Message Boards Digest

November 4, 2019

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

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

How much information must be given

"Thank you in advance for any help in this matter. Client with DB floor offset plan left and went to new firm. The new firm is asking for written explanation of how the offset calculation (ie accrued benefits after offset was determined). Question: How much work and time are we required to spend in explaining how the plan was administered. 2. Can there be a charge for our time etc. in putting together this information? Thank you."
Number of replies posted  2 replies      Number of times viewed  51 views      Add Reply

rocknrolls2 created a topic in Retirement Plans in General

When Are the 2020 COLA Amounts Being Announced?

"With the Social Security Administration announcing its COLAs on the taxable wage base as well as the increased Social Security retirement benefit, the IRS now has all the information it needs to be able to announce the 2020 dollar amounts as indexed for the cost of living. Any indication of when this will happen?"
Number of replies posted  1 reply      Number of times viewed  74 views      Add Reply

pixiebear created a topic in Plan Terminations

Terminating non-PBGC covered Defined Benefit Plan

"We have a defined benefit plan that is a lawyer and his employee. They are not covered by the PBGC. Do we have to file the standard termination process in the PBGC instructions for terminating the plan including the 60-90 day notice prior to the termination date? If not, what is the timeline? Thanks!"
Number of replies posted  1 reply      Number of times viewed  149 views      Add Reply

thepensionmaven created a topic in Form 5500

amending Form 5500-SF

"Is there a timeframe within which to file an "amended" return? I do not see any reference in the 2018 Instructions to Form 5500-SF/"
Number of replies posted  1 reply      Number of times viewed  168 views      Add Reply

Maria Danna created a topic in 401(k) Plans

401(a) early withdrawal now considered an overpayment!

"In November 2018, while still employed full-time, I received an early distribution from my Prudential retirement plan that my (former) employer now claims was not available under the terms of the plan. Subsequently, Prudential Retirement informed me that I "received an overpayment in the amount of $8614.18 that was not eligible for a rollover." Prudential is requesting that I pay back this amount in full. I conacted Prudential to explain that this 2018 early withdrawaI was NOT a rollover to an IRA nor to any other retirement plan. At the time of my initial withdrawal request in 2018, I explained to Prudential that I needed the money to pay down miscellanous household, credit card, and medical care expenses. This early distribution was processed without delay, and was ultimately reported on an 1099-R for tax year 2018. I retired in July 2019, and am now receiving monthly payments from that same Prudential retirement plan. However, I'm extremely dismayed over this recent issue, and Prudential has been vague about my options or rights. Bottom line: I am unable to pay back this overpayment amount. I believe I'm the victim of an egregious clawback. What must I do? What can I do?"
Number of replies posted  7 replies      Number of times viewed  225 views      Add Reply

ldr created a topic in Retirement Plans in General

Takeover Amendments and Anti-Cutback Rules

"Good afternoon, In a takeover case, the employer would like to do the following in his new document: 1. Annuities are the normal form of benefit in the current 401(k) plan document. The employer maintains that he did not know this, that nobody has ever been offered an annuity nor have they inquired about one, and certainly nobody has ever taken one. He was genuinely shocked to hear that this provision is in is current document. He maintains that they never had a Money Purchase Pension Plan, a Target Benefit Plan or any other plan at all besides the current one, which started life as a profit sharing plan in 1969 and eventually had 401(k) provisions added to it. The incoming account balance report does not have a source where MPP money or related rollovers are being tracked. It would appear that there never was any reason to have annuities as the normal form of benefit. He wants us to take out any reference to annuities and put in lump sum only. 2. Normal retirement age has been plain age 65, and he wants us to change it to the statutory definition of age 65 or the completion of 5 years of service, whichever comes later. Does anybody see either of these changes to the document as a violation of anti-cutback rules? Thank you for your thoughts."
Number of replies posted  5 replies      Number of times viewed  189 views      Add Reply

mjf06241972 created a topic in Operating a TPA or Consulting Firm

3(16) Services as a TPA

"Trying to get people's opinion of if it makes sense to add 3(16) services as a TPA. I would assume it is an add on service and not required (more of a convenience for the client.) I am a small TPA about 180 clients right now and not sure if it makes sense or is a way to prepare for the possible open mep legislation. Is there certification to become 3(16) authorized and how are people billing clients for this, are a couple of my questions. Any input would be greatly appreciated."
Number of replies posted  3 replies      Number of times viewed  44 views      Add Reply

pb5350 created a topic in Plan Document Amendments

Minor Modifications - Traditional DB plan

"I am restating a traditional defined benefit plan from a prior provider's document to our pre-approved volume submitter document. The plan credits all service with related employers (i.e., members of a controlled or affiliated service group) for eligibility and vesting. However, for purposes of benefit accrual, service with related employers is counted only from the date the related employer adopts the plan (or, if applicable, from the date an employee transfers employment from a non-adopting related employer to the plan sponsor). The IRS did issue a favorable determination letter on the document prepared by the prior provider. I suspect the application was filed using a Form 5300, but I do not know for certain. (The document is in an individually designed format vs. on an Adoption Agreement.) Under the terms of our pre-approved volume submitter base doc, all service with related employers is automatically credited for all purposes. (I see this was a required provision under Section 14.03 of Rev. Proc. 2015-36.) If we move forward with the restatement, I understand the provision limiting credited service for benefit accruals will negate reliance on the IRS advisory letter. Since the plan already has an FDL, I don't believe there is an option to file for a new letter using a Form 5300. The question I have is this: could we reasonably argue that this provision is a "minor modification" to the pre-approved volume submitter language such that we could apply for a determination letter using Form 5307?"
Number of replies posted  0 replies      Number of times viewed  20 views      Add Reply

mctoe created a topic in Governmental Plans

Oversight of Governmental Plans

"What agency has oversight over Governmental DC plans? Are Governmental DC plans ever audited? If yes, by who?"
Number of replies posted  2 replies      Number of times viewed  38 views      Add Reply

Stash026 created a topic in Distributions and Loans, Other than QDROs

Consolidating Loans

"I have a client that wants to allow participants to consolidate loans (take two loans and make them into one). I don't see my plan document/loan policy software addressing this. Does anyone have any guidance as to the language to put in to allow it?"
Number of replies posted  0 replies      Number of times viewed  15 views      Add Reply

pgold created a topic in Retirement Plans in General

COLA 2020

"What are the 415 limits for 2020?"
Number of replies posted  1 reply      Number of times viewed  38 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