Message Boards Digest

June 20, 2019

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

HarleyBabe created a topic in Operating a TPA or Consulting Firm

Sample Administration Agreements with a New Client

I'm in the process of updating agreements and such for my clients. Was wondering if anyone would be willing to share privately what they provide a new client as far as agreements, required fee disclosure. Trying not to recreate the wheel but want to make certain I'm sending something reasonable. I would not copy your template just want an idea of what other TPAs send.
Number of replies posted  0 replies      Number of times viewed  23 views      Add Reply
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brturn6176 created a topic in Form 5500

How to Automate Form 5500 Preparation?

I am just trying to gauge how other companies handle 5500's. Does anyone work for a company that automates 5500's or has them somehow pre-filled with information provided during the annual compliance review? If so, what software is used?
Number of replies posted  0 replies      Number of times viewed  30 views      Add Reply

Bird created a topic in Health Plans (Including ACA, COBRA, HIPAA)

One Employer Handling Another's Payroll -- Sufficient to Offer Employee Benefits?

I'm the treasurer for a small non-profit. We had one employee for many years, and she was paid under the payroll system of another non-profit. You could say there is a casual/friendly relationship between our organizations but no way is there any common control or commonality of any kind. We reimburse the other employer for all wages, taxes, etc. (I'll come back to "etc." later...) This was set up way before my time, BTW. Is this arrangement legitimate? I was thinking it was OK for the other organization to be a common paymaster and process payroll as a convenience, but as I'm looking at more closely it seems there needs to be some common control or close relationship between employers, which does not exist here. Back to the "etc." part -- she's been participating in certain benefits of the other employer -- LTD, life, and a 403(b). Health was even offered but declined way back when. I feel very strongly that she was NOT an employee of the other organization -- they did nothing but cut her checks -- and she should not have been covered under any of these benefit plans (weirdly enough, we are participants in a pension plan through yet another organization, legitimately, so she's been in a pension through one organization and a 403(b) through another). Unfortunately she died recently, and we are in the process of hiring a new person. I want to make sure we do it right, and am advocating strongly to NOT have anything to do with having the new person paid through the second organization (although they remain perfectly happy to do it). It's downright fraudulent, IMO, and yet, I guess because "we've always done it," no one seems to grasp the severity of the situation. I'm looking for confirmation that I'm right, or if I'm not, say that so I can adjust my thinking.
Number of replies posted  5 replies      Number of times viewed  51 views      Add Reply

kmhaab created a topic in 457 Plans

457(f) Payment Timing and Inclusion in Income

Payout provisions of 457(f) plan state that deferred amounts will vest on July 30, 2019, provided the covered executive is employed on that date, and the vested amount will be paid by March 15, 2020. Plan goes on to state that this payment is intended to be a short-term deferral under 457(f) and 409A. The payment is taxable to the recipient in 2019, even if paid out in 2020, right? The law seems straightforward on this to me, but I'm confused about what relevance the short-term deferral language has, if any.
Number of replies posted  3 replies      Number of times viewed  29 views      Add Reply

BG5150 created a topic in 401(k) Plans

Medicare Insurance Premiums Allowable for Hardship Distribution?

Are premiums paid to Medicare an acceptable safe harbor medical expense for a hardship distribution?
Number of replies posted  2 replies      Number of times viewed  40 views      Add Reply

Mr Bagwell created a topic in 401(k) Plans

What Is Subsequent Eligibility Computation Period?

Plan has quarterly entry for participation (no age requirement). Excludes part-time, temporary, and seasonal employees. In the Corbel document, 1,000 hours of service was used to describe the P-T, temp, and seasonal employee. Here is my dilemma: because the plan has only the quarterly entry requirement, the Subsequent eligibility Computation Period was not completed. Plan Year and Anniversary Year are the common choices. If an excluded employee would happen to not work the 1,000 hours for the next year, that's fine, they would not become eligible. But what subsequent eligibility computation period do I track next? I can't find anything in the basic plan document to default to plan year or anniversary year. The plan needs to choose plan year or anniversary year. Am I missing another provision in the document or adoption agreement?
Number of replies posted  0 replies      Number of times viewed  28 views      Add Reply

throwawaymycpa created a topic in 401(k) Plans

Electing S Corp Status for an LLC -- Plan Amendments Needed?

Client is a single member LLC (disregarded for tax purposes) and we're exploring a retroactive S-election to be taxed as an S-corp. The LLC name, EIN, and address will all be the same. We're getting advice that the plan documents need to be retro-amended, but I'm finding conflicting information. Questions are: [1] With the LLC name, EIN, and address staying the same, will any plan documents need to be amended? [2] If the S-election is for the entire year and no wages are paid (nor distributions taken), how should the prior year contributions be treated? Withdrawn as excess?
Number of replies posted  1 reply      Number of times viewed  35 views      Add Reply

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

Doctor with separate Schedule C income

A doctor, partner in a Medical Practice, covered by a 401k has separate Schedule C income for a separate location apart from the practice. Can the doctor set up a one-participant DB plan using only that Schedule C income? If not, can a separate DB plan be set up if the Schedule C income was not related to doctoring (ie. from writing articles or getting trustee fees)?
Number of replies posted  2 replies      Number of times viewed  41 views      Add Reply

DDB BN created a topic in 401(k) Plans

Reporting of late deferrals on Form 5500-SF

There were late deferrals in 2017. The late deferrals were deposited into the plan during 2017 as well. The earnings on the late 2017 deferrals were deposited in 2018. The late deferrals were reported on the 2017 5500-SF. Should they also be reported on the 2018 5500-SF even though the late deferrals were deposited in the prior year (2017)? Is the deposit of late deferrals only considered corrected when the late earnings are deposited?
Number of replies posted  2 replies      Number of times viewed  25 views      Add Reply, Inc.
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