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Message Boards Digest

December 27, 2018

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

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Marshall Vass created a topic in Employee Stock Ownership Plans (ESOPs)

5% Ownership Rule as Applied to ESOPs

As a participant in an ESOP, I have over 12% ownership in company stock in my account. I am 72 years old. Am I considered a 5% owner for the purpose of the rules for required minimum distributions?
Number of replies posted  10 replies      Number of times viewed  66 views      Add Reply
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AKconsult created a topic in 401(k) Plans

Can an Individual Without an EIN Set Up a Retirement Plan?

CPA has come to us at the last minute (of course) with a self-employed consultant who wants to set up a plan. CPA is telling me that he does not have a business, he is being paid directly and to set up the plan under his SSNO. I told her we would not set up the plan with a SSNO. Now CPA is asking me does he have to create an LLC just to sponsor a plan? Any suggestions?
Number of replies posted  12 replies      Number of times viewed  73 views      Add Reply
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Flyboyjohn created a topic in 401(k) Plans

Implementing Student Loan Repayment Benefit under a 401(k) Plan

Employer wants to implement a student loan repayment benefit, often erroneously referred to as a "match" but we know is an employer non-elective contribution. Question is how much of the "program" needs to be addressed in the plan document vs. a much less formal payroll practice or policy. It would seem that if the plan document already provides (or is amended to provide) that each participant is in a separate non-elective allocation group, and the eligibility and vesting provisions conform to the employer's intent that there would be no requirement to have anything further in the plan document. When an employer determines in it's sole discretion how much non-elective contribution to allocate to each participant there's no requirement that the basis for the allocation be incorporated in the plan document. If an employer wants to reward certain employee behaviors by non-elective contributions (you'll get $1,000 if you increase sales by 5%" or "you'll get $1,000 if you have no unexcused absences this year) those policies can be communicated informally and do not require plan amendments so it would seem that a student loan repayment benefit could likewise be crafted outside of the plan document. Any disagreement?
Number of replies posted  1 reply      Number of times viewed  37 views      Add Reply
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