Message Boards Digest

May 15, 2019

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

SSRRS created a topic in Defined Benefit Plans, Including Cash Balance

Employee Previously Excluded from DB Plan Has Become a Participant

An employee was excluded from a DB Plan for the past three years (backed by plan document). The plan met 410(b) and 401(a)(26) without having to include this employee. For the current year (and forward) the employee will be included. The benefit formula is based on service. The employee was not excluded based on job classification or union status etc, rather he was excluded by name. If the document states that benefits will not accrue for years that an employee was part of an ineligible class, will the employee only accrue a benefit for the current year and not for the prior years of service (or now that the employee is a participant he will accrue benefits for the prior years as well)?
Number of replies posted  1 reply      Number of times viewed  52 views      Add Reply

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Scott50 created a topic in 401(k) Plans

Stop Minimum Required Distributions When IRA Rolled Into 401(k)?

I have a plan participant who wants to roll his IRA into the 401(k) (allowed by the plan). He is over 70 and has taken his RMDs for a few years. Can he stop taking his RMD now that the funds are in a 401(k) plan? He's still working for the plan sponsor and making deferrals.
Number of replies posted  3 replies      Number of times viewed  54 views      Add Reply

Karen McIver created a topic in Distributions and Loans, Other than QDROs

Correction of Failures to Provide RMDs; Request for Waiver of Excise Tax

We have a client who is a 5% owner through attribution and still working. He turned 70-1/2 in 2015. It's a 401k self directed account. For reasons I can't explain, probably because the attribution wasn't coded correctly, he didn't receive RMDs. Based on actual account balances RMDs for 2015, 2016, 2017 and 2018 have now been made without regard to earning or taking into account an offset for expected RMD. The client is leaning toward filing VCP to request waiver of the excise tax. Here are my questions: [1] How should I have calculated the RMD? [2] Should I have taken the expected RMD for the previous year into account when calculating the current RMD? [3] Is there any good examples or explanations on how to prepare the VCP filing? I think I can do it on 14568 and 14568-H but I'm not sure.
Number of replies posted  2 replies      Number of times viewed  41 views      Add Reply

Dpwct created a topic in Multiemployer Plans

Effect of Voting Rights in Determination of Controlled Group Status

I have a question about controlled groups for 2 corporation. As to the first one (an S Corp), individual A owns 100%. Individual A also owns 49% of a C-Corp but has a retained proxy voting right for an additional 5% of the C-Corp (so he has voting proxy for 54%). Would both companies be a controlled group for 401k and DB plan purposes?
Number of replies posted  0 replies      Number of times viewed  12 views      Add Reply

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

QDRO Says I'm Signing 'Pro Se' But I Had an Attorney

I have a court-ordered QDRO, and am the alternate payee. I hired an attorney to process and submit it to the judge for approval. On the last page (the signing page) it has my name as the petitioner and Pro Se. I know that Pro Se means by myself or no representation. Is this standard procedure?
Number of replies posted  1 reply      Number of times viewed  36 views      Add Reply

shadowgun1102 created a topic in 401(k) Plans

Did Not Send Required Disclosure When Funds Changed in Core Lineup

A 401k plan converted from one investment product to another product with the same recordkeeper. A few, but not all, funds in the plan's core lineup changed and the account number changed. Discovered that the notice to the participants announcing the change was not delivered. Is the fix to forward the notice now to communicate the change? What other correction would/should be made?
Number of replies posted  0 replies      Number of times viewed  27 views      Add Reply

AdKu created a topic in 401(k) Plans

1099-R for Direct Rollover from a Sole Prop DB to 401(k) Plan

From a Sole prop., husband and wife only, DB plan, a direct rollover distribution from the DB plan unrelated rollover account was made to the Sole prop newly established 401(k) Plan as internal transfer in 2018. The TPA who is also the recordkeeper didn't think a 1099-R was necessary because of the nature of the internal transfer between two plans of the same employer, Sole prop. Wasn't 1099-R required when the money leaves one plan regardless of whether it was direct rollover within the same sole prop? If so, how can we correct it now May, 2-1/2 months after the due date? If possible please include the section of the code that pinpoint a situation like described.
Number of replies posted  3 replies      Number of times viewed  37 views      Add Reply, Inc.
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