Flyboyjohn

I think we all agree that the unpaid 2017 RMD has to be paid to the death beneficiary and I don't see how any unpaid prior year RMDs rise to the level of a liability of the plan to the estate. I'm pretty certain that the plan/contract says "pay everything left at my death to the death beneficiary" without any exception for perceived liabilities.

Death beneficiary (and not the estate) is entitled to 100% of the account, including the 2016 and 2017 unpaid RMDs.

No

Seeking confirmation before I stick my neck out that if a 501(c)(3) org is maintaining a deferral only 403b and a separate 401a plan which receives employer matching and non-elective contributions there's no defensible argument that the deferral only plan is exempt from ERISA (and exempt from 5500 and plan audit), thanks

I think an anonymous VCP filling proposing a retroactive amendment/document correction is worth a shot under these circumstances. We've been pleasantly surprised at what IRS will permit in the way of retroactive amendments.

ACA provided substantial funding to DOL to audit (they say "investigate") group health plans for ACA compliance and there is anecdotal evidence that a few audits may have occurred. If anybody has experienced a recent audit would you mind posting a copy of the initial DOL letter and attached list of required documents (with employer information redacted of course)?

IRS has made several announcements of when they expected to start sending notices to large employers regarding 2015 ACA penalties (originally targeted October 2016 then delayed to March 2017, then June, yada yada). Has anybody seen an IRS ACA large employer penalty notice for 2015 yet? Suspicion is they can't get the data matching to work and no employers will ever pay ACA penalties for 2015 (and maybe 2016, etc.). I recall the ACA revenue projection from employer penalties was $3B per year or more.

IRS permitted individuals to file 2016 tax returns without answering the ACA penalty question (so if you owed the penalty you didn't have to fess up and pay with your tax return). Have they done any follow up with those taxpayers or does it appear nobody had to pay for 2016? I know they keep saying the penalty is still in effect but wondering if enforcement has slacked off.

Yes, ACA requires that all health insurance policies issued in the individual market meet certain minimum requirements (ACA outlawed so called "skinny" plans in the fully insured arena, can still exist in the self-insured arena)

Any health insurance indemnity contract issued by a licensed insurance company will meet "minimum essential coverage" (ACA requirement). I wouldn't get too hung up on worrying about whether the contract provided benefits other than medical care.

Having to run the distribution/charitable deduction through the 1040 can make a huge difference in taxability of Social Security and other tax attributes which function off Adjusted Gross Income.

Why don't you try ignoring the PS and put $24,000 elective deferral in your software and see what it says (should be $24,000 deductible)?

Point of clarification: there's no such thing as a "non-deductible" IRA, it's simply a Traditional IRA housing contributions (and related earnings) that were not deductible. I believe the long standing rule that you can't roll "basis" amounts in an IRA into a qualified plan is still in effect so your client's basis needs to be left behind in one of the Traditional IRAs and should then be converted to a Roth IRA with no immediate taxable income.

Employer allows broker to promote "voluntary" insurance products (AFLAC type junk) to employees and accommodates payment of premiums via payroll deduction (no employer contribution). Are these "employee welfare benefit plans" subject to ERISA and requiring filing of 5500s if large enough? Does it matter whether the premiums are being deducted pre-tax pursuant to a cafeteria plan or after-tax? Thanks

Would your answer be the same if instead of 2012 the 403b plan terminated 12/31/2016?

Since we now have pre-approved 403b documents my opinion/advice would be to restate prior to termination rather than wait. My question is what if you terminated a 403b say in 2012, would you go back and restate the prior "best efforts" document?

To play "angel's advocate" I would suggest answering your questions by viewing the QSEHRA as simply a variation of a traditional health reimbursement arrangement. The statement in the statute that a QSEHRA is not a "group health plan" shouldn't be extended to say it's not an employee welfare benefit plan under ERISA section 3. Should an HRA have a plan document and SPD (with claims procedure)? I believe so. Does an HRA provide an aggrieved participant ERISA rights and legal recourse in Federal court? Again I believe so. Lastly, the specific statutory requirement to provide an annual Notice should not be interpreted as providing a free pass on the normal plan document and SPD requirements.

"Yes" to the first 5 questions. With respect to "other issues" hopefully the plan sponsor won't set up a trust so these plans will be exempt from 5500 filings as small unfunded welfare plans.

I stand corrected and educated, thanks.

Disagree with ETA since non-governmental 457(b) plans are essentially non-qualified plans for tax exempt entities, wondering if you have a cite?

All too common situation of definition of compensation in plan document not being applied operationally. Has anybody had any success in getting the good folks at EPCRS to accept a retroactive document correction?

If the MP plan was pre-ERISA it might be grandfathered for pre-tax deferrals (see the first sentence in 401(k)(1)) if it somehow retained grandfathered status in its plan documents over the past 40+ years.

Confirmed

As usual there's more to the story. Mess was created by father and brother of current business owner, both of whom died after the plan termination was started but before it was completed. Plus there was a "bad actor" financial advisor involved (since run out of town) and evidently no EA, at least none that can be identified. Plus there are no participant compensation records prior to 2002, etc. Current owner is not interested in stiffing the participants but is just looking for some leverage in dealing with PBGC in negotiating a "best efforts" calculation of additional sums due.

Big mess just fell into our lap: DB terminated 12/31/2006, distributed incorrectly calculated lump sums August 2007, employer finally files PBGC 501 (without any EA involvement) November 2012, PBGC audits and notifies ER last month (May 2017) that lump sums were calculated incorrectly and substantial additional sums likely owed to participants (plus lost earnings). Since it's been almost 10 years since the initial distributions and over 4 years since the filing of the 501 we're wondering if there's a statute of limitations that might save this client?