BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

February 5, 2018

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

Author's photo

RayJJohnsonJr created a topic in Retirement Plans in General

One-Participant Money Purchase Plan Has Been Treated Like a Profit-Sharing Plan

A new client has sponsored a 1-participant MP Plan since 1999 but has treated it like a PS Plan. The MP Plan Adoption Agreement is marked 25% of pay, but he has always varied contributions and skipped years, sometimes making no contribution at all. He self-administered and thought he was doing things correctly. There's a signed PS Plan Adoption Agreement in his file but it's marked "not used." He's never had any employees. Then I discovered a section of the Adoption Agreement which says:

Benefit Adjustments (Optional) _X_ Notwithstanding the above, $0.00 is the minimum contribution for any Participant. (If Forfeitures are reallocated, any such reallocation shall be in addition to this amount.)

How to go forward with this one?

Number of replies posted  2 replies      Number of times viewed  78 views      Add Reply
 
[Advert.]

Tools & Techniques of Employee Benefit and Retirement Planning

Sponsored by The National Underwriter Company
Practical analysis of the entire range of employee benefit planning. 15th Edition includes updated information on the new DOL fiduciary rule, Form 5500 filings, QSEHRAs and more. Use code BENLINK for 10% discount.
Author's photo

Fiduciary Guidance Counsel created a topic in 401(k) Plans

Defining the 'Company' with Which a Participant Meets a Last-Day Condition

Imagine a profit-sharing plan that allows 401(k) elective deferrals and matching contributions. A participant shares in a year's matching contribution only if the participant is the Company's employee on the last day of the year. The plan narrowly defines the Company by naming only one organization, and ignoring its dozens of affiliates. (The volume-submitter document states a 'member' of a 'controlled group' or an 'affiliated service group' does not participate unless it adopts the plan with the plan sponsor's approval.) A worker who was the named Company's employee for the first three quarter-years of 2017 became, on October 1, an employee of a non-U.S. organization that is the Company's 100% wholly-owned subsidiary. This worker is a citizen only of the USA. Under the plan document, it seems this worker is not entitled to share in the matching contribution for the year ended December 31, 2017. But is there something I should look for in the 128 pages that might support treating an employee of the subsidiary as an employee of the Company? And if there isn't, is it feasible now to amend the plan (without unraveling any tax-qualified treatment) to allow the transferred employee to share in 2017's matching contribution?
Number of replies posted  9 replies      Number of times viewed  90 views      Add Reply
Author's photo

Sully created a topic in Operating a TPA or Consulting Firm

IRS Business Activity Code for TPA firm

I was curious as to what 6-digit IRS Business Activity Code non-producing TPA firms are using. I have seen both 541219 and 541990.
Number of replies posted  2 replies      Number of times viewed  47 views      Add Reply
Author's photo

Belgarath created a topic in Distributions and Loans, Other than QDROs

Using Rollover to Repay Loan; Too-Good-to-Be-True Technique?

For purposes of this question, let's ignore proper loan limitations. You have a $50,000 account balance, and you take a $50,000 loan. Now you want to roll over $50,000 from your IRA to the plan to repay the loan. All money is pre-tax. You just got $50,000 without ever paying tax on it, nor will you, because the loan is now repaid. Does this work?
Number of replies posted  12 replies      Number of times viewed  81 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