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Message Boards Digest

January 22, 2020

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

Egold created a topic in 401(k) Plans

401k Plan

"An employee was excluded from plan. I know they must receive a nonelective employer contribution, but how do you determine the amount? It is also a 3% safe harbor plan, so they get that piece as well."
Number of replies posted  1 reply      Number of times viewed  42 views      Add Reply

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

Premium Tax Credit and Retiree HRA Account

"We have a participant who is receiving a Premium Tax Credit. As such, we have suspended his retiree HRA account for the time period he is receiving the PTC. Participant sends in reimbursement request for expenses incurred prior to receiving PTC. Currently, we deny participants from receiving reimbursement because the account is in 'suspension'. Therefore, no activity allowed in HRA period. Participant is claiming that expenses were incurred prior to receiving PTC so they should be eligible for payout even while account is suspended. IRS PTC Q&A states the following: 'What if the retiree coverage consists of retiree only health reimbursement arrangement (HRA)? If an individual is covered by an HRA, including an individual coverage HRA, for a month, regardless of the amount of reimbursement available under the HRA, the individual is not eligible for the PTC for that month.' Looking for clarification on 'for that month' -- Does it mean that only expenses incurred and submitted for reimbursement while receiving PTC 'for that month' are not eligible or does this also include any previously incurred expenses while the account is suspended or frozen?"

Number of replies posted  0 replies      Number of times viewed  19 views      Add Reply

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

One month lookback rates 417

"Plan document says one month lookback to determine 417e rates. It is early in January and the December rates are not yet entered. Any good guess on the rates? It looks like they will be a small amount higher than November rates. A participant wants their lump sum right away (probably to use their LS for immediate bills). 25 year olds have no understanding nor patience."
Number of replies posted  2 replies      Number of times viewed  36 views      Add Reply

Cynchbeast created a topic in Retirement Plans in General

5500 reports and life insurance

"We have a client with a Profit Sharing plan that includes 2 life insurance policies. Can they still file 5500-SF or do they have to file full 5500?"
Number of replies posted  3 replies      Number of times viewed  46 views      Add Reply

austin3515 created a topic in 457 Plans

457(f) Plan Termination

"What are the considerations regarding terminating a 457(f) Plan. I am obviously aware that we need to be concerned with presumption of a substantial risk of forfeiture. Are there guidelines? Let's say for example scenario A) is the organization voluntarily terminates the Plan; and scenario B) is the organization is actually ceasing operations (perhaps because they lost their primary grant). These are hypotheticals, but I am curious to know what the rules are concerning terminating one of these things."
Number of replies posted  3 replies      Number of times viewed  29 views      Add Reply

Mr Bagwell created a topic in 401(k) Plans

Death of Partner

"I need some direction and thoughts..... A Partner passed away in May 2019 and, evidently, ceased to be a Partner per the partnership agreement. Fast forward to year end and previous Partner is owed the 3% SH and Profit Sharing per the plan document. Who pays the 3% SH and PS for 2019? The other partners? The previous partner's estate? I lean to the other partners, but I just don't know. Where do I go from here? What do I ask? Thanks"
Number of replies posted  8 replies      Number of times viewed  73 views      Add Reply

austin3515 created a topic in 401(k) Plans

Deducted Contribution in 2018 / Never Funded

"Employer A deducts a $10,000 profit sharing contribution on his 2018 1120. The contribution was inadvertently never deposited, and is just being discovered now. Is there any way to 'Cure' the deduction or is the only option to amend 2018 to remove the deduction and pay the new taxes?"

Number of replies posted  5 replies      Number of times viewed  62 views      Add Reply

rocknrolls2 created a topic in Distributions and Loans, Other than QDROs

Distribution Restrictions Applicable to SECURE Act Qualified Birth and Adoption Distribution

"Although it is intended that Qualified Birth and Adoption Distributions are permitted to be taken from any defined contribution plan (Code Section 72(t)(2)(H)(iv)), is anyone considering adopting one for a money purchase plan? According to Section 72(t)(2)(H)(vi)(IV), a Qualified Birth or Adoption Distribution is treated as meeting the distribution restrictions of specific Code sections (which apply to 401(k) plans, custodial 403(b)s, annuity contract 403(b)s and eligible deferred compensation plans). Does the latter section citation concern anyone who has been asked to consider whether to allow Qualified Birth and Adoption Distributions for a money purchase plan? How about as applied to a profit sharing plan without a 401(k) feature?"
Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply
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