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Message Boards Digest

April 1, 2022

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

401 Chaos created a topic in 401(k) Plans

Application of Last-Day Employment Rule for Self-Employed Partner in Profit Sharing Plan

"Still waiting to see exactly what the specific plan document provisions say here but situation involves a partner in a partnership who leaves the partnership mid-year. Partner continues to be entitled to a portion of revenues collected during the second half of the year, is assisting generally with collecting receivables and other transition issues, is reflected as a partner in the partnership for the year, etc. but is not performing new services or generating new fees for the second half of the year. Can the partner be considered 'employed' on the last day of the plan year for purposes of eligibility for a profit sharing contribution?"

7 replies so far   |    Click Here to Add a Reply

Peter Gulia created a topic in Plan Document Amendments

Which Plan Document Does Ascensus Use?

"Does anyone know which document supplier -- Relius, ASC, ftwilliam, someone else -- that Ascensus/FuturePlan licenses from?"

2 replies so far   |    Click Here to Add a Reply

DCPensionGal created a topic in Nonqualified Deferred Compensation

Top Hat DFVCP Submission -- Several-Page Application Needed?

"Top hat plan never filed statement with DOL so we are taking it through DFVCP.  Do we simply file the top hat statement and pay the $750, or must we also complete and file the several page application (which application does NOT indicate this as one of the items for which this is to be filed, see below):

Transactions Corrected Check which transactions listed in the VFCP you have corrected:

Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans

Delinquent Participant Contributions to Insured Welfare Plans

Delinquent Participant Contributions to Welfare Plan Trusts

Loan at Fair Market Interest Rate to a Party in Interest

Loan at Below-Market Interest Rate to a Party in Interest

Loan at Below-Market Interest Rate to a Non-Party in Interest

Loan at Below-Market Interest Rate Due to Delay in Perfecting Plan’s Security Interest

Loans Failing to Comply with Plan Provisions for Amount, Duration or Level Amortization

Default Loans

Purchase of an Asset by a Plan from a Party in Interest

Sale of an Asset by a Plan to a Party in Interest

Sale and Leaseback of Real Property to Employer

Purchase of Asset by a Plan from a Non-Party in Interest at More Than Fair Market Value

Sale of an Asset by a Plan to a Non-Party in Interest at Less Than Fair Market Value

Holding of an Illiquid Asset Previously Purchased by a Plan

Payment of Benefits Without Properly Valuing Plan Assets on Which Payment is Based

Duplicative, Excessive, or Unnecessary Compensation Paid by a Plan

Expenses Improperly Paid by a Plan

Payment of Dual Compensation to a Plan Fiduciary

Correction Amount"

No replies yet   |    Click Here to Add a Reply

metsfan026 created a topic in 401(k) Plans

Excluding All 1099 Employees (Bulk of the Workforce) Creates Discrimination Issues?

"We have a new potential client that may pay most of its employees through 1099. I assume if the bulk (let's say 75% are paid that way), we're going to create discrimination issues? They were pushing back against me saying someone else told them it wasn't an issue."

5 replies so far   |    Click Here to Add a Reply

SSRRS created a topic in Retirement Plans in General

Last-Minute Abrupt Extensive Information Request from Former Client's Attorney

"We received the following request from an attorney representing our client (10/31 year end) which, based on the request, indicates the client is leaving us. The request was made Wednesday afternoon (yesterday). Are we obligated to stop all that we are involved with and interrupt our scheduled meetings etc. to provide them with this information on this last minute request? This is the first time we heard anything about this. And can they truly hold us responsible for penalties mentioned below? Thank you very much for any insights on this.

===

We need the following documents today, because we have to make a filing by Friday.

Please send today. If we do not receive the documents, 'client' will hold you accountable for any penalties, interest charges and damages, so please deal with this NOW.

Thank you.

===

DB Plan

·  Most current plan document and all amendments thereto (the document should have been updated by July 31, 2021.

· Most current SPD

· actuarial report for plan years ending 10/31/2018, 10/31/2019  & 10/31/2020

· census data for plan years ending 10/31/2019 & 10/31/2020

· 2021 AFTAP

· latest PBGC filing

· asset statements for 10/31/2020 through current date

· List of contributions made to the plan between 11/1/2020 - current date (this should match what is shown on the plan account statements.

· any sponsor election forms signed 10/31/2019 to date (e.g., election to utilize pre-funding)

· \historical compensation data (the current actuary should be able to provide this for years prior to 10/31/20219 (this is needed to develop average compensation).

· ARPA elections, if any

· copy of the latest annual funding notice

· copy of the last distribution form (e.g., the form for the last participant paid out).

DC Plan

· Most current plan document (the version we need would have been signed between May 1, 2014 and current date).

· Most current SPD

· calculation reports for plan years ending 10/31/2019 & 110/31/2020.  The report should detail the contributions made for each person under the plan.

· asset statements for 10/31/2020 through current date (if participants direct their own investment, we would need a copy of each participant’s account statements)"

5 replies so far   |    Click Here to Add a Reply

PS created a topic in Plan Terminations

Ability to Contribute Deferrals When Pay Date Follows Plan Termination Date?

"Plan is terminating due to stock sale. The sale date is 5/13/2022. The plan will terminate by 5/12/2022. So the termination date is 5/12 (a Thursday) but the pay date is the next day, 5/13 (a Friday). Terminating plan will deduct/withhold the contributions on 5/10 (Tuesday, earlier in the week). I believe they can still post to the terminated plan because the deductions were withheld prior to the termination date, correct? Or is it driven by the pay date?"

1 reply so far   |    Click Here to Add a Reply

Dalai Pookah created a topic in Plan Terminations

PBGC Form 500 Filed Late

"Plan is terminating 12/31/XXX0.

Files 5310, but much later (more than 180 days after termination date) files Form 500 with PBGC.

IRS approves 5310 submission, with 12/31/XXX0 termination date in XXX2.

PBGC comes back and says termination date must be 12/31/XXX1 because Form 500 was filed more than 180 days after termination date.

How do we reconcile this? There may be 401(a)(26) issues with the XXX1 year due to the additional of additional employees. What is the cure for filing Form 500 late? Do we need a XXX1 valuation?"

No replies yet   |    Click Here to Add a Reply

MrsMacias created a topic in Retirement Plans in General

Lifetime Income Illustrations -- What's the Formula for Calculating the Monthly Payments?

"I've been searching and searching the regs and IFR for this to no avail. I understand what data pieces need to be used to generate the lifetime income illustration, but what is the formula to generate the monthly payments?

I imagine it must be so easy that no one else is asking because I do not see it. If I get a question from a client on how the monthly payment was calculated I need to be able to provide that. I've reviewed the standard annuity formulas but those do not seem to be what I am looking for because they require you to know what the monthly payment will be."

2 replies so far   |    Click Here to Add a Reply

Denise050512 created a topic in Qualified Domestic Relations Orders (QDROs)

QDRO Never Filed, Divorce Finalized 12 Years Ago

"My husband's first marriage ended in divorce, which was finalized on 3/2/2010. His ex-wife never filed a QDRO in Pennsylvania but recently contacted an attorney to start the process. Because of her untimeliness, what are my husband's rights?"

1 reply so far   |    Click Here to Add a Reply

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Director, TPA Partnerships  View details

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View job as Client Relationship Manager (Retirement)

Client Relationship Manager (Retirement)  View details

Ascensus
Remote

View job as Senior Analyst, Retirement Benefits Compliance

Senior Analyst, Retirement Benefits Compliance  View details

TriNet
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View job as Employee Benefits Associate

Employee Benefits Associate  View details

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View job as Retirement Plan Consultant/Relationship Manager

Retirement Plan Consultant/Relationship Manager  View details

Associated Pension Consultants
Remote / Chico CA / Sacramento CA

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