Message Boards Digest

July 21, 2021

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

K-t-F created a topic in Retirement Plans in General

Single Member 401(k) -- Excess Contribution Solution

"A CPA reached out to me regarding a single member client she has. This client was persuaded to open a 401(k) by the financial advisor who quite frankly I don't think knew anything about pension plans. Anyway, here is what happened:

She opened a 401(k) for 2020

Rolled SEP money in (lots)

Contributed to the plan in 2020

- Deferred the max (23K)

- Maxed the employer (37.5K) upon advise of the financial advisor

ONLY HAD $35,212 in schedule C compensation

All contributions made in 2020.

Taking the excess contribution out starts with deferral money then employer? or does it matter? Depending on what comes out....

1099-R the deferral... withhold taxes

1099-R the employer, don't withhold taxes, code 8P

Perform the withdrawals before the 2020 taxes are filed"

1 reply so far   |    Click Here to Add a Reply

Barbara R. Shoemaker created a topic in 401(k) Plans

E-Signatures OK for Beneficiary Forms?

"Do we know if e-signatures are acceptable for beneficiary forms?"

1 reply so far   |    Click Here to Add a Reply

PensionPro created a topic in 401(k) Plans

ADP Test -- Potential Catch-up Contributions in Multiple Plans

"A catch-up eligible individual participated in a CY 401(k) plan through September 30, 2020 and deferred $19,500. A portion of the plan gets spun off and the individual defers $6,500 in the new plan in Q4.

Can I use $6,500 as catch up in the first plan and not use any catch-up in the second plan? That is, treat the individual as deferring $13,000 plus $6,500 catch-up in the first plan, and $6,500 and zero catch-up in the second plan. It seems that should be fine, but I want to check if I am missing something."

3 replies so far   |    Click Here to Add a Reply

BTG created a topic in Distributions and Loans, Other than QDROs

Lump Sum Window for Missing Participants

"Assume a DB plan offers a lump sum window. Shortly after the window closes, the plan administrator is contacted by a terminated vested participant who never received the paperwork because the address on file was outdated. I would assume that the plan cannot now offer this individual a lump sum because it would conflict with the terms of the amendment that provided for the window (unless the plan is further amended). However, if the plan administrator was less than diligent in maintaining current address records for its participants, I can see how they might have some culpability here (particularly given the DOL's recent aggressive enforcement in this area).

Surely, this is a fairly common occurrence. What have others seen in terms of handling?"

No replies yet   |    Click Here to Add a Reply

khn created a topic in 401(k) Plans

Participant Can Access Investment Advisor's Reports to the Plan Committee?

"A participant is angry about a fund replacement decision made by his plan's Investment Committee. He's has formally requested HR provide him with a copy of the report provided by the plan's investment consultant advising them to make the replacement. The consultant's report was strictly for review by the Investment Committee and not plan participants. When told this, the participant got very angry and now thinks his employer is trying to hide something from him. Would you provide him a copy of the report?"

4 replies so far   |    Click Here to Add a Reply

DFC created a topic in 401(k) Plans

Non-Resident Alien Contribution Restrictions

"Assuming a non-US citizen does not pass the substantial presence test and is classified as a non-resident alien for tax purposes, what restrictions/limitations may prevent them from contributing to a 401(k) and/or IRA?

Please assume the individual maintains a US work visa and is seconded overseas while still being paid by the US entity, and they return to the US for short periods of time throughout the year.

I understand the individual must have US source income, but is there any firm guidance on how much? Is 1 day working in the US sufficient to classify the individual as having US sourced income and allow contribution to a 401(k)? Any special considerations if contributing as Roth vs. Traditional? Is it possible/common for a plan to specifically exclude non-resident aliens from contributing at all? Are the restrictions different for an IRA?"

No replies yet   |    Click Here to Add a Reply

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

View job as Senior Retirement Analyst

Senior Retirement Analyst  View details

Dunbar, Bender & Zapf, Inc.
Remote / Pittsburgh PA

View job as DB/DC Combo-Plan Administrator

DB/DC Combo-Plan Administrator  View details

Retirement Plan Specialists, Inc.
Remote / Oviedo FL

View job as Distribution Specialist

Distribution Specialist  View details

Spectrum Employee Benefits, Inc.
Remote / MN / ND / SD / WI

View job as Retirement Plan Administrator

Retirement Plan Administrator  View details

Spectrum Employee Benefits, Inc.
Remote / MN / ND / SD / WI

View job as 401(k) Recordkeeping Manager

401(k) Recordkeeping Manager  View details

July Business Services
Remote / Woodway TX

View job as MEP/PEP Relationship Manager

MEP/PEP Relationship Manager  View details

Nova 401(k) Associates
Remote / Houston TX / Dallas TX / Scottsdale AZ

View job as Health Insurance Specialist

Health Insurance Specialist  View details

Centers for Medicare & Medicaid Services [CMS]
Remote / Woodlawn MD

View job as Benefits Manager

Benefits Manager  View details

Merchants Bank of Indiana
Carmel IN

►View More Jobs

►Post a Job

►Get Instant Job Alerts, Inc.
56 Creeksong Road
Whittier NC 28789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2021, 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, 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 and 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