pcbenefits007

So, there is a segment of a business that that is being spun-off and a new company will be the employer. The employees in the new company are being transferred from the old one as part of the transaction. The business selling off will retain 9.9% ownership in the new company and an affiliated service group relationship will exist post sale. Is itt true that companies in the same service group may be treated as a single employer under the Code (409A) but not as a single employer under ERISA? Meaning no termination of employment under the qualified plans or health plans?

So, there is a segment of a business that that is being spun-off and a new company will be the employer. The employees in the new company are being transferred as part of the transaction. The business selling off will retain 9.9% ownership in the new company and an affiliated service group relationship will exist post sale. We've settled that under 409A a bonafide separation of service will occur under the NQDC (they can get a distribution). But is it true that companies in the same service group may be treated as a single employer under the Code, but not as a single employer under ERISA? Meaning no termination of employment under the qualified plans or health plans? Should also mention that it is intended that the "significant portion" test regarding the provided services under the 414(m) rules is met, in that threshold is 5% so we shouldn't have to aggregate employees. Wasn't even sure where to post this since the question is pronged along 2-3 tracks. And yes, we are seeking counsel as well, but I always like the perspective gained here. Confusing!

Wondering what other practitioners' thoughts or experiences are on how expenses of the adoption of an embryo could apply under an Adoption Assistance program under Code Section 137?

Does anyone have a good resource for a high-level health plan compliance items/dates by state? For example, Massachusetts has a Health Insurance Responsibility Disclosure that is annually due. I'd like to track some of these big ones if I can. Thanks!

I actually just came here because I have the same question....unfortunately no one has responded to you. What did you end up doing?

Looking for some thoughts here since the rules aren't 100% definitive. If a plan is being spun-off into 2 separate plans and the existing one eventually terminating, could the spun off plans be considered "new" for purposes of filing for a determination letter?

Does anyone have the prescribed method for mandatory employee contributions that were missed due to improper exclusion from the plan. While it is clear how to correct the employer contribution, it is not as clear if the employer is to pay the missed employee contributions as well. Apply the same method as missed opportunity for after-tax contributions under EPCRS?

If an on-site clinic is a stand-alone welfare plan - for line 8b on the 5500, is it appropriate to use code 4Q for other and write in "onsite clinic". Not finding much guidance on this other than the clinic definitely needs a 5500 filing. Other thoughts?

The IRS released HOU-05-2015 granting tax relief for victims of storms, tornadoes, etc. in Texas. We are clear that the relief includes the Form 5500 and grants a postponement under Rev. Proc. 2007-56 Section 8 & Code Section 7508. Any thoughts on if this relief ALSO includes contributions under 404(a) also included in Sec.8? On one hand, the contributions are tied to the annual return so if it is extended, then perhaps the contributions are too by default. On the other hand the IRS relief doc doesn't specify contributions, only the 5500 itself. We've found no guidance to make it clear either way.

Hi,

On a CB plan that has terminated and didn't file for an FDL at termination -- would this change anything for a VCP filing after the term date? The plan is being corrected for a 401(a)26 failure not timely discovered (after 9 1/2 months after the PY) I don't think so...but not finding much to tell me either way.

Yes, the benefit is already in pay status and so we're thinking the spouse now not wanting the benefit is stuck.

Hi, I have a DB plan where the form of benefit is a QJSA. The soon to be former spouse does not want the QDRO benefit and just wants the money to go to their children. Can they do this since its a QJSA?

I have no idea why they're thinking about doing this at this time. Their account rep just asked us it it's allowed.

I have a client who wants to implement a policy mid-year by where participants can elect to waive their salary reduction for premiums on a pre-tax basis and re-characterize it to after-tax. Won't the employer lose their FICA/FUCA savings? The salary reduction is to be in place for the entire Plan Year - allowing them to waive it mid year violates this correct? Any other issues you guys see? Thanks!

So I'm having a hard time finding anything that allows (or disallows) a plan to not allocate any interest to employee contributions if the participant terms before becoming vested? Would this be discriminatory?

Having a hard time finding guidance on if an employer who successfully terminated their plan (Nov. 2013) can now establish a SIMPLE 401k for the owners only now (doctors) and then start a new 401k for all employees once the 12-month waiting period is up. Does the 12 month rule apply to SIMPLE 401ks as well?? Where does it say you can or can't? Thanks!

So, there is a DB plan that made distributions in Jan-Feb this year. After review, the plan sponsor realized they miscalculated the amounts and the participants are now owed more money (ranging from $77-$5000). Do they need to get new beneficiary forms completed since they're outside 180 days?

Everything I'm finding says that this type of status change could allow an increase, decrease or drop. Either case is in line w/ the consistency rule based on a participant's particular situation. I see nothing yet that says a proration is disallowed.

Was wanting someone else's thoughts on creative ways to administer a DCAP mid year election change. Say a participant for 1/2 the year was contributing up to $2500 (married filing sep.) to the DCAP. Mid year, the person has a status change (divorce) and wants to change the election. Should the person be allowed to then contribute up to the $5000 limit...but prorated for the rest of the year? Other things to think about? Thanks!

No argument to use the full SSN but searching for any official guidance that says you have to use the last 4 of the SSN. Yes, its a best practice, but thinking there's nothing prescribing the last 4. Thanks for the feedback.

Anyone aware of a requirement to use only the last 4 numbers of a participant's SSN on statement and if so where that requirement is? Coming up w/ nothing so far so maybe there is no requirement to do so, but rather a best practice?