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Message Boards Digest

December 29, 2017

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

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Flyboyjohn created a topic in Health Plans (Including ACA, COBRA, HIPAA)

Indicating Transition Relief on 2015 Form 1094-C

One of the common mistakes resulting in erroneous IRS 2015 ESRP assertions is failure to properly report eligibility for 50-99 or 100+ transition relief on the 2015 Form 1094-C. I know that box C in line 22 (Section 4980H Transition Relief) needed to be checked along with either code A or B entered in line 23 column (e). What I'm questioning is whether the Yes or No box (MEC Offer Indicator) was supposed to be checked in line 23 column (a)? Page 8 of the 2015 instructions could be interpreted either way. What are others doing?
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jane murray created a topic in Defined Benefit Plans, Including Cash Balance

Amending Actuarial Equivalence for Terminated Plan

A one-person defined benefit plan terminated 10/31/2017. The plan assets will be distributed during the 2018 plan year. A participant who has more than 10 years of participation and average compensation in excess of $265,000 is at the 415 dollar limit ($215,000/12, or $17,916.67). The plan's actuarial equivalence factors are 5% pre-retirement interest and 5% post-retirement interest and the 1994 GAR mortality table. The maximum lump sum for the participant at the current date (age [65] is limited to the lesser of the PVAB calculated using the plan's actuarial equivalence factors or the 2018 applicable mortality table at 5.5%. The PVAB using the plan rates is $2,535,730 ($17,916.67 x 141.5291). The PVAB using the 2018 applicable mortality at 5.5% is $2,601,698 ($17,916.67 x 145.2110). Therefore the maximum lump sum is limited to $2,535,730. Although the plan terminated 10/31/2017, Can an amendment be adopted in 2018 before the cashout date, in order to change the plan's actuarial equivalence factors to a more current mortality table? The goal is to increase the maximum lump sum to $2,601,698 and not have the plan's actuarial equivalence be the limiting factors.
Number of replies posted  2 replies      Number of times viewed  45 views      Add Reply
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