable under FICA and FUTA because it would be FICA and FUTA wages in the absence of the cafeteria plan. FICA - IRS Code Section 3121(a)(5)(G): (G) under a cafeteria plan (within the meaning of section 125) if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received FUTA - IRS Code Section 3306(b)(5)(G): (G) under a cafeteria plan (within the meaning of section 125) if such payment would not be treated as wages without regard to such plan and it is reasonable to believe that (if section 125 applied for purposes of this section) section 125 would not treat any wages as constructively received EDIT: note that these code sections are cited in that pdf on page 7, item H

Any reason it wouldn't be reported on 1099-R the same as an SBJA IRR? (ie, code G)

The term for when a defaulted loan is taken off the books is: offset. Offset can only happen when the participant is eligible to receive a distribution from the plan. Search the word "offset" in the 1.72(p)-1 regs.

Couldn't find much useful but this document speaks to the Medicare aspect of your question (item 4 on page 7): http://www.healthlawyers.org/Events/Programs/Materials/Documents/PHYHHS11/rodriguez_including_appendix_a.pdf

Yes. A few codes get used together in Box 7, but in this circumstance "G" is used in place of "1" or "7".

1099-R instructions page 6 - Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant. As per Code Section 4980 which provides the qualified replacement plan rules, the transfer is between plans. Any allocation to participants in the replacement plan occurs after the transfer. The only other type of 1099 that might seem to apply is a 1099-MISC and as I opined in the OP's other post of this question http://benefitslink.com/boards/index.php?/topic/54891-1099-question/ , 1099-MISC is not applicable either.

That's basically it. http://www.irs.gov/Retirement-Plans/Common-Errors-on-Form-W2-Codes-for-Retirement-Plans "If this box is checked, it lets the recipient know that depending on their filing status and modified adjusted gross income, they may not be entitled to a full deduction for their traditional IRA contributions."

Touche.

Issue a corrected W-2.