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Here are the most recently added topics on the BenefitsLink Message Boards:
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CelloFan created a topic in 401(k) Plans
"What is the right basis for correcting an MDO for automatic enrollment? 50% of the ADP, or the percentage of the auto enrollment? Here it looks like it would be 50% of the auto enrollment percentage: https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-correcting-a-failure-to-effect-employee-deferral-elections Our situation: elections are made on our recordkeeper site, and transfer over to our payroll
system. Due to human error, some elections were not transferred. These non-transferred errors include automatic enrollments as well as positive elections. It seems to me that all these participants were given the option to defer, because they received info from the recordkeeper and were directed to the site. Because they were given the opportunity, this 401k plan fix would not apply:
https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-eligible-employees-were-not-given-the-opportunity-to-make-an-elective-deferral-election-excluding-eligible-employees"
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Ananda created a topic in Correction of Plan Defects
"The IRS states that the Audit CAP correction penalties will not be excessive and will bear a reasonable relationship to the nature, extent and severity of the plan failures. However, Rev Proc. Section 5.01 states that the Maximum Payment Amount would be the tax imposed due to plan disqualification including tax on trust income, failure to file Form 1041, income tax due to loss of employer deductions, etc., Has anyone experienced
this type of an Audit CAP penalty or a similar severe penalty imposed on a client plan? Typically, given my experience with Audit CAP, I've seen penalties in the $15,000 range due to multiple plan qualification failure issues. Has anyone had a client that experienced the Maximum Payment Amount penalty, or severe high dollar penalties, and if so, what amounts?"
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wizwor created a topic in Health Savings Accounts (HSAs)
"I don't generally use healthcare. If something breaks or stops working, I get assistance via the emergency room. My wife is deceased. My youngest child is about to get his own healthcare. This year I decided to switch to a High Deductible Healthcare Plan and open a Healthcare Savings Account. HDHP went into effect the first of the year. On March 14th, I fully funded the HSA ($8,300). I expect to use the account to pay my
deductible and other expenses like dental. I found Publication 502 which I believe lists covered expenses for the HSA. I have just a few expenses this year: - OPTUMRX, April 05, 2022, $883.01
- OPTUMRX, March 18, 2022, $2.62
- DENTALCARE, March 15, 2022, $50.00 (date of 2/5/22)
- MASS GENERAL, February 04, 2022, $798.94 (date of service 12/23/21 and 12/28/21)
Does date of service or date of
billing determine whether cost of a service can be reimbursed from my HSA? Can charges incurred prior to the creation of the HSA be reimbursed? What kind of documentation do I need to keep as evidence of eligibility? Also, my company's HDHP is not 'creditable'. My understanding is that people who delay Medicare past 65 who do not have creditable coverage face penalties when they enroll in Medicare. Should I switch to a creditable
plan the year before enrolling or enroll on the first day of eligibility?"
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Plan Doc created a topic in 401(k) Plans
"Employer contributed $10,000 in January, 2022 as a 12/31/2021 elective deferral to the account of the business owner's wife, who is a participant but had zero compensation during 2021. Should/can the contribution, adjusted for earnings/losses, be returned to the employer? Any way the funds can stay in the plan someplace other than the participant's account?"
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Here are the most recently posted jobs on EmployeeBenefitsJobs.com, a service of BenefitsLink:
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Hessel & Associates, LLC
Remote / IL
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The Standard
Remote / Brookfield WI
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The Standard
Remote / Brookfield WI
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Human Interest
Remote / San Francisco CA
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Kraw Law Group
Remote / Mountain View CA
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Definiti LLC
Remote
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Rapidly Growing Client-Centric Firm
Remote
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Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager
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