Message Boards Digest

July 16, 2018

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

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

Handling a Participant Who Has No Social Security Number

We have asked this question to the PBGC and have not received a response as of yet. We have a terminating DB plan with about 60 participants. One participant was terminated earlier in the year by the plan sponsor after they determined that she was using false identification and a stolen SSN. Her estimated payout in the plan termination is $1,200. She hasn't obtained a real SSN yet. What options does the plan sponsor have with respect to paying this participant her benefit?
Number of replies posted  7 replies      Number of times viewed  89 views      Add Reply

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Doghouse created a topic in Operating a TPA or Consulting Firm

Looking for a Relius Contractor

Does anyone know of an individual or a firm that does project/contract work on Relius daily? It would be a 6 to 12 month project.
Number of replies posted  1 reply      Number of times viewed  54 views      Add Reply
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cpc0506 created a topic in 401(k) Plans

Failed ADP Test at Date of Plan Merger

Client's plan year ends 6/30. We completed the valuation work for the plan year ending June 30, 2017. The plan, called Plan A, failed the ADP Test. The plan's assets were merged with another plan, called Plan B, so that the ending balance on the 2016 Form 5500 for Plan A was reported as zero and a final return was filed. Assets were merged into Plan B as of 6/30/17. Plan B has a plan year ending 12/31. My question has to do with the deadline for fixing ADP failures before a one-to-one QNEC is required. Is it based on Plan A's plan year end, or on Plan B's plan year end? And if it is based on Plan B's plan year end, was the deadline 12/31/17, or does it extend to 12/31/18? In order words, what was/is the final date for making refunds under this scenario?
Number of replies posted  1 reply      Number of times viewed  34 views      Add Reply
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Roz Nard created a topic in 401(k) Plans

5500-EZ for One-Participant Retirement Plan: What Happens if Assets Drop Below $250,000?

Net plan assets now are below $250,000. Do i need to continue filing 5500-EZ?
Number of replies posted  3 replies      Number of times viewed  46 views      Add Reply
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30Rock created a topic in 401(k) Plans

Disguised Service Condition If 2-Year Match Tier

Is there any issue if a plan has immediate eligibility, a 6 year graded match (or any vesting other than 100% after 2 years) and a tiered service match formula as follows: 0-2 YOS: 0% match; 2-5 YOS: 50% match; 5+ YOS: 100% match? The participant is not eligible under the match for any contribution until 2 years of service, but the vesting schedule is not 100% after 2 years of service. Is this permitted? There's no stipulation in the plan document either way.
Number of replies posted  3 replies      Number of times viewed  58 views      Add Reply
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sdgates created a topic in Distributions and Loans, Other than QDROs

Need to Pay Tax on My Defaulted 401(k) Distribution Twice?

I need to take an old 401k from a previous employer and roll it over to an IRA in order to to keep it drawing interest and to make withdrawals as needed. I had taken a 401k loan before leaving the firm and intentionally let the loan default, knowing that I would need to pay tax on the distribution on the very next Income Tax period -- which I did. I have a 1099-R that shows the distribution (box 1, Gross Distribution, and box 2a, Taxable Amount both show the same amount), and I have a 1040 (from 2008) which shows that same distribution amount in line 16b, Pensions and Annuities, meaning I paid the tax on that distribution. The 401k still shows this distribution as a "Loan Investment" along with the investment of the other 401K investments (see attached). Of course there is no money in the "Loan Investment" -- the units and price are 0.0 (as opposed to $x,xxx for this and $xx,xxx, etc for other investments). Do I now need to pay tax on that a SECOND time when the 401K is taken over to the IRA (as the advisor stated)? Should that defaulted loan even still appear in the old 401k? Is there any way by looking at the chart that the advisor should realize that this loan was defaulted and tax has already been paid on it? I hope to show him my 1099-R and my 1040 tax form to prove the payment was actually made, but that may not fly.
Number of replies posted  4 replies      Number of times viewed  44 views      Add Reply
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ERISAAPPLE created a topic in Form 5500

Incorrect Valuation by Previous Actuary; Amended 5500 Needed?

We have a new client with a defined benefit plan. The prior actuary did the valuations wrong for several years. Do you think we need to file amended 5500s, or should we just fix it on the next 5500 and move forward, perhaps with an explanatory note. Had the valuations been done correctly, nothing would have been different in terms in things like excise taxes, etc.
Number of replies posted  0 replies      Number of times viewed  16 views      Add Reply
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bdwell1904 created a topic in Qualified Domestic Relations Orders (QDROs)

Ex-Husband Still Refuses to Sign DRO 15 Years Later

Divorced in 2003. Exxon Mobil split benefits at time of divorce. I am AP with approximately $175,000 at time of divorce. Husband has continued to refuse to sign the domestic relations order. I've been able to contact the plan administrator to update my address and let them know that I need to be spoken to in person if they receive anything with my signature on it. He used up his entire portion years ago. Fast forward. I try to call the plan administrator. A new plan administrator states they have no record of me or my ex. What gives? We agreed I would give up a nursing career to stay home and raise our children. I was OK with that due to the fact that I had a stake in his retirement benefit. Now over $150k is gone.
Number of replies posted  3 replies      Number of times viewed  37 views      Add Reply, Inc.
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