Message Boards Digest

June 16, 2020

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

Pri created a topic in Plan Terminations

Revenue Sharing/Credit for Terminating Plans

"For terminating plans I believe we can turn off the revenue credit getting posted into the plan, but would this require a plan amendment?"

0 replies   |    15 views   |    Add Reply

t.haley created a topic in Defined Benefit Plans, Including Cash Balance

Effect of Uncashed Distribution Check During Claim Appeal

"Client completed paperwork to received lump sum distribution based on benefit estimate. By the time the paperwork was processed and check was issued, IRS issued new interest rates used to calculate lump sum. Plan sponsor applied new interest rates, resulting in lower distribution than shown on benefit estimate. When client received distribution check for lower amount, he began claims process to dispute benefit calculation (the appeal process is currently on-going). He never cashed the distribution check, which is now stale. Due to the passage of time, the applicable interest rates have again changed, but now in my client's favor. If his benefit was calculated today he would receive more than the original estimate. My question: what effect, if any, does the fact that he went through the process to request a distribution and received a check (but did not deposit it) have on his right to start over with the distribution process and request a new distribution based on the new interest rates?"

11 replies   |    87 views   |    Add Reply

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

Undoing an RMD Under CARES -- But Participant No Longer Employed

"A participant received a 2020 RMD on March 1, 2020 (the individual is a terminated, non-5% owner who reached required beginning date many years ago). The CARES Act later waived the RMD for the 2020 year and the participant wishes to repay/roll this RMD back into the qualified plan from which it was distributed within 60 days (or by July 15th pursuant to IRS Notice 2020-23). However, the terms of the qualified plan document only permit incoming rollover by 'employees.' Since this individual is no longer an 'employee,' can the individual actually roll over such amount back into the plan as an indirect rollover?"

1 reply   |    36 views   |    Add Reply

justatester created a topic in 401(k) Plans

Form 5330 Excise Tax on Late ADP Corrections -- Use Plan's Forfeitures Account?

"Can the plan sponsor use the proceeds from the forfeiture account to pay the excise tax due on late ADP corrections? I understand they will need to pay it directly and the potential get reimbursed from plan."

4 replies   |    45 views   |    Add Reply

BenefitsBum created a topic in 401(k) Plans

Missing Participants -- IRS Requires Forfeiture Reinstatement Upon Plan Termination?

"I know the subject of reinstatement of forfeitures on plan termination has been covered before, but I don't believe it was ever in the context of amounts that were forfeited under 1.411(a)-4(b)(6) for missing participants. The PBGC seems to believe that a plan termination does not extinguish a participant's right to claim a reinstatement of such forfeiture. What about the IRS though? Does the IRS expect all amounts previously forfeited for missing participants to be reinstated when a plan is terminated?"

1 reply   |    33 views   |    Add Reply

Jakyasar created a topic in Retirement Plans in General

Deduction When Fiscal Year Is Different Than Plan Year

"Looking into adding a DB to an existing 401k plan. Sponsor FYE is 6/30 however the 401k plan is a calendar plan. Definition of compensation is plan year. Not designed by me, takeover. If a DB is designed the same way, i.e., effective 1/1/2020, and plan year compensation is used, can the deduction be taken for 6/30/2020 corporate year end? Of course, we will have to wait next year until the salaries are established. The design is important because both plans will be tested together. In the past I have always used the salary paid for the FYE within the PYE, never salary paid for the plan year in which the FY ends. What am I missing/not seeing here?"

2 replies   |    40 views   |    Add Reply

ITCONSTRUCTS created a topic in Operating a TPA or Consulting Firm

CPA Looking for a TPA Partner

"I am looking for TPA to partner with. I am a CPA and looking to grow the TPA side of my business. Please message me directly if interested."

0 replies   |    34 views   |    Add Reply

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

Violation of Medicare Secondary Payer Rules -- Can Harm the Employee?

"If an employer improperly provides an incentive to a Medicare-entitled employee to waive employer-based coverage or otherwise violates the Medicare Secondary Payer rules with respect to that employee and Medicare learns of this, is there any potential adverse consequences to the employee for such violation?"

0 replies   |    11 views   |    Add Reply

doombuggy created a topic in Form 5500

Final 5500-SF Due 6/30/2020 But Want to File in July

"So I have a plan that terminated and their final Form 5500-SF and Form 8955-SSA are due 6/30/20. We are waiting for them to pay our final bill before filing. Because of the automatic extension, if I filed it between 7/1 and 7/15/20, do I have to check any box on the form? Or just send it in like normal?"

0 replies   |    18 views   |    Add Reply

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