A plan participant receives Medicaid benefits on account of an intellectual disability. We've learned that his benefits will cease if his retirement account balance exceeds $2,000. He was auto-enrolled and made a few deferrals (totaling $200). The deferrals have been stopped, but the plan is a 3% safe harbor plan, so his account will receive the safe harbor contribution. This year, it probably push his account balance over $2,000, but next year it probably will. Is there a way to have him excluded from any employer contribution so he won't lose his Medicaid benefits?

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Not sure if I should be asking this here, but..... Does anyone have experience with the pros and cons of the ERISA Outline Book (online versions) vs. ERISApedia Research Tool?

The plan sponsor's Adoption Agreement (adopted in 2016) provides for a Match formula of 100% of the first 3% of deferred compensation. The TPA treated this Match as being discretionary, but entered the formula in the document in the event that it would be made. The "Discretionary Match" box was not checked, and my understanding is that a single Match is either fixed or discretionary anyway . . . not both. Because this Match was treated as being discretionary, it has not been provided in the years since adoption. The plan sponsor has been making a 3% SHNEC + discretionary Profit Sharing instead. Does the plan sponsor have a document error or an operational error?

We have a potential client with the following plans: 1) ERISA 403(b) Plan covering non-union employees. This plan excludes union employees by way of the following employee exclusion - " Employees who are eligible to participate in a plan of the Employer offering a qualified cash or deferred election under Code section 401(k) or a contract described in Code section 403(b)." 2) non-ERISA 403(b) Plan covering union employees (deferral only, limited employer involvement). Multiple vendor options. 3) 401(a) Plan covering union employees (employer contributions). One vendor option. Questions -

1. Would employer contributions to a 401(a) plan for the union employees eliminate the ERISA exemption for the union 403(b) Plan? I see nothing indicating that employer contributions to another plan would impact non-ERISA status, but if anyone has info stating otherwise, please share.
2. Is there any reason the 401(a) plan would not be subject to ERISA? I would not think so, but I am searching for a 5500 on the DOL website and don't see one (gulp).
3. Since I believe that the 401(a) Plan is subject to ERISA, I feel like they could easily stop allowing deferrals to the non-ERISA 403(b) and make them available in the 401(a) plan. It would not eliminate the non-ERISA 403(b), which would be near impossible to terminate, but would at least allow them to restrict where new deferrals are going to simplify the contribution submission process, rather than sending to three different investment providers each pay period. I don't see any downside to this. Do you?

Thanks!

I'm filling out a pre-QDRO questionnaire. One of the questions asks if there are any survivorship benefits, and if any elections were made? Does this mean did he fill out a beneficiary form? I ask, because later, in a separate section, it asked who the beneficiaries are. Plain ol' 401k/PSP.

Group: Clients TPA files 5500 annually for their ESOP. Assume the 5500 shows plan assets of $200k. Isn't this the liability owed to participants? Is there an Internal Revenue Code/Dept of Labor/ERISA cite/support that says the repurchase obligation is borne on plan sponsor? in other words, I know the employer/client/plan sponsor ultimately has liability to pay for that repurchase obligation but I'm looking for a regulatory cite/IRC/other to support this statement. Thoughts and comments appreciated. Best, Joe Dadich, Esq.