Message Boards Digest

January 17, 2019

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

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BH1528 created a topic in Defined Benefit Plans, Including Cash Balance

Duplicate 1099-R for Same Distribution

What would happen if the TPA and the recordkeeper both issue a 1099-R for the same distribution?
Number of replies posted  1 reply      Number of times viewed  35 views      Add Reply

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tghooper created a topic in 401(k) Plans

Compensation Ratio Test and Rate Group Test

A plan made a profit sharing contribution and failed the compensation ratio test. The allocation is comp/comp per the plan doc. I believe I can still run a rate group using test using 415 compensation without having the cross test language in the plan document. Correct?
Number of replies posted  3 replies      Number of times viewed  56 views      Add Reply
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mfs - Jackson created a topic in SEP, SARSEP and SIMPLE Plans

LLC Partner Gets No Pay (Only 'Draws'); Can Still Make Pretax Contributions?

I have a client that recently converted S Corp (solely owned) to a partnership LLC (store manager of 16 years). This happened 1/18/2018. They had been contributing to a Simple IRA -- 3% match. Store manager (who has been taking a payroll check of $65,000/year) just told me that she is only taking draws -- that she stopped getting a payroll check upon conversion 1/18/18. She is telling me that company tax preparer has no issue with her not taking a paycheck and that she needs to convert company plan to something that would allow her to make pretax contributions without having to take a paycheck (earned income)? They haven't hired anyone else to fulfill the responsibilities in the operation. Any ideas? Can the partners make pretax contributions and company match 3% on draw? Is there something I'm missing about her moving to partnership status, stopping the $65k/yr earned income via payroll and only receiving a draw of the exact $65k and not having an explanation of who is the workload?
Number of replies posted  2 replies      Number of times viewed  44 views      Add Reply
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AJC created a topic in 403(b) Plans, Accounts or Annuities

Non-ERISA 403(b) Church Plan Cannot Have Employer Contributions?

I have read, "a 403(b) plan that provides for employer contributions cannot be a non-ERISA 403(b) plan." Can a church plan, which is an ERISA exempt and non-electing 403(b) plan, provide for employer contributions? If so, how is it that the two statements conflict? Any helpful cites?
Number of replies posted  2 replies      Number of times viewed  19 views      Add Reply, Inc.
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