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Message Boards Digest

October 4, 2019

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

rr_sphr created a topic in 401(k) Plans

Need Help with Elapsed Time/Eligibility

We are a not-for-profit that is the plan sponsor of a 401k plan that has a 6 month elapsed time eligibility period. A temp employee has had the following service: worked 3/11/19-5/31/19 or 2.67 months; break in service was 2.56 months; and then worked 8/19/19-9/6/19 or .59 months (no 1 year break in service). The next break in service will be around 1-1.5 months if she is rehired in the next week or so.

If service is 6 months from original hire because her breaks were so small, she is pretty much immediately eligible. If not, she would need to earn 2.75 more months of time to be eligible. It makes a difference for costs for funding/grants/etc. I hate counting pennies, but we must! And honestly I'd like to get it right going in rather than a correction at year end!

Our plan document has a section that states "Rehired Eligible Employee who had not satisfied eligibility: If any Eligible Employee who had not satisfied the Plan's eligibility requirements is rehired after severance from employment, then such Eligible Employee shall become a Participant in the Plan in accordance with the eligibility requirements set forth in the AA and the Plan. However, in applying any shift in an eligibility computation period, the Eligible Employee is not treated as a new hire unless prior service is disregarded in accordance with" (rule of parity, 5 one year breaks or one year old out rule)."

My TPA contact is out of the office through Monday. And their backup told me they couldn't give me an answer and were unwilling to look it up or research it for me (yes, another reason to find a new TPA!) Anyone want to offer their advice/opinion?

Number of replies posted  4 replies      Number of times viewed  75 views      Add Reply

ESOP Guy created a topic in Form 5500

Letter Saying 2017 Form 5500 Not Filed But It Actually Was Filed

I know there is a large thread about getting rejected or bad 5500 extensions. I just got a letter saying a client's 2017 5500 wasn't filed when I can prove it was. Not a problem just wondering if anyone else has gotten and if there is an emerging pattern here also?

Number of replies posted  2 replies      Number of times viewed  42 views      Add Reply

chc93 created a topic in Retirement Plans in General

IRS Inquiry on Missing 2018 Form 1096

We file 1099-R's electronically through the IRS FIRE system. As far as we know, there is no actual Form 1096 for this process. In the last couple of days, 2 separate clients received the same letter from the IRS stating that they can't process any of the information returns because they're incomplete or not in the required format (lists 1096, 1098, 1099,, 5498, and "certain other information returns"). Then the letter goes on to say that there was not a 1096 included in the submission. Strange thing is that the letter starts off by saying "Thank you for the inquiry dated Feb. 11, 2019". But we filed electronically on Mar 20, 2019. No one knows who made an inquiry to the IRS on Feb 11. Anyone else get these?

Number of replies posted  0 replies      Number of times viewed  37 views      Add Reply

52626 created a topic in 457 Plans

Changing NRA So Participant Can Make Special 3-Year Catch-Up Election under a Non-governmental 457 Plan

Normal Retirement Age is 65. Participant did not make the special 3-year catch-up election on time. Can the employer amend the plan and increase NRA to 70-1/2? If so, would the increased NRA apply to all participants (including existing participants)? This would allow the employee to make the special catch-up.

Number of replies posted  0 replies      Number of times viewed  6 views      Add Reply

bzorc created a topic in Form 5500

Schedule C Question: What EIN to Use for Reporting Name of DB Plan's Actuary?

I am reviewing a Form 5500 for a Defined Benefit Pension Plan that had a change in actuaries (not the actuarial firm). The actuary was provided notice with the explanation "Reassignment of responsibilities within NAME_OF_FIRM."

Schedule C is required, if I read the instructions correctly. Question: for the EIN on Schedule C, do you put in the firm's EIN or the actuary's enrollment number?

Number of replies posted  0 replies      Number of times viewed  12 views      Add Reply

rocknrolls2 created a topic in Defined Benefit Plans, Including Cash Balance

Exception to Spousal Consent Due to Inability to Locate Spouse

Under the Code and ERISA, spousal consent is not required if the spouse cannot be located. For a participant who is looking to utilize this exception, is the plan required to have the participant submit an affidavit of when s/he last saw their spouse and state in detail what efforts have been made in an attempt to locate the spouse? Or is it  enough if a participant checks a box on the benefit election form under spousal consent which says "I do not know where my spouse is currently located"?

Number of replies posted  1 reply      Number of times viewed  15 views      Add Reply
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