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Message Boards Digest

July 24, 2018

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

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TPA Bob created a topic in Distributions and Loans, Other than QDROs

Removal of QJSA Provisions in Document

Is there a process that a plan can follow to eliminate the QJSA provisions (joint and survivor annuity) when the money sources do not require it?
Number of replies posted  2 replies      Number of times viewed  48 views      Add Reply
 
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calexbraska created a topic in Retirement Plans in General

QSLOB Status: Can't Pass Gateway Test on Matching Contributions

We have applied for QSLOB status. Unfortunately, we were unable to pass the gateway test with respect to matching contributions. Our service provider told us that we can make corrective contributions to Non-HCEs to make us pass the test. We have been told the corrective contributions need to be made by October 15. I know October 15 is the date the QSLOB filing is due, but I can't find any support that corrective contributions to pass the QSLOB gateway test have to be made by October 15. Does anyone know where that date comes from?
Number of replies posted  1 reply      Number of times viewed  34 views      Add Reply
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Pammie57 created a topic in Distributions and Loans, Other than QDROs

Deceased Participant Allegedly Murdered by Her Primary Beneficiary

The Plan Sponsor called me about making a distribution for a deceased participant. Her boyfriend, who is listed on her Designation of Beneficiary as the primary beneficiary, has been arrested and charged with her murder. He is in custody awaiting trial. The deceased participant's family is asking about getting a distribution to help with funeral expenses. I know there are secondary beneficiaries but I don't know who they are at this point. Common sense would tell me that no distribution should be made until the boyfriend is either proven guilty or non-guilty. If guilty, does he would forfeit his right to the funds?
Number of replies posted  6 replies      Number of times viewed  104 views      Add Reply
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oldman63 created a topic in 403(b) Plans, Accounts or Annuities

Amendment of 403(b) Plan to Allow Automatic Rollovers of Small Balances to IRAs: Effective Date?

403(b) plan amended, effective 7/1/2018, to add involuntary cash-out provision of distributions of amounts between $1,000 and $5,000, to be rolled over over to an IRA. Would this provision only apply to participants that terminate on or after 7/1/2018, or could it also apply to participants that terminated prior to 7/1/2018?
Number of replies posted  2 replies      Number of times viewed  38 views      Add Reply
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Dazednconfused created a topic in 401(k) Plans

Trouble Applying Deduction Limit to Sole Proprietor

Profit sharing only plan (cross tested), sole prop with 3 participants, all receiving contribution of $11,000k (their total comp is $220,000). Owner's Schedule C line 31 is $265,000 before employee contribution. I come up with 1/2 SE tax of $11,287, meaning net comp of $242,712 before owner contribution reduction. Could the owner do a maximum $54k, or is the maximum around $48,540? I seem to be getting crossed up between the 25% deduction limit measured on participating compensation and the owner's 20% deduction limit that goes on a personal 1040.
Number of replies posted  4 replies      Number of times viewed  41 views      Add Reply
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Tinman created a topic in Form 5500

What a Difference a Digit Makes: Wrong EIN Used on Form 5500 Since 2007

Traditional 401(k) plan has been in effect since 2006. For the first year, the plan was filed using the correct EIN. The following year (and each year since) the plan was filed using an incorrect EIN (off by one number). They even received a delinquent filing notice from the IRS back in 2007 due to the incorrect EIN situation. What would be the correction here? Would the plan need to: [1] Amend all 5500s back to 2007? If yes, how would the 2017 filing be handled? Would they need to indicate a "change" in Q.4 on the Form 5500, indicating a change in the name and/or EIN of the plan sponsor? (If the name and/or EIN of the plan sponsor or the plan name has changed since the last return/report filed for this plan, enter the plan sponsor's name, EIN, the plan name and the plan number from the last return/report:). [2] Just indicate the "change" in Q.4 and move forward, not amending any past filings? [3] Use DFVCP?
Number of replies posted  3 replies      Number of times viewed  46 views      Add Reply
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jkharvey created a topic in Mergers and Acquisitions

Merging 401(k) Plan Into Plan of Unrelated Company; All Participants Now Employed by That Company

401k plan sponsor (Company A) wants to know if it can merge its plan into the plan of another employer (Company B). There's been no transaction between the 2 companies; they're separate ongoing entities. Company A's employees were terminated, and then were hired by Company B. The language in the Company A's plan document doesn't specify that a merger may take place only as a result of an acquisition. If we are allowed to merge, do the former employees need to be offered an opportunity to take distributions?
Number of replies posted  1 reply      Number of times viewed  31 views      Add Reply
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