Message Boards Digest

May 28, 2019

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

roundlou created a topic in 401(k) Plans

Mid-Year Safe Harbor Plan Amendment

Took over a plan in which the document excludes highly compensated employees from receiving the safe harbor match. The sponsor now wants to change the plan and give the safe harbor match to everyone. Can I amend mid-year or do I need to wait until January 1, 2020?
Number of replies posted  2 replies      Number of times viewed  60 views      Add Reply

Legal Analytics help ERISA Litigators Win

Sponsored by Lex Machina
Join our complimentary webcast on May 30, unveiling the first ERISA Litigation Report with valuable trends and insights such as ERISA case timing, resolutions, damages, remedies, and findings.

david rigby created a topic in Qualified Domestic Relations Orders (QDROs)

Surprise! A QDRO Can Apply to a Welfare Benefit Plan

I would be interested in reading comments from our QDRO legal beagles -- how should a life insurance plan administrator respond when someone provides an order purporting to be a QDRO?
Number of replies posted  4 replies      Number of times viewed  76 views      Add Reply

waid10 created a topic in 401(k) Plans

Trust Received Check Without a Participant Identified

We have received a check for around $500 from an investment fund but we can't determine what participant it applies to. The check is made payable to the plan. Apparently the SEC ordered a settlement under an administrative proceeding. Certain investors received settlement proceeds if they were affected by market timing activity in 2001-2003. We haven't been able to figure out what participant account to apply the check to. What should we do?
Number of replies posted  3 replies      Number of times viewed  51 views      Add Reply

MSN created a topic in 401(k) Plans

Predecessor Recordkeeper Wants Us to Give Us a Stale Check

I've got a plan that transferred to us from another recordkeeper last year. The prior recordkeeper just came to us stating that they had a stale check attributable to this plan and asking us to confirm wire instructions to move the funds to us. This is the first time I've seen a recordkeeper attempt to transfer stale check assets to a successor provider, but maybe it's more common than I think. Are other providers accepting stale checks in situations like this and how are you handling this? Are there any issues rejecting the stale check being transferred?
Number of replies posted  4 replies      Number of times viewed  58 views      Add Reply

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

Distribution Paid Too Early to a Terminated Participant

A client called because they were pressured by their platform to approve a distribution and agreed to it. Unfortunately, their document is written so that there is a one-year wait on distributions (because there usually are errors in deposits that we have to reconcile after the end of the plan year). But let's say that we are confident that this particular person has no deposit errors, so the distribution was 'correct' in the amount (vested amount, deposits, etc.), but it's about ten months too early. I know that they've violated the terms of their document, but what is the downside/correction? It's not really an "overpayment," is it? I'm not seeing anything remotely applicable in EPCRS 2018-52.
Number of replies posted  1 reply      Number of times viewed  51 views      Add Reply

TPApril created a topic in Form 5500

Currently Filing 5500SF But Want to Start Using 5500EZ Instead

Plan year starts with 2 participants. During plan year, Participant #2, who is not a spouse and is already terminated, takes a full distribution. So plan year ends with 1 participant. So, is this the year that the plan switches to 5500EZ? Or wait until the year it starts with 1 Participant? (Technically speaking, plan will file SF as one-person plan.)
Number of replies posted  2 replies      Number of times viewed  45 views      Add Reply

Tax Cowboy created a topic in Employee Stock Ownership Plans (ESOPs)

Requirement to Apply for Plan Document Determination Letter for ESOP from IRS?

For many years now I've been under the impression that there is no requirement for a plan sponsor to apply with the IRS for an determination letter for an ESOP. My understanding has been that many TPA's are volume submitters. And in the few TEGE audits I've been involved with, the auditors have all accepted the ESOP adoption agreement and basic plan documents without a determination letter. Is there a Code section or DOL rule that requires an ESOP plan sponsor to apply for a determination letter?
Number of replies posted  0 replies      Number of times viewed  18 views      Add Reply

Tax Cowboy created a topic in Retirement Plans in General

Termination of IRS Audit Assessment: Form 872T?

Client has extended a number of statute-of-limitation time limits in current audit. A former advisor was involved over last few years of TEGE audit. TEGE auditor now wants to extend 3 years of audit (2014, 2015 and 2016) to June 2021. I have been trying to obtain copies of which extension form was used: either 872-A or 872-H (to extend time for Trusts). [1] Does a termination form 872-T apply to both of these extension forms? [2] Where do I find form 872T? I have tried searching IRS websites and other sites but to no avail. [3] Is 872T a notice placed on your own letterhead? Thoughts and comments appreciated.
Number of replies posted  0 replies      Number of times viewed  11 views      Add Reply

doombuggy created a topic in 401(k) Plans

Short Plan Year; Calculation of Year of Service for Vesting

I have a plan that was created in 2018 with a short plan year from November 1 through December 31, 2018. While they do not have any employer money that is attached to a vesting schedule at this time, my question is: Are hours that count towards a year of service also prorated for a short plan year?
Number of replies posted  1 reply      Number of times viewed  26 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