Message Boards Digest

January 9, 2020

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

ratherbereading created a topic in 401(k) Plans

Deferrals from Severance Package to a Terminated Employee

"Participant terminated employment December 2019. The company wants to now give her a severance package of $30,000 and wants her to be able to defer from it. My inclination is she cannot defer from it. They want to instead now say it's a bonus, but I still say no based on this wording under Compensation: 'The payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Employer.' Which it would not have been. Agree?"

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

JAA created a topic in Nonqualified Deferred Compensation

Add Another Deferred Comp Plan to an Existing Irrevocable Rabbi Trust?

"We have seen many circumstances where an employer has an existing rabbi trust and now has a 2nd or 3rd deferred compensation plan that they want to add an account for under the existing rabbi trust. Is this an acceptable amendment? Would consent of the existing beneficiaries be required?"

Number of replies posted  0 replies      Number of times viewed  15 views      Add Reply

Stash026 created a topic in 401(k) Plans

SECURE Act -- RMD Changes -- Amendment Needed?

"Does the RMD change for the SECUREAct require an amendment to adopt for plans? I know things like the $5,000 distribution for a newborn requires an amendment, but I haven't seen anything where it says if the RMD changes also need one or if it's just an automatic change."

Number of replies posted  2 replies      Number of times viewed  59 views      Add Reply, Inc.
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