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Michael B. Preston, who was an enrolled actuary, was a giant in the pension field. He contributed so much to the employee benefits community. He posted 6,569 messages onto these message boards since he joined in 2001 (!) -- questions, answers and comments that helped to inform and educate hundreds, perhaps thousands, of his peers. They're all still here and on the search engines, so his wisdom and humor will continue long into the future. During the 1990s, Mike was a system operator of the PIX ("Pension Information eXchange") BBS (i.e., a "bulletin board system"). PIX basically was a server running proprietary software on a particular dedicated personal computer that had a dedicated telephone number. Members would use their PC (and a modem) to connect via a long distance phone call, so that the latest discussions could be downloaded for reading and for adding comments. Later, when the World Wide Web became popular and PIX closed, Mike become an active participant and later a "moderator" on these BenefitsLink message boards. An outstanding servant and leader in his profession, Mike was awarded the Edward E. Burrows Distinguished Service Award in 2017 by the ASPPA College of Pension Actuaries, which is "presented annually to a pension actuary who has gone above and beyond in forwarding ethics, education, beneficial legislation or regulations that enhance the private pension system or the professionalism of enrolled actuaries within the private pension system." We will miss him so much!

Separate penalties for each plan filed under the DFVCP program.

My sympathies to Mike's family and friends. He was always someone whose responses I knew I could trust. I always was proud of myself when his response was what I thought might be the correct answer! He will be sorely missed.

I second that. This is a huge loss to the retirement benefit practitioners community. Let him rest in peace and condolences to his family.

While I did not know Mike personally, I did benefit from exchanges with him. My prayers and condolences go out to his family.

So very sorry to get this news. Mike Preston was one of my favorite people in the industry. When we both practiced in Southern California, we spoke often, and he was always kind, always patient, always ready to explain to a nonactuary what I needed to know. When I attended actuarial sessions and discussions he led at ASPPA and other conferences, I was always impressed with his knowledge and leadership. My heart goes out to his wife, Linda, and their family. I will miss him!

So sorry to hear this. He will definitely be missed. Condolences to the family.

Very sorry to hear this. Mike was a really important resource and contributor for a long time and could always be counted on to keep wayward commenters on their toes and in check! But he’d apologize for his sometimes abrupt “online personality” in person. They didn’t make two of him! He will be missed.

See Reg. 1.402(g)-1(e)(8)(iv): "(iv) Distributions of excess deferrals from a designated Roth account. The rules of paragraph (e)(8)(iii) of this section generally apply to distributions of excess deferrals that are designated Roth contributions and the attributable income. Thus, if a designated Roth account described in section 402A includes any excess deferrals, any distribution of amounts attributable to those excess deferrals are includible in gross income (without adjustment for any return of investment in the contract under section 72(e)(8)). In addition, such distributions cannot be qualified distributions described in section 402A(d)(2) and are not eligible rollover distributions within the meaning of section 402(c)(4). For this purpose, if a designated Roth account includes any excess deferrals, any distributions from the account are treated as attributable to those excess deferrals until the total amount distributed from the designated Roth account equals the total of such deferrals and attributable income." Short version as I understand it: Excess Roth deferrals and related income are taxable and cannot be rolled over. Shorter version: less like a loophole, more like a snare.

Thanks. Yes, Nationwide is a mess. I called lot of places, finally one place (Nationwide Branch Office in Chicago) help me out and I got the check yesterday.

So sad - and a huge loss to the profession. Rest in peace brother.

I absolutely learned more than a few things from Mike Preston. He was kind and intelligent, but not in the least bit pretentious. This is sad news indeed...

So sorry to hear this. I go back to PIX days.

The Plan will not care. The Plan is concerned with the specific QDRO requirements as outlined in IRC 414(p), and with making sure the requested form, timing, and amount of payment are permitted under the terms of the plan document.

Code section 402(g( prohibits an individual participant from making elective deferrals exceeding the annual dollar limit, except to the extent that the participant is eligible to make catch-up contributions. 402(g) applies determines compliance with the annual limit across all plans to which elective deferrals are made, regardless of whether the employers are related. 401(a)(30) is a qualification requirement prohibiting a plan from accepting elective deferrals in excess of the annual dollar limit except to the extent that the participant is eligible to make catch-up contributions and the total of such contributions do not exceed the sum of the regular limit on elective deferrals plus the annual limit on catch-up contributions. Reg. Section 1.402(g)-1(e)(8)(iii) provides: "If excess deferrals (and income) for aw taxable year are not distributes [by April 15th of the taxable year following the taxable year in which the excess deferrals were made] they may only be distributed when permitted under section 401(k)(2)(B)[except to the extent distributed in accordance with correction under EPCRS]."

Agreed. EPCRS can let you correct a qualification failure, and 401(a)(30) is a qualification requirement, but neither plan violated 401(a)(30) so there is nothing to correct under EPCRS. Also agreed.

IRC 402(g)(2)(A)(ii) and treas. reg. 1.402(g)-1(e)(2)(ii)

Sure, they could take an in-service distribution in 2024 (assuming there is a distributable event) but it would be taxable in 2024. Presumably BG is looking for a way to help the participant avoid being double-taxed on the excess, but at this point, it's too late.

I'd suggest consulting with a personal tax adviser on this one because the issues spans back multiple years and therefore there are potential excise taxes spanning multiple years. In general-- The spouse's general purpose health FSA was unfortunately disqualifying coverage for both the spouse and you. I've copied the relevant cite below for reference. Here's an overview: https://www.newfront.com/blog/hsa-interaction-health-fsa-2 For 2024 contributions, you will need to have the HSA custodian process a corrective distribution. That will avoid a 6% excise tax that would otherwise apply for the excess contributions. For 2023 contributions, you may be able to take advantage of a special rule outlined in the IRS Form 8889 Instructions providing individuals the opportunity to take a corrective distribution up to six months after the due date of the return, including extensions. Under that special rule, you can work with your personal tax advisor to file an amended return with the statement “Filed pursuant to section 301.9100-2” entered at the top. For contributions prior to 2023, you will still need a corrective distribution, but a 6% excise tax will apply on those ineligible contributions. The 6% excise tax reported on IRS Form 5329. Here's an overview: https://www.newfront.com/blog/correcting-excess-hsa-contributions IRS Notice 2005-86: https://www.irs.gov/pub/irs-drop/n-05-86.pdf Interaction Between HSAs and Health FSAs Section 223(a) allows a deduction for contributions to an HSA for an “eligible individual” for any month during the taxable year. An “eligible individual” is defined in § 223(c)(1)(A) and means, in general, with respect to any month, any individual who is covered under an HDHP on the first day of such month and is not, while covered under an HDHP, “covered under any health plan which is not a high-deductible health plan, and which provides coverage for any benefit which is covered under the high-deductible health plan.” In addition to coverage under an HDHP, § 223(c)(1)(B) provides that an eligible individual may have disregarded coverage, including “permitted insurance” and “permitted coverage.” Section 223(c)(2)(C) also provides a safe harbor for the absence of a preventive care deductible. See Notice 2004-23, 2004-1 C.B. 725. Therefore, under § 223, an individual who is eligible to contribute to an HSA must be covered by a health plan that is an HDHP, and may also have permitted insurance, permitted coverage and preventive care, but no other coverage. A health FSA that reimburses all qualified § 213(d) medical expenses without other restrictions is a health plan that constitutes other coverage. Consequently, an individual who is covered by a health FSA that pays or reimburses all qualified medical expenses is not an eligible individual for purposes of making contributions to an HSA. This result is the same even if the individual is covered by a health FSA sponsored by a spouse’s employer. Slide summary: 2024 Newfront Go All the Way with HSA Guide

I'm sure Nike has this trademarked or something, but it would be fun to have this on our client engagement letters - the endless amounts of time we spend because the client is trying to "get around" something they have to do, or won't do what we tell them to, etc., etc. - wouldn't it be great if we could contractually point to "JUST DO IT!" Just one of those pleasant daydreams...

I sadly have to inform this group that Mike Preston unexpectedly passed away Sunday 5/5 from natural causes. He was knowledgeable and generous with his time.