Message Boards Digest

May 10, 2019

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

J Simmons created a topic in 401(k) Plans

Remarriage After Designation of Beneficiaries

Participant divorces his Wife. Participant then names their children as beneficiaries of his 401(k) plan. Then the participant marries another person. Three years later, he dies. Does the second wife have any spousal right to the death benefit? That is, does the participant's subsequent marriage supercede his previous designation of the children?
Number of replies posted  1 reply      Number of times viewed  43 views      Add Reply

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52626 created a topic in 401(k) Plans

True-Up of Matching Contributions

Effective 9/1/2018, Company 'A' acquired a group of employees from Company 'B'. The plan was amended to allow the employees employed on 9/1 to join the Company plan immediately. Payroll is twice a month. Due to some payroll issues, deferral withholdings began with the 9/30 payroll. Match is made each payroll period. The plan makes a true-up at year end. Question: Must the plan include the wages earned for the first payroll (9/15) even though deferrals did not begin until 9/30? Needless to say, if the 9/15 wages are included in the true-up, these employees will have an additional match due. Although the document has an effective date of 9/1, because deferrals could not begin until 9/30, is there an issue if the 9/15 wages are excluded when determining the true up match?
Number of replies posted  1 reply      Number of times viewed  26 views      Add Reply

Vlad401k created a topic in Distributions and Loans, Other than QDROs

Documentation Requirements After Recent Change in Hardship Rules

With the new changes in Hardship Rules, is documentation from the participant required for pre-approved plans? Or can they rely on the representation requirement?
Number of replies posted  0 replies      Number of times viewed  19 views      Add Reply

pmacduff created a topic in 401(k) Plans

Compensation Question -- Yet Again! Participant is a Partner and an Employee

One plan. Two entities: one is a partnership, partners receive K-1s. Other entity is a participating employer and a professional corporation (PC) (one person/participant). Participant takes a W-2 from the PC and makes the total ($18,500) deferral contribution on the W-2 wages but also has K-1 from the partnership (50% partner). Should the plan use as income the K-1 from the partnership and the W-2 from the participating employer PC?
Number of replies posted  1 reply      Number of times viewed  41 views      Add Reply

black68ss created a topic in Employee Stock Ownership Plans (ESOPs)

ESOP Shares Valid After My Termination of Employment?

My previous employee was purchased 6 months ago and the new owner is closing the ESOP. I left my former employet 2 years ago and have not been paid my shares yet. I understand they have up to 6 years to pay. The current employees are being paid out at 2X the share value. I was told that terminated employees will only be paid at face value not the 2X. Is that legal? I guess the question is, are my shares still valid shares as a terminated employee?
Number of replies posted  1 reply      Number of times viewed  20 views      Add Reply

austin3515 created a topic in 401(k) Plans

Designating an Individual as a 'Directed Trustee'

Can someone please explain the benefit of adding someone who is clearly a fiduciary as a "Directed Trustee." Our document allows an individual to be named as a directed trustee. Should we always be using it or is it a moot point for someone like a business owner or a non-owner CEO, etc. when they are clearly a fiduciary anyway?
Number of replies posted  4 replies      Number of times viewed  40 views      Add Reply

Belgarath created a topic in Cafeteria Plans

HIPAA Privacy Notice -- Post on Website Rather Than Personally Deliver?

Plans must provide a notice of the availability of the Privacy Notice at least once every 3 years. Can this "notice of the Privacy Notice" be merely posted on the company's intranet/website? Does it follow the same electronic disclosure requirements applicable to qualified plans?
Number of replies posted  1 reply      Number of times viewed  14 views      Add Reply, Inc.
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