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Message Boards Digest

September 5, 2019

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

Fiduciary Guidance Counsel created a topic in Plan Document Amendments

What plan amendment is needed for an ESOP's termination?

An employee stock ownership plan was most recently amended in January 2017 (and then included everything through the "2016 Required Amendments List for Qualified Retirement Plans") . The employer/sponsor/administrator anticipates ending the plan and paying its final distributions in 2019. Beyond stating the discontinuance and termination, is there any plan amendment needed to tax-qualify the plan for its end?
Number of replies posted  1 reply      Number of times viewed  22 views      Add Reply
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Jennifer D. created a topic in 403(b) Plans, Accounts or Annuities

ERISA and Non-ERISA 403(b)

I have a prospective client who has a non-Erisa 403(b) for the NHCEs to defer, and an ERISA 403(b) for the charter founders to defer and get a PS contribution. We've been called in because while the non-ERISA document excludes charter founders and the ERISA document excludes everyone else, a founder had been deferring to the non-Erisa plan and got a profit sharing contribution in the Erisa plan (she did not defer to the Erisa plan). My questions are - can you set the plans up this way - ie can you aggregate the non-Erisa and Erisa plans to make sure the NHCEs aren't discriminated against for coverage, and if so, does it all get messed up with having the 1 founder deferring into the non-Erisa plan (I know it violates the document but it only happened this year so we should be able to amend the doc to permit it). Thoughts?
Number of replies posted  2 replies      Number of times viewed  36 views      Add Reply

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

too many loans taken - correction method?

We have a plan that allows for two loans. A participant was mistakenly allowed a third loan. The loan policy specifically states that loan re negotiations are not allowed. Assume the participant cannot pay the third loan back in full nor do they want to default and claim on taxes. Are their any other options available? Can we still merge two loans together since it is for a correction despite the loan policy? Could we amend the loan policy to allow loan renegotiation? then amend again "to go back" say a month or two later? VCP?
Number of replies posted  1 reply      Number of times viewed  42 views      Add Reply

007inTraining created a topic in Distributions and Loans, Other than QDROs

Non-Qual Plan: Payout of account upon same yr of death

Because deferred deductions were taken out with FICA already considered so that when we pay distributions we only take Fed W/H. What about when the participant has passed?
Number of replies posted  0 replies      Number of times viewed  17 views      Add Reply

Mengistu created a topic in Multiemployer Plans

Plan Accounting Treatment of Withdrawal Liability Receivable

When Withdrawal Liability Receivable is due and should be recognized/recorded in accounting? There are some cases that employers are reluctant to start paying their withdrawal liabilities when assessment has been completed and they are notified with a payment plan schedule. Should it be recorded as Receivable in anyway or should it be waited until the employer accept it and start payments? Thank you.
Number of replies posted  0 replies      Number of times viewed  16 views      Add Reply

oldman63 created a topic in 457 Plans

Amending Governmental 457(b) Plan's Normal Retirement Age

A fire district governmental 457(b) plan operates under the SunGuard plan document. The plan defines NRA as age 65. Employer wishes to change to age 50 and 20 years of service. Also, for police/fire personnel, NRA will be age 50. Couple of concerns. First plan document only establishes an age for NRA. Second, and most important, new NRA may impact participants in a negative way considering the new age and service requirements. What do you think?
Number of replies posted  0 replies      Number of times viewed  18 views      Add Reply
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