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Message Boards Digest

March 29, 2021

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

Jakyasar created a topic in Retirement Plans in General

Contribution Deadlines Extended by IRS Notice 2021-59?

"I'm reading Notice 2021-59 -- it looks like all sole proprietorship 2020 filings have been extended to May 17. I don't see anything on C corporations -- do you?

Also, with this extension, all contribution deadlines have been extended to May 17 as well, correct?

Looks like almost all states have extended the April 15 deadline except for a few that are pending. And, of course, a few states don't even have state income taxes.

Whether a state extends or not, the 2020 contribution deadline is on federal level and extended to May 17, right?"

1 reply   |    29 views   |    Add Reply

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

Options and Issues in Providing an HRA Only to Certain Early Retirees

"I'm researching options to offer pre-65 retiree insurance to select early retirees who meet specific age, service and level requirements.

Specifically, I'm trying to determine whether it's permissible (in terms of ERISA, Section 105(h) etc.) to offer an HRA (retiree-only?) to these individuals to purchase exchange coverage on their own or perhaps via a private exchange (such as Mercer 365 marketplace).

One of my concerns is whether this would pass 105(h) discrimination rules, because it would be offered only to select employees (who would be executives based on the proposed criteria). From what I have researched, I believe this type of arrangement would not be subject to discrimination testing under 105(h), if we only reimburse premiums.

In terms of ERISA, because this type of arrangement has the retiree select and pay their own premiums (albeit from the HRA), would this type of arrangement be exempt from the requirements of ERISA (i.e. recordkeeping, plan documents, etc.)?

I'm sure there are other considerations I may have overlooked. Would appreciate any guidance on this or alternative suggestions on acceptable approaches."

3 replies   |    39 views   |    Add Reply

DCqanda created a topic in Retirement Plans in General

Crediting Service for 401(k) Vesting When a Foreign Employee Becomes a U.S. Employee

"An employee recently moved from a foreign entity to the US entity of the same company that sponsors a 401(k). They're a resident non-citizen with US income now. Should the original hire date from the foreign entity be used for crediting service for vesting, or instead be the date that they moved to the US and began employment with the US entity?

The plan document is mum on the topic; no provisions that state how to credit service based on service at the foreign entities. The plan has immediate entry but employer contributions have a vesting schedule."

2 replies   |    26 views   |    Add Reply

Dobber created a topic in IRAs and Roth IRAs

2020 IRA Contribution Deadline Extended to May 17?

"Has the 2020 IRA contribution deadline been deferred to May 17? Some outlets have said so, but the IRS hasn't posted/announced anything specifically."

3 replies   |    28 views   |    Add Reply

Dave Baker created a topic in Using the Message Boards (a.k.a. Forums)

RFC: Allowing Members to Post a 'Commercial' About Themselves or Their Firm

"Request for comments -- I wonder if you think it would be a Good Thing vs. a Bad Thing for the community to allow members to post a message (i.e., start a topic) that's commercial in nature because it would enable the member to describe more about himself or herself, or describe his or her firm/employer, or both -- e.g., something like a LinkedIn page. It might describe what services or products are provided by a firm/employer, where it's located, who to contact for more information, a logo or other image (e.g, a map or a photo of the member or a facility etc.), its history, how many people are employed, and similar facts. A personal bio might describe what sorts of hobbies the individual has, and whether he or she would like to connect with other members who are ham radio operators (for example), in addition to any desired 'commercial' information (without the fear of breaking any rule that otherwise would stop the member from feeling free to include it). It would be limited to one such topic per firm/employer, but it could be edited from time to time as desired by the member. It would allow the posting of reply messages into the topic (e.g., people could ask questions or even develop a conversation with the member about the firm/employer). I know the message board software has a 'profile' feature (click on a member's name next to any posted message), and it includes an 'Interests' field and a 'About Me' field, but it's a bit hidden, and not as free-form as the idea I'm describing. Perhaps the privilege would extend only to members who have are large contributors -- X or more posts -- as a reward and incentive for participation."

2 replies   |    23 views   |    Add Reply

Peter Gulia created a topic in Retirement Plans in General

Was the Beatles Song's '64' the Normal Retirement Age in England?

"My a cappella group sings 'When I'm sixty-four' in our charity appearances, especially at a retirement community. I wonder whether Lennon's and McCartney's choice of 64 relates to what in the 1960s was a relevant age under England's law, whether for a State pension or an occupational superannuation scheme. Does anyone have an answer more confident than my hunch?"

6 replies   |    37 views   |    Add Reply

Tax Cowboy created a topic in Employee Stock Ownership Plans (ESOPs)

The Fiduciary Duties of ESOP Sponsors: Where to Find in Law/Advisory Opinions/LRM/Regs, etc.?

"I may not have all necessary research tools to find the above query at my disposal just yet. Is there a resource (I'm willing to buy the resource if necessary) that illustrates when a plan sponsor discharges their duties as a fiduciary? I'm looking for a number of instances connected with setting up ESOPs, maintaining ESOPs and winding down/terminating such ESOPs?

For example, I note from my reading of DOL Greatbanc (and 2018 Lubbock case) there are steps a fiduciary takes when choosing a valuation appraiser. Once all the steps are accomplished doesn't the plan sponsor discharge their duty to participants?

Another example: when a fiduciary hires a TPA to perform 5500 filings and preparation of employee benefit statements (summary of annual reports/SAR), is there any legal support to reflect that their duty to provide notices were delegated to said TPA and the plan sponsors/trustee's reliance was reasonable?

The reason for my questions is that I'm dealing with an unhappy TEGE/IRS auditor (on an ESOP matter) who doesn't like my initial argument that the plan sponsors/trustees have discharged their duties by hiring experts, e.g., valuation experts, TPAs, CPAs, tax/ERISA counsel, etc.

I can't find the text/law/support that says the fiduciary thereby discharges its duty and cannot be assessed penalties/taxes/other sanctions. Is there an easy to use searchable database, related to all things ESOPs, for all DOL advisory bulletins? IRS LRMs? Treas Regs? I'm sure there is a treatise out there that I have not run across just yet and hoping one of my learned colleagues may have already done some leg work on this matter."

1 reply   |    14 views   |    Add Reply

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