Message Boards Digest

July 5, 2019

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

PensionPete created a topic in Correction of Plan Defects

HCE Waiver of Self-Correction Funds

We have a client for whom we are doing a self-correction. Salary deferrals were not deducted from bonus wages per terms of the Plan plus the applicable matching contributions. However, an HCE doesn't want to be part of the correction -- wants to waive any funds he is otherwise due under the correction measure. The question is [1] can we allow this....have him sign a waiver? and [2] would this put the Plan in a worse position upon audit for not correcting the failure in full and in accordance with IRS Guidelines. Is there even a waiver option discussed in the IRS guidelines on correction?
Number of replies posted  3 replies      Number of times viewed  48 views      Add Reply

LauraS created a topic in 401(k) Plans

Beneficiary Is Estate -- Roll Into Inherited IRA?

We had an associate pass away with no designated beneficiary on file for the 401k. Per the order of succession in the plan document, the beneficiary is the associate's estate. The beneficiary of the estate is now wanting to transfer the money into an inherited IRA. Can the transfer to an inherited IRA occur because the beneficiary is an estate? If so, would it have to be setup in the name of the estate or can it be setup in the name of the beneficiary of the estate?
Number of replies posted  6 replies      Number of times viewed  70 views      Add Reply

kmhaab created a topic in Mergers and Acquisitions

Multiple Employer Plan: Spin-off and Terminate, or Transfer Assets?

Company A is buying Company B in a stock transaction. Company B participates in a multiple employer 401(k) plan. In drafting the merger agreement, Company A wants to take on as little liability as possible associated with B's participation in the multiple employer 401(k) pre-merger. Company B will be withdrawing from the multiple employer plan and either [1] spinning off the plan assets into a new plan and immediately terminating the new plan prior to the close of the merger, or [2] transferring Company B employees' assets into Company A's 401(k) plan. Does a transfer of assets into Company A's plan create any more liability for Company A (related to the plan pre-merger) than if Company B's assets were spun off and that plan terminated?
Number of replies posted  2 replies      Number of times viewed  25 views      Add Reply

Nancy Pritz created a topic in 401(k) Plans

Contribute for Selected Participants Only

Is there a way to make some sort of annual company non-elective contribution just to a couple of participants without running afoul of all sorts of discrimination (or other) rules? The plan I am looking at already makes matching contributions to all participants but does not make any unmatched contributions. When you stop laughing, let me know your thoughts.
Number of replies posted  1 reply      Number of times viewed  36 views      Add Reply

SJones created a topic in 401(k) Plans

Form 5500 Question Part III 8(b)

Based on a situation I've never experienced before, I'm trying to figure out what to enter for Line 8(b). The scenario: Starting Balance -- $300,000; Contributions -- $10,000; Dividends/Interest income etc. -- $5,000; Ending Balance -- $290,000 (there was loss in value of assets in the plan). So, question is, on Line 8(b) should I enter -$25,000 + $5,000 = -$20,000 (comes from $25,000 loss in assets values and $5,000 income from Dividends/Interest)? Then starting balance of $300,000 plus $10,000 contribution = $310,000 with loss of $20,000 leads to Ending Balance of $290,000.
Number of replies posted  1 reply      Number of times viewed  31 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