Message Boards Digest

May 14, 2019

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

KimberlyC created a topic in 409A Issues

New SERP for Recently Deceased Participant

A client (an LLC) was entering into discussions to provide a SERP to a top executive. The SERP would provide nonelective deferred compensation (no election by executive or deferred compensation agreement) payable in fixed installments over 5 years (at termination of employment, disability, death, etc.) with death benefits paid in the same form and at the same time for the surviving spouse. Sadly, the executive died before the SERP was executed. The client wants to complete and execute the SERP and provide the death benefits to the surviving spouse. I think this is possible (I have put in non-elective SERPs with effective dates retroactive to the first day of the executive's tax year), but have never come across this issue before. I am concerned that Reg. Section 1.409A-1(b) defines a deferral of compensation plan as a plan where the service provider has a legally binding right during a taxable year to compensation that is payable to or on behalf of the service provider in a subsequent taxable year. Technically, the service provider didn't have a legally binding right to the SERP before death, and is no longer a service provider when the SERP is executed. Any thoughts or comments?
Number of replies posted  1 reply      Number of times viewed  26 views      Add Reply
[Advert.] Announces: 457 Plan eSource

Sponsored by Burrmont Compliance Labs LLC
New! 457 Plan eSource. A must-have reference for all things 457. A perfect companion to the 403(b) Plan eSource. Authored by S. Derrin Watson, JD, APM. Easy to read and understand given his unique writing style. Call or email

steverenner created a topic in 401(k) Plans

GUST Restatement Desired But Basic Plan Document Is Missing

I am trying to help a client file through VCP to bring their plan document up to date. They missed both the 2010 and 2016 restatement deadlines. I have a copy of the adoption agreement that was executed in April 2003. I am trying to track down a copy of the Basic Plan Document that accompanies the Adoption Agreement. The Adoption Agreement was sponsored by Universal Pensions, Inc. which I believe was acquired by Bisys, which I believe was acquired by Ascensus. The adoption agreement is the Standardized Adoption Agreement. The bottom of the document indicates # 8016 (8/2001). Anyone out there who might have access to the Basic Plan Document that accompanies this Adoption Agreement?
Number of replies posted  1 reply      Number of times viewed  53 views      Add Reply

matthny created a topic in 401(k) Plans

Age Limit to After-Tax 401(k) with Conversions to Roth?

TP is over the age of RMD and 100% owner of an S Corp. Currently funding the 401(k) with maximum tax deferred amounts per year. Wondering if a participant like this (the age being my primary concern) can fund after-tax and use in-service Roth conversions. Currently they have $25K deferral plus 25% of salary.
Number of replies posted  1 reply      Number of times viewed  34 views      Add Reply

Pammie57 created a topic in 401(k) Plans

Controlled Group Here, or Multiple Employer Situation?

During 2017 a plan sponsor bought another company. The other company had a 401(k) plan separate from his original plan. During 2018, Company 2 rolled all account balances into the original 401(k) plan (& plans were amended to be merged). On 12/08/2018 he sold Company 2. The participants' account balances are still in the plan. The two companies operated separately (in different states) during 2018. Do I report this as a controlled group for 2018 or as a multiple employer plan? If multiple employer, does anybody have a sample of the "listing" that is required to be attached to the 5500? They were separate companies again by 12/31/2018. Comments or experience with this type of situation?
Number of replies posted  0 replies      Number of times viewed  28 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