BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

January 17, 2018

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

Author's photo

Belgarath created a topic in Cafeteria Plans

Failed "55% DCAP" Test

So, in January 2018, someone sends 2017 data and asks you to do Dependent Care Assistance Plan testing. They pass the "5% owner" test, but fail the 55% Average Benefits" test." Let us suppose that the HCEs' average benefit amount was $1,000 and the NHCEs' average was $300. I'm being told that as long as it is "corrected" by the time the W-2's are done, that instead of the entire HCEs' amount being considered taxable income, you can just count the excess over what "would have" passed. So, for example with a $300 NHCEs average, if the HCEs average had been $545 (I'm rounding here) then it "would have" passed, and therefore the HCEs' taxation on the DCAP will only be amounts in excess of $545. Is this approach "blessed" anywhere in IRS guidance?
Number of replies posted  0 replies      Number of times viewed  20 views      Add Reply
 
[Advert.]

ftwilliam.com -- New Website Launch!

Sponsored by Wolters Kluwer
We are happy to announce the launch of our new and improved website! Check out our updated product pages, customer testimonials, Sales Rep Finder, Request a demo, and more!
Author's photo

Barbara created a topic in Defined Benefit Plans, Including Cash Balance

Nonelecting DB Church Plan Has Document Trouble

I have a former client that established a nonelecting DB church plan. The plan was never restated for PPA. How can I refer the client to a qualified firm to both do the restatement and also file under EPCRS?
Number of replies posted  1 reply      Number of times viewed  31 views      Add Reply
BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President  loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher  davebaker@benefitslink.com
Holly Horton, Business Manager  hollyhorton@benefitslink.com

Copyright 2018 BenefitsLink.com, 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 BenefitsLink.com, 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 BenefitsLink.com and EmployeeBenefitsJobs.com 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