"I read somewhere the flexible match notice is not need for the first year the plan adopts the cycle 3 doc with that language. Can someone point me to the cite for that? I don't see anything in my plan doc about it."

"Can an ongoing FSA prorate new employees to the maximum allowable FSA for the year? Ie new employee is eligible 3/1, so their limit is 10/12*Full limit? Am currently waiting for copy of the SPD/Employee Benefit Guide."

"Do you guys just submit your refunds to the carrier (with or without earnings) and just have them withhold the 10%. Or do you get the participant elect withholding? Or, it is a timing issue, like with RMDs? later in the year, we just process the RMDs automatically with 10% withholding because the plan (and participant) gets in trouble if it's not done by 12/31 (in most cases). What if you complete the ADP test on March 10? Are you waiting on tax elections from the HCEs or are you just sending int he requests and have them w/h the 10% by default?"

"I have a small defined benefit plan that has been frozen to new entrants for a few years. It is no longer passing the ratio% test. Based on the numbers it would be a nondiscriminatory classification but is the set of employees hired before a certain date a reasonable classification? The formula is a safe harbor formula so the plan still passes 401(a)(4) by itself. Of course if i cannot get the sb plan to pass the average benefits tests I will move onto testing on a combined plan basis with the dc plan for which coverage will not be an issue."

"I have a client that set up everything for a 401(k) effective 5/1/22. It is unclear how much, if any, communication was provided to employees about the start of the 401(k) plan. The Plan Sponsor didn't actually start deducting any deferrals and nothing has been paid to the Custodian. They are interested in moving forward with it finally. What are the consequences of having a plan in place, but not using it for that plan year? What are the consequences of having a plan in place and not telling participants about it? How would you recommend that they move forward?"

"A 501(c)(3) employer provides medical care as a health center. It files Form 990 annually. It has provided a copy of their 2015 IRS letter acknowledging they are a 501(c)(3) public charity. It has sponsored a 403(b) plan since 2003. Now they claim that they are also a governmental entity and therefore not required to file Form 5500 nor obtain a plan audit. Part of it's claim to governmental status is that they receive federal funding. Additionally they are deemed as FTCA. I do not believe just because the clinic employees are treated as federal employees for malpractice insurance coverage purposes, the entity is therefore governmental. If the center was not established and is not maintained by a health district, city, county, state or federal governmental entity, it is not governmental, correct? Thank you."

"Would it be a problem under any federal law (e.g., IRC 401(a)(2) Exclusive Benefit Rule, IRC 503 prohibited transaction rules…) for a qualified 401(a) governmental plan to add a provision to its plan (and 501(a) trust agreement) to provide for indemnification of the board members and employees who administer the plan against liability (except in the cases of willful or wanton conduct, gross negligence, and gross malfeasance), with such indemnification to be payable from its plan assets. Assume that there are no state law issues to consider (focus is on federal law). Of course, since it’s a governmental plan, it is exempt from ERISA. Any specific or general thoughts would be greatly appreciated. Thanks!"

"Would it be a problem under any federal law (e.g., IRC 401(a)(2) Exclusive Benefit Rule, IRC 503 prohibited transaction rules…) for a qualified 401(a) non-electing church plan to add a provision to its plan (and 501(a) trust agreement) to provide for indemnification of the board members and employees who administer the plan against liability (except in the cases of willful or wanton conduct, gross negligence, and gross malfeasance), with such indemnification to be payable from its plan assets. Assume that there are no state law issues to consider (focus is on federal law). Of course, since it’s a non-electing church plan, it is exempt from ERISA. Any specific or general thoughts would be greatly appreciated. Thanks!"