Message Boards Digest

December 28, 2017

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

Author's photo

KarolineWriter created a topic in 401(k) Plans

Corporate Sponsor Becomes an LLP; Count Only W-2 Pay, Not Income from Self-Employment?

A CPA firm went from being a PC to being an LLP during 2017. One partner bought out the other partner and the partner who was bought out has retired. The remaining partner received compensation that will be on a W2 for 2017 for him, but also had some income on a K1. I thought I read somewhere that in such a case only the W2 compensation is used for testing, employer contribution calculations, etc., but now can't find anything on it. Is that true?
Number of replies posted  3 replies      Number of times viewed  48 views      Add Reply

Orlando APC - Feb. 7-9, 2018 -- Early Fee Ends Jan. 5

Sponsored by FIS Relius Education
Our ERISA experts will cover Washington update, 403(b) restatement, IRS disaster relief, QDROs, RMDs, EPCRS , final fiduciary regs, lost participants, Ask the Experts Q&A session, and more. 19 CE hours. Register by January 5, save $150. Register now.
Author's photo

legort69 created a topic in 401(k) Plans

Rollover within a Multiple Employer Plan Due to Change in Employer: Top Heavy Test Affected?

A participant leaves one adopting employer under a Multiple Employer Plan (MEP) for another adopting employer under the same MEP. The participant has the 401(k) balance transferred from the first group to the second group. Assume that the employers are not a controlled group or an affiliated service group and that their only nexus is that they are a part of the MEP. Would the second group need to include this balance in its top heavy ratio?
Number of replies posted  0 replies      Number of times viewed  32 views      Add Reply
Author's photo

M Norton created a topic in Retirement Plans in General

Change Plan 'Sponsor' from One Participating Employer to Another?

Qualified plan -- now a 401(k) -- was adopted in 1973. In 2017, a separate (related) company was set up, and a joinder agreement was signed to allow employees of the new company to participate in the plan. Can sponsorship of the plan be transferred to the new company? The old company will not have employees beginning in 2018.
Number of replies posted  1 reply      Number of times viewed  39 views      Add Reply
Author's photo

ERISAatty created a topic in 401(k) Plans

401(k) Contribution Required by Employment Contract?!

Company and its CEO have a provision in his employment contract that requires him to get a (sizable) contribution to the company's 401(k) plan for the current calendar year. The company does not otherwise offer a matching, profit sharing, or QNEC contribution. I'm waiting to receive the plan document to confirm, but I don't see how this could pass nondiscrimination testing. I'll probably have the company revise the employment agreement contract so that the specified amount can be paid another way, but not in the 401(k). Ever seen this kind of thing?
Number of replies posted  8 replies      Number of times viewed  85 views      Add Reply, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2017, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy