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leevena

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Everything posted by leevena

  1. leevena
    I do not know if I would be that absolute with your answer. Yes, the plan doc is important. But to say “if they are saying they cannot let you in mid-year then your plan doc has that provision” can be wrong because it is possible the staff is giving out wrong information.
  2. leevena
    Jpod did not misunderstand. In the post that Jpod is questioning you said terminated employees (There are certain industries where this is commonly extended as a courtesy to terminated employees, who remain "employees" while they search for a new job.), not employees who are in danger of losing their job. In another post you discuss having terminated employees paid a minimum wage.
  3. leevena
    An employer is not required to allow this mid-year change. I am not saying that your employers plan is set-up that way because I have not reviewed any of the plan documents.
  4. leevena
    True, good point.
  5. leevena
    If group is insured, the carrier will more than likely say no. If self-Funded, they could but need to be cognizant of Section 105 discrimination. Not worth their time or effort.
  6. leevena
    Ok, have a good day.
  7. leevena
    Ok, believe I understand your question, if not, my fault for being thick. Employer gives me $100 per month credit for benefits. I select select medical, life, dental and retirement, but the cost is $175 per month. I have to pay $75 per month, which I run thru the 125 plan as pre-tax and that amount ($75x12) is reported on my w-2 as pre-tax. Up to you, am I thick? Lol
  8. leevena
    I know you are not trying to be difficult. W-2 shows both figures. About 25 years ago my wife and I had about $20k reduction in income because of the 125 plan. We were applying for a mortgage and the guy asked me about it, told him it was my cafeteria plan. He actually thought I meant I spent that amount in a company cafeteria. Google a w-2 and you can see the info.
  9. leevena
    IRA contribution is reported as pre-taxable.
  10. leevena
    99% confident that IRA is non-taxable, why do you believe it is taxable? Am I missing something? Maybe someone else will comment on it, you have me second guessing myself.
  11. leevena
    Appears legit and ok, I have seen many of these over the years. Employer has simply allocated a fixed amount of credits/dollars that an employee can use to purchase the benefits they want for themselves.
  12. leevena
    Tell them to seek competent advice, but it can be done. 105h is an IRS mandated rule, not ERISA mandated. I have never seen any IRS comments that 105h is not applicable to government plans, but will defer if someone else has. But regardless, this group, as you have described, should not have a problem passing 105h as long as all employees are eligible for the health plan, and the plan’s eligibility rules and benefits are the same for all employees. See the actual testing regulations for specifics. Also, the employer cannot force the employee to drop the group health plan for Medicare.
  13. leevena
    It can be done, fund part B and D premiums. A few landmines to navigate, but doable in most situations.
  14. leevena
    I understand that, but people have been finding ways to withdraw unused funds since 125’s started. It is much more prevalent than you may believe.
  15. leevena
    Curious, why is taking $ out of FSA and into IRA’s weird?
  16. leevena
    I was referring to the discrimination based on prohibited factors, such as race, age, etc.
  17. leevena
    It is permissible for an employer to offer to some employees and not to others, as long as there is no discrimination and that all employees in the group being offered coverage are treated the same. Based on what you have posted, there should be no legal problems. There is no legal requirement to offer benefits. Classes can be created, some can have coverage while others may not have coverage. Again, non-discriminatory basis.
  18. leevena
    Did your original post/question change? It appears to be different.
  19. leevena
    Correct, the COC cannot extend its plan to other companies that are not controlled by the COC. By the way, I cannot imagine why anyone would want to do this.
  20. leevena
    The 125 regulations state a cafeteria plan is defined as a separate written plan that is maintained by an employer for the benefit of its employees and that all participants in a cafeteria plan must be employees. That said, aside from Taft-Harley plans, it is by definition not legal. I say this because to my knowledge, the IRS has never issued any opinion on the issue of a MEWA sponsoring a 125. But your question is very confusing. Did I answer it?
  21. leevena
    Reed...Jpod is another good person for you to listen to.
  22. leevena
    You have an unfortunate situation here, my sympathies. I am not an attorney, but do have 35+ years of self-funding experience. I have some thoughts for you. You should collect all the plan documents, this is where some of your questions can be answered, and your attorney will ask for them too. It is quite possible that Anthem is acting as an administrator here and not the fiduciary or Plan administrator. Because this is a self-Funded plan the employer can design benefits as they want, so it may be possible that Anthem covers these expenses in their fully insured plans, but not for this group. There is at least one other person on here who could be of help, on the legal aspect, and that is Chaz, hopefully you will get a reply. Good luck.
  23. leevena
    You are correct. To be able to contribute to your HSA you must have a HDHP, but not so to use the funds. See IRS 213(d) for explanation of eligible expenses.
  24. leevena
    I am a benefits person, so I cannot comment on the payroll arrangement, and my concern would be with benefit eligibility. If in fact the employee was not employed by the other organization, I highly doubt they were eligible for their benefit plans. The issue is rarely raised by the benefit provider until their is a significant amount of money involved, such as a death payment or disability determination. Good luck.
  25. leevena
    Yes, you need plan documents, otherwise it becomes a taxable event. I do not know of any administrator that will work with a one person group and I do not know if the employer can do this on its own. Will need others to answer. My guess is an employer could handle the accounts, but wait for others to opine. Keep in mind, the other employee may not be a 2%+ owner either.
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