BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

May 23, 2022

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

Jakyasar created a topic in 401(k) Plans

401(k) Plan -- Ineligible Employee Deferred and Got Refund

"401k plan with 3% NESH + PS

An employee erroneously was allowed to defer in 2021 as never met eligibility.

Got the refund timely. Totally excluded for 2021, correct?"

1 reply so far   |    Click Here to Add a Reply

TPApril created a topic in 401(k) Plans

When Does Last Day Worked Mean Last Day Worked?

"Plan has a last day worked requirement in order to receive nonelective contributions. However, participants who terminate employment on 12/31 (it's a calendar year plan) are not eligible. I've never seen this. What's the justification?"

10 replies so far   |    Click Here to Add a Reply

LSU2020 created a topic in 401(k) Plans

Re-Hire Prohibition -- How Long?

"I'm trying to get a sense of how long employers are prohibiting the re-hire of employees who have a 401k account and are under age 59-1/2, to support there have been a true termination of employment versus a sham termination.

I've seen time periods that range from 3 months to 6 months, and less often 12 months. For this purpose, assume there is no pre-termination agreement between the employer and employee to re-hire."

2 replies so far   |    Click Here to Add a Reply

EBECatty created a topic in 409A Issues

Long-Term Bonus Plan -- 409A Exempt vs. Non-Exempt

"Employer has a long-term bonus plan. Company and individual performance from, say, 1/1/21 - 12/31/23, determine the amount of bonus paid after 12/31/23. Generally participants must be employed on the last day of the performance period to be eligible. Participants who die, become disabled, retire (at a fixed age/service), or are involuntarily terminated during the performance period will receive pro rata payments at the same time as all other participants. Employer does not calculate the final amounts until after March 15 of the year following the end of the performance period, so all payments are subject to 409A.

What practical impact does this have if the plan uses the year following the end of the performance period as a fixed payment date (as opposed to trying to pay before 3/15/24)?

It would not allow payments to be made earlier than, or later than, 2024, which is fine. There are no opportunities to further defer the payment. The substitution rules would apply, which can be managed. The six-month delay would apply, but no payments are triggered by a separation from service, only a fixed date. The plan could be aggregated with other plans for plan termination rules.

It also seems that these rules would apply to participants terminating prior to 2023, even if the payments were made by 3/15/24 in the ordinary course (e.g., a participant who retired in 2022 would not meet the short-term deferral timeline in any event if payment was 3/15/24).

None of these strike me as particularly difficult as long as the employer is aware they are constraining themselves in some ways.

Am I missing something that would make this impractical?"

No replies yet   |    Click Here to Add a Reply

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

View job as Sr. Actuarial Analyst

Sr. Actuarial Analyst  View details

Newport
Chicago IL / Dallas TX

View job as Client Relationship Manager

Client Relationship Manager  View details

FuturePlan, by Ascensus
Remote

View job as Defined Contribution Plan Consultant

Defined Contribution Plan Consultant  View details

FuturePlan, by Ascensus
Remote

View job as Defined Benefit Plan Consultant

Defined Benefit Plan Consultant  View details

FuturePlan, by Ascensus
Remote

View job as Compliance Analyst

Compliance Analyst  View details

FuturePlan, by Ascensus
Remote

View job as Healthcare Actuary

Healthcare Actuary  View details

Nyhart, part of FuturePlan by Ascensus
Remote

View job as VP Sales Consultant (Retirement industry)

VP Sales Consultant (Retirement industry)  View details

FuturePlan, by Ascensus
Remote / Boston MA

View job as ESOP Consultant

ESOP Consultant  View details

FuturePlan, by Ascensus
Remote

View job as Retirement Plan Consultant

Retirement Plan Consultant  View details

FuturePlan, by Ascensus
Remote / Los Angeles CA

View job as Compliance Specialist

Compliance Specialist  View details

Nyhart, part of FuturePlan by Ascensus
Remote

View job as Senior Compliance Manager

Senior Compliance Manager  View details

Guideline, Inc.
Remote / CA / CO / FL / GA / IL / IN / MA / ME / MI / NC / NY / OH / OR / PA / SC / TX / WA

►View More Jobs

►Post a Job

►Get Instant Job Alerts

BenefitsLink.com, Inc.
56 Creeksong Road
Whittier NC 28789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

Copyright 2022 BenefitsLink.com, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe | Privacy Policy