Message Boards Digest

June 3, 2019

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

JY36 created a topic in 401(k) Plans

401k Medical Hardship Reimbursement

Hello, I left the firm where I began my 401k contributions. Upon leaving, I transferred my 401k balance to Wealthfront. I recently deducted the full balance. I have two medical ailments requiring surgery. Am I to contact my ex-firm to determine whether the medical procedures I'm anticipating will be covered under their hardship deduction? Thank you.
Number of replies posted  3 replies      Number of times viewed  51 views      Add Reply

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pr2222 created a topic in Form 5500

Form 5500 Bulk Signing

We have a client that is the Plan Administrator to a very large number of plans. Is anyone aware of any way the Plan Administrator can bulk sign all the filings or does the Plan Administrator have to sign each Form 5500 individually? In short, is there a way to sign all the Form 5500s at one time? Thanks.
Number of replies posted  2 replies      Number of times viewed  40 views      Add Reply

rblum50 created a topic in 401(k) Plans

Combining account balances upon death

A 401(k) plan has about 10 participants in it. There is the owner, the owner's wife (who is terminated) are both 100% vested. Both the owner and wife also have individual IRA's. Here's the question: the owner died several months ago. Is there anyway that his 401(k) account balance, either directly or indirectly, can be rolled into his wife's 401(k) account?
Number of replies posted  0 replies      Number of times viewed  25 views      Add Reply

EBECatty created a topic in 401(k) Plans

Controlled Group - Employee-Owned Stock Exclusion

Would appreciate thoughts on this analysis regarding excluded interests under the controlled group/common control rules. LLC (taxed as partnership) is owned 50/50 by two S corps (S Corp 1 and S Corp 2). S Corp 1 is owned 100% by Individual 1. S Corp 2 is owned 100% by Individual 2. Individuals 1 and 2 are unrelated. Individual 1's spouse is an employee of LLC. The LLC operating agreement has standard terms regarding permitted transfers, right of first refusal, etc. that constitute substantial restrictions on the right of S Corp 1 or S Corp 2 to dispose of LLC interests. For the parent-subsidiary controlled group analysis, the stock exclusion rules apply because each parent S Corp owns at least 50% of the subsidiary LLC. For purposes of whether S Corp 1 and LLC are in a parent-subsidiary controlled group, the stock exclusion rules would result in at most 50% direct ownership (or 0% ownership if stock deemed owned by Individual 1's spouse is excluded). The other 50% is owned by an unrelated person and is not excluded under any other rule, so S Corp 1 and LLC cannot be in a parent-sub controlled group. However, when looking at S Corp 2 and LLC as a parent-sub group, it seems that S Corp 2 would be deemed to own 100% of the outstanding interests in LLC. S Corp 1's 50% interest in LLC is deemed owned by Individual 1, which is then attributed to Individual 1's spouse, who is an employee of LLC. That 50% interest deemed owned by an employee of LLC is subject to restrictions in favor of LLC, so is excluded, making S Corp 2 the deemed 100% owner of LLC. So the end result is S Corp 1 and LLC are not a parent-sub group, but S Corp 2 and LLC are. It seems odd that the people with more involvement in the ownership and operation of LLC avoid affiliation, but the person with less involvement is affiliated. I also see the logic that having an employee own the other 50% gives S Corp 2 more "leverage" in the situation, but the employee's ownership is only deemed through another equal co-owner. In any event, would appreciate any thoughts.
Number of replies posted  0 replies      Number of times viewed  17 views      Add Reply

125Guest created a topic in Cafeteria Plans

125 Health FSA Funding

Question on TPA's that offer FSA debit cards and hold employer funds as a benefit plan "pre-fund" amount: do you typically base that amount off a percent of the total annual elected amounts for the FSA Health or a atraight dollar amount? If you go by a percent, what percent you do utilize? Is that across the board to all clients or something taken on a case-by-case basis considering the size of the plan? Just curious to see what TPA's are doing in this situation. I have come across some that do a flat dollar amount ($5k) which I find interesting considering that amount to one plan could be nearly the whole annual election totals but could be a drop in the bucket to another.
Number of replies posted  0 replies      Number of times viewed  13 views      Add Reply, Inc.
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