Stash026

I have a Union Plan who has a low-level prescription benefit (after about $1,000 it becomes an 90% co-pay). Some participants who are over 65-years old are asking if they can also have MEdicare Part D as a "secondary" to their Rx coverage. Does anyone know if that's possible? All I've seen is how Medicare Part B works as primary/secondary, but nothing about Part D. Thanks in advance!

One of my colleagues recently passed away, unfortunately, so I'm picking up some of the work. I'm not as familiar with DB Plans, so I just wanted to check if the Plan Documents needed to be restated by April 30, 2016 like DC Plans? This is for both single-employer Defined Benefit Plans and Cash Balance Plans. Thanks in advance!

I've gotten different opinions/responses on this, so figured I'd see if anyone here knows for sure. Plan started January 1, 2014, do they need a restated document by April 30 or does their original document suffice? Thanks in advance!

The document doesn't actually explicitly state how to handle this. The participant returned to work before NRA, for all of 6 months, before retiring again. Basically, what he's asking is for his entire benefit to be recalculated with about 20 months taken off his early reduction, instead of having the initial benefit stay the same and the new early reduction only on the "new" piece

How does everyone generally handle someone who is out on early retirement who returns to work? The person had a 1 year break in service before returning to work 1/4 in '14 and 1/4 in '15 before retirning again. Is there an IRS regulation that freezes the early retirement benefit from the first time employed, with a new reduction for the new accrued benefit? Or do people generally recalculate the previous benefit, based on the additional time worked, since there was only a 1 year break?

This may be a little too general of a question, but I got handed a DB Plan that was frozen 1/1/15 and don't have much experience with them. Basically, they froze the benefits as of 1/1/15 and already had a $60,000 credit balance on the Schedule B (after using a portion of it to lower the required contribution in '14). They are now asking me what, if any, is the required contribution for '15. Is there an easy way to calculate this or is the question too abstract? Thanks in advance for any help/guidance!

For a MEWA, we need to issue the 1095-B's but are having issues getting all of the EIN #'s for the smaller employers. Has anyone else had this problem? What resolution did you use? Thanks in advance!

Just trying to get clarification for a few of our employees that are Medicare Primary. Does anyone know if both Medicare and the secondary will be providing 1095-Bs or will it just come from Medicare?

I got a response from the IRS on a Plan Document restatement saying that I need to include Top Heavy provisions on a Multiemployer DB Plan. I just want to make sure what exactly needs to be put into the document? I'm more familiar with DC Plans, but am picking up work. Thanks in advance!

Does anyone know if/what specific section in the code that it states all employees, both HCE and non-HCE, must be awarded the same investment opportunities? Taking over a case and they are saying based on 404© HCE can investment their money elsewhere, despite no one else having the same opportunity Thanks!.

Just a Plan design question. A client is putting in a Profit Sharing Contribution, but they don't want to allow participants to take a loan from that source (only from the current 401(k)/Safe Harbor Contribution). Has anyone ever come across that before? Is it allowed?

Thanks, what I thought!

I know that a 3% Safe Harbor contribution can be used to offset part of a New comp Profit Sharing Contribution. What I couldn't remember was if a Safe Harbor Matching Contribution could be used the same way? I'm thinking no, but I wanted to be sure. Thanks in advance!

Document is rather vague (I took over the case). I guess if we when we restate we clarrify it saying that they match per pay period, there shouldn't be a future issue (at least)

For safe harbor I know you need to go back and make up for the contributions, however this is a non-safe harbor discretionary Match: Eligible - 1/1/14 Starts Deferrig - 7/1/14 The client is matchin on the salary from 7/1 moving forward and not going back to "make up" since the deferrals are in excess of the 3% match. Just confirming no issues? Thanks, having a mental block for some reason...lol

I think I'm just having a "moment", but here's the situation: Employer Funded an $80,000 Contribution $79,000 Receivable $1,000 used from Forfeiture In theory that $1,000 is already in the Plan, but what do we show as the contribution amount on the Schedule I?

I'm taking over a Plan where they amended the eligibility for 401(k) Contributions to 21 + 1 month of service, but the eligibility for Safe Harbor Contributions still reads 21 + 1 year (it wasn't amended). Does anyone see a problem with that? A SH Participant just says that they satisfied eligibility as per the Addendum and were eligible to make a 401(k) Contribution at any time during the year. Thanks in advance!

I'm having a disagreement with the financial manager, so I want to confirm. Non-owner was hired mid-year 2013 and earned less than $115,000. In 2014, his first full year of service, he earned well over the $120,000. In other words, in the look back year he didn't earn enough but it was a partial year. By the letter of the guidelines I do not believe he would be an HCE. Thoughts?

I have a client that would like to restrict the availability to loans for one of two reasons: Purchase of a home College tuition Has anyone had a client restrict loans to this degree? Is it allowed? Thanks in advance for your help!

I have a Safe Harbor 401(k) Plan where the principals are looking to use their money for a real estate investment. Generally I would have no issue with this, but the plan for the property is to use it as a retreat to send clients. Anyone have any experience with this type of thing? Would it be allowed, in theory? Thanks in advance!

This is probably an easy question, but I just want to make sure. Had a participant pass away and his spouse (beneficiary) took a full distribution. The question is, how is the 1099 completed? Is it with the participants name/SSN or the beneficiaries? Thanks in advance!

I believe that they should be, but I just wanted to confirm this. If someone is not active on the last day of the Plan Year due to maternity leave, would they be eligible for a 3% Top Heavy Contribution? Thanks in advance!

Can someone please just give me a hand on what annual testing is currently needed for a POP Plan? Has anything changed recently? Thanks in advance for everyone's help!

I have conflicting information, so I just wanted to get things straight. Are the PPA, HEART and WRERA Amendments required to be signed by December 31, 2009? Thanks in advance for your help.

I have a plan that currently has compensation defined as W-2 Compensation. They wanted to make the change to Section 415 "safe harbor" compensation, but when can I make the amendment for? If I did it today, could it be done for the 2008 Plan Year or does it have to be for 2009? Thanks for your help!