BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

March 1, 2021

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

Ms. Gloria White created a topic in Defined Benefit Plans, Including Cash Balance

Can a Plan or Plan Administrator Under ERISA Be Sued for Mismanaging a QDRO?

"I was in Pay status, receiving monthly distributions from my separate property annuity, when my spouse filed for divorce. The divorce was finalized. I 1/2 year later, he filed a Dro as an Alternate payee on my Retirement Plan. It was approved but he manipulated the language in the final divorce decree, omitted the valuation date of our marriage and had the Dro signed by a substitute judge. With the Plans' qualifying approval, he started receiving 1/2 of my monthly distribution. It was a Defined Benefit of 50% joint and Survivorship. I did name him as the death beneficiary after my demise. Not as an Alternate payee! I was never served and did not sign the QDRO. Can the Plan or Plan Administrator be sued for mismanaging the Qdro or does ERISA precludes them from being sued?"

3 replies   |    86 views   |    Add Reply

waid10 created a topic in 401(k) Plans

Plan Sponsor Received Mutual Fund Settlement Check Payable to 401k Plan

"Plan Sponsor received a check from RBC, payable to the Plan, that was a settlement with the SEC over certain fees involved in a mutual fund. The check says it is for the benefit of a participant that has long since departed from the employer. Plan Sponsor has no address for the participant. How should this be handled?"
2 replies   |    40 views   |    Add Reply

Cobras59 created a topic in Plan Document Amendments

Deceased Keogh Owner - who can sign plan amendments/termination documents

"The Keogh owner has died. We have a qualified Keogh document that needs to be updated and terminated. Who can sign on behalf of the Plan Administrator/employer? The Keogh owner was self employed. The Will names a daughter as Executor, but no Probate Estate was opened, therefore, no recorded Letters of Office."

2 replies   |    51 views   |    Add Reply

401kSteve created a topic in 401(k) Plans

Transfer from a PEO-MEP to a 401k Plan

"I have a situation where a company had a 401k plan (less than 5 years ago), terminated the 401k Plan, entered into a PEO-style MEP for a couple years, decided they did not like it and decided to leave the MEP to start up a brand new 401(k) plan. The owners of the company transferred all their money into the MEP years ago (I'm not certain all the employees did as the original plan termination was likely a distributable event). All of the employees rolled their balance from the MEP into the new 401k plan (greater than 60% are owner assets). I'm currently classifying the rollovers into the new 401k plan as Related Rollovers. The issue I'm grappling with is whether or not the plan is Top Heavy on day one of the new 401k plan. I'm looking for advice as to how I should treat this. If I'm leaving out any pertinent details, please let me know. Thanks in advance!"

0 replies   |    36 views   |    Add Reply

FORMER ESQ. created a topic in Retirement Plans in General

Aggregation of two Safe-Harbor Match 401(k) Plans with Different Matching Formulas

"Assume we want to aggregate two SH 401(k) plans. Both of them provide a matching formula. Plan A's match formula is 100% of first 3% deferred and 50% of the next 2% deferred. Plan B's match formula is 100% of first 3% deferred and 60% of the next 2% deferred. SH matching contributions are made to NHCE only. Could these plans be aggregated for 410(b) testing? I read the Regs as saying yes, because there are no HCE that are getting a SH match. What bothers me is that some NHCE are getting a better match than other NHCE. What is the issue here?"
1 reply   |    33 views   |    Add Reply

401kSteve created a topic in 401(k) Plans

Conversion from a MEP to a Stand Alone 401(k) Plan

"I have a situation where a company had a 401k plan (less than 5 years ago), terminated the 401k Plan, entered into a PEO-style MEP for a couple years, decided they did not like it and decided to leave the MEP to start up a brand new 401(k) plan. The owners of the company transferred all their money into the MEP years ago (I'm not certain all the employees did as the original plan termination was likely a distributable event). All of the employees rolled their balance from the MEP into the new 401k plan (greater than 60% are owner assets). I'm currently classifying the rollovers into the new 401k plan as Related Rollovers. The issue I'm grappling with is whether or not the plan is Top Heavy on day one of the new 401k plan. I'm looking for advice as to how I should treat this. If I'm leaving out any pertinent details, please let me know. Thanks in advance!"

0 replies   |    21 views   |    Add Reply

coleboy created a topic in 401(k) Plans

Employee Fund Allocations

"Hi, The client's plan assets were transferred over to the new recordkeeper back in August 2019. For a couple of participants, their money went into the money market account instead of the same funds it was in under the previous recordkeeper. The person setting up the accounts failed to set up the funds properly when setting up these employees with the new recordkeeper. These participants are now just realizing 18 months later that their money wasn't invested the way they thought it was. My question is...how much responsibility do we as the TPA have in so far as making the accounts good earnings-wise? Should not some of that responsibility fall on the participants for not checking for 18 months to make sure their money was invested the way it needed to be? Thank you!"
2 replies   |    28 views   |    Add Reply

Belgarath created a topic in Cafeteria Plans

"Wrap" plans and 5500 forms

"Suppose an employer has been filing several 5500 forms - one for each plan - Dental, Disability, whatever. Has not been filing for certain plans due to less than 100 participants - say, Vision plan has only 40 participants. Now they institute a "wrap" plan. Are they required to include the Vision participants, or can they still exclude them? Do they have the option to include or not include, and still file multiple 5500 forms, or must it be one form? I'd assume they want to file just one form, and must all sub-plans then be included?"

3 replies   |    32 views   |    Add Reply

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

View job as Client Services Manager

Client Services Manager  View details

Newport
Folsom CA / Chicago IL / Saint Petersburg FL / La Crosse WI / Charlotte NC / Overland Park KS / Mobile AL / West Des Moines IA / Pittsburgh PA

View job as Retirement Plan Recordkeeper

Retirement Plan Recordkeeper  View details

Leading Retirement Solutions
Telecommute / Seattle WA

View job as Defined Benefit Consultant

Defined Benefit Consultant  View details

Pension Plan Specialists
Vancouver WA

View job as Client Relationship Manager

Client Relationship Manager  View details

Goldleaf Partners, part of FuturePlan by Ascensus
Telecommute

View job as ESOP Consultant

ESOP Consultant  View details

Swerdlin & Company, part of FuturePlan by Ascensus
Telecommute

View job as DC Retirement Plan Consultant

DC Retirement Plan Consultant  View details

National Professional Planning Group (NPPG)
Shrewsbury NJ

►View More Jobs

►Post a Job

►Get Instant Job Alerts

BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President  loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher  davebaker@benefitslink.com
Holly Horton, Business Manager  hollyhorton@benefitslink.com

Copyright 2021 BenefitsLink.com, 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 BenefitsLink.com, 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 BenefitsLink.com and EmployeeBenefitsJobs.com 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