britoski

WDIK- I think that you're right, but to whom do I provide the SARs? Participants as of the date the SAR was due, or current participants? I've always been confused on this issue.

Does anyone out there an EAP provider (or work with one)? Are you gearing up to provide the enhanced schedule C information to your clients? Alternatively, do you have an EAP provider? Are you requesting Schedule A or Schedule C information? I have been talking to an EAP client who is trying to determine its obligations to provide information to its clients for 5500 reporting. The services the EAP provides are probably subject to ERISA (due to providing some counseling services) but the client is not an insurance company (thus no Schedule A). Most, if not all, of the client's clients pay for the EAP services out of general assets and no plan assets are typically used (thus, no Schedule C). I suppose it is possible that a client could adopt a very unusual plan design that would result in plan assets being used to pay for the EAP services, but I think that possibility is probably remote. Consequently, I think the EAP provider's obligations to provide information are probably pretty low. Any thoughts on this?

Thanks- that's very helpful! I found exactly what I needed.

I'm having a bit of a disagreement with some of my colleagues. The issue is what amounts are totaled for purposes of the 409A separation pay plan exception. We can't agree on whether amounts that are exempt from 409A under the short term deferral exception are counted against the total permitted be paid out pursuant to a separation pay plan. In other words, is the following permissible: 409A separation from service, participant receives a lump sum of $200,000. One year later, (beyond the short term deferral period), participant receives an additional $400,000. Clearly, the first amount is exempt under the short term deferral excpetion. The question is, is the second? I'd love to know your thoughts.

I know that 415 limits don't apply to 457(b) plans (not that they would be relevant, since the 457 limits are lower), but for purposes of calculating the annual addition limit for the same employer's 401(a) plan, do you count contributions to the 457(b) plan? In other words, are these contributions "annual additions" for purposes of 415?

I apologize that I didn't respond sooner. That's the conclusion that we ended up coming to also...that continued payments were not disallowed under the law, so that it was only the interpretation of the document that controlled. Thanks for your insights!

I've been reading a lot of very informative posts about employees "sham" quitting to receive a distribution and then being rehired shortly thereafter, but I haven't seen an answer to the question that has come up for me...I'd love to get your thoughts. A participant terminates employment from a 401(k) plan and elects to take her distributions in installments. Several months later, shortstaffed, the employer hires her back in a part time position. The TPA is not notified and payments from the account continue to the participant. (You may assume that the termination and rehire are bona fide.) The Plan has a provision that suspends installment distributions of elective deferrals, QNECs, QMACs and Safe Harbor distributions upon rehire, but is silent on the issue of whether installment distributions of other amounts (such as Employer discretionary distributions) are also suspended. No in-service distributions are permitted under the Plan. The TPA recently became aware of the situation and now claims that all distribution installments made to her were in violation of the plan terms and must be paid back. The participant is devistated as she's been using the money for her living expenses and can't possibly come up with the repayment. What should have happened upon this participant's rehire? Are the amounts already provided to her really "overpayments" that must now be recontributed to the plan?

I've got a rehire who was formerly employed in a class of employees that were ineligible to participate in the 401(k) plan. Now she's rehired in a class of eligible employees. Had she been in a class of eligible employees when she was employed previously, she would have entered the plan at that time (i.e.: she had at least 1000 hours of service). She was gone for fewer than 5 years. Does she enter the plan immediately upon rehire, or can we make her wait until the next entry date? DO we count that service for purposes of vesting? The plan document does not cover this scenario, so I'm trying to figure out what's required under ERISA. FYI- my conclusions so far are 1. immediate eligibility and 2. count all service for vesting purposes, but I'm just trying to see if I missed something...