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Message Boards Digest

September 25, 2018

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

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

Calculation of 20% Withholding During a Partial Rollover

A participant terminated employment with an outstanding loan. He wants a partial direct rollover of his account balance excluding the loan; he wants to take the balance of his account as a taxable distribution. Obviously he will receive a 1099R, Code L for the loan offset with $0 withholding. Somewhere I recall that the 20% withholding would be calculated on the total account balance excluding the loan -- i.e., the total being the amount rolled over plus the amount not rolled over. Does that sound right?
Number of replies posted  1 reply      Number of times viewed  30 views      Add Reply
 
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Carol V. Calhoun created a topic in Defined Benefit Plans, Including Cash Balance

Meaning of 'Offset Arrangement' for Form 5300: Two DB Plans

Does anyone have any thoughts on the meaning of "offset arrangement" on the Form 5300? We have a defined benefit plan that offsets benefits by the benefits under another defined benefit plan. (There are complicated reasons for this structure.) I'm seeing lots of discussion that a "floor offset" plan involves only a DB plan that is offset by a DC plan, not by another DB plan. But I can't find a specific definition of "offset arrangement," without the "floor" part.
Number of replies posted  5 replies      Number of times viewed  53 views      Add Reply
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Pammie57 created a topic in 401(k) Plans

Contribution Limits for Non-calendar Plan Year

For a 401k plan whose plan year begins 10/1/2017 and ends 9/30/2018, is the contribution limitation $54,000, or $55,000 (exclusive of the catch-up)? Is the considered compensation limit $270,000 or $275,000? I always get confused on this.
Number of replies posted  3 replies      Number of times viewed  53 views      Add Reply
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SCSFAM03 created a topic in 401(k) Plans

Refinancing a Participant Loan: How Many Times Allowed?

Is there a limit (with the exception of the $50,000 or one-half the vested account balance) that should be followed regarding the number of times a participant can refinance a loan?
Number of replies posted  5 replies      Number of times viewed  56 views      Add Reply
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TPApril created a topic in 401(k) Plans

Effect of PEO Employees on Doctor's Solo 401(k) Plan

Doctor with his own practice (no controlled group or ASG issues) uses a PEO for all employees. He has a solo 401(k) plan. He has not adopted the multiple employer plan for the employees from the PEO working for him, so it appears they are not covered under any plan. I'm thinking the employees must be covered under the doctor's plan. Agree?
Number of replies posted  1 reply      Number of times viewed  40 views      Add Reply
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LORENZO L TURNER created a topic in 457 Plans

457 Plan Options in Maryland

My wife is 55 and is resigning from the State of Maryland after 34 years of service. (She has accepted a job with a contractor for the State of Maryland that pays her much more and she will be doing what she loves -- being a DLP Analyst investigator.) How long can she leave her 457 retirement plan with the State instead of taking the distribution or transferring it to another employer's plan? It is rumored that her contractor position will become a permanent state government position and she then would return back to government service with the same 457 deferred compensation plan.
Number of replies posted  1 reply      Number of times viewed  30 views      Add Reply
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austin3515 created a topic in 401(k) Plans

414(s) Compensation Testing Despite Incomplete Data

Plan excludes taxable fringe benefits and bonus from the definition of compensation. Problem: the client hasn't supplied me with the amount of each of those components. Client has a straight 5% profit sharing contribution. As the TPA, I can probably get away with rate group testing using total comp, but can I try and pass the 414(s) testing by dividing eligible comp by total comp (including taxable fringe?). My denominator is a safe harbor 415 definition of comp, so I suppose I can. Agree?
Number of replies posted  0 replies      Number of times viewed  24 views      Add Reply
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AKconsult created a topic in SEP, SARSEP and SIMPLE Plans

Use Doctor's W-2 Income to Support SEP Contribution for a Side Business?

I have a CPA who is telling me he wants a "sophisticated" plan design option for a doctor who is an employee of a practice and also has his own business on the side with self-employment income. The side business has a net loss, so I told him there is no income to take a deduction on for the SEP, therefore no way to fund a SEP. The CPA thinks he can use some of the doctor's W-2 income to fund a SEP contribution. Is that right?
Number of replies posted  2 replies      Number of times viewed  33 views      Add Reply
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