alexa

Our CODA is effective 7/1/2002 So for purposes of the 3% nonelective safe harbor , we can use Compensation from 7/1/2002 - 12/31/2002 to calculate the 3%? The plan is top-heavy with no other nonelective contributions for the year

We added a 401(k) feature to a profit sharing plan effective 7/1/2002. Notice 98-52 allows you to exclude Compensation prior to becoming eligible Could one use Compensation from 7/1/2002 for purposes of calculating the 3% nonelective safe harbor contribution? If so, a cite would be helpful

Mike, BTW,Circular E says to make check payable to Financial Agent not US Treasury I thought hearing somewhere that federal reserve banks were no longer acting as federal depositories accepting deposits? The threshold is 200K during prior year If you are filing under employer EIN, you need to add payroll taxes to pension withholdings to determine 200K

Thanks Mike I had thought that the federal reserve banks were no longer accepting deposits Is St Louis an exception?

Mike, would you please elaborate? I vaguely remember that option. pmamcduff- In reference to your question on check- it is made payable to the Trustee of the Plan, that's the problem , the fund won't cut a check made payable to the depository only to Trustee of plan So the Trustee check then needs to be deposited and a check cut If plan sponsor doesn't have a plan checking account the check to the federal depository needs to be cut from somewhere, hence the idea of deposting to Corporate account and remitting withholding check from Corporate account The Plan does have a separate trust EIN and preprinted coupon book but as long as we report employer's EIN on all forms, i.e. blank 8109B, Form 945 and Form 1099's we shouldn't have the problem you mention. Of course we would not use the preprinted trust coupon Form 8109 if we went this route. Although an issue came up in my further thought process that if the employer is required to remit withholdign taxes electronically, I would think if they file dpension wihtholding under their EIN that transaction woudl need to be done electronically as well or penalties Any others ' thoughts on this?

What do you do if your corporate bank won't accept a check cut from a pension trust accout for 20% withholding tax? We have a separate EIN for trust and preprinted Form 8109 with trust # My recollection is that you can use corporate EIN # to remit taxes as an alternative. Could check be cut to Trustees and deposited in Corporate account and then cut cut from Corproate account to federal depository bank Can we use a blank Form 8109B to remit taxes?

I have a Sub-s corp that took a pre-EGTRAA loan Prior to EGTRAA this was a prohibited transaction My question is if this loan were never paid back would this disqualify plan?

If a participant is just getting the top-heavy minimum in an integrated profit sharing plan, is he benefitting for purposes of the 410(B) test?

Employer maintained a prior plan and now wants to setup a new plan Can service prior to effective date of new plan be excluded for vesting purposes? IRC 411(a)(4) seems to say "no" but I vaguely remember there being exception to this, perhaps a 5-year rule?

I'm not that familiar with the Form 990 filing requirements for a VEBA. Is there any time a Form 990 would not be required to be filed for a VEBA? If yes, then what would start the statute of limitations running?

I have a health plan funded by a VEBA Is Sch P of Form 5500 needed to start statute of limitations? Chart in Form 5500 instructions only shows the P necessary for pension plans

I have a health plan funded by a VEBA Is Sch P of Form 5500 needed to start statute of limitations? Chart in Form 5500 instructions only shows the P necessary for pension plans

I have a health plan that is funded through a 501©(9) trust Is a Schedule P needed to start the statute of limitations? Form 5500 instructiosn show a chart that Sch P is only needed for pension plans

Is the Schedule F truly gone?

What have others in the non-healthcare arena been doing as far as designating a Privacy Officer for your firm? Has it been a head of HR, head of Benefits, Legal or otherwise?

1 of our subsidiarys ceased operations late last year and they terminated fully insured medical coverage. They did not offer COBRA since the group health plan ceased to exist. The sub is part of our controlled group but all of our subs operate as separate lines of business. Were we required to offer COBRA coverage under 1 of our other subs health plans or are we exempt since SLOB under 414® of IRC?

We terminated a Life VEBA 8 years ago It has employee contribution monies in it plus interest over the years Quite a few of the employees have terminated since then It was a legacy VEBA that we took over when we acquired the Company I have been asked now what we can do with the money? My initial response is to distribute it plus interest to the employees based on their contributed amounts plus interest. It is my understanding that noone has been tracking this by employee for the last 8 years Another alternative is to provide addiitonal life, sickness, accident or other benefits to employees as long as not disproportionate benefits to officers,shareholders or highly compensated employees. In the 2nd alternative, must the employees we provide additional benefits to be the same employees who contributed? I would assume so VEBA's are not my area of expertise. For anyone who has ever terminated a VEBA provide any insight. What did you do with the money?

I'd like to get others' opinions on this issue. It appears to at least me, myself & I, that Proposed Reg 1.125-2 Q&A 7 allows one to offset health FSA forfeitures by claims of those who underpaid (e.g. a terminated employee who utilized max of $ 2500 and only put in $1,200) Others' thoughts on this? Experience with this? Our plan allows forfeitures to be offset by plan expenses for year in question. Does anyone see this as violating the exclusive benefit rule?

Our plan uses forfeitures to offset plan admin expenses for the year. We have only started utilizing this offset and as a result have a large forfeiture balance. Can we apply these forfeitures toward amount we have prepaid for terminees? Can we as employer retain these forfeitures? The forfeitures are of pre-tax employee contributions What other legitimate use can we utilize these forfeitures for besides reducing plan expenses?

For those of you who offer ongoing after-tax employee contributions in your 401(k) plans, aer you limiting them? If so, what %?

I agree on the waiting part but when senior maangement sees savings in adopting earlier, c'est la vie!

Yes, this has been very helpful The # of participants at beginning of year, do you include terminated vested and retirees or just include active participants

We have had furloughs during 2001 and early part of 2002 and may have another group of furloughs coming.We rehired some of the furloughed employees What is a participant for partial termination purposes? Does it include retirees and term vested? How does the calculation work in determining the %? We have had approx 9K furloughed out of a 46K active workforce during 2001. Would 9K be considered a significant #? When I take the # of furloughs during 2001, factoring in the rehired furloughs and divide by beginning of year active participant count for 1 of our largest populated DC plans (we have 5), I get just shy of 20%. If I am allowed to add back in total participants at beginning of year, I will of course get a lower %. Do I need to add in upcoming furloughs to this determination? We don't know yet how many We have a very generous vesting schedule, 100% after 2 years so it would not be a significant cost item to 100% vest the employer accounts just more of an administrative issue. If anyone has had to go through this analysis , I'd appreciate you input

This is someone already in retirment (i..e pay status) not an active employee Does that change the answer?

Can you provide the cite. Thanks