Message Boards Digest

September 4, 2019

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

Dougsbpc created a topic in 401(k) Plans

Safe Harbor Match Owed on Mistakenly Funded Deferrals That Have Been Refunded?

Suppose you have a 401(k) plan with a safe harbor match. The plan had a 6/30/18 plan year end. An HCE made salary deferrals of $18,000 from 7/1/17 through 6/30/18 ($18,500 for 2018). However he mistakenly funded an additional $500 on the next pay period on 7/15/2018 (now $19,000 for 2018). To correct this, the plan refunded the $500 plus earnings to him shortly after the extra $500 was funded. That extra $500 was technically funded during the 7/1/2018 - 6/30/2019 year. He funded no salary deferrals for the year ended 6/30/2019 (other than the mistaken $500). Should he get the match on that $500 even though it was refunded to him?

Number of replies posted  4 replies      Number of times viewed  66 views      Add Reply

Trucker Huss Webinar - Anatomy of an Employment Agreement

Sponsored by Trucker Huss
Employment agreements vary from simple offer letters to complex executive agreements incorporating multiple plans and attachments. This presentation reviews the purpose of each component, and offers best practices and tax-traps for the unwary.

jmartinrps created a topic in Cross-Tested Plans

Maximum Employer Allocation Percentage Per Participant

For a cross tested plan, I know the total contribution cannot exceed 25% of total eligible comp. But what about on an individual level? Can I give one HCE, say, 40% profit sharing it if passes all the tests (gateway, average benefit, and rate group using midpoint)?

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

cher created a topic in 457 Plans

Cancel 409A/457(f) SERP in Exchange for Split Dollar Loan Regime

Large nonprofit health systems are being approached frequently by consultants offering a proposal to rescind executives' 409A/457(f) SERPs in direct exchange for a split dollar loan arrangement of substantially equal value (but generally a very different "payment" time/form than under the 409A/457(f) SERP). The push for these proposals seems to be to help nonprofit employers avoid or reduce 4960 excise taxes where these SERP values would exceed $1M at vesting. Anybody seeing these along with the legal opinions from the promoters that these "swaps" "should not" run afoul of 409A or 457(f)? Thoughts on whether this violates anti-substitution/anti-exchange rules under 409A/457(f)? If not, why not? If an executive and employer bilaterally agreed to cancel SERP in exchange for loan regime split dollar arrangement, should the executive insist on indemnification from the employer for potential 409A/457(f) infractions/penalties if the promoter's "should be OK" doesn't ultimately align with IRS views on audit or at Tax Court? I appreciate any insight as to how these proposals are being greeted by counsel for employers.

Number of replies posted  1 reply      Number of times viewed  55 views      Add Reply

TPApril created a topic in 401(k) Plans

Explaining to One-Person Plan Sponsor That Unvested Benefits Are Nevertheless Accrued Benefits

One person plan for a doctor. For the first five years of the plan, the doctor is not vested in the profit sharing contribution. The plan is meant to be last more than 5 years, so how to explain to the plan owner that the money is his even if he is not vested during the first five years?

Number of replies posted  6 replies      Number of times viewed  62 views      Add Reply

mjf06241972 created a topic in Distributions and Loans, Other than QDROs

After-Tax Contributions vs. a 'Mega' Backdoor Roth Contribution

Can someone provide me some pro's and con's on each type of contribution -- an After Tax Contribution to 401k plan, vs. a Mega Back Door Roth Contribution?

Number of replies posted  2 replies      Number of times viewed  44 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