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Message Boards Digest

May 3, 2022

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

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

Adjusted ADP Test Created Overpaid Corrective Distributions

"A client provided a revised census for 2020 testing. When 2020 testing was rerun it was determined that the plan failed less than the original test. Corrective distributions already had been paid out and reported for 2021 taxes by the time the revised test was run. Participants are no longer able to return the excess corrective distributions to the plan. What's the correction? We are thinking that the client needs to submit the difference back to the plan but not the participant accounts. Is that correct?"

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AlbanyConsultant created a topic in 403(b) Plans, Accounts or Annuities

Two 403(b) Plans at Same Time?

"Just had an initial call with the financial advisor, so some of this is subject to change as I get more details, but it sounds like:

> NFP has a 403b with a large insurance co and is tired of bad service, high fees, etc.

> NFP is looking into a new recordkeeper and wants to move the plan, but the insurance co says that the accounts are individual annuities (though they are the only provider and there is a company contribution, so this should be an ERISA plan with all that entails) so the plan sponsor does not have the right to pick up all the accounts and move them - each participant would have to agree to do so.

Is there anything legally preventing the opening of a new 403b plan and saying that effective 7/1/22, all deferrals go to New Plan at New Recordkeeper, and all participants have to complete a new deferral election form? Any participant who wants to make a transfer from Old Plan to New Plan may do so, but not vice-versa. Old Plan would still exist separately for document, 5500 and whatever other purposes; if someone wanted a plan loan, for example, they would only be eligible for the balance in the plan they are applying in. The real problem is that the extra expense of two plans will likely offset the savings the New Recordkeeper is offering. But at this point, I'm just trying to figure out options.

I know this isn't a perfect solution, but we've been burned several times with trying to manage a plan where there are still accounts in the old recordkeeping platform and trying to get information from them each year is a complete hassle. You think "oh, the balances will just decline each year, it won't be that bad"... five to seven years later, and they're still going strong!"

1 reply so far   |    Click Here to Add a Reply

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

2022 Form 720 PCORI Rates Not Updated?

"The IRS Form 720 was updated in March 2022; however, the dates and rates for the PCORI fee on line 133 were not updated (from $2.66 to $2.79). Does anyone have a work-around for this or how are you handling this? The service that we use is not allowing an override of the amount due. This is for plans with a 12/31/2021 year end."

1 reply so far   |    Click Here to Add a Reply

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