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Message Boards Digest

May 23, 2019

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

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

Contribution Troubles: What Defines a Retirement Plan Account?

New DB plan set up and client funds corporate contribution into an ambiguously defined savings account. What makes this a retirement account or not? Is intent relevant? Is it automatically not a valid deposit if the account was identified in the name of the business owner (and later corrected)? Or does it specifically need to be identified in the name of the plan or owner as Trustee?
Number of replies posted  3 replies      Number of times viewed  66 views      Add Reply

Nic created a topic in Retirement Plans in General

Disclosing Specific Investments When Trust's Investments are Pooled

Is the Plan Sponsor required to provide to a participant the specific funds or stocks they are investing in for a pooled Profit Sharing Plan?
Number of replies posted  6 replies      Number of times viewed  83 views      Add Reply

Tom Poje created a topic in Retirement Plans in General

Significant Provisions in the SECURE Act -- Some Observations

Supposedly this is to be voted on this week. Some of the provisions in the modified Bill are:
  1. RMD triggering age increases to 72 in 2023 and age 75 in 2029:

    "(I) for calendar years before 2023, age 70-1/2,

    "(II) for calendar years 2023, 2024, 2025, 2026, 2027, 2028, and 2029, age 72, and

    "(III) for calendar years after 2029, age 75".

  2. Also, I guess this overrides the DOL by saying if you self-correct, too bad DOL:

    "LOAN ERROR.--The Secretary of Labor shall treat any loan error corrected pursuant to subsection (a) as meeting the requirements of the Voluntary Fiduciary Correction Program of the [DOL]."

  3. Here, it looks like you can be late by 6 months for min distributions:

    "(d) REQUIRED MINIMUM DISTRIBUTION CORRECTIONS.--The Secretary shall expand the Employee Plans Compliance Resolution System to allow plans to which such system applies and custodians and owners of individual retirement plans to self-correct, without an excise tax, any inadvertent failures pursuant to which a distribution is made no more than 180 days after it was required to be made."

  4. Catch-up may start at age 50 but if you are 60 you get even more:

    "SEC. 121. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 60. (a) IN GENERAL.-- (1) PLANS OTHER THAN SIMPLE PLANS.--Section 414(v)(2)(B)(i) is amended by inserting the following before the period: "($10,000, in the case of an eligible participant who has attained age 60 before the close of the taxable year)".

  5. Don't have to keep giving notices to people who aren't deferring, etc.:

    "SEC. 111. ELIMINATING UNNECESSARY PLAN REQUIREMENTS RELATED TO UNENROLLED PARTICIPANTS. IN GENERAL.--Notwithstanding any other provision of this title, with respect to any individual account plan, no disclosure, notice, or other plan document (other than the notices and documents described in paragraphs (1) and (2)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives ..."

  6. You may have to let long time part timers into the plan to defer but no top heavy, etc.:

    "(i) NONDISCRIMINATION RULES.--In the case of employees who are eligible to participate in the arrangement solely by reason of paragraph (2)(D)(ii)-- (I) notwithstanding subsection (a)(4), an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement, and (II) an employer may elect to exclude such employees from the ap1 plication of paragraphs (3), (11),(12), (13), and (15), subsection (a)(4), paragraphs (2), (10), (11), (12), and (13) of subsection (m), and section 410(b)."

    "(ii) TOP-HEAVY RULES.--An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (2)(D)(ii) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416."

  7. I didn't see anything in the Bill that eliminates 3% safe harbor notice or allows you to add safe harbor after the fact, but maybe that is buried elsewhere.
Number of replies posted  4 replies      Number of times viewed  55 views      Add Reply
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