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Message Boards Digest

December 5, 2018

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

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

Trust Has Spouse as Sole Beneficiary?

I've got a lawyer (naturally) who wants to establish a trust for the sole benefit of his wife as his plan beneficiary. He's wondering if this requires her consent, since she is technically not directly the beneficiary... but she kind of is (kind of" isn't his term, of course). No, I don't know why he's going through all this, or if he's trying on purpose to not have her sign something. I'm trying to get those details. Any initial thoughts?
Number of replies posted  2 replies      Number of times viewed  49 views      Add Reply
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Santo Gold created a topic in 401(k) Plans

Eligibility for Match Contribution Determined Quarterly?

Can a calendar year 403(b) plan have as a condition for matching contributions that individuals must work 260 hours each quarter and be employed on the last day of each quarter? Is it acceptable to have contribution conditions established on a quarterly basis rather than an annual basis, knowing that ACP and 410(b) will be tested annually?
Number of replies posted  2 replies      Number of times viewed  38 views      Add Reply
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BW created a topic in 401(k) Plans

After-Tax Conversions to Roth

If a plan participant making after-tax contributions converts the entire balance to Roth and the plan later fails ACP, how would one operationally suggest the ROE be handled? Would you unwind the conversion for amount of the ROE plus earnings and distribute or simply process the ROE from the Roth source? It may be a difference without distinction since it is all after tax and you just have to deal with the earnings but curious if anyone has dealt with this yet.
Number of replies posted  2 replies      Number of times viewed  34 views      Add Reply
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lisabroc created a topic in 401(k) Plans

Adding Safe Harbor to Existing 401(k)

Is it too late to add safe harbor match provisions to an existing 401(k) plan for 2019?
Number of replies posted  5 replies      Number of times viewed  103 views      Add Reply
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BH1528 created a topic in Defined Benefit Plans, Including Cash Balance

Nonresponsive Participants in Terminating DB Plan

We are in the process of terminating a PBGC covered DB Plan. There are participants who we have not been able to get in contact with and have gone through a provider to do an employee search. We have exhausted all forms of communication (mail, phone, email) outside of showing up at the addresses provided and have not heard a thing. The phone numbers are disconnected or goes to a full mailbox of someone that is not the participant. The participant's lump sum value is above the $5K automatic cash-out and all annuity providers we have reached out to have said that they will can't take on such a small amount. This is holding up the termination of the plan. What possible solutions are there to this?
Number of replies posted  3 replies      Number of times viewed  37 views      Add Reply
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RWPHoenix created a topic in 401(k) Plans

401(k) Non-Elective Safe Harbor Plan That Excludes a Small Number of NHCEs from Making Elective Deferrals

I have a new client that has a safe harbor 3% non-elective plan that excludes NHCEs and HCEs of two of the three participating employers from making elective deferrals. The excluded employees are small in number and don't trigger a 410(b) problem and they do receive the SH contribution. I have never had a plan with this type of exclusion. I don't see anything in 1.401(k)-3(a-b) that prevents this but I thought I would ask if anyone else has such a plan or an opinion as to whether this works. The plan is a multiple employer other plan because two of the employers are related and the third is unrelated. The two employers with the excluded employers are small with 10 or so employees while the third employer has over 400 employees all of which are eligible to make elective deferrals. Although the plan says it excludes all employees of the two small employers, I suspect that there are no HCEs employed by these employers.
Number of replies posted  1 reply      Number of times viewed  37 views      Add Reply
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