Message Boards Digest

July 6, 2020

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

CarolC created a topic in 401(k) Plans

Earnings in Forfeiture Account

"I don't usually worry about $5 or $10 in earnings in forfeiture accounts, but recently I am seeing large plans with $3500 and $5000+ in annual earnings. The employer is using forfeitures and their earnings to offset discretionary contributions. It feels wrong - the earnings part, I mean. Wouldn't this be a prohibited transaction? I feel more confident that it would be a PT if it were Safe Harbor/QNEC/QMAC contributions they were using earnings to offset. Your thoughts and guidance will be appreciated!"
0 replies   |    47 views   |    Add Reply

Gerald G created a topic in Qualified Domestic Relations Orders (QDROs)

Would a QDRO be necessary to get a judge to sign off a Default Judgement in California?

"Processing a divorce and in the final stretch. Have to file the FL-345 again so I can get processed and go to the judge. Section e speaks on the QDRO(for 401k). The Respondent is not involved. Does that mean that I still need to check that option and informed the judge that I will he getting a QDRO done? Or could i leave it blank?"
0 replies   |    40 views   |    Add Reply

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

COBRA coverage while moving abroad?

"Hi, Can I still keep my coverage under COBRA if I'm moving abroad? My company offers coverage, and I'll only really need this when I'm visiting the US for work (month and a half a year). I'm moving to a country with a weaker healthcare system, and ideally would like to keep getting looked after my doctors in the US when I do make the short visits back for work. The insurance plan my employer is offering me locally in the country I'm moving to does not cover international so money wise, it makes sense for me. My underlying health condition cost way more for checkups and tests than the cost of paying for annual coverage under COBRA. Thanks,"
0 replies   |    28 views   |    Add Reply

Belgarath created a topic in 403(b) Plans, Accounts or Annuities

403(b) nonamenders

"It has already started!! Just got the first panic call from someone who ignored the June 30 deadline. So, anyone have any "pipeline" to the IRS re some sort of special offer for reduced VCP filing fee for a nonamender if they submit within, say, the next year or whatever, similar to what they did for PPA nonamenders?"
0 replies   |    29 views   |    Add Reply

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

ACA Section 1557 Covered Entity?

"Does participation in a state Medicaid program subject a healthcare provider (specifically, cognitive behavioral therapist) to ACA Section 1557 under the new final rule?"
0 replies   |    46 views   |    Add Reply

stephen20 created a topic in 401(k) Plans

Entry date confusion, Need Expert Help

"Plan Entry Requirements are: 21 year of age, 1000 Hours, Entry-01/01 & 07/01. Break in service- 5 Mr.xz is employed on 01/05/2018 and terminated on 08/29/2018, in the mean time he did 1000 hours. After that he rehired on 09/11/2019.. What will be his entry date? I'm so confused about rehired. Please guide me on this issue."
5 replies   |    73 views   |    Add Reply

Belgarath created a topic in 403(b) Plans, Accounts or Annuities

Public School plan - union employees

"So, a situation has been brought up where a public school has a 403(b) plan, elective deferral only. They utilize the 20 hour exclusion (which I'm sure they are botching, but that's a separate item). The PLAN does not exclude any compensation from elective deferrals. On the other hand, the collective bargaining agreement states that elective deferrals will not be withheld from "Summer paychecks." I'm paraphrasing here, because I have no documentation on this - only a phone call from the school's business office. Assuming this is correct, how could one reconcile this? Could the collective bargaining agreement be deemed to be an "election" by all members to stop deferrals for Summer pay, and to restart them again when school resumes in the Fall? Failing that, or some similar interpretation, it seems like an operational violation (which has apparently been going on for anywhere from 10 to 25 years). Going forward, since they didn't restate their document, could this "piece" of compensation simply be excluded for purposes of elective deferrals, without violating the universal availability requirement? I'm not sure that 1.403(b)-5(b)(2) prohibits such an exclusion, but it also seems as though it could be read that it DOES prohibit such an exclusion. Sort of a gray facts an circumstances issue. Has anyone ever dealt with this issue? As an ancillary issue, has anyone ever seen a situation where the collective bargaining agreement prohibits union members from deferring in the plan? What happens then - you apparently have a legal collective bargaining agreement that is presumably enforceable, yet this is a plan disqualification issue?"
1 reply   |    45 views   |    Add Reply

LSU2020 created a topic in Correction of Plan Defects

Overpayment from Terminated 401(k) Plan II

"Seller 401(k) plan is terminated mid-year. The 415 regs provide that in such case the limits are reduced pro-rata based on the plan termination date. As a result of the reduction, 415 was exceeded for some participants who terminated employment and took their balances (with the excess amount). EPCRS Section 6.06(4) indicates that if a former employees does not return an overpayment, then the employer or "other person" must put the funds in the plan's forfeiture for use for future contributions. But here the plan is terminated and so there will not be any future contributions and all funds int he forfeiture account will be used to pay expenses. Is there an argument that in this case there is no need for the employer to put the funds into plan because this plan is not harmed if the funds are not returned as the other participants will not get the funds? Thoughts."
1 reply   |    45 views   |    Add Reply

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

Change in Actuary

"Hello all knowledgeable and thinking people. I was a signing actuary for a client and last Schedule SB I signed was for 2017. Before signing 2018 SB I have departed from my employer and another actuary of the same firm has signed Schedule SB for 2018. The Schedule C for 2018 has never reported that there was a change in Actuary and my perspective is that an Actuary is an individual and not the firm. I have never received a notification from the client that my services as Enrolled Actuary have been terminated. Here are my questions: 1) What does it mean from the client perspective? Do they need to fix it at least by formally informing me that my services have been terminated? Do they have any exposure from not doing it correctly on 2018 Schedule C? What are the potential ramifications? I had (and still have) a very good relationship with the client and would like to minimize any potential negative consequences for them if there are any. 2) What does it mean from my perspective as an individual Enrolled Actuary who has never been formally terminated? Am I still formally their enrolled actuary? Do I have any professional exposure here? All thoughts are appreciated. 3) If I were to take over the actuarial work for this client and become their Enrolled Actuary "again" would I need to report the "interim" actuary being terminated? Or would I just let it slide since I have never been "terminated" myself? Any other thoughts and questions about this situation are appreciated as well."
1 reply   |    67 views   |    Add Reply

Litlaw created a topic in Litigation and Claims

Online Litigation Laws Becomes a New Normal after Covid-19 Crisis

"Moderator Edit: deleted advertising 07/04/2020."
0 replies   |    52 views   |    Add Reply

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