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Message Boards Digest

May 28, 2020

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

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

Distribution from DB Plan to Restricted Employee

"DB plan restricted employee retired at age 62, NRA is 65. The regulations say the payment is restricted to a straight life annuity that is the actuarial equivalent of the accrued benefit and other benefits to which the restricted employee is entitled under the plan (other than a social security supplement). The plan's definition of actuarial equivalence is 8% UP84. The early retirement reduction is defined as 1/15, 1/30. The normal form is 5 C&L. Given the ER factors the plan's early retirement life annuity is much larger than the actuarial equivalent life annuity using 8% UP84. Is the subsidized ER benefit considered 'other benefits'? Are the early retirement factors considered actuarial equivalence? What is the restricted payment amount in this situation?"

0 replies   |    34 views   |    Add Reply
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mming created a topic in Distributions and Loans, Other than QDROs

Can a CRD Be Directly Rolled Over to a Roth IRA?

"A qualifying participant wants to take a $100k CRD from their 401(k) plan and roll it over directly into their Roth IRA because the tax liability can be spread out over 3 years. Although this is not what the legislators had in mind when the CARES Act was drafted, I can't seem to find anything that specifically prohibits what essentially amounts to a Roth conversion. Is such a direct rollover legal? If not, could the $100k be paid to the participant and then rolled over into a Roth IRA, or is a Roth conversion only possible via a direct rollover?"

6 replies   |    73 views   |    Add Reply

Just Tri created a topic in Retirement Plans in General

414(s) Safe Harbor Exclusion for HSA Contributions?

"Would an employee's HSA contributions withheld from paychecks be a safe harbor exclusion?"

3 replies   |    34 views   |    Add Reply
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