"I have a client leaving a PEO and establishing single employer plan. Within the PEO, they had a QACA design. The client is leaving the PEO as of 11/1. The plan's year end is 12/31. Can the employer continue the QACA in the single employer plan even though the plan wasn't adopted until mid-year?"

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"Can money be distributed from a qualified plan after an In-Plan Roth Conversion, if the Participant is not yet age 59-1/2?"

"ERISA is the Employee RETIREMENT Income Security Act. What do health plans have to do with Retirement? Just something I've always wondered about. I don't deal with health plans, so I can't figure out why there is overlap."

"Plan is failing 2020 ADP. We were thinking of retroactively amending the plan for 2020 to be a 4% SHNEC, depending on the cost-benefit analysis. (Plan is TH, too, so it'll probably be worth it.) We can still exclude HCEs from that, right?

The main question is, if we amend for 2020, will that automatically be in effect for 2021, too? Or do we need to to another amendment for 2021 to be 4% SHNEC? We will then amend the plan for 2022 to either be SHNEC or SHM, and talk to the owners to see if they want to exempt themselves from the SH."

"After the update, when I am in my personal view, there is a new panel that lists 'featured' jobs on BenefitsLink. Is there a way to get rid of that? It takes up too much real estate on my screen."

"Participant was supposed to have her first RMD in 2020, but that was suspended. Had it not been suspended, her RBD would have been 4/1/21. But since it was suspended, did she really have an RBD? By when must her 2021 be taken? 21/31/21 or 4/1/22?"

"Sponsor has a 401k and an ESOP; two separate plans with two separate recordkeepers.

Compliance for the 401k reported that the ADP test failed. Corrective distributions were calculated and returned prior to March 15, 2021. Compliance for the ESOP reported a 415 limit failure that involved [1] limiting the ESOP allocation to certain participants due to maximum annual contribution in the ESOP, and [2] additional excess contributions to be returned in the 401k, comprised of deferrals and match.

ESOP recordkeeper told sponsor to notify 401k recordkeeper with this information and indicated that the correction deadline is 12/31/2022. Is this deadline correct for 12/31/2020 plan year end? Where can I find the guidance that supports this?"

"I have just been asked to set up 3-year cliff vesting but interestingly don't seem to have other plans with such a schedule. I recall a recent law that 3-year cliff was no longer allowed-- was that for DB plans only? What about top heavy plans?"

"What is the Payment Event under 409A when a Transaction Bonus (calculated as a% of net proceeds) is payable 12 months following a CIC, but the bonus will be forfeited if the employee voluntarily terminates employment prior to the payment date? Is the Payment Event the CIC or a fixed date (the date 12 months after the CIC)? I believe it's a fixed date.

But what if the plan language says the bonus is payable 'within 12 months' after the CIC, and is still subject to forfeiture if employee voluntarily terminates employment prior to the payment date? I believe it is a drafting error as the actual language is '60% shall be paid within 12 months after the CIC and 40% 18 months after the CIC' and it appears to be intended to retain the employee past the transaction.

I initially looked into correction methods for a payment period longer than 90 days following a Payment Event, interpreting the CIC as the Payment Event, but with the possible forfeiture I'm now leaning toward the Payment Event really being the date of payment. And possibly correcting under IRS Notice 2010-6 Section VII(E), 'Service Recipient Impermissible Discretion to Accelerate Payment Events.' The argument would be that the Payment Event is a fixed date which is 12 months after the CIC and the 'within 12 months' language is giving the Service Recipient the (impermissible) discretion to accelerate that payment event. Any thoughts?"

"A 401(k) plan for the first time has over 100 participants and unfortunately must meet the plan audit requirements. There are over 50 retirees that have between $5000 and $10,000 in their account and if only a few of them withdraw their monies the plan would have less than 100 participants. The plan sponsor would like to force out or encourage these retirees to take a lump sum. Are there any options available?

It seems that the plan sponsor can contact these participants and remind them that they can take a lump sum or rollover to an IRA. I'm concerned that if the plan sponsor offers a cash or other incentive to take a lump and the retiree accepts it could be deemed self dealing with plan assets. Further, if the employer recommends a lump sum or a specific rollover it could be deemed fiduciary investment advice. Any suggestions?"

"I was able to obtain a copy of the HRA plan document, and the language is, shall we, a bit sparse, and not terribly enlightening. But here goes.

Plan was established in 2008. In the adoption agreement, under 'Maximum Benefits Per Coverage Period' it says: 'Other: A discretionary amount to be announced by the Employer at the beginning of each Coverage Period.' It then goes on to list the maximums for 2008.

So here's the question-- the coverage limits have been increased several times since then. Do you think this language would be sufficient, if the amounts are properly communicated to employees each year, or should a Plan amendment have been done each time the limits increased?"

"My wife and I got married earlier this year. She is not a US citizen and is living in Sri Lanka. I want to add her to my 401K plan as a beneficiary. When I try to do that, it requires a SSN or TIN. Is there any other way to do this? Can I write a will instead that leaves everything to her?"