Wondering how other TPA's handle this - distribution fees that are paid by the recordkeepers directly from participant accounts to the TPA are generally round numbers.  For some states though, this is revenue that taxes must be paid for as a Sales Tax, and this is indeed detailed in the contract.

We have always passed this on to the plan (ie line item lists distribution fee, and later line item after sales tax calculation lists round paid amount, netting just the tax due payable for that item).

Just had a client complain about this, first time one ever noticed this. 

My company is looking to enhance our Paid Parental Leave. Currently, we provide women & men 4-weeks of FT paid leave. This is on top of the maternity leave provided to the birthing mother. Our company is just about 1000 employees. I would love to get other company data to put into my research if you wouldn't mind sharing! 

Thanks so much!

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Having trouble getting to health care plan

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Plan has three related employers ( controlled group).

Forfeitures are held in one forfeiture account - Question - is there any issue with allowing the related employer to only use forfeitures triggered by former employees within their group. For example there is $100,000 in the forfeiture account - $40,000 from Company A, $10,000 from Company B and $50,000 from Company C.

The Plan Sponsor would like each entity to use only the forfeitures triggered by their respective former participants.  Plan document does not address is provision

I’m now reviewing a draft of a plan’s restatement. (The draft is not from the recordkeeper, nor my firm.)

The IRS-preapproved documents lack items to specify which of SECURE 2022’s optional provisions the plan includes or omits.

For whatever plan amendment ought to be done by December 31, 2026, the plan sponsor (following its internal business reasons) wants to do everything now.

What’s an effective way to document the plan’s SECURE 2022 optional provisions (without defeating reliance on the IRS’s opinion letter on the IRS-preapproved documents)?

Or is the plan sponsor’s preference to document now its SECURE 2022 provisions unwise?

Some great information on this site, thanks to you all!

I have a somewhat unique divorce situation, and need advice on how to calculate the value of a QJSA that is and was solely paid out of non-marital assets. My husband and I got married just before I retired from State of AK in March of 2019, in order to allow me to add him to my state benefits (free Health insurance, Long-Term Care Insurance and a 50% Joint Survivor Pension Option in the case of my death). I then retired 4 months later in August of 2019 and we now live in Minnesota, an Equitable Distribution State. He retired a few months after I did and has done contract work for his former employer off-and-on since.

I have taken a deduction from my pension annuity for both his LTC Insurance and the QJSA of which he is the beneficiary for the past almost-7 years of my retirement. The QJSA option I elected prior to my retirement is completely irrevocable, as I sadly found out recently - my pension annuity will be reduced because of this election for the rest of my life, even after we are divorced, and even if my husband dies before I do and no one ever receives the benefit of the QJSA. It is not transferrable to a new spouse, and nothing can be changed, even through a QDRO. So that election resulted in a lifetime pension reduction for me. What angers me is that we had a (verbal) agreement at the time of marriage that he would obtain a life insurance policy on himself with me as the beneficiary as compensation for that LTC insurance and QJSA, and he did get that life insurance policy, but then he let it lapse a year or two after the marriage ("fool me once"...) 

I had a prenup prior to the marriage that ensures that my soon-to-be-ex and I each maintain our own pensions.  I have not worked at all since the marriage, so all my assets are my own pre-marital money. We kept our finances separate throughout the marriage. My husband had three pensions that were earned before the marriage that are solely his own pre-marital assets, which he is now collecting on. However, he did work some during the marriage too, so some of his recently-earned assets are legally half mine (he has greater income than I do). He was also married previously, and his ex-wife is the beneficiary of his QJSA, so that doesn't factor in. The only assets being split in our divorce are a home, vehicles, and perhaps a small amount of his recent joint marital income. It does not seem fair to me that I will need to take a reduction in my pension for the next 30 years when I was only married to him for 4 months before I retired. When I looked into it, it sounds as if court cases in several states have considered the the QJSA to be a "valued asset" of the receiving spouse; one that can be offset by other assets in the divorce settlement, although I don't see any case law relevant to that in my own state. I'm pretty sure I can't get compensation for the value of the past (already-provided) LTC and QJSA benefits that I've paid for during the marriage, even though he reneged on the life insurance agreement. But I'd at least like to get compensation for my future losses over the next 30 years for the non-reciprocal QJSA that my ex-husband will benefit from.

So finally, if you're still with me....

My Question: For settlement purposes, how do I calculate the value of my future annuity reductions due to the irrevocable QJSA? My pension annuity has already been reduced by approximately $7,000 for the LTC Insurance and approximately $12,000 for the QJSA option over the past 7 years. The LTC Insurance is revocable, so there will be no further deductions for that. However, over the next 30 years (my approx. estimated lifespan), I will incur a loss of approximately $96,000 in pension reductions for the QJSA. The annuity deduction will increase with inflation each year. I'm certainly no accountant, but I have been trying to find a calculation that could give me a reasonable estimate for a settlement offer. My best Google-guestimate (found on an A.I. search) as to how to calculate this would be:

S_n = A x (1-rⁿ) / 1-r  where A= first year’s total payment ($2028) and r = annual growth rate (1.03) and n= number of years (30), so S₃₀ = 2028 x 47.5754 = $96,583.

I then attempted to calculate the present value in 2026 dollars at a 3 percent average annual inflation rate (?) (where PV = FV / (1 + r)ⁿ  and PV = $96,483 / (1 + 0.03)³⁰ = ($96,483 / 2.427262) = $39,750.

I have no idea whether my calculations or assumptions are correct, and I know I need to find an actuary to help me, but I'm wondering if anyone here can give me advice, as this is a somewhat unusual situation. Am I getting warm, or am I totally off-base here?

Thanks for any advice you could provide!

just because there might be new people to Benefits Link who didn't have to suffer through this one yet...

An employer is insisting that they filed Forms 1095 for 2023 and 2024 (when electronic filing was required) without filing a 1094 for each year. Is that even possible on the AIR system?

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Is anyone aware of guidance regarding exactly how the distribution (and in some cases, return) of overpayments should be handled for 1099-R purposes, under the new rules of 414(aa) and 402(c)(12) (as added by Section 301 of SECURE 2.0) and Notice 2024-77?

I can see several permutations that might affect reporting, including not only whether repayment is sought, but also whether the amounts were originally taken in cash or rolled over, whether repayment is sought in the same or a subsequent taxable year, and whether any repayment occurs in the same or a subsequent taxable year.  The 1099-R instructions don't appear to address these issues.