Message Boards Digest

April 17, 2018

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

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Patricia Neal Jensen created a topic in 403(b) Plans, Accounts or Annuities

Restatement Needed in Order to Terminate 403(b)?

In 2018 we will be terminating a 403(b) plan which the plan sponsor has not yet restated for PPA. The restatement deadline is 2020 so we are within the restatement period but nowhere near the deadline. Do we have to restate this plan to terminate it? The assets will be paid out in 2018.
Number of replies posted  4 replies      Number of times viewed  44 views      Add Reply
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RPC-TPA created a topic in 401(k) Plans

Combine Plans in Controlled Group? One Plan Has SH Match, Other Has SH Nonelective Contribution

I have a controlled group of companies -- 2 separate plans. The plans must be combined for coverage testing. Unfortunately, neither can pass on its own due to the different sizes of the companies. I know the plans cannot be combined if one is not a safe harbor plan and the other is. Can the plans be combined for testing purposes if one of the plans provides for a safe harbor match and the other provides for a safe harbor non-elective contribution? There are HCEs in each plan.
Number of replies posted  1 reply      Number of times viewed  44 views      Add Reply
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Pammie57 created a topic in Retirement Plans in General

Plan Has Used QACA Match But Terms of Document Didn't Match

Client has operated its plan as a safe harbor using/with a QACA match since 2011. When the document was restated in 2016, the attorney doing the restatement checked "SH 3% -- maybe" election as the option. The SH notice from 2011-2016 stated QACA but the 2017 one had 3%. As I said, the client has always calculated and funded the basic QACA match. How in the world can this be fixed? Scrivener's error, or is it a major deal involving IRS filings?
Number of replies posted  4 replies      Number of times viewed  67 views      Add Reply
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M Norton created a topic in 403(b) Plans, Accounts or Annuities

How Do Contracts for Former Employees Affect Participant Count in 403(b) Program?

DOL FAB 2009-02 seems to allow the exclusion of individual annuity contracts for anyone terminated before January 1, 2009. A 403(b) plan sponsor (educational institution) has had a required annual audit because of the number of participants, partly because they have been including individual annuity contracts for former employees who terminated in 2008 or earlier and who have not been entitled to receive any employer contributions since 2008. In the Q&A for DOL FAB 2010-01, it seems the initial inclusion of those pre-2009 terminees was optional at the time. Can the plan sponsor reverse its decision and choose not to include those contracts in plan assets now and also not include those pre-2009 terminees in the participant count? It might mean they would no longer require an audit because they would fall below the threshold.
Number of replies posted  3 replies      Number of times viewed  34 views      Add Reply
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ERISAAPPLE created a topic in Distributions and Loans, Other than QDROs

Net Unrealized Appreciation Treatment Spoiled by Supplemental Distribution?

In 2017 a participant terminated and received a single sum distribution of company stock derived from employer contributions. In 2018 the employer made a profit sharing contribution, a portion of which was allocated to the participant who had terminated in 2017. As a result, the participant received a second distribution of company stock in 2018. Can either or both distributions be considered a lump sum that would exclude the NUA from the participant's income? If not, can we correct under EPCRS, have the participant repay the first distribution, and then make a distribution in 2018 that is considered a lump sum for this purpose? For this second question, assume the plan document did not permit the first distribution in 2017.
Number of replies posted  3 replies      Number of times viewed  55 views      Add Reply, Inc.
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