Message Boards Digest

May 20, 2021

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

rochelle created a topic in VEBAs

Need Information on VEBA Compliance Testing and Form 1099-R

"I'm new to the VEBA world. Where can I find detailed information regarding 1099s and compliance testing?"

0 replies   |    17 views   |    Add Reply

Lou81 created a topic in 401(k) Plans

Top Heavy with Dual Eligibility for Deferral and Safe Harbor

"I'm working with a plan that has 3% nonelective safe harbor plan eligibility for deferrals at 6 months with quarterly entry. Eligibility for safe harbor is 1 year with quarterly entry. Plan uses entry date compensation for those that enter mid-year. The plan is top-heavy for 2020. I know I must give the top heavy contribution to those that are only eligible for deferral, to satisfy top heavy. I also must make an additional contribution to those that entered mid-year for the safe harbor, so that they receive 3% of full year compensation; correct?"

2 replies   |    42 views   |    Add Reply

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

Deduction Shown on 7/31/20 Filing to Be Used for 2020 Calendar Year?

"A Corp and its DB Plan was a fiscal year end of 7/31 until 7/31/19. The corp switched to a calendar year end by running a short year for 8/1/19- 12/31/2019. Then it had a regular calendar year for 1/1/2020 through 12/31/2020. The plan also should have run a short year 8/1/19 thru 12/31/19, but the administrator forgot to file for the 12/31/19 short year. If the plan files now for 12/31/19, it would need to file with the DFVCP to avoid large late fees.

[1] Can the pension stay with another year of a 7/31 year end? Meaning, file a 5500 for 8/1/19 thru 7/31/2020 and then switch to a calendar year by running a short year of 08/1/2020 thru 12/31/2020.

[2] Regarding the fiscal year end 7/31/2020 (if they can keep the plan with a fiscal year end for an additional year) -- the company can contribute up to $275,000. A contribution was made in March 2021. Can this contribution that was made for the plan year 8/1/19 - 7/31/2020 be used as a deduction for the 2020 calendar year on the corporation's return for 2020 (because the company for 2020 was a calendar year)?"

1 reply   |    27 views   |    Add Reply

Jakyasar created a topic in Retirement Plans in General

PTE 79-60 -- Commission for an Insurance Agent/broker Who Is the Employer

"I've been doing some research to see if there is an update to prohibited transaction exemption PTE 79-60. I have a broker who wants to start a defined benefit plan and include insurance in the plan where he is the broker. I've always known about the 5% rule, i.e., his commission from this transaction cannot exceed 5% of the total insurance commissions income received for the year. I found nothing to the contrary, i.e., no changes. Please let me know your thoughts/comments, if any. (PS insurance in pension plans should be illegal!)"

1 reply   |    30 views   |    Add Reply

AJC created a topic in 401(k) Plans

401(k) Catch Up Plus a Maxed-Out SEP Arrangement

"A 50+ year old single owner-employee has an existing SEP, which he maxes out each year. He is asking whether he could adopt a 401(k) plan and contribute only the catch up amount in addition to continuing his SEP contributions. He has plenty of income to cover it.

So for 2021, he would like to max out his SEP at $58,000 plus contribute $6,500 in salary deferrals into a new 401(k) plan. He has no reporting requirements with the SEP, and he would be exempt from filing a 5500-EZ until either his 401(k) plan reaches $250,000 or he terminates it. Thus, his only current additional cost is the 401(k) plan document. Anybody see any issues with this?"

2 replies   |    21 views   |    Add Reply

ratherbereading created a topic in 401(k) Plans

Defaulted loans

"Pretty sure this has been addressed before, but I can't find the discussions. Active participant last made a loan payment in 2020, thinking it was paid off. Investment house is showing she still owes $200 plus. Investment house shows her loan as Deemed. Can she still pay it off, and if so should she get a 1099R showing the loan default? Thanks!"
4 replies   |    29 views   |    Add Reply

susieQ created a topic in Operating a TPA or Consulting Firm

Hiring Experienced 401(k) Administrator in 2021

"Has anyone had trouble filling a 401(k) admin position in recent months? We are hiring and our ads have not generated much interest. I've placed ads on LinkedIn, Indeed, and adding one to Benefitslink today. I'm just wondering if others have had success and their recommendation for where to connect with good candidates. Thank you."
0 replies   |    19 views   |    Add Reply

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

View job as 3(16) Account Manager

3(16) Account Manager  View details


View job as Customer Solutions & Training Specialist - Pension & Benefits

Customer Solutions & Training Specialist - Pension & Benefits  View details / Wolters Kluwer
Telecommute / IL

View job as Auditor (Office of Inspector General)

Auditor (Office of Inspector General)  View details

Pension Benefit Guaranty Corporation [PBGC]
Telecommute / Washington DC

View job as Health Insurance Specialist (Recent Graduates)

Health Insurance Specialist (Recent Graduates)  View details

Centers for Medicare & Medicaid Services [CMS]
Telecommute / Denver CO / Kansas City MO

View job as Senior 401(k) Administrator

Senior 401(k) Administrator  View details

Actuaries and Associates
Fort Worth TX

View job as Compliance Analyst

Compliance Analyst  View details

The Retirement Advantage, Inc.

View job as Compliance Analyst

Compliance Analyst  View details

Maxus Plan Solutions

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