Message Boards Digest

July 10, 2019

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

ksussh3399 created a topic in Defined Benefit Plans, Including Cash Balance

Suspended Annuity Payments During QDRO Processing

We suspended annuity payments after receipt of a QDRO on our DB plan. The divorce was apparently messy and took 4 years to sort out, all the while annuity payments have not been made. Now the divorce is finalized and there is no longer a hold on the account. Must we pay interest on the suspended payments or just pay the total missed amount in a lump sum and resume regular payments?
Number of replies posted  3 replies      Number of times viewed  59 views      Add Reply
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BG5150 created a topic in 401(k) Plans

What Does 'Reduction' of a Safe Harbor Benefit Mean?

Notice 2016-16 states that a permissible mid-year amendment for a SH plan can be: "(iii) Reduction or suspension of safe harbor contributions or changes from safe harbor plan status to non-safe harbor plan status (permitted only as described in Sections 1.401(k)-3(g) and 1.401(m)-3(h))." 1.401(k)-3g says you can change SH plan mid year if [1] there the company is operating at an economic loss OR [2] the ER adds the the annual notice a statement that the plan may be amended during the year to reduce or suspend the SH NEC contributions provided a supplemental notice is given at least 30 days before the reduction. I checked the SH notice that comes out of or doc system (ftwilliam) and I don't see such a paragraph. So, are we out of luck under [2]? How would they stop it, then, if they can't afford it but not operating at an economic loss? Can they just send a notice now that says "effective September 1, we are stopping the safe harbor contribution" (plus all the other conditions, like letting participants change their deferral elections, etc.)?
Number of replies posted  3 replies      Number of times viewed  44 views      Add Reply

thepensionmaven created a topic in Retirement Plans in General

Compensation Definition: Inclusion of Medical Premiums for a 2%-Plus Shareholder

Corp sponsors 401(k) SHM plan, definition of compensation is 415 safe harbor, about 10 participants, including the owner. Box 1 and Box 5 of Form W-2 have different amounts, Code D is $18,500. Accountant not taking into account medical premiums for the 2%+ shareholder. Isn't medical a fringe benefit? (Getting conflicting answers.)
Number of replies posted  2 replies      Number of times viewed  41 views      Add Reply

401_noob created a topic in Health Savings Accounts (HSAs)

Can I Use My HSA to Pay My Wife's Medical Bills?

Forgive me if this is simple question, but I don't know anything about HSAs except that it is a Health Savings Account. I have a HSA from an old job where I had a HDHP. I no longer have a HDHP. I have also since married and had a child. My question is, can I use some of the money from my HSA to pay the medical bills, that are in my wife's name, from having our baby last year? I seem to recall that this is permissible, but it's been a long time since I have looked into the matter and I have not been following any changes to HSA legislation to know if anything has changed (assuming my understanding was correct from the beginning).
Number of replies posted  1 reply      Number of times viewed  27 views      Add Reply

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

No W-2 Income Last Year for Sole Participant in S Corp-Sponsored DB Plan

DB plan was established for 2018 for S corp; accountant called last week to mention that there was no W-2 for 2018 and so the accountant wants to use Schedule C income. I would think the plan's definition of "compensation" would need be amended as well who would be participating. Would a Joinder Agreement suffice in this instance?
Number of replies posted  4 replies      Number of times viewed  55 views      Add Reply

msmith created a topic in Retirement Plans in General

Form 8955-SSA -- Remove Former Participants When Getting Required Minimum Distributions?

401(k) plan. A terminated participant was added to Form 8955-SSA in 2016. In 2018, the participant started receiving RMDs. The Instructions to the Form, for Code D, state, "Use this code for a participant previously reported under the plan number shown who is no longer entitled to those deferred vested benefits. This includes a participant who has begun receiving benefits." Do that say to include former participants who have started to receive RMDs? If it matters, this plan does not permit annuities as a form of payment.
Number of replies posted  7 replies      Number of times viewed  49 views      Add Reply, Inc.
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