Message Boards Digest

October 29, 2021

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

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

Participant Terminates Employment -- Plan Has a Life Insurance Policy

"One of our clients maintains a profit sharing plan, one individual has a life insurance policy owned by the plan and he has terminated employment. As far as I can remember, the choices are either to surrender the policy for its cash value and the deposit the cash value into the participants' individual account -- just a change in investments OR participant buys the policy for the cash value from personal funds. When he purchases the policy, where does that money go? Part of the general assets of the plan, or into the individual participant's account? If the money stays in the plan, is it allocable to the remaining participants?"

7 replies so far   |    Click Here to Add a Reply

TMcfall created a topic in Plan Document Amendments

Changing Eligibility Requirements -- IRC 411(d)(6) Applies Here?

"We have a client that is currently utilizing a 2 month eligibility requirement. They are changing the eligibility requirement to 12 months effective 1/1/2022. My question is an employee hired September 1, 2021 would be eligible as of November 1, 2021. The employee begins deferrals on Nov 1, 2021. on 1/1/2022 when the eligibility requirements change would the employee then be required to wait until September 1, 2022 to begin contributions? Or would they be somewhat grandfathered in under the 2 month requirement?"

1 reply so far   |    Click Here to Add a Reply

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

Excluding an HCE in a Combo Plan

"Small company (4 HCEs, of whom one is a Key Employee, and 3 NHCEs) has had a SH match plan for years.They recently got very successful and want to add a Cash Balance for 2021 with Key Employee getting $200,000 pay credit and as little as possible to others. One of the HCEs has no balance in the current 401(k) because he hasn't made any deferrals. The client wants to continue to give him nothing even though the plan is top-heavy and will be even more top-heavy with the CB in place.

Can this HCE be excluded from the Cash Balance plan and get nothing under the DC plan too, even though profit sharing contributions will need to be made to NHCEs to meet the gateway?

My thought is that he would need to get 5% of pay in the DC plan to cover TH minimum but I can see an argument to give him nothing or 3% of pay in DC because the HCE would be a participant in only one plan."

2 replies so far   |    Click Here to Add a Reply

austin3515 created a topic in Operating a TPA or Consulting Firm

Looking for TPA Billing Software

"Looking for billing software that works well with quarterly billing, flat fee+ per participant formulas. Anyone had great success with a particular package? Not Quickbooks."

No replies yet   |    Click Here to Add a Reply

Peter Gulia created a topic in 401(k) Plans

May a Plan Provide an Automatic Contribution Arrangement for Some Employees, But Not Others?

"A plan's sponsor wants to provide an automatic contribution arrangement for some specified classes of non-highly-compensated employees, but not others. (All Highly Compensated Employees would be excluded.) May a plan provide this without tripping on a tax-qualification condition? Is it feasible to provide this using an IRS-preapproved document without losing reliance on its IRS letter?"

2 replies so far   |    Click Here to Add a Reply

Becky Schwing created a topic in 401(k) Plans

TEFRA Election Runs Out?

"I have a participant in a plan who signed a TEFRA election to delay RMD processing. This is the only one I've ever seen. The participant is now fully retired as of 12/31/2020 so I believe he now has no choice but to take an RMD for 2021. Per the election signed in 1983 it states, 'Specifically, I request that funds held for my benefit shall not be subject to distribution prior to my retirement, death or other separation from service with the corporation, or any successor employer.' Because he's now retired, it appears he has to start taking his RMD. Is there anything I could be missing?"

1 reply so far   |    Click Here to Add a Reply

BG5150 created a topic in Plan Terminations

Plan Has Terminated But One Participant Won't Take the Money

"Plan terminated. MOST of the assets paid out. One recalcitrant participant keeping brokerage account open, and not heeding calls to distribute the account. About $50k in there. Participant is NOT lost. She still works for the company. In fact, she answers the phone! Can the plan administrator still force her out? What is the cite?"

5 replies so far   |    Click Here to Add a Reply

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

View job as Plan Administrator/ Consulting

Plan Administrator/ Consulting  View details

Associated Pension Consultants
Chico CA / Sacramento CA

View job as Retirement Plan Consultant

Retirement Plan Consultant  View details

DWC - The 401(k) Experts

View job as General Attorney

General Attorney  View details

Pension Benefit Guaranty Corporation [PBGC]
Remote / Washington DC

View job as Retirement Plan Client Account Manager

Retirement Plan Client Account Manager  View details

BOK Financial
Dallas TX / Houston TX

View job as Tech Operations Manager

Tech Operations Manager  View details

Columbus OH

View job as Lead Client Executive

Lead Client Executive  View details

Remote / DC / MD / NY / VA

View job as Plan Administrator

Plan Administrator  View details

BlueStar Retirement Services Inc.

View job as Senior Manager, Group Compliance

Senior Manager, Group Compliance  View details

Arlington VA / DC / MD

View job as Senior Legal Product Analyst

Senior Legal Product Analyst  View details

Human Interest
Remote / San Francisco CA

View job as Senior Trainer, Retirement Plan Service

Senior Trainer, Retirement Plan Service  View details

Human Interest
Remote / San Francisco CA

View job as Retirement Operations Associate

Retirement Operations Associate  View details

Fringe Benefit Group
Remote / Austin TX

View job as Manager, Health Care Cost & Delivery

Manager, Health Care Cost & Delivery  View details

Business Group Health
Remote / Washington DC

View job as Manager, Client Services

Manager, Client Services  View details

Strategic Retirement Partners
Providence RI

View job as Retirement Plan Administrator

Retirement Plan Administrator  View details

Carpenter Morse Group Inc.

View job as Implementation Specialist

Implementation Specialist  View details

Ubiquity Retirement + Savings

►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