Message Boards Digest

November 7, 2017

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

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cjldad created a topic in Distributions and Loans, Other than QDROs

What Is Maximum Amount for a New Loan, Immediately After Full Repayment of an Existing Loan?

Took out a loan on 10/19/16, for $26,900. If I pay that off, will I be able to get a loan of the lesser of $50,000 or 50% the next day? (I have approximately $200,000 vested.) Is the 12 month restriction on when one takes out the loan or when it's repaid? Thanks!
Number of replies posted  1 reply      Number of times viewed  27 views      Add Reply
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wiiabenefits created a topic in 401(k) Plans

401(k) for Sole Proprietor Who Has Several Employees

A client set up a 401(k) in 2017 for her LLC, which is taxed as a sole proprietorship. She has 6 full-time employees and has set up the 401(k) so there will be no employer contributions, only employee contributions. Two questions: [1] What date does she have to fund her "employee" portion for 2017? By December 31, 2017? [2] Because there will be no employer contributions to the plan, the plan must be set up as a traditional 401(k). That means she must have it tested to be sure it is not top heavy. Is that testing typically done on a projected basis so she does not overfund her contribution before December 31?
Number of replies posted  9 replies      Number of times viewed  47 views      Add Reply
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khn created a topic in 401(k) Plans

Hurricane Relief Distribution and Loan Documentation

Does the special special Hurricane relief under Announcement 2017-13 apply only to people who have their primary residence in an area affected by the hurricane, or if someone owns a vacation home in an affected area would they be able to obtain a hardship or loan under the bill? I'm assuming it's intended to assist those who live in the affected areas, but since the IRS is also relaxing procedural and administrative rules that normally apply to retirement plan loans and hardship distributions what documentation would you considered as required?
Number of replies posted  0 replies      Number of times viewed  15 views      Add Reply
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J Simmons created a topic in Distributions and Loans, Other than QDROs

Seeking Financial Companies Willing to Issue Small Joint-and-Survivor Annuities

I'm terminating a plan for an employer/client. It is subject to the QJSA requirements. Two former employees have each about $6,000 in benefits. Neither will respond or send back an election for lump sum or direct rollover (with spousal consents). Which financial companies are willing to deal with such small amounts for QJSA annuities? Any other ideas are welcome.
Number of replies posted  3 replies      Number of times viewed  30 views      Add Reply
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JJRetirement created a topic in Correction of Plan Defects

Owner-employee on Form 14568-H

Filing for excise tax refief for missed RMD (through VCP) and struggling to correcting answer this: At least one affected participant is either an owner-employee (see IRC Section 410(c)(3)) or, if the plan sponsor is a corporation, a 10 percent owner of such corporation." Plan sponsor is a partnership. Some partners are professional corporations. Affected participant is the 100% owner of her P.C., which is less than a 10% partner of the partnership sponsoring the plan. For 401(a)(9), she is a 5% owner because Section 416 is cross referenced for that determination and those rules apply ownership test separately for members of the affiliated service group. But it isn't clear to me whether the VCP form question is intended to refer to the partnership that sponsors the plan or would include owners of the P.C.s that are members of the affiliated service group (and related participating employers in the plan). I'm not seeing an answer in either the form or the definition in 401(c)(3). There is no reference to 416 so I am inclined to apply the ownership test only at the partnership level. Can you offer any insights?
Number of replies posted  0 replies      Number of times viewed  9 views      Add Reply
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frank1971 created a topic in Communication and Disclosure to Participants

Safe Harbor Notification to Terminated Participants with a Balance ?

Is it okay to not send the annual Safe Harbor Notice to non-employee participants? It seems non-employees don't need to receive it but we've always mailed it to everyone with a balance. If there is a DOL audit we want to be sure to have sent out all of what was required.
Number of replies posted  2 replies      Number of times viewed  18 views      Add Reply, Inc.
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