Here are the most recently added topics on the BenefitsLink Message Boards:

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TPA Bob created a topic in Mergers and Acquisitions

Physician Splits into Two Groups, 401(k) Plan

We have a physician group "A" that split into two groups B and C effective January 1, 2017. They continued to maintain the existing 401(k) plan for 2017 to date. They will each adopt their own plan effective January 1, 2018. In my mind this will be handled as a spin off from Plan A with the assets transferred to B and C. The participants would not have incurred a severance of employment. The national retirement plan Company who currently has the A plan is holding firm that the participants will have to elect distribution. Their basis I think is that Plan A is terminating. Seems simple enough to me that Plans B and C represent successor employers and the retirement plans are replacement plans and would not allow for distributions. Any thoughts would be appreciated.
Number of replies posted  4 replies      Number of times viewed  44 views      Add Reply
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Gilmore created a topic in Correction of Plan Defects

Simple IRA and 401(k) in the same plan year (revisited)

A small non-profit (no HCEs) has a simple IRA that they have been contributing to all year. They are considering a 401(k) and want to know if it is possible this late in the year to start the 401(k) and submit the simple IRA under VCP. Is this even possible this late in the year? I know the VCP process for correcting simples is more streamlined, but I had always thought that the later you get into the year the less likely the IRS would approve. Thanks.
Number of replies posted  3 replies      Number of times viewed  39 views      Add Reply
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Asire created a topic in Employee Stock Ownership Plans (ESOPs)

ESOP Recordkeepers?

I know that advertising is not permitted in these forums, but I'm asking for assistance in finding a source for ESOP record keepers - whether you could point me to a list or just let me know if you company handles recordkeeping for ESOPs. Prefer a firm with experienced advisors on hand that would identify if we are doing anything incorrectly with our ESOP. Thanks in advance.
Number of replies posted  1 reply      Number of times viewed  31 views      Add Reply
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coleboy created a topic in 401(k) Plans

Excess Deferral Refunded Before Year End

We prepared a preliminary adp test for a client since their test failed last year. Based on this test, the HCE has contributed about $4000 too much. Can this amount be sent back to the employer then have the HCE's pay corrected on the payroll end? Can you tell that I work for a payroll company?
Number of replies posted  3 replies      Number of times viewed  32 views      Add Reply
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AlbanyConsultant created a topic in 403(b) Plans, Accounts or Annuities

removal of QJ&SA

A ERISA plan that we don't maintain the document for is transitioning from one platform/recordkeeper to another. When it was set up with the recordkeeper that they are leaving (~10 years ago), spousal consent was necessary for distributions and loans. In 2015, the plan was amended to remove the QJ&SA rules, but it doesn't seem that the recordkeeper was notified - or if they were, they never updated their records. Now the new recordkeeper is asking who they should follow - the plan doc or the old contract. My instinct says "plan doc" since it is an ERISA plan and the plan sponsor has the authority to make those changes to the plan. Any reason that wouldn't be OK?
Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply
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Chippy created a topic in 401(k) Plans

Compensation and controlled group

I have a controlled group, 2 companies. They have passed coverage separately in prior years with sometimes combining for a better result in the ADP test/ACP test. Company B wants to increase their match but also exclude bonuses from compensation. Will this effect Company A for any reason?
Number of replies posted  1 reply      Number of times viewed  16 views      Add Reply
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XTitan created a topic in Nonqualified Deferred Compensation

GOP Tax Bill Threatens NQ

The text of the House Bill has been released. Let the fun begin. The proposal would be to subject NQ plans to income inclusion upon the lapse of a substantial risk of forfeiture (later of contribution or vesting) and existing deferrals would need to be subject to taxation no later than 12/31/2025. SEC. 3801. NONQUALIFIED DEFERRED COMPENSATION. (a) IN GENERAL.--Subpart A of part I of subchapter13 D of chapter 1 is amended by adding at the end the following new section: SEC. 409B. NONQUALIFIED DEFERRED COMPENSATION. (a) IN GENERAL.--Any compensation which is deferred under a nonqualified deferred compensation plan shall be includible in the gross income of the person who performed the services to which such compensation relates when there is no substantial risk of forfeiture of the rights of such person to such compensation.
Number of replies posted  5 replies      Number of times viewed  51 views      Add Reply
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JGarbot created a topic in Operating a TPA or Consulting Firm

Corrective Dist Authorization

I'm requesting input from the daily plan administration community. We are trying to minimize risk and not tak on too much fiduciary responsibility in our actions. In our practice as a daily record keeper we direct the trade orders. Some in our firm would like a client affirmation prior to processing ADP corrective returns. Others know practically, involving the client or participants in this process is a frustrating process that only creates anxiety and has its own monetary risks and service problems. What are others doing? Processing without approval? Explaining the process upfront and not asking approval at the time of processing? Asking for approval and processing after a # of days regardless? Asking for approval and not processing until approval is received even at the risk at missing the corrective distribution deadline?
Number of replies posted  0 replies      Number of times viewed  5 views      Add Reply, Inc.
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