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Message Boards Digest

July 26, 2022

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

Ryan created a topic in Retirement Plans in General

New W-4P for Pension Systems Grace Period -- Any Other Issues?

"With the mandate for the new version of the W-4P being just 5 months away, we've encountered a unique issue and I'd like to see what other pension systems are doing.

We currently send out the old format form (Single or Married with number of allowances), but in December when we implement the new format form we'll literally have thousands of old format forms out to members.

The IRS has given the computational bridge to enter an old format into the new format, so we can handle that during 2022 and into 2023. But I can't find any guidance for a 'grace period' of accepting old forms.

I know we'll get old forms signed in 2023 during the transition. I'd sure hate to send forms back to them and default them to the new 'single with no adjustments' because they don't have a current form. But my question to you is, How long will you accept an old format form next year? (The ones in members' hands while they deliberate the start date of their pension.)

Any other issues you've encountered with the new form mandate?"

No replies yet   |    Click Here to Add a Reply
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alexa created a topic in Cafeteria Plans

Termination of Benefits Upon Attaining LTD Status; Effect on Health FSA?

"We have an employee who just got approved for LTD after 6 months. He's been working part-time (about 20 hours/week) after his STD expired 6 months ago. He's decided to continue to work part-time.

Our benefits eligibility is 20 hours/week. He currently has a health FSA.

Our policy has been to terminate all benefits with the exception of continuing medical and employer paid basic life at 1x pay and offering COBRA for dental & vision, once someone gets approved for LTD.

This is the first LTD who has returned to work. Can we terminate his health FSA or other benefits because he's still actively employed and benefits eligible? Is LTD status a 'change in status' event? If so, what benefits can be changed?

Our fully insured carrier has a Return to Work Incentive of up to 12 months as long as monthly earnings from job plus LTD benefit are not more than 100% of predisability pay.

For him to get full LTD he will need to reduce his hours to no more than 16 hours/week, which makes him ineligible for benefits.

To make things more interesting, we are no longer going to terminate anyone on an LTD status so not sure yet how that affects the equation :)"

1 reply so far   |    Click Here to Add a Reply

PS created a topic in Plan Terminations

Rolling Over from a 401(k) Account Into a SIMPLE

"One of the participants is trying to roll over his 401k account into his SIMPLE. There was no funding for 2 years into the SIMPLE. Allowed?"

1 reply so far   |    Click Here to Add a Reply

ac created a topic in 401(k) Plans

Who Sponsors the Plan After the Sole Proprietor's Death?

"We have a profit sharing plan that was sponsored by a sole proprietor. The business he owned has employees who are participants in the plan. He recently died. His will leaves his assets to a revocable trust. Does the revocable trust become the plan sponsor?"

1 reply so far   |    Click Here to Add a Reply
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