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Message Boards Digest

April 11, 2022

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

ldr created a topic in 401(k) Plans

Resuming Deferrals After 6 Month Break After Hardship

"A participant in one of our plans received a hardship distribution in March of 2019 from her 401(k) account. At that time, she was required to 'sit out' from making subsequent deferrals for 6 months. The question is, whose responsibility was it to resume her deferrals? Is the burden on the participant to notify HR that she would like to start back up, or is the burden on the HR department to contact the participant and ask her if she would like to resume deferrals? Or even possibly, was HR supposed to automatically resume her deferrals after 6 months based on prior instructions from the participant given prior to the hardship distribution?

In any event, she has not made deferrals since that hardship distribution, a little over 2 years ago, and is now complaining to the new financial director that her deferrals should never have been stopped because 'she never signed a waiver asking not to participate'. We're trying to help figure out whether any back deferrals, match, and interest are due to her from the date 6 months after the hardship withdrawal was made through today."

1 reply so far   |    Click Here to Add a Reply

mming created a topic in Form 5500

Form 5500-EZ Filed for Many Years But Not Eligible to Do So

"A PSP covering only a 100% owner has been filing the 5500-EZ for years. It was recently revealed that his son was employed several years ago and met the plan's eligibility requirements but the owner kept filing the EZ. The son is still employed but he's not owed any allocations since there haven't been any contributions since he was 'hired'. What would be the recommended course of action - amend the returns to SFs? DFVC? Ignore and just have the owner file the correct form going forward?"

3 replies so far   |    Click Here to Add a Reply

Wacko in Winnebago created a topic in Qualified Domestic Relations Orders (QDROs)

Does a Specific State Law/Statute Need to Be Identified in a QDRO?

"A proposed QDRO I just received states, 'This Order *** is made pursuant to the domestic relations laws of the State of [redacted].' Does this phrasing satisfy the requirement of Section 1056(d)(3)(B)(ii)(II) that the domestic relations order 'is made pursuant to a State domestic relations law' or does the specific state law/statute need to be identified in the order in order to be qualified by the Plan Administrator?"

3 replies so far   |    Click Here to Add a Reply

khn created a topic in 401(k) Plans

Employer Failed to Set Up Loan Repayments from Participant's Paychecks

"What are acceptable methods of self-correction if an employer missed setting up loan repayments? A participant was supposed to start getting loan deductions taken in September 2021 but the employer's payroll area missed setting it up. The participant can't pay a lump sum to catch up. Is the only option to amortize over the remaining period? Can they chalk it up to an administrative error and change the start date?"

1 reply so far   |    Click Here to Add a Reply

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Account Manager - Employee Benefits  View details

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Denver CO

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Retirement Plan Implementation Specialist  View details

Nationwide Financial
Remote

View job as Operational and Vendor Liaison

Operational and Vendor Liaison  View details

Vestwell
Remote / New York NY

View job as Plan Consultant

Plan Consultant  View details

Sentinel Benefits & Financial Group
Remote / Wakefield MA

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