Message Boards Digest

August 17, 2022

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

karl created a topic in 401(k) Plans

Roth Rollover to Plan That Doesn't Have Roth

"We had a participant have a rollover processed from her old employer that was all Roth money not knowing that her current plan does not have Roth. The current plan's custodian cashed the rollover check into the plan as the custodian does not have the ability or discretion on whether the type of funds is acceptable. After current plan sponsor acknowledged they can't accept the current custodian issued check back to prior institution. Now we have prior institution stating they will not accept the money back to help the participant have a new election. Anyone have experience with this type of situation? How to correct? I can't imagine the current custodian having any options other than issuing back to prior institution without having a transaction of some sort in the current plan."

4 replies so far   |    Click Here to Add a Reply

TPApril created a topic in 401(k) Plans

In-Kind Profit Sharing Deposit

"Can a Profit Sharing contribution be deposited 'in kind', ie transferred from a business account to a 401k plan trust? To make it worse, they really want to transfer it from a personal account."

5 replies so far   |    Click Here to Add a Reply

Trisports created a topic in Plan Terminations

Orphan Plan: How to Appoint a New Trustee

"We have an orphan plan (doctor died in 2014, he was the only participant in the profit sharing plan). He did not designate a beneficiary and according to the document, the assets are payable to his estate. Daughter is the executor of the estate (doctor's wife predeceased him). The assets are with Morgan Stanley (approx. 1.1 mil) -- MS will not take instructions from daughter, as executor of the estate, but instead requires a court order appointing a successor trustee of the plan The plan document has not been updated and no form 5500s have been filed so we want to terminate the plan via EPCRS and file the delinquent returns. Do we need to file a court proceeding to appoint a successor trustee? How do you do that for a profit sharing plan? I can't find any instructions on how to appoint a new trustee for a retirement plan."

No replies yet   |    Click Here to Add a Reply

Coleboy1 created a topic in Distributions and Loans, Other than QDROs

Hardship Distributions

"Simple question that I couldn't find a straight answer on. Does the IRS limit the number of hardship distributions that a person can take in a plan year? Can the plan itself limit the number that can be taken? Thank you!"

1 reply so far   |    Click Here to Add a Reply, Inc.
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