alexa

We match on after-tax and matc on pre-tax up to 6% We cap the pre-tax match to 5175 for 2008 due to someone hitting the Comp limit of 230K for 2008 But can we put in more than the 5175 for 2008 with the addition of the after-tax match? We match each paroll which is weekly and we do not true-up at year-end

If we distribute the excess 402g deferral before 12/31/2008 will there be a 2008 1099R issued? If distribute after 12/31/2008 I know a 2009 Form 1099 R issued showing taxable for 2008 but wasn't sure if we refund during the year Does anyone have a sample 402g excess letter explaining this to a participant? I also have an excess match situation I am refunding prior to year end- 1 is for 2007 excess, the other is for this year 2008 Do you have a sanple letter to a participant explaining this forfeiture Thanks Lexy

No since we are in the process of withholding the FICA from the employee's last paycheck in Dec and employer is not paying the employee portion

Refund what? Refund the amount over 15500 for 2008

We have an employee who transferred from one of our other companies in our controlled group The company has a different EIN from ours The other company has their own 401k plan and is a QSLOB arrangement. Are we required to do a 401k refund? thanks

Our outside accounting firm indicated we should amend 4 years of W-2's showing correct FICA for each year A corrected 941-c would be filed for all past years with detail in an attachment Employer could pay employee's share of FICA

There would be no cost from our recordkeeper to forfeit the excess . What about the theoretical cost of my time to fill out the service request & communicate to the participant<gr> I definitely do not think 12 cents is worth doing this for even though "direct" cost

I have 3 individuals with an excess match for 2007- we match each weekly payroll and the payroll in which they got their bonus last Dec which brough tthem to their deferral max of 15500, gave them the match on whole pay for that week 1 person has 12 cents, another $8 and a third $1,000 All 3 are HCE Can I just distribute the $1,000 nad treat the other 2 as < $50 deminimus rule under the ECPRC procedure I esp do not want to forfeit 12 cents from our CFO's account<gr> thanks

George, I am in agreement with you But there needs to be baby steps started in the arena of healtcare consumerism and these tools are a start

If you have payroll deductions for health insurance, you may be able to increase participation by the way you price the various choices. Plan design can help, too. If you increase co-pays/deductibles for the non-HDHP plan, you make the HSA look more attractive. Our broker provided us with a web-based tool where the employees could enter their anticpated medical expenditures for the year and see what their out of pocket would be under both options (HMO and HDHP/HSA) You're already making an employer contribution to the HSA which is a good strategy. Do you contribute the entire deductible - or most of it ? That strategy helped here to increase participation and net cost was the same or lower. Mary- can you share this tool? thanks

We are trying to encourage greater participation in our HSA and was wondering if anyone can share an HSA User Guide thanks

Employer contributions to an HSA are allowed. See : http://www.treasury.gov/offices/public-aff...-english-07.pdf I guess I'm confused- page 1 of attached pdf from treasury indicates employer money can go into the HSA as well Yes, employer contributions are definitely allowed. There is another document on that site,"All About HSA's", that also discussses employer contributions Sorry for the confusion, this is my fault. Yes, the employer can contribute. I had a brain freeze when responding earlier. If only employer contributions of 1250 goes into my HSA account on 1/2/2009 and I terminate employment on 1/15/2009, will the 1250 need to be returned to my employer? As I understand it, once the funds are deposited to your HSA, the employer cannot remove them. The employer can ask the former employee to have the funds returned to them. Our HSA vendor has an Excess Contribution option on their Distribution Form that the employee can select to make that request. It is my understanding that if the funds are not returned and the former employee is not in an HDHP plan after 1/31, a portion of the $1250 is taxable to the employee. Is there any kind of excess tax if not withdrawn from the HSA by 4/15?

We have an employee who was capped at 15500 in out plan (not age 50) who contributed 600 in prior employer plan She would like for us to refund the excess deferral from our plan. She had been contributing 20% well above the max deferral % we match on, namely 6%. We match each payroll which is weekly I assume we don't have to worry about forfeiting any match on this excess deferral? thanks

Not correct. See the US Treasury's website for HSA FAQ's http://www.treasury.gov/offices/public-aff...ing.shtml#hsa10 I have an HSA but no longer have HDHP coverage. Can I still use the money that is already in the HSA for medical expenses tax-free? Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds. Leevena- do you have a cite for your response no employee can't withdraw funds for 2008 expenses unless in a high deductible health plan for 2008? Much thanks Lexy

Employer contributions to an HSA are allowed. See : http://www.treasury.gov/offices/public-aff...-english-07.pdf I guess I'm confused- page 1 of attached pdf from treasury indicates employer money can go into the HSA as well Yes, employer contributions are definitely allowed. There is another document on that site,"All About HSA's", that also discussses employer contributions Sorry for the confusion, this is my fault. Yes, the employer can contribute. I had a brain freeze when responding earlier. If only employer contributions of 1250 goes into my HSA account on 1/2/2009 and I terminate employment on 1/15/2009, will the 1250 need to be returned to my employer?

Employer contributions to an HSA are allowed. See : http://www.treasury.gov/offices/public-aff...-english-07.pdf I guess I'm confused- page 1 of attached pdf from treasury indicates employer money can go into the HSA as well

Yes our open enrollment material references an HSA not HRA

I have someone who signed up for our HSA plan in 2007 and switched to 1 of our non-HSA plans for 2008 He is withdrawing any copays, deductible , etc.. out of HSA for 2008 medical expenses I am assuming that is ok but just wanted to check that he didn't need to be enrolled in a high-deductible health plan for 2008 Can someone refer to me to some good resources on HSA's/HRA's/limited FSA's thanks

My employer contributes 1250 to HSA for 2009. The amount is contributed on 1/1/2009. Say I terminate employment on 1/15/2009. Will I have excess contributions subject to excise tax? Will my employer get some of that money back?

WE have a nonqualified excess match plan. Employer match is deposited annually after the end of priro year to an account Contribution years are 2005, 2006, 2007 & 2008 We did not withhold the FICA on the vested amount (vesting is 25%/year) We are figuring out the FICA on vested amounts for each of the 4 years . For most it should be the 1.45% We plan to submit all 4 years with a 941c for this quarter end Question: Do we need to send 4 years of amended W-2's? Can we avoid this by having the Company pay the employee's share of the FICA due? Does anyone have a sample letter we can send to employees explaining this correction? Thanks Lexy

I have reported fees on both plans Form 5500 2 plans participate in 1 master trust On master trust Form 5500 do I need to show these fees again?

What counts does one put on Form 5500 for a H&W plan- is it just those enrolled in medical or anyone who is eligible to enroll? Does everyone eligible to enroll get an SPD and SAR or just those actually participating? thanks Lexy

Anyone eligible in the plan would be impacted- myself included. i am invested currently 100% in a target fund yet at any time currently I can move 100% of my money to the brokerage link. With the change I will be limited to 90%. I guess at the time I do the money move I would be notified but I would think I should be notified prior to that time

1 of our 15 fund choices is Brokerage link Recently we have put a restriction on participant's entry into thsi fund option. We only only allowing them to ut 90% of their fund option to thsi;in other words 10% must be directed to other plan funds We are updating our new hire kits and advising current folks invested 100% in brokerage link that voluntarily they can move 10% into other plan funds Must we send a communication to all 401k participants that we are now restricting investing into brokerage link at 90% ?

We have a self-insured sick and STD plan with 1,600 participants Is a Form 5500 required? if not, please provide cite. Thanks Lexy