Message Boards Digest

February 4, 2020

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

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

Can an Actively Employed Non-Owner Participant Delay RMDs Beyond Age 72?

"I've read through many overviews of the SECURE Act. One item that isn't clear to me is whether an active non-owner employee can delay their RMDS beyond age 72, as they could under the old 70-1/2 rules."

Number of replies posted  4 replies      Number of times viewed  56 views      Add Reply
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Belgarath created a topic in Cross-Tested Plans

Nondiscrimination Testing After Self-Correction

"DC plan utilizes cross testing. The rate groups either pass the ratio test, or the plan passes the ABT test. Fast forward a year, and it is discovered that census data was incorrect, and one or more participants were improperly excluded. So the employer has to do make-up contributions, matches, whatever. Is it necessary to go back and re-run the nondiscrimination testing taking into account the corrections? I don't think so, but I'm not putting my finger on the guidance to back that up."

Number of replies posted  3 replies      Number of times viewed  43 views      Add Reply

Teatree created a topic in 401(k) Plans

Creating a 401(k) Plan by One of Several Companies in Controlled Group

"Several companies are in the same brother sister controlled group. None has ever had a 401(k) plan. One of the companies wants to set up a 401(k) plan that would cover just its employees. Can that company do that or must the plan allow participation by employees of other brother-sister companies? Also, assuming that the company can set up a 401(k) plan to cover just its employees, would discrimination testing be done on just that company's employees or must it include employees from all the other brother-sister companies?"

Number of replies posted  3 replies      Number of times viewed  49 views      Add Reply

oldman63 created a topic in 457 Plans

Governmental Hospital Wants to Start a 457(b) Top Hat Program

"A governmental hospital claims dual status in sponsoring a 403(b) plan. They now wish to offer a tax exempt 457(b) top hat plan. I am not sure they can. Treas. Reg. section 1.457-1(m) states: 'Tax-exempt entity. Tax-exempt entity includes any organization exempt from tax under subtitle A of the Internal Revenue Code, except that a governmental unit (including an international governmental organization) is not a tax-exempt entity.' Although the hospital's administration of a 403(b) plan is due to their dual status, I believe the aforementioned regulation prevents them from offering a tax-exempt 457(b) top hat plan. Agree?"

Number of replies posted  0 replies      Number of times viewed  17 views      Add Reply

AlbanyConsultant created a topic in Retirement Plans in General

S-Corp 2% Shareholder Health Insurance Not Reported on W-2

"I agree that if the health insurance benefit for a >2% S-corp shareholder is included in W-2 Box [1] It is included in plan compensation (we use W-2 definition) and 415 comp. But I've got an accountant (several, actually) who doesn't get that information to be added in -- he claims that his way, it ends up deductible to the employee, not the S-corp, so he doesn't bother adding it to the W-2. Further, it means he doesn"t have to chase it down while preparing W-2s.

I'm not an accountant, so I don't know how OK that is, but what I do know is that there are some participants whose 'compensation' is significantly affected by this, and are now receiving a few thousand less in profit sharing. Is there a leg for us to stand on as TPA to add that amount in, even though it's not on the W-2? Or do we just tell the plan sponsors to get more diligent CPAs?"

Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply, Inc.
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