BenefitsLink.com logo   

BenefitsLink
Message Boards Digest

September 29, 2022

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

BG5150 created a topic in Retirement Plans in General

Can I Have a Closed MEP Inside an Open MEP?

"I have a plan that was a controlled group/ASG in the same plan. This year (2021) four other companies joined the plan that aren't part of the CG/ASG, and no other business ties, so we have an open MEP. As I understand it, in an open MEP, each plan has it's own 5500, and in a closed MEP, they only file one. So, in this case, can I treat that CG as one closed MEP and file a single 5500 for those plans, and stand alone 5500's for the four new ones? Or do I have to file 14 seperate ones?"

2 replies so far   |    Click Here to Add a Reply

Peter Gulia created a topic in Distributions and Loans, Other than QDROs

How Do You Handle That a Participant's Account Changes from Less Than $1,000 to More Than $1,000?

"The sponsor of a retirement plan that yet has no provision for an involuntary distribution desires to provide an involuntary distribution if a participant is severed from employment and her balance is no more than $1,000.

The sponsor prefers to limit the plan’s involuntary distribution to the amount specified in Internal Revenue Code § 401(a)(31)(B)(i)(I) because the sponsor/administrator is unwilling to provide for a default-rollover IRA, which would be required if an involuntary distribution is more than $1,000 and the participant/distributee furnishes no different instruction.

The plan’s provision would look to whether a participant’s whole account, including her rollover-contributions subaccount, is no more than $1,000. The plan’s governing document uses no IRS-preapproved document. The sponsor would amend the document to state its desired provision (except to the extent a provision would tax-disqualify the plan).

Assume all amounts are 100% nonforfeitable.

The plan provides participant-directed investment, with a broad range of investment alternatives. Account balances are recomputed every New York Stock Exchange day.

For simplicity (and to not resume a June 2020 BenefitsLink discussion), assume the plan incurs no fee for processing a distribution, and a participant’s account incurs no charge that could result in a distribution amount less than the participant’s before-charge account balance.

What happens if, between the time the plan’s administrator sends a § 402(f) notice and the form for instructing a direct rollover and the time the administrator would process an involuntary distribution, the participant’s changes from less than $1,000 to more than $1,000?

Must the administrator cancel the distribution? What happens if, on the day the involuntary distribution would be processed, the participant’s account balance changes from $999 (based on the preceding day’s funds’ shares’ prices) to $1,001 (based on the funds’ shares’ prices on which shares would be redeemed)? Must the administrator cancel the distribution? How does a recordkeeper do that? If looking to the preceding day’s balance is good enough and the distribution is not canceled, what does the recordkeeper with the breakage between $1,000 and the funds’ shares’ redemption value?

How do plans’ administrators and, perhaps more important, recordkeepers deal with this in the practical real world?"

1 reply so far   |    Click Here to Add a Reply

mlp0816 created a topic in Plan Terminations

Leaving a PEP -- Sounds Complicated

"I have a prospect that is a part of a PEP. He wants to exit out of it and operate his own 401(k). I have never done this but from what I'm reading it's not a simple task. Anyone have insight as to if it can be done and if so, how?"

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 Distribution & Loan Processor

Distribution & Loan Processor  View details

Carnow & Associates, Ltd.
Remote / Deerfield IL

View job as Retirement Plan Administrator

Retirement Plan Administrator  View details

Midwest Independent TPA Firm
Remote / Kenosha WI

View job as Accountant

Accountant  View details

City of Austin Employees Retirement System
Remote / Austin TX

View job as Senior Defined Benefits Consultant

Senior Defined Benefits Consultant  View details

Loren D. Stark Company
Remote

View job as Junior Implementation Specialist - 401(k) Administration

Junior Implementation Specialist - 401(k) Administration  View details

Ubiquity Retirement + Savings
Remote / San Francisco CA

View job as Internal Sales Consultant

Internal Sales Consultant  View details

Definiti
Remote

View job as Retirement Services Analyst

Retirement Services Analyst  View details

Sacramento County Employees' Retirement System
Sacramento CA

View job as Retirement Services Supervisor

Retirement Services Supervisor  View details

Sacramento County Employees' Retirement System
Sacramento CA

►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