Message Boards Digest

February 15, 2019

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

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CBCPA created a topic in IRAs and Roth IRAs

Non-Spouse Roth Beneficiary -- No RMDs Ever Taken

Daughter inherited mother's Roth account 18 years ago and was not informed about RMD requirement, so no distributions have been taken. Mother over 59-1/2 but had not held account for 5 years at death. No option for daughter now except draining account? Because daughter has held account for 5 years, are earnings taxable? What would the penalty for lack of RMDs be based on -- just the earnings?
Number of replies posted  1 reply      Number of times viewed  26 views      Add Reply

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Brenda Wren created a topic in 401(k) Plans

Formal Notice of Forfeiture Buy-Back Opportunity?

Large plan (over 300 lives) has many rehires. Just wondering what's the general practice by other administrators -- do you provide formal notice of the forfeiture buy-back option to the affected participants?
Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply
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pensionam created a topic in Defined Benefit Plans, Including Cash Balance

Pro Rata Deduction for Initial Short Plan Year?

DB plan has an initial short plan year. Effective date is 7/1/2018 and the actuarial valuation date is 12/31/2018. Does the deduction for 2018 need to be applied pro rata?
Number of replies posted  2 replies      Number of times viewed  29 views      Add Reply
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JustnERPA created a topic in 401(k) Plans

True-Ups for the Self-Employed

Partnership has a 401(k) plan with match, the match is funded per payroll, but the two partners do not have paychecks -- they only have a few "draws" during the year. Some have no draw. The document allows the plan administrator to decide whether or not to apply a true-up for the plan year. The partners' NESE will be determined at year-end and will include their full compensation for the year for determining the match. Does that then require the plan to provide a true-up for the W-2 employees? The plan document does not appear to require that.
Number of replies posted  1 reply      Number of times viewed  23 views      Add Reply, Inc.
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