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Message Boards Digest

March 8, 2018

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

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

Plan Terminates Mid-Year; Form 5500 Due Date Moves Up?

Calendar year DB plan. Plan termination date was 9/30/17. The final due date for the 2017 MRC changes to 8.5 months from 9/30/17. But the 2017 5500 filing's due date doesn't change, correct?
Number of replies posted  7 replies      Number of times viewed  50 views      Add Reply
 
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Loves401(k) created a topic in 401(k) Plans

Is Corrective QNEC Counted in 402(g) Limit?

Let's say it's June and we see that we missed a deferral election for 4 months. The missed deferral was $2,000. The correction will be 25% or $500. Will the $500 QNEC be counted in his 402(g) limit for 2018?
Number of replies posted  0 replies      Number of times viewed  26 views      Add Reply
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30Rock created a topic in 457 Plans

457(f) Plan Subject to 401(a)(17) limit on Considered Compensation?

Is a 457(f) plan subject to any regulatory limits on compensation? For example, a plan has a formula of 5% of annual compensation and executive earns $300,000 -- can we use the full compensation?
Number of replies posted  4 replies      Number of times viewed  34 views      Add Reply
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Pammie57 created a topic in Retirement Plans in General

Is this a Controlled Group?

A dentist owns 100% of her PLLC; the company sponsors solo 401(k) plan. She also owns 50% of an LLC with two other people. Neither of the other two people is related to the dentist. There are no employees in that LLC. That LLC is going to purchase 100% of a dental clinic with employees. Is this a controlled group, and would she now have to offer the 401(k) to the dental clinic employees?
Number of replies posted  5 replies      Number of times viewed  43 views      Add Reply
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kshaw created a topic in Correction of Plan Defects

Ineligible Participant Allowed to Defer

A client maintains a non-safe harbor 401(k) for non-union employees and contributes to a MEP for collective bargaining unit members. In 2015, one of the union members stopped paying dues, even though he remained covered by the collective bargaining unit. As a result, [1] the employer stopped MEP contributions, and [2] they erroneously allowed the ineligible employee to begin deferring and receiving the match under the 401(k) plan. The employee has satisfied the matching contribution vesting requirements. The plan has over 350 participants, and this is the only participant affected by the error. The participant has an account balance of around $12,000 and total plan assets are around $9M. Questions: Is this eligible for self-correction as an insignificant operational error? Can it be considered insignificant even if we have to issue corrected 1099s for 2015, 2016 and 2017? Are there any correction methods available in this case other than returning contributions and issuing 1099-Rs?
Number of replies posted  2 replies      Number of times viewed  24 views      Add Reply
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Monica Barnard created a topic in 401(k) Plans

Incorrect Matching Contribution Due to Falsified Payroll

Office manager has just voluntarily left her job. I just completed testing calculations for 2017, and the employer was horrified at what office manager's pay was last year (why he didn't pay attention through the year is a different issue). If her pay was incorrect, then her safe harbor match was also incorrect. Assuming that it can be proven that she falsified payroll, can her safe harbor match contribution be corrected? The money has already been allocated to her account.
Number of replies posted  1 reply      Number of times viewed  36 views      Add Reply
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Keepingit Together created a topic in Governmental Plans

Are Governmental Employer-Sponsored HSAs Treated as 414(d) Plans?

I'm trying to figure out whether the 4975(g)(2) exception for 414(d) plans would apply to HSAs offered in connection with a health plan sponsored by a governmental employer. Assume that the HSA arrangement is treated as employer-sponsored for ERISA purposes. Or does 414(d) refer only to 401(a) qualified plans?
Number of replies posted  0 replies      Number of times viewed  13 views      Add Reply
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30Rock created a topic in 401(k) Plans

QACA Amendment: Blows Up Safe Harbor?

Not finding guidance on amending a QACA. Sponsor set up QACA in 2014 with initial rate at 3% and escalator of 1% after the end of the uniform period. Now sponsor wants to amend the plan 1/1/19 to set a 6% deferral rate to only the new hires on or after 1/1/19. I don't think this results in a uniform QACA or that it sets up two QACA designs in one plan. I think it blows the safe harbor. Agree?
Number of replies posted  5 replies      Number of times viewed  48 views      Add Reply
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cdavis25 created a topic in 401(k) Plans

Participant Changes Employer, Both Are in Same Multiple Employer Plan

John Doe worked for company A. They have a match with a last day (12/31) and 1,000 hour requirement. John quits A in June and goes to work for B. A and B sponsor the same multiple employer plan. They are not related employers. John did work 1,000 hours at A and did not work 1,000 hours at B. John is a participant and deferred at both companies, since all his service counts for eligibility. Does he get the match? He was not at A on the last day and did not have 1,000 hours with B.
Number of replies posted  2 replies      Number of times viewed  31 views      Add Reply
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thepensionmaven created a topic in Retirement Plans in General

Shared Employees in Dental Group

Three dentists share office space as well as a few employees. Clearly this is a controlled group. One of the dentists split; he moved his practice to another location and is now totally unrelated to the others. One or two of the employees now work for this dentist part-time as well for two of the three remaining dentists part-time as well. Because this isn't a controlled group situation (common control is only 33.33%), must the part-time employee still be counted and receive a contribution from either plan?
Number of replies posted  0 replies      Number of times viewed  19 views      Add Reply
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