Message Boards Digest

February 24, 2023

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

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

Calculating 415 Limit for Terminating Overfunded Owner-Only DB Plan

"DB Plan owner only. Plan effective 1 1 2014. Owner was working since 2003. Frozen after 12 31 16 year (3/1/2017 frozen) Avg salary 263,000. Terminating Plan now and overfunded. Plan provides to allocate excess assets to the participant up to the 415 limit. Is the 415 Accrued Benefit $5,250 (as the 415 benefit at 2016 was 17,500 and three years of participation at the freeze date of 3/1/2017)? Or is possibly higher due to increases?"

1 reply so far   |    Click Here to Add a Reply

pmacduff created a topic in Retirement Plans in General

RMD from Plan with Both Platform and Pooled Funds

"Plan has assets with one of the big 401k vendors as well as outside pooled managed funds. Owner participant (who was already receiving RMDs, born in 1939) passes away. Past RMDs have been calculated by the TPA on the entire balance and distributed from the pooled managed funds. Spouse is the beneficiary and plans to roll the decedent's balance out of the plan to an IRA. Vendor wants to process RMD prior to rollover. Anyone ever been able to convince the vendor that the beneficiary can roll 100% of the account that they hold and the RMD will be made from the outside plan assets? I would think that if the Trustee of the plan directed them to pay out 100% of the deceased participant's account to the beneficiary they would have to do that. It will probably end up that the vendor will take the RMD anyway for their portion and then the TPA will calculate and have the Trustee pay the balance of the RMD from the pooled funds but it would be nice if the beneficiary only had to deal with one total RMD payout."

5 replies so far   |    Click Here to Add a Reply

justanotheradmin created a topic in Retirement Plans in General

New Rules for Form 5500 Counts: Participants Without Balances Don't Count Towards Large Filer and Audit Status

"Thoughts? 'After considering the public comments, the Agencies decided to adopt the proposed counting method change for defined contribution individual account plans by adding a new line item on both the Form 5500 and Form 5500-SF for defined contribution pension plans to report participants with account balances at the beginning of the plan year (there already is a line item for reporting the number of participants with account balances at the end of the plan year). Instead of using all those eligible to participate, defined contribution plan filers will look at the number of participants/beneficiaries with account balances as of the beginning of the plan year (the first plan year would use an end- of- year measure) when determining if they are eligible for small plan reporting options, e.g., the Form 5500-SF. Conforming changes are also made to the short plan year filings and the '80-120' Participant Rule instructions to reflect this new counting method. See Appendix C for details on changes to forms and instructions related to this audit related participant counting method change.' "

1 reply so far   |    Click Here to Add a Reply

pmacduff created a topic in Form 5500

Long Term Part-Time Employees/Participant Count

"I realize it won't be an issue right away - but does anyone know if the long term part-time employees contributing will need to be counted as participants w/balances for 5500/5500-SF purposes? I know they can be excluded from testing, but haven't been able to find information as far as the 5500 return counts. Thanks in advance!"

2 replies so far   |    Click Here to Add a Reply

Cardscrazy created a topic in 401(k) Plans

Can the Annual 401(k) Match Be Paid Say June 30 in the Year Following the Plan Year?

"Hello, I typically do the annual match calculation and lump sum contribution for my company in late January in the year following the plan year, but the company has a lot of expenditures in Q1. They have asked if the match could be paid later in the year like, for example June 30. I offered April 1, but they declined that date as it's too close to Q1. They countered with April 30 or later, like June 30. I believe a match paid after April 15 would mess up compliance testing, am I right? Especially 415 testing, which is an issue for my company as we do after-tax voluntary contributions/Roth conversions. I will offer to do quarterly matches with a last day of the quarter requirement. Right now we have a last day of the year rule. By going quarterly it will increase costs, but spread out the payments like they want. What does the community think? Is a match payment after April 15 not a feasible idea? Besides 415 testing, what other tests are impacted so I can defend my position?"

4 replies so far   |    Click Here to Add a Reply

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

View job as Retirement Plan Consultant

Retirement Plan Consultant  View details

The MandMarblestone Group, llc
Remote / Philadelphia PA

View job as Combined Plan Administrator

Combined Plan Administrator  View details

Maxus Plan Solutions
Remote / Charlotte NC

View job as Defined Benefit Consultant

Defined Benefit Consultant  View details

AimPoint Group

►View More Jobs

►Post a Job

►Get Instant Job Alerts, Inc.
56 Creeksong Road
Whittier NC 28789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher

Copyright 2023, 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, 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 and 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