Message Boards Digest

January 17, 2018

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

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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?
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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, Inc.
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