Message Boards Digest

September 20, 2019

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

Dalai Pookah created a topic in Defined Benefit Plans, Including Cash Balance

Sponsor as Life Insurance Beneficiary

A client has insurance in a defined benefit plan which names the sponsor as beneficiary. One of the insureds died and the benefits were paid to the sponsor consistent with the beneficiary designation. Intuitively, I believe that having a beneficiary other than the plan, itself, represents, at minimum, a prohibited transaction. I have been unable to find any citations or guidance to support this. Does anyone have any insight here?
Number of replies posted  4 replies      Number of times viewed  48 views      Add Reply

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chc93 created a topic in IRAs and Roth IRAs

roll over to wrong person's IRA

Plan sponsor rolls over his wife's plan benefit into his own personal IRA under his SSN. How can this be corrected. This happened in 2017.
Number of replies posted  1 reply      Number of times viewed  32 views      Add Reply

JustMe created a topic in Correction of Plan Defects

Pre-tax withheld as Roth AND vice versa! The IRS link above states that if a participant requested deferrals be withheld as Roth, but the employer inadvertently withheld the deferral as pre-tax, then the employer MUST transfer the erroneously withheld funds from pre-tax to Roth - corrected tax forms, etc. Conversely, if a participant requested deferrals be withheld as pre-tax, but the employer inadvertently withheld the deferral as Roth , then the employer CAN transfer the erroneously withheld funds from Roth to pre-tax - corrected tax forms, etc. Does anyone else agree with the interpretation that the correction is not necessarily REQUIRED when the participant requested pre-tax and the funds were inadvertently withheld as Roth? Since it's not spelled out in EPCRS, I'm not sure how I want to interpret this. The IRS isn't necessarily the best at drafting their materials....
Number of replies posted  0 replies      Number of times viewed  17 views      Add Reply

Phillip created a topic in Retirement Plans in General

Leased Employee? Affiliated Service Group? Unrelated?

A CPA firm has several non-equity (CPA) partners each of whom are paid from their own P.A. Neither do these CPAs, nor their own P.A.s, own any of the CPA firm and the CPA firm has no ownership in the non-equity partner's P.A.s Because there is no common ownership, I don't see this as an affiliated service group. But I am having trouble with classifying them leased employees. Regarding a Leased Employee and the control test, the EOB states "On the other hand, professionals who regularly make use of their own judgment and discretion on matters of importance in the performance of their services and are guided by professional, legal or industry standards, generally do not satisfy this test." Question: Are these CPAs who are employed by their P.A.s considered leased employees? part of an affiliated service group? Or are they their own separate employer tested as if an unrelated employer?
Number of replies posted  3 replies      Number of times viewed  40 views      Add Reply

Thornton created a topic in Qualified Domestic Relations Orders (QDROs)

Minnesota QDRO Model?

I've been drafting QDROs in Wisconsin for several years. I am now working on my first Minnesota QDRO (Hennepin County). I have the Judgment of Divorce, property settlemt, etc. Does anyone know where I can get a model Minnesota QDRO, if there is such a thing. Otherwise, I'll use my Wisconsin template and revise as necessary. Thanks.
Number of replies posted  3 replies      Number of times viewed  28 views      Add Reply

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

offer 5.001% stock option-- NHCE becomes HC

Thru attribution, if an NHCE is offered a 5.001% (more than 5%) stock option, the employee's status changes to an HCE. Is the company required to draft an official stock option or is it enough if the company simply writes an official letter on their stationary (notarized, witnessed etc) addressed to the employee offering him the option to purchase 5.001% of the company? Thank you.
Number of replies posted  0 replies      Number of times viewed  29 views      Add Reply, Inc.
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