Reso 2006-995 - Laserfiche WebLink

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Note that direct employer contributions made as a percentage of earnings, mandatory contributions of employee compensation that are made as a percentage of earnings, as well as mandatory contributions of accumulated leave, may be subject to nondiscrimination testing. See the discussion in the VantageCare Retirement Health Savings Plan Questions And Answers For Employers and the VantageCare Retirement Health Savings Plan Employer Manual, or contact your benefits counsel. B. Employee Elective Contributions In addition, you may also choose to allow your employees I to make a one-time irrevocable election of the amount of their compensation that will be contributed on an ongoing basis to your RHS Plan as an employer contribution, I to make a one-time irrevocable election of the amount of their accrued leave that will be contributed (generally at retirement) to your RHS Plan as an employer contribution, I to make an annual, irrevocable election to have all or a portion of their leave accruing in the next calen- dar year contributed to your RHS Plan as an employer contribution, I to elect to make voluntary after-tax contributions, or I a combination of the above. If you desire to allow irrevocable employee elections or after-tax contributions, complete Section VI.B. See immediately below for additional information regarding each of these contribution types. Note that the RHS plan upon which the VantageCare RHS IRS private letter ruling was based did not include elective employee contributions (see shaded portion of the Adoption Agreement). However, ICMA-RC has obtained the opinion of counsel that these features should be allowed as long as the requirements outlined in the RHS Declaration of Trust and this Adoption Agreement are met. You may wish to discuss these features with your own benefits counsel. Any questions regarding these features of the RHS program can be directed to your ICMA-RC Retirement Plans Specialist. Note that elective employee contributions (with the exception of voluntary after-tax contributions and contribu- tions of a fixed dollar amount of compensation made pursuant to an irrevocable election) may be subject to nondiscrimination testing. See the discussion in the VantageCare Retirement Health Savings Plan Questions And Answers For Employers and the VantageCare Retirement Health Savings Plan Employer Manual, or contact your benefits counsel. Irrevocable Election to Contribute Compensation or Accrued Leave Your RHS Plan can provide a way for employees to choose the amount of their compensation or previously accrued sick, vacation, and other types of leave they wish to contribute to the Plan on a tax-deferred basis. The employer and employee will pay no FICA or income tax on the contributed funds, and, if used for medical expenses for the participant, spouse or depenents, no FICA or income tax will be due at distribution. Please note that employees may not choose whether or not to receive their leave or compensation in cash once they elect to contribute it to the RHS plan, Once your employees make an irrevocable election to contribute compen- sation or accrued leave, the election will apply to all succeeding years in which they participate in the RHS pro- gram. The election cannot be revised or revoked. You may allow employees to make an irrevocable election with respect to compensation or accrued leave, or both. In addition, you may specify the type(s) of leave that may be contributed. To allow your employees to make irrevocable elections to contribute compensation or accrued leave, complete Section VI.B.1.a. or b, The employee's election is made on the VantageCare RHS Plan Irrevocable Employee Pre- Tax Contribution Election Form. Employers should discuss with counsel the number or range of choices provided to participants. The IRS guid- ance upon which this election is based consisted of three specific percentages of compensation. 6