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Message Boards Digest

June 30, 2021

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

Cynchbeast created a topic in Retirement Plans in General

What If Employer Misses Deadline for Opting Out of CalSavers?

"In California, are there penalties for a sponsor with existing qualified plan but failed to opt out by the applicable deadline?"

1 reply so far   |    Click Here to Add a Reply

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

CARES Act's Effect on Verification of Dependents

"Could anyone cite some guidance on the 'relaxed deadlines' in the 'outbreak period' when an employee fails to verify their dependents? The dependent was removed from the plan in May. But they're now providing documentation and asking for reinstatement. Under normal circumstances we would not allow such a dependent to be re-enrolled until Open Enrollment."

1 reply so far   |    Click Here to Add a Reply

Guy on a Limb created a topic in Defined Benefit Plans, Including Cash Balance

To Revert or Not to Revert

"Does the election between excess asset reversion vs. reallocation of excess assets impact the ability to transfer the excess to a qualified replacement plan?"

4 replies so far   |    Click Here to Add a Reply

David Olive created a topic in 409A Issues

Scope of the Plan Aggregation Rules of 1.409A-1(c)

"Do the plan aggregation rules of 409A apply to employee benefit plans not subject to 409A? I think the answer is no, but after reading the regulations it's not so clear."

No replies yet   |    Click Here to Add a Reply

BenefitJack created a topic in 401(k) Plans

5 Year Rule or 10 Year Rule? Maximum Period Within Tax Qualified Plan -- Non-Spouse Beneficiaries

IRC 401(a)(9)(B)(II) provides that the 5 year rule applies where the employee dies before the distribution of the employee's interest has begun (no later than December 31st of the fifth year after the calendar year in which the employee died).

IRC 401(a)(9)(H) provides a special rule for "certain defined contribution plans" if an employee dies before the distribution of the employee's entire interest--

"(i) In general. --Except in the case of a beneficiary who is not a designated beneficiary, subparagraph (B)(ii)-- (I) shall be applied by substituting '10 years' for '5 years", and (II) shall apply whether or not distributions of the employee's interests have begun in accordance with subparagraph (A)."

Treasury Regulation Section 1.401(a)(9)-5--

"Required minimum distributions from defined contribution plans.

Q-[5] For required minimum distributions after an employee's death, what is the applicable distribution period?

A-5. (a) Death on or after the employee's required beginning date.... the applicable distribution period ... (is) the longer of -- the remaining life expectancy of the employee's designated beneficiary and the remaining life expectancy of the employee or ... If the employee does not have a designated beneficiary ... the remaining life expectancy of the employee ...

(b) Death before an employee's required beginning date.... the applicable distribution period ... Nonspouse designated beneficiary.... the applicable distribution period measured by the beneficiary's remaining life expectancy is determined using the beneficiary's age ..."

So, a couple of simple questions which may have simple answers that I am missing: [1] Is the 5 year rule optional for tax-qualified, employer-sponsored, individual account plans, like the 401(k) plan? [2] Does the plan have a choice of applying a 5 year or 10 year period?"

1 reply so far   |    Click Here to Add a Reply

Peter Gulia created a topic in Plan Document Amendments

Arbitration nd Administrative Provisions in IRS Pre-approved Documents -- How Much Tinkering Going On?

"As service providers get more experience with choices users of IRS-preapproved documents make in using those documents, here's two questions I'd like to crowd-source: What percentage of users add an 'administrative' provision beyond what's in the standard documents? What percentage of users add an arbitration provision?"

No replies yet   |    Click Here to Add a Reply

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

View job as Client Services Specialist

Client Services Specialist  View details

Hooker & Holcombe, Inc.
Bloomfield CT

View job as Supervisor Corporate Retirement Plans

Supervisor Corporate Retirement Plans  View details

Oxy
Tulsa OK

View job as Senior Benefits Advisor

Senior Benefits Advisor  View details

Oxy
Tulsa OK

View job as Plan Document Consultant

Plan Document Consultant  View details

Lincoln Financial Group
Telecommute

View job as 401(k) Consultant

401(k) Consultant  View details

TPS Group
Telecommute / North Haven CT

View job as Retirement Plan Assistant

Retirement Plan Assistant  View details

Third Party Administrators, Inc.
Telecommute / Bedford NH

View job as Investment Research Analyst

Investment Research Analyst  View details

HANYS Benefit Services
Rensselaer NY

View job as Retirement Plan Relationship Coordinator

Retirement Plan Relationship Coordinator  View details

Retirement Plan Advisory firm
Wakefield MA

View job as Plan Consultant

Plan Consultant  View details

Sentinel Benefits & Financial Group
Telecommute / Wakefield MA

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