Message Boards Digest

November 30, 2020

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

Jakyasar created a topic in 401(k) Plans

New Plan -- Short Plan Year and Short Sponsor Year

"Company started 3/1/2020 with FYE 12/31/2020 so in existence for 10 months in 2020. Want to set up a 401k/PS plan (no SH can be done for 2020 but can be done for 2021). My census:

Key-HCE1 - salary 285k

HCE2 - salary 250k - can he be categorized as non-HCE for 2020

HCE3 - salary 200k - can he be categorized as non-HCE for 2020

Non-HCE - salary 50k

What prorations are required between the salary, 401k deferral and profit sharing (ADP issues aside)? If need to prorate the salaries, what salaries do I need to use for ADP, 410(b) and 401(a)(4) purposes?

If my memory serves me right, I can start the plan from 1/1/2020 i/o short year as well as the limitation year, correct? If this the case, do I need to prorate anything?

Last, because the HCEs (assuming that the non-key HCE cannot be categorized as non-HCE) will have enough of payroll to maximize the deferrals where the non-HCE will not, is this a BRF issue? (Please ignore the ADP testing.)"

2 replies   |    48 views   |    Add Reply

Fulfill Your Ethics Requirements + Obtain 2 CE Credits!

Sponsored by ASC
Join industry leader John Griffin, J.D., LL.M. for an overview of ethical responsibilities, an explanation of IRS Circular 230 from an employee benefits perspective, case studies & more. Register now!

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

401(a)(26) as Applied to Floor Offset Arrangement

"I am looking at a proposal for a cash balance plan that is offset by employer contributions to a 401(k) plan. It looks like there are 20 eligible employees but only the two shareholders have net contribution credits of more than $280K in the cash balance plan. They are both in their late 50s and the plan has a NRA of 65. I seem to recall that for purposes of 401(a)(26), only the benefits after offset can be considered if they are meaningful (0.5% of pay or greater) when a cash balance plan is part of a floor offset arrangement. Whereas benefits before offset are allowed when a traditional defined benefit plan is part of a floor offset arrangement (provided the DC plan has uniform allocations, QJSA etc.) and benefits before offset are meaningful. Agree?"

2 replies   |    39 views   |    Add Reply

Peter Gulia created a topic in Investment Issues (Including Self-Directed)

How Do You Invest a Retirement Plan That Does Not Provide Participant-Directed Investment?

"Imagine an individual-account (defined-contribution) retirement plan that does not provide participant-directed investment. Imagine the participants range from 18-year-olds to workers in their 90s. If you were the plan's trustee or investment manager with complete authority and responsibility to decide the plan's investment policy, what would you do? Would you decide an asset allocation grounded on some average of the participants' ages? Is there another method you might use to balance the potentially differing interests of younger and older participants? Is there some other way -- without changing the plan's provisions -- to manage this fiduciary challenge?"

4 replies   |    42 views   |    Add Reply

Here are the most recently posted jobs on, a service of BenefitsLink:

View job as Retirement Plan Internal Sales Assistant

Retirement Plan Internal Sales Assistant  View details

Southern Pension Services
Tampa FL

View job as Defined Contribution Administrator

Defined Contribution Administrator  View details

E.R.I.S.A., Inc.
Telecommute / Skokie IL

View job as Defined Contribution MEP Account Manager

Defined Contribution MEP Account Manager  View details

Nova 401(k) Associates
Telecommute / Houston TX / Dallas TX / Scottsdale AZ

View job as 403(b) / 457 Account Manager

403(b) / 457 Account Manager  View details

Nova 401(k) Associates
Telecommute / Houston TX / Dallas TX / Scottsdale AZ

View job as DB and DC Plan Administrator

DB and DC Plan Administrator  View details

Tepfer Consulting Group, Ltd.
Lincolnshire IL

View job as 5500 Specialist

5500 Specialist  View details

401K Generation
Altamonte Springs FL

View job as Senior Account Manager

Senior Account Manager  View details

Philadelphia PA

►View More Jobs

►Post a Job

►Get Instant Job Alerts, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2020, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than and are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy