Message Boards Digest

September 21, 2018

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

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Grady created a topic in 401(k) Plans

Life Insurance as 401(k) Asset: Effect on RMDs

We have a client who has life insurance within the 401(k) plan. The owner will be required to take an RMD this year. When calculating his RMD, do we include the value of the life insurance?
Number of replies posted  2 replies      Number of times viewed  44 views      Add Reply
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M Norton created a topic in 401(k) Plans

Under-Contributed Safe Harbor Match for Prior Years

New 401(k) plan 2015 with pre-tax and Roth deferrals, enhanced SH match and integrated PS -- 8 participants including one HCE. TPA used incorrect formula to calculate SH match -- basic tiered match instead of 4% enhanced match. Match was contributed timely but at least three participants received less than they should have received, totaling several hundred dollars for 2017 plan year. Plan document and SH notice all say enhanced 4% match. No discretionary PS contributions made. 2017 can be corrected using EPCRS. We haven't seen the numbers yet for prior years but it's possible the same error has been made from the beginning. What options are available if SH match was under-contributed for 2015 and 2016?
Number of replies posted  1 reply      Number of times viewed  22 views      Add Reply
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sgoss created a topic in Defined Benefit Plans, Including Cash Balance

Controlled Group Spousal Attribution in Community Property State

Husband owns 100% of one business and Wife owns 100% of an unrelated business. They are considering setting up a defined benefit plan for their businesses. Operation of both businesses is kept completely separate and neither has any involvement in the other's business. Neither is an employee or officer of the other's business. They reside in Texas, a community property state. They have a post-nuptial agreement that says that neither has ownership in the other's business and that income from the businesses are separate property, so there appear to be no direct ownership issues. So long as the property is characterized as separate property, would the exception for aggregation under the controlled group rules for an independent spousal business apply?
Number of replies posted  0 replies      Number of times viewed  12 views      Add Reply, Inc.
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