Message Boards Digest

January 14, 2020

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

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

RMD Start Date

"I am trying to determine when the first RMD is due for this participant in a Cash Balance Plan. He is 100% owner of the plan sponsor. Turns 70-1/2 in 2018. Plan's original effective date is 1/1/2018. Plan uses an end of year (12/31) valuation date. Plan excludes service prior to the effective date for vesting purposes. Vesting schedule is 3-year cliff. Would the first RMD be due 4/1/2021?"

Number of replies posted  3 replies      Number of times viewed  60 views      Add Reply
[Advert.] -- Outstanding Content -- Affordable Pricing

Sponsored by Burrmont Compliance Labs LLC Find out why we are the fastest-growing ERISA Compliance Service in the industry. Outstanding authors, customer satisfaction & support. Contact us to see what we can do for you. or 612-605-2266

bzorc created a topic in Retirement Plans in General

Permanent Opt-Out Form

"Does anybody know of or have a template for a Permanent Opt-Out Form?"

Number of replies posted  0 replies      Number of times viewed  25 views      Add Reply

chibenefits created a topic in 401(k) Plans

Pro Rata Profit Sharing Contribution

"Employer uses a uniform formula for allocating profit sharing contributions. The formula utilizes various classes of employees based on years of service. The employer wants to further pro-rate each employee's share by the number of weeks in the year that the employee is actively employed. Is this allowed under 1.401(a)(4)-2(b)(2)? If not, is there another basis for allowing the pro-ration?"

Number of replies posted  2 replies      Number of times viewed  47 views      Add Reply

BTG created a topic in 401(k) Plans

Deferrals from Third Party Sick Pay

"Taxable third party sick/disability pay (e.g., where the premiums are employer paid or are treated as such because they are made pre-tax through a cafeteria plan) would be included in a W-2 definition of plan compensation. As a practical matter, how are deferrals on these amounts handled where the amounts are paid by the third party insurer directly to the participant? Do any insurers actually withhold deferrals and forward to plan sponsors for deposit in the plan?"

Number of replies posted  7 replies      Number of times viewed  86 views      Add Reply

Vlad401k created a topic in 401(k) Plans

Controlled Group with a Safe Harbor and a Non-Safe Harbor Plan

"There is a SH plan and a Non-SH plan in a control group. They both pass coverage on their own, so aggregation for ADP/ACP is not required. However, there is at least 1 key employee in each plan, so they must be aggregated for Top Heavy purposes. The plans are top heavy. Do the Non-Key employees in the SH plan have to receive the Top Heavy minimum contribution? Because that plan is SH, my thinking is that they don't."

Number of replies posted  0 replies      Number of times viewed  18 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 2020, 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