Message Boards Digest

October 30, 2019

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

formeractuary created a topic in Nonqualified Deferred Compensation

Serial Divestitures Regarding Terminating NQDC Plan

"A business unit with a frozen NQDC plan was sold to private equity several years ago. Seller retained the NQDC plan as part of the deal, but the seller missed the one-year window to begin distribution of all accounts still left in the plan. Therefore, seller still administering frozen NQDC plan for non-employees. The private equity firm recently sold that same business unit to another private equity group. Can the original seller take the position that this new transaction is a distributable event (i.e., terminate the plan with respect to those involved in the transaction)? It's clear from my perspective that the Seller had the right to distribute the accounts upon the original transaction (but did not proceed because of lack of awareness of that provision), so can the same analysis apply in the second iteration? The plan document indicates that the Company (the original seller in this case) can accelerate distributions upon a change in control. It's not clear if this second transaction could be considered a change in control since the affected employees don't work for the plan sponsor (the original seller). External counsel so far has taken the position that we cannot liquidate the plan in light of the new transaction, but I continue to seek other opinions."

Number of replies posted  1 reply      Number of times viewed  28 views      Add Reply

Free Webinar -- Employee Benefit Plan Technical Hot Topics for 2020

Sponsored by Hall Benefits Law
Do you know the risks and opportunities for employee benefit plans in 2020? The HBL team abated more than $55 million in DOL and IRS penalties this year and will give examples of costly ERISA legal compliance issues and how to avoid them! Join us Nov. 6.

TPApril created a topic in Retirement Plans in General

Disaster Relief Applies to Forms Other Than 5500s?

"Curious if disaster relief applies to other things, in particular notices. We have a notice due by this Saturday, but due to the fires and power outages in CA, the notice may not get distributed in time."

Number of replies posted  1 reply      Number of times viewed  43 views      Add Reply

kmhaab created a topic in 401(k) Plans

Individually Designed 401(k) Restatement Still Required Every Six Years?

"Do individually designed 401(k) plans still need to be restated every 6 years, even though they cannot request a new determination letter? Or are required amendments sufficient?"

Number of replies posted  1 reply      Number of times viewed  43 views      Add Reply

ratherbereading created a topic in 401(k) Plans

Owner's 401(k) Deferral Deadline

"Small plan -- professional corporation, 2 owners (husband and wife). Everyone is paid via W-2, including owners. They just moved from a SDBA with individual accounts to Nationwide. The owners typically deposit their 401k contribution out of one payroll check (max amount). Their plan year is 10/31. They are still trying to decide whether to defer for PYE 10/31/2019. They insist they have until their tax filing deadline. Since they are not a partnership, and don't receive K-1s, I believe their 401k contribution needs to be deposited by 10/31/19, or a couple of days after. Yes? No?"

Number of replies posted  13 replies      Number of times viewed  89 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