Message Boards Digest

November 3, 2017

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

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JJRetirement created a topic in Governmental Plans

PIck Up Contributions for past service

Town DB plan with employer pickup contributions (yes - formal action was taken when implemented). Town is amending plan to retroactively include position that was previously excluded. Employee will need to make up contributions for period of credited service she will be granted (and she will start contributing prospectively for future service as well). Do the contributions for the period of past service need to be made on an after-tax basis or is there some way to draft the plan so that these contributions are picked up by the employer as they would have been if she had been included all along. I know she can't be given a choice, but can the plan specify that payment of the past contributions will be paid over a certain period and will be picked up by the employer? I have the same question for making up contributions after returning from a leave of absence. If the plan bridges service and requires the participant to contribute for period of leave, can these be picked up?
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kwalified created a topic in Correction of Plan Defects

Small 401(k) has been deducting after tax rather than before

The payroll company for a small 401(k) has been deducting the owner's deferrals after tax since plan inception (2009). The plan does not have a after tax or ROTH provision. I suspect 2017 can be resolved fairly easily. Aside from firing the payroll vendor what would be a proper course of action for prior years? SCP? VCP?
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