Deals and People December 22, 2003

Benna Joins Malvern

December 22, 2003 (PLANSPONSOR.com) - Ted Benna has signed on to lead a new Third Party Administration (TPA) firm for daily valued 401(k) plans at the Malvern Benefits Corporation.
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Malvern’s TPA wing will offer administrative and recordkeeping services. The new TPA firm is set to open its doors January 1, 2004 and will target firms with fewer than 1,000 employees, according to a news release.

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The so-called “Father of the 401(k) Plan,” Benna’s involvement in the project led to the relocation of Malvern in Williamsport, Pennsylvania near Benna’s home. More information is available by contacting Gary Camarano, Vice President Sales and Marketing, at (224) 522-4015.

Compliance December 19, 2003

IRS Updates Fringe Benefit Rules

December 19, 2003 (PLANSPONSOR.com) - The latest version of an Internal Revenue Service fringe benefits publication includes an increase in the largest benefit for qualified parking that a company can shelter from taxable income.
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>As of January 1, the permitted qualified parking exclusion increases to $195 monthly, according to the 2004 version of IRS Publication15-B Employer’s Tax Guide to Fringe Benefits.

>The latest version of the fringe benefits publication also adds a new paragraph indicating that the income exclusion for accident and health benefits applies to amounts paid by the employer to maintain medical coverage under COBRA for a former employee. According to the IRS, this is true whether the premiums are paid directly or are reimbursed to the former employee, and whether the employee’s separation is permanent or temporary.

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>The booklet includes a summary table illustrating how the employment tax rules (income tax withholding, Social Security and Medicare, and federal unemployment taxes) apply on a benefit-by-benefit basis.

The fringe benefits publication is available at    http://www.irs.ustreas.gov/pub/irs-pdf/p15b.pdf .

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