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Message Boards Digest

January 2, 2020

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

Jakyasar created a topic in Retirement Plans in General

Effect of SECURE Act on Owner Who Turns 70-1/2 in 2020, and Effect on Normal Retirement Date

"Have a DB plan and the owner will turn 70-1/2 in 2020. Does that mean the RMD is not due until the calendar year he turns 72 (2021)?

"Another question: Because the SECURE Act lowered the in-service distribution age to 59-1/2 under defined benefit and money purchase plans (target benefit plans too), can we start designing DB plans with normal retirement ages of less than 62?"

Number of replies posted  3 replies      Number of times viewed  77 views      Add Reply

austin3515 created a topic in Computers and Other Technology

Paperless Binder Solutions?

"What are people doing for paperless binder solutions (i.e., saving your workpapers). We currently have an Access program but we might outgrow it."

Number of replies posted  4 replies      Number of times viewed  52 views      Add Reply

Zach Hertz created a topic in 401(k) Plans

Who Can Sign 401(k) Plan Documents?

"This is a case of an initial adoption agreement and the initial consent/resolution. It's the first 401(k) plan for the business. My wife and I own/operate an S Corporation, but due to the rules and regulations of medical corporations in California, I'm not allowed to be an officer or shareholder of the S Corp. She is technically the sole shareholder and the sole officer of the corporation. Our 401(k) TPA told me that a simple board of directors resolution giving me signing authority is sufficient, but I can't seem to find any legal info to back that up. I'm thinking of just having her sign documents for sake of simplicity (even though I will doing all the day to day work)."

Number of replies posted  2 replies      Number of times viewed  68 views      Add Reply

austin3515 created a topic in 409A Issues

Want to Design Nonqualified Deferred Comp Plan to Provide Vesting upon Change in Control

"Deferred comp plan provides that benefits accrued will vest based on a rolling vesting schedule. The sponsor and the Participants want the money to become vested if the sponsor is bought. Any words of advice and/or caution?"

Number of replies posted  3 replies      Number of times viewed  34 views      Add Reply

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

Getting My QDRO Enforced

"How do you file enforcement of a QDRO to the plan manager with a judge? My ex-spouse is deceased."

Number of replies posted  1 reply      Number of times viewed  32 views      Add Reply

EM created a topic in 401(k) Plans

What Are My Options for My 401(k) Loan Wrongly Reported to IRS as Defaulted?

"When employed with my previous employer I took a 401k loan (November 2015). I quit and joined my current employer in January 2018. I set up an auto-debit with my fund manager (Fidelity), for monthly deductions from my bank to pay off the loan. When checking my bank account last month (December 2019), I find that my account was not debited starting in January 2019. I find that Fidelity had sold it to Transamerica in January 2019. I got a letter about the transfer from my old employer but nothing about the loans, so I assumed the loans were taken care of. When I called Transamerica, they say they had defaulted my loan and sent the note to IRS because they had not received payment. They said they sent me a letter notifying me of the initial transfer and the default, but I did not receive any such letter. They emailed me a copy -- I see the postal address was wrong in their mail. They do have my correct postal address in their records but they sent the letter to an incorrect address. The person handling this issue at Transamerica is not very knowledgeable. Every time, after being on the call for about an hour or two, she says she will check with someone else.

"I see some contradictions in what she says: [1] She says once transferred Transamerica does not allow monthly payment of loans and a one-time payment of remaining amount should have been made. But the default letter says the monthly amount was not paid. [1] She says transfer notice and default notice was sent to my house , but after I requested her to email me the sent default postal mail, I see it has the wrong address [3] First she said nothing can be done because they already had notified IRS, but now she said their research team is researching.

"What are my options? I did not intend to default and I'm also ready to pay the total amount now to avoid taxes and penalty on the remaining amount. The remaining amount is about $13,000."

Number of replies posted  2 replies      Number of times viewed  73 views      Add Reply

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

Applying the Tax Credit Provided Under the SECURE Act

"If a small business has an existing 401(k) but then sets up a cash balance plan, could they use the tax credit for the cash balance plan? Is the tax credit per employer or per plan?"

Number of replies posted  3 replies      Number of times viewed  39 views      Add Reply
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