Message Boards Digest

March 9, 2022

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

metsfan026 created a topic in Defined Benefit Plans, Including Cash Balance

Cash Balance/Profit Sharing Testing When Some PS Participants Are Not in CB Plan

"Have a new client where they have both a Cash Balance and Profit Sharing Plan:

  • Profit Sharing is immediate entry
  • Cash Balance is 21 & 1 (1/1 & 7/1 entry dates)

So we have people eligible for the Profit Sharing and not the Cash Balance. When we do the testing for both plans (like the Rate Groups), do we include the people who are in just the Profit Sharing Plan? I just wanted to confirm, because those profit sharing contributions significantly help the testing."

6 replies so far   |    Click Here to Add a Reply
[Sponsored] EXCLUSIVE - Who’s the Employer (WTE)

Sponsored by
WTE, 8th Edition, Authored by S. Derrin Watson, JD. Over 30% NEW material. Dozens of new examples. Full explanations of how employer and employee status impact testing. Improved organization-easy to find answers. 612-605-2266

Ananda created a topic in Correction of Plan Defects

Permissible SCP Correction? Retroactive Adoption of Plan When Affiliates Had Failed to Expressly Adopt

"A parent company plan sponsor has affiliates that are part of an affiliated group as defined by the Code. The plan document states that employees of the affiliates can participate in the parent company plan as long as the affiliated companies adopt the parent's plan. Unfortunately, employees of the affiliates participate in the parent's plan, but the affiliates never adopted the plan, and the plan is now under investigation by the IRS.

My proposed solution is that SCP allows for self correction of insignificant operational errors even if the plan is under investigation. I can make a good argument that this is an operational error since the plan document was not followed, and that its insignificant since it only involves a handful of employees and the dollar amounts involved are very small. Thus, I propose having the affiliates adopt the parent plan and such adoption would be dated and signed currently by the affiliates, but it would be drafted to have retroactive effect back to the date the affiliated employees started to participate in the plan. Any comments or concerns with this approach using SCP?"

5 replies so far   |    Click Here to Add a Reply

Francis created a topic in SEP, SARSEP and SIMPLE Plans

Unable to Fund SEP-IRA for Undocumented Employee

"Employer needs to make a SEP-IRA contribution, and an employee is unable to open an account to receive her contribution because she could be undocumented, and that's blocking custodians from opening an account for her. Any idea what the employer should do if a custodian won't open an account to receive the contribution?"

4 replies so far   |    Click Here to Add a Reply

Mr Bagwell created a topic in 401(k) Plans

Partner with Negative Self-Employment Income; Effect of PPP Forgiveness

"One of the partners in the 401k plan has negative self-employment income (line 14a). Of course, the partner deferred into the plan.... $12,000. I brought this up to the CPA. He's saying that while the partnership lost money, the PPP forgiveness is creating a positive situation for the partner. Do I care about the PPP forgiveness and just go with the line 14a? In this situation could I leave $6,500 catch up in the plan and 415 refund the $5,500? Need some insight on this situation on what to do."

No replies yet   |    Click Here to Add a Reply

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

View job as Cash Balance Retirement Account Administrator

Cash Balance Retirement Account Administrator  View details

Remote / MI / MN / ND / NH

View job as Retirement Account Administrator, Senior

Retirement Account Administrator, Senior  View details


View job as Defined Benefit Plan Consultant

Defined Benefit Plan Consultant  View details

Sentinel Benefits & Financial Group
Remote / Wakefield MA / Melville NY / Bingham Farms MI

►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 2022, 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