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Message Boards Digest

January 21, 2020

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

chibenefits created a topic in Health Plans (Including ACA, COBRA, HIPAA)

HIPAA Requirements for Actively at Work Treatment

"Medical plan requires that a participant be 'actively at work' to be eligible. The definition of 'actively at work' includes the following: 'As required by HIPAA, absence from work due to any health factor (such as being absent from work on sick leave) is treated, for purposes of the Plan or coverage under the Plan, as being actively at work.' I have not ever heard of such a requirement under HIPAA. What provision(s) of HIPAA or the regs address(es) this?"

Number of replies posted  3 replies      Number of times viewed  35 views      Add Reply

Pam S. created a topic in Distributions and Loans, Other than QDROs

Ongoing Hardship for Expensive Prescription Not Covered by Insurance

"We have a client whose plan allows for hardships from 401k Deferrals and Safe Harbor sources using the safe harbor rules. The participant's dependent needs a $2,000 prescription each month. The medication is not covered by their insurance. The participant asked if it would be possible to get a hardship distribution to cover the cost of the medication for the next 3 years ($2,000 each month for the next 36 months). My concern here is that he won't actually have proof of the hardship for a total of $72,000. He'll only have a monthly bill for the medication. Which means he'd need ito submit a hardship request each month to cover the cost of the medication. Agree? Suggestions as to how to help these people?"

Number of replies posted  7 replies      Number of times viewed  69 views      Add Reply

hsally created a topic in 401(k) Plans

Stop 401(k) Contributions, Start My Own IRA?

"My company offers 401K, but they're shady and don't deposit the funds in the 401K acct for months. They do it when they're caught after multiple reminders and much pressure. Also, no match. I'm tired of the cat and mouse game with them. I'd like to contribute nothing this year and instead do my own IRA. If i read this right -- https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan -- then if i contribute nothing to my 401K all year, I'm not considered covered such that I am allowed contribute to IRA (as if my employer didn't have a 401K plan). Am i interpreting that right?"

Number of replies posted  1 reply      Number of times viewed  49 views      Add Reply

perkinsran created a topic in 403(b) Plans, Accounts or Annuities

403(b) Employer Contribution Testing

"Client contributes 7% as employer contributions if employee contributes at least 5%. Less than 5% employees receives $0. In testing this plan for nondiscrimination testing, would it fall under ACP or 401(a)(4)?"

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

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

Cover Arrears with Amended QDRO After Divorce

"I have a successful QDRO in place that cover both the debt incurred in marriage and my 50%. My ex-husband had a loan balance that incurred during our marriage that he has now paid back into his 401K in the state of Missouri. He is now behind on child support. He hasn't filed income tax for the last 2 years. I can guarantee that he's not going to file for 2019. My question is, how can I amend the judge-signed QDRO to collect on the arrears he has incurred? Is it possible to collect on 3 months of future payments as a safety net that he doesn't fall back in the near future?"

Number of replies posted  2 replies      Number of times viewed  34 views      Add Reply

EBECatty created a topic in 401(k) Plans

Safe Harbor Match and Safe Harbor Nonelective During Transition Period

"I believe this is permissible, but am hoping someone with more testing experience can confirm. Say Company A acquires the assets of Company B. Company B employees will become Company A employees at closing. Company A has a safe harbor match 401(k) plan, and Company B has a safe harbor nonelective 401(k) plan. If Company A assumes sponsorship of Company B's plan, can both plans be maintained separately (for their respective pre-acquisition employee populations) during the 410 transition period without any adverse testing consequences?"

Number of replies posted  3 replies      Number of times viewed  36 views      Add Reply

t.haley created a topic in Distributions and Loans, Other than QDROs

SECURE Act and Credit Card-Based Loans

"Plain language of SECURE Act prohibits loans from a 401k plan using credit or debit cards, effective for loans made on or after 12/20/19. Despite this, plan sponsor issued loans to multiple participants after this date using credit card method (but has since ceased doing this). Any other remedy other than issuing 1099-MISC to these participants who got loans via credit card after 12/20/19?"

Number of replies posted  2 replies      Number of times viewed  32 views      Add Reply
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