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Message Boards Digest

April 12, 2019

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

TMWIH created a topic in Litigation and Claims

No QDRO Entered Despite Property Settlement; Does Estate of 'Alternate Payee' Have a Valid Claim?

Meeting with an ex-wife tomorrow. She is a plan participant, age 65, retired. She and ex-husband divorced 10 years ago, both pro se. Judgment provided for division of her retirement account, but no QDRO was drafted. Husband died recently. Daughter of the couple is designated as the sole beneficiary. Estate is seeking to recover portion of the ex-wife's retirement account based upon divorce judgment. Valid claim?
Number of replies posted  2 replies      Number of times viewed  53 views      Add Reply
 
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SSRRS created a topic in Defined Benefit Plans, Including Cash Balance

New Corporation Can Sponsor Old Corporation's DB Plan?

Client had Corp A (since 2009) which had sponsored a DB plan since 2012. In March 2019 he sold Corp A but the corporation is still in existence and its only asset is approximately $10,000 in cash. In April 2019 he set up a Corp B (set up a corp and purchased the assets of a business). Corp B has new employees and does not perform the same services that Corp A did. [1] Is he allowed to continue the DB Plan of Corp A but sponsored by Corp B (so that he has prior service and benefits and a salary average calculation based on comp from Corp A)? [2] If yes, is this Corp B owner the only employee eligible to participate in the plan for 2019 (because he has a year of service for Corp A and is the only employee who will have at least 1,000 hours for 2019)?
Number of replies posted  5 replies      Number of times viewed  77 views      Add Reply

david rigby created a topic in Qualified Domestic Relations Orders (QDROs)

Alternate Payee Dies Before QDRO. Does His Estate Have a Valid Recovery Claim?

A discussion on the Litigation message board which may be of interest to readers of this QDRO message board:

https://benefitslink.com/boards/index.php?/topic/64088-alternate-payee-dies-before-qdro-does-his-estate-have-a-valid-recovery-claim/

Number of replies posted  0 replies      Number of times viewed  26 views      Add Reply

tghooper created a topic in Cross-Tested Plans

Refund of 415 Limit Due to Crediting Rule and Average Benefits Test

We had to reduce an owner's contribution due to the 30-day crediting rule. The owner is self-employed and wants the maximum contribution but will be limited to $41,000, including catch-up. A refund of $10,000 in elective deferrals was necessary per EPCRS Rev. Proc. 2008-50 and plan document. ERISA Outline Book says these refunds of elective deferrals are disregarded for 402(g)/ADP Test. The plan is a Safe Harbor 3%. The total contribution of $41,000 was used for cross-testing due to the limit. Should elective deferrals be $18,500 or $10,500 in doing the cross-testing? I'm inclined to say the later but corrective distributions are generally included for the ABT. If the former is used, I'm basically "making up" for the that amount that has will be refunded, which doesn't feel right. This affects the minimum gateway because we're trying to get to the $41,000.
Number of replies posted  2 replies      Number of times viewed  78 views      Add Reply
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