Message Boards Digest

November 11, 2021

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

BTH created a topic in Plan Terminations

Terminated Plan Subject to QJSA Rules -- Unresponsive Participants with Balances Greater Than $5,000

"In a DC plan subject to the QJSA requirements (contains merged MP assets) that has terminated, if a participant is unresponsive or cannot be located, what's the best option for account balances of over $5,000? Are there insurance companies that will set up a QJSA without a participant's signature? Or is it allowable/easier transfer the funds to the PBGC under their Missing Participant Program?"

1 reply so far   |    Click Here to Add a Reply

Jakyasar created a topic in Retirement Plans in General

Can I Still Set Up a Profit Sharing Plan for 2020?

"A client of a CPA friend has an Ida extension until the end of 2021. Can it still set up a profit sharing plan for 2020? Tax filing has been extended."

1 reply so far   |    Click Here to Add a Reply

Peter Gulia created a topic in Distributions and Loans, Other than QDROs

Does a Plan Administrator Need to Know Whether a Beneficiary Is an 'Eligible' Designated Beneficiary?

"SECURE's revision of Code section 401(a)(9) distinguishes between an eligible designated beneficiary (a beneficiary who is: the decedent's spouse, disabled, a chronically ill individual, no more than ten years younger than the decedent, or the participant's child 'who has not reached majority') and a designated beneficiary who is not so classified.

Imagine a section 401(a) plan provides that every kind of distribution is paid only as a single sum. And that a retirement distribution or death distribution is paid only as a single sum of the entire account. Assume the plan's governing document does not otherwise require a beneficiary to take a distribution any sooner than is necessary to meet Section 401(a)(9) to tax-qualify.

With those provisions, is there any plan administration purpose for which the plan's administrator needs to know whether a beneficiary is an eligible designated beneficiary? Or must either kind of designated beneficiary get the death distribution by the end of the tenth calendar year that follows the year of the participant's death?"

No replies yet   |    Click Here to Add a Reply

Susan L. created a topic in Governmental Plans

Use Plan Assets to Pay Premiums for AD&D and Hospitalization Insurance for Active Employees?

"Can the assets of a qualified governmental retirement plan (defined benefit or defined contribution) be used to pay premiums for insurance to provide welfare benefits for active public employees? I'm aware of 401(h) for retiree medical and 402(l) for retired public safety officers, but can this be done for actives? If your answer is 'up to the amount allowed under the incidental benefit rule,' do you know where I can find an understandable summary of that rule?"

2 replies so far   |    Click Here to Add a Reply

Belgarath created a topic in Retirement Plans in General

Replace Trustees Through Restatement of the Plan Document?

"If A and B are the trustees of a plan, and then the plan is restated naming C and D as Trustees, does that have the legal effect of removing A and B as Trustees? Or is a separate formal removal required? I don't see that the document directly addresses this issue."

3 replies so far   |    Click Here to Add a Reply, Inc.
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