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Message Boards Digest

November 13, 2018

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

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JohnSmith created a topic in Qualified Domestic Relations Orders (QDROs)

Prevent a QDRO from Being Executed

I owe child support arrears due to an oversight (by both parties) not discovered for years. My ex-wife has been incredibly aggressive in her attempt to collect the entire amount in a lump sum. I asked for relief from the court and I have an order stating the arrears shall be paid off at a specific monthly rate. I've been paying that amount on time every month for several years. I recently discovered my ex-wife has filed an ex parte application for a child support arrears QDRO and she is trying to get the money from my 401(k). Apparently QDROs are hard and her first attempt was rejected (a common occurrence it seems). Well, the legal team used by my employer was nice enough to provide her a template she could use to met the required format and try again. I don't think the QDRO has been signed by a judge yet, but I expect it will be soon. Is anyone familiar with a process I could use to prevent the QDRO from being executed? I'm thinking something like a motion to recall the QDRO or maybe a restraining order to prevent it from going through. The reasons I don't think the QDRO should be acted on are these: [1] A payment arrangement has already been ordered by the court and I have adhered to that order; [2] By the time the QDRO is approved and executed the amount I actually owe will be several thousand dollars less than what is requested by the QDRO; and [3] The taxes and fees I will incur are unreasonable given I have been paying according the court order on time every month.
Number of replies posted  3 replies      Number of times viewed  51 views      Add Reply
 
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ldr created a topic in 401(k) Plans

Schedule A vs. Schedule C: TPA Compensation

Requesting advice regarding completion of Schedules A and C for large plans using a John Hancock style (insurance) product. We believe that commissions to insurance agents and TPA fees deducted from plan assets (distribution and loan fees) are reported on Schedule A. Revenue sharing (forum compensation) could be reported on the A or C and if reported on the A then it would be left off the C. Any thoughts on this?
Number of replies posted  2 replies      Number of times viewed  36 views      Add Reply
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Brian created a topic in Retirement Plans in General

IRS Levy Was Overpaid by Employer

Our entity is a pension distribution group. We had a member with an IRS levy that we just recently learned has passed away (late-reported death). So it turns out that we have paid the IRS for 8 months of levy payments that shouldn't have happened -- about $10,000. Any shot of getting this back from the IRS?
Number of replies posted  0 replies      Number of times viewed  24 views      Add Reply
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Gilmore created a topic in 401(k) Plans

Employees Being Moved to PEO; Controlled Group Issues Still Involved?

Husband and wife jointly own Company A. Company A's employees are being moved to a PEO, and will be participating the PEO plan. I'm assuming the existing Company A plan is being merged into the PEO plan. Husband and wife jointly also jointly own Company B. They will be receiving compensation from Company B. Does anyone have any experience that they could share with the testing involved if Company B sponsors a plan that would cover just the husband and wife? I understand the combined testing that would be involved if Company A had its own plan and B had its own plan, but I'm not sure how it works when Company A is part of a PEO plan. Does the PEO use the Company B contributions in its testing of Company A? Seems more likely that the PEO wouldn't even ask about any controlled group members.
Number of replies posted  2 replies      Number of times viewed  27 views      Add Reply
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austin3515 created a topic in 457 Plans

457(b) Participant Employee Embezzles Money

This hasn't happened, thank goodness, but the question being posed by a board member is, if a participant were to embezzle money, or was terminated for some other crime against the employer, is there a way to forfeit their balance? My assumption is that nothing the participant can do will eliminate the liability to the participant. Yes, I am aware of the fact that this is doable in a 457(f) plan which is still subject to a substantial risk of forfeiture. I assume there is no possibility of this in a 457(b).
Number of replies posted  2 replies      Number of times viewed  35 views      Add Reply
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WCC created a topic in 403(b) Plans, Accounts or Annuities

403(b) Has Been Sponsored by Ineligible Employer -- No 5500s

A 403(b) has been sponsored by an ineligible employer for many years. Had it been sponsored by an eligible employer, 5500's would have been required due to employer involvement. However, no audits were performed and no 5500's filed since the inception of the plan. We will proceed with the VCP procedure outlined in Rev Proc 2018‑52. Under Section .03 it states: "(3) A plan that is corrected through VCP or Audit CAP is treated as subject to all of the requirements and provisions of sections 401(a) for a Qualified Plan, 403(b) for a 403(b) Plan, 408(k) for a SEP, and 408(p) for a SIMPLE IRA Plan (including Code provisions relating to rollovers). Therefore, the Plan Sponsor must also correct all other failures in accordance with this revenue procedure." Does this mean delinquent 5500's should be filed even though the employer was ineligible to sponsor a 403(b)?
Number of replies posted  1 reply      Number of times viewed  27 views      Add Reply
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steve-o created a topic in Cafeteria Plans

Can Employer Reimburse Employee for Out of Pocket Healthcare Expenses?

Can a small employer (fewer than 50 employees) reimburse a portion of an employee's out of pocket expense without running afoul of ACA and/or tax law? Employer currently pays 80% of medical insurance premiums. Employee has $1,500 deductible with $3,500 out of pocket max. Employer has been covering the second half of that out of pocket max (dollars 1,751 through 3,500) in the form of a check to the employee.
Number of replies posted  2 replies      Number of times viewed  19 views      Add Reply
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