Message Boards Digest

March 26, 2019

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

ERISAgeek111 created a topic in Nonqualified Deferred Compensation

NQSOs Issued to a Director: Reporton Form 1099?

For NQSOs issued to a non-employee director, does the company issue him/her an IRS Form 1099 to report the income on exercise?
Number of replies posted  2 replies      Number of times viewed  28 views      Add Reply

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CEW created a topic in 401(k) Plans

Owner Gives Back His Salary; Refund the Deferrals?

The owner of a large company deferred $18,000 in 2018. He gave back his entire 2018 salary at the end of 2018. The company now wants us to process a refund of $18,000. Anyone ever had this situation?
Number of replies posted  7 replies      Number of times viewed  84 views      Add Reply

Stash026 created a topic in 401(k) Plans

Cite to Authority for Deduction Limits for Employer Contributions

I know the rules for the deductibility of employer contributions, but a client wants the regulations to show to one of the contributing employers. I can't seem to put my fingers on any IRS regulations regarding the timing, so does anyone have them handy?
Number of replies posted  0 replies      Number of times viewed  39 views      Add Reply

perplexedbypensions created a topic in Correction of Plan Defects

Fixing Employer's Nondeductible Contribution

In 2018 a client projected profits to be higher than they were, and in 2018 they deposited an amount above their allowable contribution amount for 2018.How to fix?
Number of replies posted  6 replies      Number of times viewed  50 views      Add Reply

CaliBen created a topic in Health Plans (Including ACA, COBRA, HIPAA)

State and Local Regs/Compliance Calendar Available for H&W Plans?

What is the best source for state and local compliance calendar for health & welfare plans? Has anyone seed a comprehensive calendar that includes multiple state/localities?
Number of replies posted  0 replies      Number of times viewed  33 views      Add Reply

austin3515 created a topic in 401(k) Plans

Underpayment Rate / DOL VFCP Calculator

I have a calculator for lost interest that duplicates the DOL output, but helps with allocating the interest to multiple participants. Anyway, I need the rate for the quarter ended June 30, 2019. Are they behind due to shut-down? Also, when I assume the rate was unchanged at 6%, I noticed something funny when I tried to recalculate my interest. I entered corrections dates a week or two into April and the interest calc is identical to dates ending right at 3/31/19. i.e., the DOL website uses 0% for April.
Number of replies posted  0 replies      Number of times viewed  28 views      Add Reply

ERISAgeek111 created a topic in 409A Issues

Consulting Agreement Subject to 409A?

Consulting Agreement provides for a fee of $250,000 payable quarterly in arrears. Agreement terminates upon a liquidity event or an event of default under certain senior subordinated debt agreement. If an event of default exists with respect to that certain subordinated debt, fee payable under the agreement is limited to $125,000. Deferred amounts continue to accrue during the default period, and once default cured, the accrued amounts are paid to consultant, and thereafter normal schedule of payments resumes. Subject to 409A?
Number of replies posted  1 reply      Number of times viewed  28 views      Add Reply

LisaT created a topic in Qualified Domestic Relations Orders (QDROs)

QDRO Situation; Very Little Survivor's Benefit for Me as Second Spouse?

My husband of 20 years just started receiving a pension he earned prior to our marriage, which was the subject of a QDRO. We had to submit his paperwork at the end of the year for the pension payout. He chose a joint-and-100%-survivor annuity. He just received a letter saying his ex-wife will receive 50% of the pension per the QDRO (as expected) and that when my husband dies, she'll get the same amount -- which also is expected because the QDRO specified she would a death benefit. But the letter goes on to say that, if my husband predeceases me, I will get about only 1/6 of that amount. I'm confused. If my husband's pension, in which he was 100% vested, is $1,000/month (for example) with 100% survivorship, then when he dies is it appropriate that his half of the $1,000 virtually disappears -- the ex-wife gets her expected $500 but the current spouse only gets $100? This seems to imply that my husband's employer gets a windfall by being allowed to keep $400/month in which he was entirely vested with 100% survivorship just because he got divorced. How can the employer be allowed to somehow not pay the full survivor benefit given that he was vested? We have no argument with what the ex-wife will get, just confusion over why the current spouse will lose the remaining piece of the pension. Should I engage a lawyer?
Number of replies posted  3 replies      Number of times viewed  57 views      Add Reply

CYK0913 created a topic in 401(k) Plans

Two Hardship Withdrawal Requests Based on Same Event

I have an employee who already took one withdrawal in February for mortgage delinquency, and now he's requesting a second. However, he's using the same paperwork/event he used for the first withdrawal. Based on the bill provided, he did not withdraw enough on the first event to cover the full expense. But I've never had someone submit two different withdrawal requests using the same documentation, so I'm not sure if that is allowed.
Number of replies posted  1 reply      Number of times viewed  33 views      Add Reply

Griswold created a topic in 403(b) Plans, Accounts or Annuities

Ineligible Employee in 403(b) Plan: Fix by Turning Plan Into a MEP?

A plan sponsor was running payroll for another non-profit and allowed an ineligible employee into their 403(b) plan. Rather than doing a (relatively) simple correction, they'd like to try and recast the plan as a multiple employer plan. I don't even know if the prototype sponsor would allow them to do this. Would they have to refile 5500s for the years where the ineligible employee made contributions? Any other exposure on making this move?
Number of replies posted  2 replies      Number of times viewed  18 views      Add Reply

Theresa created a topic in 401(k) Plans

Excess Employer Safe Harbor Match

If an employer overcontributed on the 3% safe harbor match for the 2018 plan year, does it need to withdraw the excess by April 15?
Number of replies posted  2 replies      Number of times viewed  32 views      Add Reply, Inc.
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