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Message Boards Digest

August 31, 2020

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

Sebastian23 created a topic in Miscellaneous Kinds of Benefits

Stock Repurchase as Condition of Severance

"Suppose an employee has a separation agreement that entitles him to 50% of his annual salary in a lump sum. Employee is also entitled to equity in the company (25% is vested upfront, and 75% with accelerated vesting upon termination for any reason).

The parties agree that, in lieu of receiving the lump sum severance payment and other benefits, the company will repurchase 75% of the stock held by employee at a predetermined price, on a pre-determined future date (after the 1 year capital gains date).

[1] Upon signing the separation agreement now, would the employee be in 'constructive receipt' of the cash from the repurchased stock, or would receipt only occur when the cash hits his account? This matters for the 1 year capital gains treatment, which occurs 2 months after the separation agreement will be signed.

[2] Would cash from the repurchase of employee's stock be taxable as capital gains or ordinary income? This transaction would be arranged as a stock transfer agreement, but the purchase price would be set in the separation agreement, and is binding upon the employer."

0 replies   |    36 views   |    Add Reply
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jeff77 created a topic in Retirement Plans in General

Looking for an EGTRRA Opinion Letter for DATAIR Document

"Does anyone know where I can find an EGTRRA advisory/opinion letter for DATAIR VOLUME SUBMITTER CASH OR DEFERRED PROFIT SHARING PLAN 06-070. We don't use Datair and I tried calling them with no answer."

0 replies   |    70 views   |    Add Reply

TPApril created a topic in Form 5500

DFVC Program -- Must Submit the Filed 5500s?

"Unclear from DFVC FAQ: when paying DFVC fee electronically online, is there a requirement to also submit PDFs of the applicable 5500s electronically or to mail in copies of the paper forms? No response from their hotline."

2 replies   |    54 views   |    Add Reply

austin3515 created a topic in Relius Administration

Relius Administration Software -- Importing a DER

"I'm not talking about the data, but the definition of the DER itself. I have an access program that builds my takeover transaction data file for import. We have to manually create the DER itself one column at a time. I was wondering if there was a way to import the DER definition into DER set-up somehow. I don't think there is but thought I would ask."

0 replies   |    22 views   |    Add Reply

imchipbrown created a topic in Operating a TPA or Consulting Firm

TPA Practice Winding Down; What to Do About Records Retention?

"I'm winding down and as clients retire or move on, I'm wondering about record retention. I've got filing cabinets worth of old 5500s, Plan Documents, valuations, trust accountings, etc. All my paper has either been provided to me, or generated by me and sent to the clients. So, the questions are, how long do I have to keep this stuff? Does anyone charge for record retention? Do you offer to send the client all your files? Shredder's looking hungry.

1 reply   |    39 views   |    Add Reply

mtemp created a topic in Qualified Domestic Relations Orders (QDROs)

Any More Benefits Coming to Me Upon my Ex-Husband's Retirement?

"If I received half of my ex-husband's pension at the time of our divorce (2006), I am not entitled to anything more once he retires next year, right? A QDRO is listed in his benefits from our divorce."

4 replies   |    44 views   |    Add Reply

Belgarath created a topic in 401(k) Plans

Sole Prop Defers on Draw, Then Has Zero Sched C Income

"Florida Swampland Realtors is a sole proprietorship, no common-law employees. The owner and sole employee, I. M. Cheating, defers maximum based on a salary draw for 2020. After end of year, taxes get done, and it turns out he has zero earned income -- actually a big loss. So there's a 415 excess, plus earnings, to be refunded. Refunded in February of 2021. 1099-R is issued with the amount being shown as taxable, right? In other words, no way to use a special code to report this as non-taxable? A CPA is questioning this, and I want to make sure I'm not cracked."

6 replies   |    50 views   |    Add Reply

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