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Message Boards Digest

October 2, 2019

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

MarZDoates created a topic in Form 5500

Extension Approved until December 15?

Wouldn't that be nice. We have seen two letters come back so far showing the tax period as 2/28/19 (for CALENDAR YEAR plans) and granting extension until 12/15. What's going on with the IRS anyway?

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

thepensionmaven created a topic in Retirement Plans in General

Two Employers, Two Plans, Same Owner -- Must Aggregate for Purposes of the $250,000 Form 5500 Rule?

My question concerns 5500s. My client owns two companies (one has a DB plan, the other has a 401(k) plan) -- obviously a controlled group. He is the only employee in each company. Because they are two employers, do we need aggregate the assets for purposes of the $250K threshold for filing?

Number of replies posted  4 replies      Number of times viewed  57 views      Add Reply

thepensionmaven created a topic in Retirement Plans in General

Rollover of Employee Voluntary Contribution Account

Client is terminating his profit sharing plan, and is retiring at current age of 75. We have calculated the RMD for his employer account. I assume (?) since the voluntary account has already been taxed, the only amounts he would be taxed on and would be subject to the RMD would be the earnings. He wants to roll over the voluntary contribution account. We're talking somewhere in the area of $250-$300K, which I don't believe he can roll over. If that's correct, what is to happen to the account?

Number of replies posted  0 replies      Number of times viewed  30 views      Add Reply

HarleyBabe created a topic in Relius Administration

ASP System Down Today?

Does anyone know if the ASP system is down today? This is awful.

Number of replies posted  4 replies      Number of times viewed  35 views      Add Reply

p2tso created a topic in Health Plans (Including ACA, COBRA, HIPAA)

HRA Situation -- Employee Accidentally Not Covered by Group Health Plan

Our group plan carrier messed up and failed to enroll an employee back in April when we submitted her application. However, because we didn't know that until September, she has been enrolled on our group HRA since April. So, we were/are out of compliance for the five months she was not covered by our group health plan. The carrier has since enrolled her onto our health plan as of 9/1, but our broker doesn't think they will consent to back-enrolling to April. If they don't, what do you think we should do? Fortunately, she didn't have any medical claims until September, but she did use her HRA for some dental/vision charges prior to September. We would like to make the employee whole, since it wasn't her fault, and ideally get back into compliance. Should we:

  1. Report her HRA employer contributions as taxable for those five months she was not covered and give her a bonus to cover the taxes;
  2. Reset her HRA active status date to 9/1 and give her a (taxable) bonus to cover the HRA contributions for those five months;
  3. Not even bother asking the carrier to back-enroll her to April and just ignore the fact she was not covered by our group plan for five months (what are the risks here?);
  4. Or something else?

Of course, if the carrier won't back-enroll her to April, we will also reimburse her premium payroll deductions.

Number of replies posted  2 replies      Number of times viewed  31 views      Add Reply

Bonnie Sue eden created a topic in 401(k) Plans

Default on 401(k) Loan Due to My Work-Related Disability

Stopped working on May 10, 2017. I had an $18,000 401k loan. Defaulted this year. No earned income this year, just worker's compensation. How much taxes will I pay on the defaulted loan?

Number of replies posted  1 reply      Number of times viewed  38 views      Add Reply

Stash026 created a topic in Defined Benefit Plans, Including Cash Balance

Can a Cash Balance Plan Have a 6-Year Vesting Schedule or Is It Just a 3-Year Cliff?

Can a Cash Balance Plan have a 6-year vesting schedule or is it just a 3-year cliff?

Number of replies posted  3 replies      Number of times viewed  42 views      Add Reply

SadieJane created a topic in 401(k) Plans

Interaction Between 401(a)(17) Limit and Plan's Definition of Compensation

Question about the interaction between the 401(a)(17) limit and a 401(k) Plan that has one or more exclusions from its definition of compensation -- e.g., bonuses are excluded. In figuring out Plan compensation, which applies first -- the Plan’s definition or the 401(a)(17) limit? Example (for 2019, in which the 401(a)(17) limit is 280,000): Total compensation is $300,000, which includes a bonus of $10,000. If I first apply the Plan’s definition and then apply the limit: compensation is $290,000 and compensation for the Plan is the lesser of $290,000 and $280,000, so: $280,000. If I first apply the limit and then apply the Plan’s definition: compensation is the lesser of $300,000 and $280,000, so $280,000, then back out the bonus, so comp would be $270,000. I have looked for guidance/authority and the only thing I have found so far is one ASPPA Power Point that says apply the Plan’s definition first, then apply the limit, but no citation for that. Anyone?

Number of replies posted  1 reply      Number of times viewed  33 views      Add Reply

Donna created a topic in Cafeteria Plans

Waiver Needed from Section 125 Plan Participants Who Don't Choose Certain Benefits?

We offer AFLAC as part of our benefit plan. The reps insist that all eligible employees must be seen and see all the products offered, sign an acknowledgement form or a waiver even if they don't want to make any changes or cancel coverage during open enrollment. True or False?

Number of replies posted  2 replies      Number of times viewed  31 views      Add Reply
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