Message Boards Digest

September 26, 2022

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

drakecohen created a topic in 401(k) Plans

Thinking About Working with Nationwide as a 401(k) TPA

"Thinking about working with Nationwide as a TPA for 401(k) plans. Does anybody have comments on pros and cons of working with them versus other platforms."

1 reply so far   |    Click Here to Add a Reply

Basically created a topic in Retirement Plans in General

One Terminated Participant Is Causing a 410(b) Minimum Coverage Failure

"This is a vanilla PSP plan. Here is what I have:

  • June 30 FYE
  • Integrated
  • 1,000 hours and last day requirement
  • 4 participants

One participant is throwing a wrench:

  • Hired 1/1/2020
  • 1st year of service 1/1/20 ~ 12/31/2020, worked 1,000 hours
  • Enters the plan on the next entry date (semi annual) - 1/1/2021
  • Received a 6/30/2021 contribution based on his 1/2 year salary

Here is my problem:

  • He terminated 2/17/2022
  • For 6/30/2022 year end he has 1,000 hours but was not employed on the last day of the plan year

He is the reason for the 410b failure. He does not meet the continuing eligibility requirement rule. Why do I need to include him?"

4 replies so far   |    Click Here to Add a Reply

metsfan026 created a topic in Defined Benefit Plans, Including Cash Balance

What's an IRS-Acceptable Interest Rate in a Cash Balance Plan?

"Generally we use 5% when setting the interest rate for Cash Balance Plans, but we have a prospective client that is looking to have it at 4%. The question is, is there an acceptable rate to use as per the IRS?"

6 replies so far   |    Click Here to Add a Reply

metsfan026 created a topic in 401(k) Plans

Plan Failed the ADP Test But No Correction Was Made in Time

"Have a potential new client that just came to me with a failed ADP Test. However, the previous TPA did not make any type of correction to the test. Now we are left trying to figure out how to proceed.

[1] Is this correctable via the VCP program?

[2] In order to correct the testing, can we refund one participant enough in order to pass the testing?

[3] What liabilities, if any, are there to the company?

[4] What penalties could the Plan face?"

4 replies so far   |    Click Here to Add a Reply

Cloudy created a topic in Defined Benefit Plans, Including Cash Balance

Two 401(a)(26) Scenarios

"Question 1: One person CB plan. CB pay credit formula is a percent of compensation using only compensation greater than $150,000. If compensation is less than $150,000 is there a 401(a)(26) failure?

Question 2: Company has three employees, all family/HCEs. All employees have entered the plan, but only one of the participants is receiving an annual cash balance benefit, the others are in a $0 contribution credit group. Is there any way this plan can pass 401(a)(26)?"

3 replies so far   |    Click Here to Add a Reply

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

View job as Experienced Retirement Plan Administrator

Experienced Retirement Plan Administrator  View details

Karel-Gordon & Associates
Remote / Deerfield IL

View job as Plan Document Specialist

Plan Document Specialist  View details

The Ryding Company
Remote / CA / HI / NC / NY / PA / TX / UT

View job as Retirement Plan Consultant - Combo Plans

Retirement Plan Consultant - Combo Plans  View details


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