Message Boards Digest

April 3, 2018

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

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wifrbr created a topic in 401(k) Plans

Owner Has E-1 Visa; OK to Be Trustee?

The owner of the company in a non-resident and has a E-1 visa. Can he serve as trustee? Doing research it looks like he can but that he'd need to have a second trustee who is a US citizen.
Number of replies posted  4 replies      Number of times viewed  94 views      Add Reply

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

Interest Credits After NRD

Are cash balance participants required to receive an interest credit after their NRA? If they do not, do we have to give the participant a suspension of benefits notice? This is not a question of what the plan says. It is question of what the plan must say.
Number of replies posted  3 replies      Number of times viewed  42 views      Add Reply
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Fiduciary Guidance Counsel created a topic in Operating a TPA or Consulting Firm

Does Anyone Check Whether a New Customer's Executive Has Been Barred from Serving as a Fiduciary?

Many court decisions about a theft from an employee-benefit plan include an order that a wrongdoer is barred from serving as a fiduciary of an employee-benefit plan. But how (if at all) is such an order practically enforced? Am I right in guessing a TPA might not spot a problem? Leaving aside a 3(16) TPA, an ordinary service provider might not be a fiduciary, and might have no duty or obligation to guard against an ineligible person's service. And if a TPA runs a check on its new customer, would the TPA's check spot this problem? If a Form 5500 annual report includes an ineligible person's name as a signer or authorizer, does anything in EBSA's error-checking or post-filing review catch a problem?
Number of replies posted  4 replies      Number of times viewed  64 views      Add Reply
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EBDI created a topic in 401(k) Plans

Plan Eligibility for Rehired Participant

This plan has a 1 YOS, age 21, 1000 hours with monthly entry dates. It uses the anniversary date of hire for the first and all subsequent years for eligibility. An employee hires 8/28/16, terminates 9/14/16 and rehires 2/25/17. He does not work 1,000 hours in his first year (8/28/16 to 8/27/17). The client wants to use the 2/25/17 date as his hire date. The plan document only discusses the original hire date. I haven't found anything that indicates we could use a rehire date to determine eligibility. If the 2/25/17 hire date is used, he enters on 3/1/18. If we continue with the original hire date, he enters on 9/1/18. Does anyone have any input on using a rehire date vs. the original date of hire to determine eligibility?
Number of replies posted  5 replies      Number of times viewed  72 views      Add Reply
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Jeanie created a topic in 401(k) Plans

Recordkeeper Dragging Its Feet

My husband passed away on 2/19/18. I was able to access his account 2 days later and saw the amount that was in his 401k at Vanguard. Once I notified Vanguard of his death, I was locked out of the account. I am the beneficiary. I repeatedly called to try to get information about how to proceed with my claim. Several calls resulted in un-returned voice mails. I finally was directed to someone in "Life Events" and that person was on vacation. I was told by husband's employer's Human Resources department that I would need the death certificate. I sent it to Vanguard on 3/22/18. I called today (4/2/18) and got a call back telling me that in 3 to 5 days I will have access to the account, and was given the amount that is there now. In all this time (6 weeks since his death), my husband's 401k has decreased by $8,000 from the amount I saw when I viewed the account shortly after his death. It was my understanding that his account would be frozen as of the day of his death. Instead it remained active. Is this the way it's usually handled, or should they have frozen the account?
Number of replies posted  7 replies      Number of times viewed  99 views      Add Reply
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K2retire created a topic in 401(k) Plans

Missed Deferrals -- Incorrect Correction

At the beginning of 2017 the client's compensation definition was W-2 wages excluding fringe benefits. A bonus was paid to one NHCE, from which they did not withhold deferrals or pay the match. After being reminded by the TPA (me) that they were supposed to treat bonuses just like any other pay check, things got out of hand. The payroll person withheld the amount that should have come from the bonus check from the next regular pay check. Not realizing this had occurred, we instructed them to make a 50% QNEC and 100% of the match. (Too late for reduced QNEC.) Instead, they deposited a 100% QNEC and 100% of the match. All deposits were made in 2017. How do we fix this? And which amounts do we use in the ADP test?
Number of replies posted  0 replies      Number of times viewed  13 views      Add Reply, Inc.
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