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Message Boards Digest

July 2, 2020

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

Jakyasar created a topic in Cross-Tested Plans

Is gateway required

"Hi Drawing a blank. Looking at a combo plan design which is not the way I do but asked to look at it. DC plan provides ADP SH Match, standard 100% up to 3% + 50% between 3%/5%. PS portion has 1000 hours plus last day rule. 2 participants terminated with 750 hours and prior to EOY however they bot deferred. Employer wants to make a profit sharing contribution (they are aware of the additional cost as they do not have 3% non-elective SH) The plan is also combined with a DB plan so testing together. Let's say the gateway minimum is 7.5%. Top heavy only in the DC plan (5%) and also required last day rule. Assuming that the terminated employees were not excluded in the DB (and not accruing any benefits), do they need to get any profit sharing as gateway? If they are excluded within the DB plan categorically, I do not believe they need to get any PS allocation, correct? Anything else I missed? Thank you"
4 replies   |    48 views   |    Add Reply

rocknrolls2 created a topic in Health Plans (Including ACA, COBRA, HIPAA)

Is Infertility an Essential Health Benefit?

"A client maintains a self-funded group health plan for its employees. There is a proposal to amend the plan to subject reimbursement for infertility services to a lifetime maximum of $25,000 per family for in-network and out-of-network care. Are infertility services considered an essential health benefit which would make the proposed lifetime limit illegal?"
2 replies   |    29 views   |    Add Reply

5500Nerd created a topic in Form 5500

Wrap Plan Document and Health Care Sharing Ministries

"Are Health Care Sharing Ministries subject to ERISA if the benefit is endorsed by the employer/Plan Sponsor? Many, many thanks for your help!"

0 replies   |    21 views   |    Add Reply

Santo Gold created a topic in Retirement Plans in General

Eligibility question: 1000 hours but less than 12 months

"Checking if the following eligibility condition could be used in a plan. The employer wants to keep PTimers out of the plan and those who are PT will work less than 1000 hours. But the employer also wants to bring FTimers into the plan after they meet 1000 hours, but bring them in immediately or the month following they get to 1000 hours, even if they meet that in less than 12 months. Using a prototype document, if we use less than 12 months for eligibility, we cannot have an hours requirement and the PT would be able to enter the plan. So we need eligibility to be 12 months and we want the 1000 hours with it. While our prototype does not have this specific eligibility condition as an option, it does have an "other" eligibility allowance and we could state this in that section. But is this eligibility condition allowable othewise? Thank you"
2 replies   |    40 views   |    Add Reply

George Harrison Ford created a topic in 401(k) Plans

Partner 401K Contribution Calculation

"Hi all, I'm a little confused regarding partner 401K contribution calculations and how to report this on the Form 1065, K-1, and Form 1040. The situation is this: I have a partner in a general partnership with $200K self-employed income and they want to make the maximum allowable contribution to the partnership 401K ($62K since they are over age 50). I use the deduction worksheet for self-employed provided on Pub 560 and lo and behold they are allowed to take the full $62K deductible contribution. I believe at this point the $62K should be reported on line 13d of schedule K (code R), $200K self-employment income should be reported on line 14a of schedule K. The schedule k-1 should show the same thing: box 13, code R will be $62K, and box 14, code A will be $200K. These amounts then go on the 1040 and the $62K deduction is reported on schedule 1. The CPA is telling me that the amounts in excess of $25K are the partnership matching contributions and that they'll need to pay SE taxes on the excess. Is this the case? I don't see anything on Pub 560 talking about adjusting self-employment earnings, so this just threw me in a loop. I think I explained the situation well, but let me know if I've missed out on any crucial details. Appreciate the help!"
1 reply   |    31 views   |    Add Reply

K-t-F created a topic in Distributions and Loans, Other than QDROs

Cancel Plan Loan, call it COVID Dist?

"A plan participant asked me if they could cancel their plan loan because they were finding it hard to make the payments. I wonder if the loan balance could be considered a distribution... a COVID distribution not subject to the 10% excise tax. Thoughts? Note: this participant does qualify for the COVID Dist... works for a dentist and has not worked for months at this point."
4 replies   |    36 views   |    Add Reply

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