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Message Boards Digest

December 22, 2020

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

Belgarath created a topic in Health Savings Accounts (HSAs)

HSA Deductions Not Deposited Into HSA Account -- How to Fix?

"Curious to know what 'fix'--if any, might be available. Say an employer withheld HSA contributions in a prior year (2019). Never deposited them into the HSA. W-2 for 2019 showed the deductible HSA amounts. Now the error is discovered. Is it just a case of 'so sorry, too bad' and a revised 2019 W-2 must be done, or is there a 'correction' such as depositing the HSA funds now (although I suppose the HSA custodian might not allow it anyway)."

3 replies   |    36 views   |    Add Reply

Peter Gulia created a topic in Retirement Plans in General

Which Unnamed Retirement Plan Is Being Given This Special Tax Treatment in the Pending Budget Bill?

"Here's a brain-teaser for the super-smart BenefitsLink mavens. A section of the Consolidated Appropriations Act of 2021, if enacted into law, amends Code Section 401(a)(36) to allow a Section 401(a)-qualified plan to provide a distribution to a worker not yet separated from employment as soon as age 55. But that change applies only for 'a multiemployer plan ... with respect to individuals who were participants in such plan on or before April 30, 2013, if -- (i) the trust to which [the before-separation provision] applies was in existence before January 1, 1970, and (ii) before December 31, 2011, at a time when the plan provided that distributions may be made to an employee who has attained age 55 and who is not separated from employment at the time of such distribution, the plan received at least [one] written determination from the [IRS] that the trust to which [IRC Section 401(a)(36)(A)-(B)] applies constituted a qualified trust under [IRC Section 401].' Which plan our there does that provision apply to? (It's not named in the statute, but obviously the many particular conditions are intended to describe a particular plan.)"

7 replies   |    83 views   |    Add Reply

Peter Gulia created a topic in Retirement Plans in General

Possible New Safe Harbor for Partial Terminations in 2020

"The Consolidated Appropriations Act of 2021, if enacted into law, will treat a situation in 2020 as not a partial termination 'if the number of active participants covered by the plan on March 31, 2021 is at least 80 percent of the number of active participants covered by the plan on March 13, 2020.'"

3 replies   |    39 views   |    Add Reply

Peter Gulia created a topic in Retirement Plans in General

Money Purchase Plans Might Be Allowed to Provide Coronavirus-Related Distributions

"The Consolidated Appropriations Act of 2021 (if enacted into law) amends, retroactively, the CARES Act to allow a tax-qualified money urchase plan to provide a coronavirus-related distribution!"

0 replies   |    17 views   |    Add Reply

Gadgetfreak created a topic in Nonqualified Deferred Compensation

Tax Reporting of Investment Earnings for Employer-Held Assets Used to 'Fund' a 409A/NQDC Plan

"A client wants to set up a funded 409A Top-Hat/SERP Plan for executives with participant direction. As I look for a provider that offers this, I wonder about any tax reporting requirements. The funds remain an asset of the employer until distribution and are in an investment account. Do the earnings on that account need to be reported as they have increased the value of the employer's assets? Or is their an exemption for a 409A Plan?"

5 replies   |    40 views   |    Add Reply

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

Cycle 3 Restatement for Terminated Plans -- Three Scenarios

"We are planning to restate for cycle 3 plans in the process of terminating. So there are 3 kinds of terminating plans. Curious as to thoughts about this. [1] Plan termination amendment prior to 8/1/2020 but funds still in the plan after that date. [2] Plan termination amendment after 8/1/2020 and funds paid out in fall of 2020. [3] Plan termination amendment after 8/1/2020 and funds not out of the plan until January 2021. Thank you for your comments."

1 reply   |    14 views   |    Add Reply

ac created a topic in 401(k) Plans

Amend Non-Safe Harbor Plan to Allow In-Plan Roth Rollovers by Year-End?

"Is it possible to amend a 401(k) Plan with a non-elective safe-harbor to add In-plan Roth Rollovers before the end of the year?"

2 replies   |    25 views   |    Add Reply

DR245 created a topic in SEP, SARSEP and SIMPLE Plans

SIMPLE IRA Improperly Omitted Former Employees -- What to Do?

"Are there any legal loopholes that an employer can use to not pay former employees for a SIMPLE IRA plan that was not administered properly (at all)? For example, an employee was at the company for 5 years and during this time there was a SIMPLE IRA plan in place but the employer failed to notify any employees for 12 years. Fast forward to 2020 and the employer was notified and fixed the mistake for the current employees but never contacted any former employees. When the employer hired an ERISA attorney to handle the VCP, is there anything available to the attorney to NOT consider past employees, especially when they could be easily contacted?"

6 replies   |    30 views   |    Add Reply

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

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Retirement Plan Specialist  View details

GranthamPoole PLLC
Ridgeland MS

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Plan Administrator  View details

Creative Pension Consultants, Inc.
Telecommute / Albany NY

View job as Reconciliation Specialist

Reconciliation Specialist  View details

Ubiquity Retirement + Savings
Telecommute / San Francisco CA / AZ / CO / FL / IL / KY / LA / MA / NC / NJ / NV / NY / OH / OR / RI / SC / TN / WA

View job as Defined Contribution Plan Administrator

Defined Contribution Plan Administrator  View details

American Retirement Plan Services, LLC
Telecommute / Hunt Valley MD / DC / DE / PA

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