TPApril

Following up on this thread - howbout a situation where the HCE-Owner wants only to contribute for her 1 staff and not for herself. Current formula is standard pro-rata. Can she amend for calendar plan yr 2013 so she is completely excluded, or must she treat as contributable compensation that what she has earned to date of amendment, and only exclude comp after plan change?

Interesting thread. I'm curious to know how it was ultimately resolved.

which brings me back to my original questions.

My understanding was that the 'wrap plan' document was required in order to file multiple welfare plans in one 5500. It can also help fulfill the ERISA plan document requirements which welfare benefit plan contract documents do not always satisfy. We use legal compliance tools for reference which detail these requirements and Im happy to have welfare plan discussion on this board which mostly focuses on retirement plans.

GBurns - In order to file multiple insurance companies in one 5500, a wrap plan document is required. There are many companies that do not have such documents and therefore file their benefits separately. I work in a small plan market where the issue of 100 employees is very common and whether a company is required to file is a big issue, which is the source of my inquiry. Here are a couple of examples of companies that file separately: 593472656, 650784737.

I wish I was as well travelled as you.

Bil - what do you see as potential inherent exposure to using approach 3 for the prior 2 years?

Association was sponsoring a large welfare plan (medical), or seemed to be sponsoring the plan, for multiple members, but only one member group had over 100 ees. No 5500 filed for 2010 and 2011. Since 2012, members now contract directly with medical insurance co. - Who ultimately bears responsibility for the two missed years? Association may be interested in filing missed 2 years but they are not interested in paying the $4000 penalty, even though they understand the potential penalties.

In this particular case there is no plan document, no SPD, and no Plan number since no 5500 ever filed. I would guess then proceed with getting plan document/spd requirements settled, and as you suggest, maintain both as separate plans so as not to have to file 5500's. General conclusion is that each separate medical carrier can be considered its own plan for erisa purposes, even though employees can only choose one or the other.

Any thoughts? 2 Medical plan carriers = 2 plans or 1 plan if employees choose one or the other?

Different, but related, situation: company has filed their medical 5500 for the past 2 years. They just determined that they should have been filing for those two years Life Insurance and Employee Assistance Program (we have already reviewed determination related to filing EAP plans). they would like to file 1 wrap plan in the past and moving forward. which option is the best approach for the past: 1. create new plan number and file all 3 together for the past 2 years. 2. create new plan number and file wrap plan for only the 2 missed in the past, and 2012, but moving forward bring in the medical, marking 2012 as the final year 3. amend the medical to include the other two as a wrap plan, thereby not paying dfvc fees (they acknowledge responsibility of dfvc fees, just looking for best approach)

morris - your post of a year ago is appreciated. Yes I get it now. 2 coments though: I stand by 2011 being the 1st filing when plan went over 100 1st in 2010. multiple carriers of same benefit - say company has 2 medical insurance options - each has 52 covered staff. Would this be considered 1 benefit then that files 1 5500 with 2 schedule A's? or dont have to worry and file?

Hard to imagine a Plan Sponsor being well informed and choosing not to apply. Plan in question is so basic, I'm thinking they should just move on to a prototype or volume submitter to reduce the issue of continually applying.

How common is it for a plan document preparer to not submit for a Determination Letter? Individually Designed Plan had a prior DL which expired and though IDP was restated timely, no DL was requested. What if the plan needed to file a VCP?

good point, especially considering the prospect of distributing it to the correct employees for each year.

What are your thoughts on providing one historical SAR which lists the premiums for each year all on one page?

thank you for your reply. would you estimate both participant counts and premiums?

Company had over 100 employees from day 1 in 1996. we managed to obtain schedule A info back to 1998 for all carriers [whew], but only 1 carrier for 1996 and 1997 [darn]. That carrier shows under 100 employees. Company does not have records of employee counts in those 1st 2 yrs. Question: Do we just file dfvc back to 1998? Do we file back to 1996 with incomplete info for 1996-1997 showing < 100 employees?

Just looking for thoughts regarding 'minor' infractions - plan was filed with sideways attachments. which situation would increase their exposure to being audited: keeping the filing with the sideways pages or having an amended plan on record. i guess my question is - do amended 5500-s stand out for reason for audit?

403(b) large plan filed 5500 for 2010 and 2011 but not 2009. I dont know why. I believe they must file 2009 under dfvc and pay 2000 but thought i might check for other opinions?

I noticed on the 'DFVCP E-Payment Data Collection' website, page 2, that when you are asked to select 'Type of Filing', that 5500-EZ is an option (in addition to 5500 and 5500-SF). Could this mean we are close to being able to file DFVC's for EZs? Unfortunately this dropdown box does not allow you to select more than one filing in the event your DFVC includes more than one form type (ie 5500 for prior to 2009 and 5500-SF for 2009-2011).

I recall at a session last year that even non-credentialed 5500 preparers are somehow accountable to the IRS for their errors, even though they have no 'initials' to lose. Does anyone recall hearing this and what the penalty would be? Another question - there is a small business owner in my city who verbally calls himself an actuary, and lists himself as an 'Actuarial Consultant'. Is this legal? He doesn't have a single credential to his name. My concern is a lot of bad advice he has been giving in the guise of being 'actuarial'.

With recent mastectomy news (Angelina Jolie), I have been asked about mastectomy benefits and have come to learn there is a law requiring annual notice of such reconstructive benefits. I for one have been covered by these benefits for years by multiple employers but have never seen such a notice. Are these notices being done? Are they being combined with other types of annual notices? Who seems to be taking responsibility for guiding employers about this requirement?

The topic fits my question, though my question is not related to the prior one. VCP was submitted and accepted on behalf of missed rmds. Do affected retirees still need to file a 5329? If so do they file with a copy of the accepted VCP letter, or not file at all?

Company offers two carriers for medical coverage. Each one has about 60 employees signed up. The sum just reached over 100 for 1st time as of 12/31/11 so the question is if there is a need for a 2012 5500. I see some plan sponsors file 5500-s for separate carriers as separate plans but I am thinking that this is one plan because they both offer medical coverage. Only difference is one includes dental and vision and the other does not. what is the general consensus on how to treat this? also, if combining the two carriers for one 5500, does there need to be a wrap document even though they offer the same benefit?