Message Boards Digest

September 3, 2019

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

Ford74 created a topic in 401(k) Plans

QDIA Notice -- Who Is Responsible?

My employer (a TPA) is telling me the QDIA notice requirements fall on the fund companies we work with (examples: Transamerica, Nationwide, Voya, Hancock) and the plan’s financial advisor. We as TPA do nothing with the QDIA notice. This doesn’t seem right to me. I had a financial advisor tell me he expects the TPA to take care of it. How do other TPA firms handle the QDIA notice requirements?

Number of replies posted  2 replies      Number of times viewed  77 views      Add Reply

Cynchbeast created a topic in 401(k) Plans

Including Severance Pay in Calculation of Safe Harbor Nonelective Contribution

Plan defines comp as W-2 comp, but does not include post-severance pay for deferrals, match or non-elective contributions. Terminated participant received severance pay but we don't know yet exactly what constituted the severance pay. I would assume at least part of the final check was unpaid vacation, sick leave, etc., and possibly the customary 2 weeks of "severance pay." Do we include all or part of the severance pay in calculation of SH NEC or not?

Number of replies posted  0 replies      Number of times viewed  51 views      Add Reply

Andrealles created a topic in Health Savings Accounts (HSAs)

S Corp's HSA Contribution for a More-than-2% Shareholder

I am trying to figure out if the S corp HSA contribution for a more than 2% owner is subject to UI/SDI in California on quarterly forms. I am aware that the S-corp HSA contribution needs to be entered on W-2 in Box 14 and that Box 1 and Box 16 (State) needs to have the HSA amount of $6,900 included. I have contacted a CPA and was told that health insurance and HSA are only subject to FIT/SIT, not UI/SDI. Is this correct for California? The payroll provider did not include the HSA to be taxed for UI/SDI -- only PIT wages on California Quarterly DE9c. Is this correct? The Edd information sheets states employer contribution to HSA is subject to UI/SDI. Is the info sheet referring to non-2% employees who have the contribution reported in Box 12W instead of Box 14 for 2% shareholders? I would like to know that payroll is correctly paying my taxes.

Number of replies posted  0 replies      Number of times viewed  33 views      Add Reply

TPApril created a topic in 403(b) Plans, Accounts or Annuities

403(b) Forfeitures Account Can Be Moved to Replacement 401(k) Plan?

Non-profit started a new 401(k) plan for contributions moving forward. The legacy 403(b) is being left as is with no new contributions, but there remains a large forfeiture account, which exceeds payable fees. Can such forfeiture account be transferred directly to the new 401(k) account to be used for employer contributions over there?

Number of replies posted  1 reply      Number of times viewed  40 views      Add Reply

Lisa Briggs created a topic in Qualified Domestic Relations Orders (QDROs)

IRS Email Address or Mailing Address?

Will someone please provide me with an IRS direct email address or address? This is regarding a tax-qualified plan, under section 401(a) that is subject to 401(a)(13)(B) and to 414(p). Seems like a simple question, but I just cannot find the appropriate address nor email address.

Number of replies posted  0 replies      Number of times viewed  29 views      Add Reply

AlbanyConsultant created a topic in Distributions and Loans, Other than QDROs

Changing Timing of Force-Outs

I'm taking over a plan that has immediate force-outs in the document for vested accrued benefits of less than $5,000. I suspect the provision was not followed by the prior TPA, based on how the assets are set up (individual brokerage accounts) and the fact that we won't be monitoring the plan on a daily basis. So it doesn't seem like the right fit for this plan. Is it a prohibited cutback to change this to happening after the end of the year of termination in the document?

Number of replies posted  3 replies      Number of times viewed  43 views      Add Reply

Guest TPA Firm Seller 2019 created a topic in Operating a TPA or Consulting Firm

I Am Considering Selling My TPA Practice

I’m considering selling my TPA practice. I’d like to hear feedback on the process from anyone who has gone through this experience.

Number of replies posted  0 replies      Number of times viewed  36 views      Add Reply

George Ross created a topic in Qualified Domestic Relations Orders (QDROs)

QDRO Needed Post-Divorce to Update Marital Status and Beneficiary Designation?

In a divorce situation, both parties established 401(k) with new employers after the date of separation (in CA). These 401(k)s are separate properties belonging to each party but were opened with marital status as 'Married'. Is a QDRO needed to update marital status and beneficiary post-divorce? QRDO is needed to divide community property 401(k). But in a situation where both parties decide to retain their respective 401(k) and forever waive rights to this community property (similar amounts), is a QDRO needed to update marital status and beneficiary post-divorce -- i.e., is a QDRO needed to waive these rights? Finally, is it correct to assume that QDRO doesn't apply to IRA rollover and Roth IRA accounts?

Number of replies posted  0 replies      Number of times viewed  27 views      Add Reply

austin3515 created a topic in 401(k) Plans

Do I Have the Latitude to Pick and Choose Which Things I Will Offer as a 3(16)?

In general, I am pessimistic about the 3(16) business model, but I get that there are aspects of it that appeal to clients. My question is, do I have the latitude to pick and choose which things I will offer as a 3(16)? So for example, I think it rather unappealing to clients to take over the deposit process because most clients want to be involved in ACHing funds out of their own operating account. But I think in general clients LOVE the idea of a TPA signing off on distributions. Signing a form 5500 is not a big deal since I already prepare a signature ready form. But responsibility for sending out notices? Quite appealing. So the question is, can I have a "3(16)-lite" offering, charge a little bit more for it, and take over those things that are the most value added (emphasis on the word value). I already understand the concept behind the full suite of services, so no need to sell me on that!

Number of replies posted  1 reply      Number of times viewed  39 views      Add Reply

AlbanyConsultant created a topic in Investment Issues (Including Self-Directed)

Particular Asset Available in Self-Directed Account Has Minimum Investment -- Has to Be Discriminatory, Right?

In a plan where everyone is in self-directed brokerage accounts, two of the doctors (of course) have stumbled onto a non-publicly-traded stock that they want to buy. The financial advisor can't get them access to it through his platform, and the doctors aren't old enough for in-service distributions of any sizable amounts, so they are looking to change brokers to get access to this asset in the plan. The asset itself has a minimum. I've heard varying accounts of either $25K or $10K to buy in. Is that in and of itself discriminatory? If it's $25K, then no one else besides the doctors have that much in their accounts (at least as of 12/31/18). But what if it's $10K? Pretty much everyone has that much.

Number of replies posted  2 replies      Number of times viewed  30 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