BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

January 20, 2022

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

Benefits Vet created a topic in Retirement Plans in General

Employee Does Not Want Money Purchase Pension Plan Contribution

"I have a plan sponsor with an unusual money purchase plan. The participants can set up their own brokerage accounts to receive contributions from the plan sponsor. Each participant is the trustee of their own account. An employee who is eligible to receive the next quarterly contribution is leaving the employer to live in Europe before the contribution is made. Long story short, she cannot open a brokerage account and just 'does not want' the contribution. Thoughts about how to resolve this? I don't think that the employer can just not make the contribution."

7 replies so far   |    Click Here to Add a Reply

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

Failure to Provide QSEHRA Notices

"Client failed to give QSEHRA notices for last four years. We realize there is a $50 per employee per notice failure for each year, with a maximum penalty of $2,500 per year. My question is, do we self-report the failure and pay it? If so, how? I am not seeing any specific form for doing so. It does appear that an IRS examiner would use a Form 8278, but that looks like an internal form.

Another twist is that the client exceeded the contribution limits in some years and/or did not satisfy the same terms requirement. Consequently, it failed to be a QSEHRA years ago. I have already looked at Form 8928 that should be filed with respect to the 4980D issue and the potential excise tax of $100 per day per employee. If we do that, is it possible to get the QSEHRA back on track so to speak, in other words making it a valid QSEHRA going forward? Or do we need to terminate the old QSEHRA and start a new one?"

No replies yet   |    Click Here to Add a Reply

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

Plan Can Permit 100% QJSA But Not 50% QJSA?

"The requirement is that a QJSA must provide a spousal benefit of 50% to 100% of the participant's benefit. Most plans allow the participant to elect a 50%, 75% or 100% QJSA. A company wants to amend its plan to make the 100% QJSA mandatory unless spousal consent is obtained.

While this clearly meets the IRC QJSA spousal consent requirements, doesn't this raise other plan concerns? For example, the plan participant, by being forced to elect the 100% QJSA, will be receiving a significantly reduced annual benefit. Is this problematic?"

2 replies so far   |    Click Here to Add a Reply

EBspecialist created a topic in Retirement Plans in General

Plan Is Subject to ERISA If Only Retirees Are Covered?

"If an employer wants to establish a new program to make lifetime payments to some former employees who retired long ago, would the program be considered an ERISA pension plan?

29 CFR Section 2510.3-3(b) says that the term 'employee benefit plan' does not include a plan under which no employees are participants covered under the plan. The definition of 'employee' is 'an individual employed by an employer.' At least one court has interpreted that language to mean that ERISA covers a plan only when the employer established it to provide benefits to at least some of its then-employees. A few other courts have said former-employee-only plans are not ERISA plans based on the policy argument that the objective of ERISA is to ensure that workers get promised benefits upon retirement, especially since some of the promised benefits were in lieu of other compensation that workers may have received, and those objectives do not apply to such plans.

Is anyone aware of more definitive authority that could support (or contradict) the position that ERISA does not cover plans that are established to provide benefits to former employees only?"

1 reply so far   |    Click Here to Add a Reply

DCPensionGal created a topic in Retirement Plans in General

Cycle 3 Restatements Can't Include Volume Submitter Minor Modifications?

"I've heard that some high level players are saying that IRS is no longer accepting applications for Vol Sub Minor Modifier determination letters in the client's name for Cycle 3 Restatements, but I haven't seen anything in writing. Is that correct?"

No replies yet   |    Click Here to Add a Reply

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

Owner's Spouse Works in Business -- What Is RMD?

"I know that a 5% or more owner must take an RMD when they turn 72, even if still working. Is the spouse of a 5% or more owner also required to take such an RMD if still working (due to attribution rules)?"

3 replies so far   |    Click Here to Add a Reply

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

View job as Actuary

Actuary  View details

Pension Benefit Guaranty Corporation [PBGC]
Remote / Washington DC

View job as Employee Benefits Investigator (English and/or Spanish)

Employee Benefits Investigator (English and/or Spanish)  View details

Employee Benefits Security Administration [EBSA]
Remote / Pasadena CA

View job as Legal Assistant

Legal Assistant  View details

Pension Benefit Guaranty Corporation [PBGC]
Remote / Washington DC

View job as Employee Benefits Law Specialist

Employee Benefits Law Specialist  View details

Pension Benefit Guaranty Corporation [PBGC]
Remote / Washington DC

View job as Retirement Plan Account Manager

Retirement Plan Account Manager  View details

Aegis Retirement Partners, LLC
Remote / CT / MA / NH / RI

View job as Sales Account Executive

Sales Account Executive  View details

Capital Services, Inc.
Towson MD / DC / VA

►View More Jobs

►Post a Job

►Get Instant Job Alerts

BenefitsLink.com, 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 2022 BenefitsLink.com, 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 BenefitsLink.com, 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 BenefitsLink.com and EmployeeBenefitsJobs.com 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