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We have a client with a self-funded health plan. Ex-spouse of employee in Nebraska claims he should still be covered for 6 months (until divorce decree is final for purposes of health plan per Nebraska statute). Question: because the plan is self-funded would ERISA preemption apply? Would the answer be different if the plan was insured? Nebraska Statue Below: 42-372.01. Decree; when final. (1) Except for purposes of appeal as prescribed in section 42-372, for purposes of remarriage as prescribed in subsection (2) of this section, and for purposes of continuation of health insurance coverage as prescribed in subsection (3) of this section, a decree dissolving a marriage becomes final and operative thirty days after the decree is entered or on the date of death of one of the parties to the dissolution, whichever occurs first. If the decree becomes final and operative upon the date of death of one of the parties to the dissolution, the decree shall be treated as if it became final and operative the date it was entered. (2) For purposes of remarriage other than remarriage between the parties, a decree dissolving a marriage becomes final and operative six months after the decree is entered or on the date of death of one of the parties to the dissolution, whichever occurs first. If the decree becomes final and operative upon the date of death of one of the parties to the dissolution, the decree shall be treated as if it became final and operative the date it was entered. (3) For purposes of continuation of health insurance coverage, a decree dissolving a marriage becomes final and operative six months after the decree is entered. (4) A decree dissolving a marriage rendered prior to September 9, 1995, which is not final and operative becomes operative pursuant to the provisions of section 42-372 as such section existed immediately preceding September 9, 1995. Source:Laws 1995, LB 544, § 2; Laws 1997, LB 434, § 1; Laws 2000, LB 921, § 34.

I am trying to understand the contribution limits to a solo 401K plan and the interaction with deduction limits for self- employed (SE) health insurance. Per IRS instructions health insurance deduction is limited to net schedule C income less 1/2 SE tax, less retirement plan contribution. link https://taxmap.irs.gov/taxmap/instr/i1040gi-010.htm#w24811v09 The main issue is if the retirement plan contribution is too high you lose/reduce the health insurance deduction, which I want to avoid. Here is my example and understanding: Net Schedule C profit $20,000, Health Insurance premium $8,108, 1/2 SE tax $1,413 Maximum total contribution to solo 401K without loss of insurance deduction is $10,479 ( 20,000 -1,413 -8,108 = 14,479) and contribution to 401K plan is made up of either $10,479 employee contribution or $6,762 employee contributions plus 20% employer contribution of $3,717 (20,000 - 1,413 = 18,587 x 20% = 3,717) Is my understanding & computations correct? What about the over age 50 catch up contribution of $6,000? Not sure if this is permitted in excess of above contribution without limitations. (so total contribution to solo 401K of $16,479 ---- 10,479 +6,000) Thanks, T

I hope to have an "easy answers" question, but I don't know.... Plan compensation is defined as W-2. Exclude fringe benefits. Auditors are picking apart the profit sharing calculation. In the employers words "When the Profit Sharing was calculated, the Wage base included pretax deductions, Flex Spending and Health Insurance. They(auditor)believe this is incorrect and those deductions should not be included for calculating the Profit Sharing". With w-2 compensation per the document, I would expect the wage base plus pretax deductions, Flex spending to be included. I have a question whether Health insurance deductions are included in compensation. 1. I always thought Flex or Section 125 deductions were to be added to W-2 compensation. Correct? 2. Are Health Insurance deductions added to W-2 compensation? Thanks

A New Jersey small-group health insurance contracts says an employee is a full-time employee if his or her normal workweek is at least 25 hours. The employer would prefer to make eligible only those employees that Internal Revenue Code § 4980H would require the employer, if it were a large employer, to treat as a full-time employee (generally, 30 hours per week). May the employer consider the insurance contract as the insurer’s obligation for what the insurer must cover (if applied for), but not necessarily a constraint on the employer’s choice of whom to make eligible under the employer’s ERISA-governed health plan? (Assume the difference between 30 and 25 hours a week would not result in less than 75% enrollment of those employees the insurance contract defines as full-time employees.) Is there anything that binds the employer to offer health coverage to those whom the insurance contract describes as full-time employees?

How does the Cadillac tax apply to an EGWP plan? Under the ACA, there is a 40% tax on the excess cost of health insurance. A Part D Employer Group Waiver Plan ("EGWP") provides insurance that supplements Medicare. How do the Medicare reimbursements get treated for Cadillac tax purposes? Example: Assume monthly cost of EGWP plan is $1,000 and that Medicare pays for $750 and employer/insurer pays for $250. Is the total $1,000 considered the cost of health insurance or just the $250 paid by the employer/insurer?

Much remarked on in our news is that the idea of an employer paying for its employee's individual health insurance is over. But what if there is no group health insurance available for the employer to buy? Under the New Jersey Small Employer Health Benefits Program, an employer cannot get a group contract unless it has at least one "real" employee. For that purpose, an employee "excludes a sole proprietor, a partner in a partnership[,] and a 2 percent S corporation shareholder[,] as well as immediate family members of such individuals." If all of a corporation's employees are its shareholders and their children, must the business forego the tax advantages of employer-paid health insurance? Or is there a way for the corporation to pay the premiums for each worker's individual health insurance, without tripping on the several prohibitions and penalties we've been reading about?