Message Boards Digest

March 18, 2022

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

TPApril created a topic in Correction of Plan Defects

401(k) Deferrals Based on Incorrect Compensation, Resulting in Partial Refund -- How Taxed?

"Non-taxable fringe benefits are not included in the definition of compensation under a 401(k) plan document, but plan administrator applied it to the rate of 401(k) election and deposited the resulting amounts into the plan. The overage has been refunded and a Form 1099-R will be issued. Does this become taxable income for the year of refund?"

1 reply so far   |    Click Here to Add a Reply

rblum50 created a topic in 401(k) Plans

Doctor Paid Several Million in Comp from Plan Sponsor but Wants to Shelter More Money under Plan Sponsored by His Separate LLC

"I have a medical practice as a client maintaining a 401(k) plan. One of the doctors owns 100% of the practice. Another doctor is age 33 and is not an owner just an employee, is also participating in the plan. This other doctor has W-2 compensation in excess of $3.3 million and maintains an LLC which does medical consulting (totally separate from the original medical practice), which generates about $100,000 per year. He'd like to shelter more money than he is currently doing. Is there any way he can shift some of his earnings from the original practice, where he is an employee, to the LLC that he owns 100%?"

5 replies so far   |    Click Here to Add a Reply

BG5150 created a topic in Retirement Plans in General

Document Disqualifies Named Partners from Plan Eligibility, But Partnership Now Wants 'Em In -- OK to Amend?

"A few years ago, a sponsor amended its plan to exclude by name two partners. There are several other partners in the plan. Now they want to remove that exclusion. Are there any discrimination issues, given the fact that the amendment only affects HCEs? I wouldn't think so because the HCEs aren't getting special treatment per se. They've otherwise satisfied the age/service conditions. It's not like they are being let in early. I just want to make sure I'm not overlooking anything."

3 replies so far   |    Click Here to Add a Reply

Griswold created a topic in Securities Law Aspects of Employee Benefit Plans

Rule 701 and Equity Grants to Foreign Employees

"A private U.S.-based company has two equity plans, one for granting options in the U.S. and one for granting warrants in an EU country. (As I understand it, they grant warrants to comply with local law). I would think the foreign grants are included in the Rule 701 analysis, but I'm getting a different story from a record keeper and I can't seem to find any guidance on the matter. Anyone have thoughts or a good resource to point me to?"

No replies yet   |    Click Here to Add a Reply

Retired, but still reading created a topic in IRAs and Roth IRAs

Roth IRAs Under Proposed RMD Regs

"This scenario pertains to ROTH IRAs. Issues center around the role/rights of a surviving spouse beneficiary and also multiple beneficiaries when one is not an eligible designated beneficiary.

Husband & wife each have Roth IRAs and are both older than 72. Primary beneficiary on each is the spouse and there are 6 contingent non-spouse non-child beneficiaries who share equally. Five of the contingent beneficiaries are fewer than 10 years younger (thus, eligible designated beneficiaries) and one is more than 10 years younger (thus, a non-eligible designated beneficiary). Husband dies first. Wife survives and changes ownership of his Roth IRA to her name before the end of the year following his death. She names the 6 people (per above) as her beneficiaries.

1. Must wife take any RMDs from this Roth account during her lifetime?

2. Because one beneficiary is a non-EDB, upon wife's death, do the other beneficiaries lose their ability to use the 10 year exception (lifetime stretch)? See §1.401(a)(9)-4(e)(2) (multiple designated beneficiaries).

3. If, after wife's death, each beneficiary rolled their respective amount to a separate inherited IRA (in a manner similar to that outlined in §1.401(a)(9)-8(a) for separate accounting in a qualified plan), would the EDBs be able to use the 10 year exception (lifetime stretch)?

4. If the steps in #2 and #3 don't preserve the 10-year exception (lifetime stretch) for the EDBs, is there some other way to preserve it?

5. If the non-EDB rolls over her portion to an inherited Roth IRA, would RMDs be needed in years 1-9, or just full distribution by year 10?"

No replies yet   |    Click Here to Add a Reply

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

View job as Plan Administrator for Non-Qualified Retirement Plans

Plan Administrator for Non-Qualified Retirement Plans  View details

Lake Mary FL / Dallas TX / Richmond VA / NC

View job as Employee Benefits Associate - Junior Level

Employee Benefits Associate - Junior Level  View details

Davis Wright Tremaine LLP
Seattle WA

View job as Retirement Plan Administrator

Retirement Plan Administrator  View details

Liden, Nestle, Soled & Associates
Remote / Westlake Village CA

View job as Consultant - Plan Administration

Consultant - Plan Administration  View details

The MandMarblestone Group, llc

View job as Relationship Manager, Retirement

Relationship Manager, Retirement  View details

National Benefit Services, LLC
Remote / West Jordan UT

View job as H&W Sales Consultant

H&W Sales Consultant  View details

Remote / CO / MA / NH / NJ / PA

View job as Accomplished Tax Exempt Client Relationship Manager

Accomplished Tax Exempt Client Relationship Manager  View details

Nova 401(k) Associates
Houston TX / Scottsdale AZ

View job as Paralegal

Paralegal  View details

IUPAT Industry Pension Fund
Hanover MD

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