Message Boards Digest

May 9, 2019

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

thepensionmaven created a topic in Retirement Plans in General

Compensation from Date of Entry

Dual entry, SHNE with profit sharing. for initial year of participation, compensation based on w-2 from date of entry. In reading the EOB, compensation must be based on full years' W-2?
Number of replies posted  2 replies      Number of times viewed  44 views      Add Reply

pmacduff created a topic in 401(k) Plans

Current EACA change

Can an EACA arrangement be amended for auto escalation any time during a plan year or must the auto escalation be effective as of the beginning of a plan year? It has been an EACA arrangement but did not previously have an auto escalation feature and they want to add one. thanks in advance!
Number of replies posted  0 replies      Number of times viewed  16 views      Add Reply

Sammiemor created a topic in 401(k) Plans

QKA (DC-1 and DC-2) used materials

Hello, I am hoping to find study materials (willing to pay a discounted price for used materials) to prepare me for taking DC-1 and DC-2 exams. Unfortunately, my current employer isn't a supporter of receiving designations, so I must pay for everything myself. I did receive an APA while working for a TPA firm years ago, but I understand how valuable the QKA designation is, in my industry. My goal is to obtain a QKA before this year ends :). Any help would be hugely appreciated.
Number of replies posted  4 replies      Number of times viewed  53 views      Add Reply

401king created a topic in 401(k) Plans

Start new 401(k) within 12 months of terminating PSP?

Company terminated PSP recently and wishes to put in a new 401(k) Plan in its stead. Does the 12-month rule apply to terminated PSPs in the same way that it applies to 401k Plans? That is, are they allowed to setup a 401k within 12 months of terminating a PSP?
Number of replies posted  5 replies      Number of times viewed  70 views      Add Reply

Joe010284 created a topic in Employee Stock Ownership Plans (ESOPs)

Second half of ESOP not paid

My ex-employer had been bought out. They then vested us on our ESOP at 100% and paid us out 3 times the value. I did in fact receive the first half of my pay out but they then said we had to wait 9 to 18 months for the second payout due to IRS audit. It's now been about 21 months and we all keep getting the run around. Where can I get help? Is this IRS audit even true? Any advice or help would be greatly appreciated. Thank you in advance.
Number of replies posted  2 replies      Number of times viewed  36 views      Add Reply

Gruegen created a topic in 401(k) Plans

Student Loan Program - Match Exclusion Method

It seems that with the recent Abbott Labs Private Letter Ruling (201833012), as well as announcements from large recordkeepers (Empower and Fidelity), there is a lot of noise about integrating a student loan repayment program with a retirement plan. Now, we can argue whether it makes sense to do such integration, but nevertheless, HR managers are seeing the headlines and are asking questions. Suppose a company provides student loan repayment program under which the company will reimburse (ie - make a payment directly to the employee's creditor) dollar for dollar of the employee's student loan repayments of up to $1,200 each year. The employer would develop procedures to substantiate the student loan repayments made by the employee. Further, I assume that the $1,200 reimbursement would be taxable to the employee. Further also suppose that this company offers a 401(k) retirement plan that provides a 50% up to 6% non-safe harbor matching contribution. So for an employee with compensation of $40,000 and a 6% deferral rate, the employee would receive a $1,200 matching contribution. The company wants to manage employee benefit costs, so the employer would not want an employee to receive both the $1, 200 student loan repayment AND a $1,200 matching contribution under the retirement plan. Could the plan document be written to exclude "Employees Participating in a Student Loan Repayment Program" from being eligible to receive non-safe harbor matching contributions? Assuming that the plan's matching coverage is greater than 70%, are there any other problems with this approach?
Number of replies posted  0 replies      Number of times viewed  23 views      Add Reply

thepensionmaven created a topic in Cross-Tested Plans

401(a)4 Failure

My software is coming up with "401(a)(4) Failed; both the gateway as well as the ABPT passed. How is this not passing 401(a)(4)
Number of replies posted  3 replies      Number of times viewed  37 views      Add Reply, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2019, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy