Message Boards Digest

March 7, 2019

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

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JustnERPA created a topic in Cross-Tested Plans

Allocation Formula Change on Last Day of Plan Year

An employer's profit sharing allocation was pro-rata and included a last day requirement. On the last day of the plan year, an amendment is executed to change the allocation formula from pro-rata to individual rate groups. Because the amendment was executed on the last day of the plan year, are they stuck with a pro-rata allocation for that plan year?
Number of replies posted  1 reply      Number of times viewed  110 views      Add Reply

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

Union Employee Becomes Non-Union Manager -- Effect on Entry Date?

A DB Plan excludes union employees (covered by collective bargaining agreement). An employee was hired by the company on 3/11/15 as a Union employee and was covered under the pension plan until he moved to a Non-union managerial position on 8/31/17. If the plan's eligibility requirements is 12 months, would he not enter the plan until 12 months following 8/31/17 (1/1/19 due to entry date) or would he be eligible immediately on 8/31/17 due to the service for the company since 3/11/15 (ie using the service while a union employee)?
Number of replies posted  5 replies      Number of times viewed  129 views      Add Reply
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Stash026 created a topic in Qualified Domestic Relations Orders (QDROs)

QDRO Needed If Marriage Has Been Annulled?

Am I right in assuming that no QDRO is necessary in the case of an annulment (because it's as if the two were never married)? Our client is questioning the documentation, which states that there was an annulment and not a divorce.
Number of replies posted  9 replies      Number of times viewed  272 views      Add Reply
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Watson created a topic in 401(k) Plans

401(k) Hardship Withdrawl for Purchase of Primary Residence

A participant needs a 401k withdrawal for purchase of a primary residence. Does the plan administrator contact the lending institution? If work needs to be done to the residence being purchased (e.g., a new roof), can that be counted as a construction cost?
Number of replies posted  2 replies      Number of times viewed  45 views      Add Reply
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austin3515 created a topic in 401(k) Plans

Mom Answers Phones for 10 Hours/Week

Business owner has Mom come in for 10 hours a year. Comp is $450. She was eligible to participate once upon a time -- she had worked in the office for about a year and had hit her 1,000 hour requirement. Needless to say, as a "zero" in the discrimination testing, she has a nice favorable impact. I am reading the Carol Gold Memo and Relius's response. The memo certainly could have made accusations about this type of arrangement, but it does not. (Instead it focuses on young NHCE's and frankly only the most obnoxious of scenarios.) So would you exclude her from the testing based on the Carol Gold thought process or include her without worry because Carol Gold never even mentioned this?


Number of replies posted  6 replies      Number of times viewed  84 views      Add Reply
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coleboy created a topic in 401(k) Plans

Multiple Business Owner Plan Participation

We are currently doing the administration on this plan. The company is owned by 2 people split 70/30. The 70% owner did not partake in this plan for 2018. He does want to start taking a salary and participate for 2019 to be able to be part of the profit share contribution. This same owner has 50% ownership in 3 other companies who also have 401k plans. He contributes to one of those plans and participates in the profit share of the other 2 plans. My question is whether he can be eligible to get a portion of the profit share within the plan that we are administering if he's getting a portion of a profit share in the other companies of which he is a 50% owner? Of course, we cannot forget his 401k contribution in one of those companies. Thank you for any insight anyone can give.
Number of replies posted  2 replies      Number of times viewed  36 views      Add Reply, Inc.
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