Message Boards Digest

November 16, 2017

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

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cpc0506 created a topic in 401(k) Plans

Sole Proprietor Wants to Terminate Plan and Start Another One for New Business, During Same Plan Year

We have a solo-k plan with plan sponsor Y. Sole-proprietor decided to end his business, Y, this year and establishes a new business Z in the same year. Sole-proprietor would like to establish a plan for business Z. Is this ok? In my gut, I say 'yes', as an owner of multiple companies can sponsor plans for each company if they want within the regulations. It is the sole-proprietor that is throwing me.
Number of replies posted  4 replies      Number of times viewed  49 views      Add Reply

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austin3515 created a topic in 403(b) Plans, Accounts or Annuities

403(b) for HCEs, 401(k) for Non-HCEs; Catch-Up Provision for HCEs Only

403b covers HCEs and 401k covers NHCE's. Do people agree that I cannot include the special 403b catch-up rule in the 403b plan because it would be a discriminatory benefit, right or feature?
Number of replies posted  1 reply      Number of times viewed  24 views      Add Reply
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austin3515 created a topic in 401(k) Plans

Beneficiary is Participant in Deceased Participant's Plan; How to Handle the Death Benefit?

Can I simply transfer the deceased spouse's account to the surviving spouse's account in the Plan? Would it be a rollover? Should I separately account for it to ensure the 10% penalty applies? Perhaps more importantly, must the balance leave the Plan within 5 years due to RMD rules? (The participant was not yet 70-1/2 at the date of death.)
Number of replies posted  2 replies      Number of times viewed  54 views      Add Reply
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thepensionmaven created a topic in Retirement Plans in General

Dentists Sharing Employees; Aggregation Required for Testing?

Three dentists share office space and some of the employees. Each sponsor a retirement plan, all of the same type, which were established about 10 years ago. At that time we were advised by a retirement plan consulting firm that these are "shared employees" that would have to be included in the plan of the particular employer if they worked an aggregate of 1000 hours between the different employers; and would have to receive contribution from each plan based on W-2 received from each of different employers.They quoted an old RevRule from 1973 as the only guidance IRS has issued on the subject of "shared employees." About a year ago, one of the dentists left the group, moved his office to another location but within the same city. He continues to employee maybe 1-2 employes of the original group, but only for 1-2 days per week, which is really irrelevant at this point. Even if one employee is no longer a "shared employee" for the original group who share the office space as well as the employees, we believe that since one of the employees is a participant in this one dentist's plan and regardless of the number of hours she works for this one particular dentist of whom I am speaking, she must continue as participant in this plan and can not be excluded if she works less than 1,000 hours or employed on the last day any plan year as the plan is definitely TH. Any employee this dentist hires that works solely for him, there is no doubt, this employee is subject only to this one dentist's plan eligibilty. Concurrance? provisions,etc.
Number of replies posted  1 reply      Number of times viewed  32 views      Add Reply
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ERISA-Bubs created a topic in 401(k) Plans

Retroactive Amendment Liberalizes Eligibility for Matching Contributions But Makes Vesting More Strict

We have a 401(k) with matching. Participants must work for 18 months before being eligible for matching, and vesting is immediate. For testing purposes, we want to allow non-HCEs to be immediately eligible in their first 18 months with 3 year cliff vesting and we want to make this effective as of 1/1/17. Can we do this?
Number of replies posted  8 replies      Number of times viewed  56 views      Add Reply, Inc.
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