Message Boards Digest

March 8, 2023

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

HCE created a topic in Mergers and Acquisitions

How to Handle Testing Refunds for Seller's Plan in a Stock Purchase

"Buyer is purchasing Seller in a stock transaction. Seller has agreed to terminate Seller's 401(k) Plan immediately before the closing. After closing, Seller will perform final testing and make any necessary refunds. Is it possible to refund through payroll so the participant's W-2 is accurate, or must it be handled by 1099? For example: Before closing, Employee defers $22,500 in Seller Plan. After testing, Employee receives a $6,000 refund. After closing, Employee defers $6,000 to Buyer Plan. Would Employee's W-2 show $28,500 in the 401(k) Box (since payroll provider is the same), and also receive a 1099 to show the $6,000 refund? Or can we just adjust the W-2 to show $22,500 in deferrals for the year?"

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Tom created a topic in 401(k) Plans

Correction for 2022 Deferrals Withheld as Pretax When They Should Have Been Roth

"An employee had withholdings done as pre-tax instead of Roth and didn't notice until they saw their W-2. I'm sure Ascensus will just say have the plan sponsor give us instructions and we will move the contributions and earnings (loss actually) from pretax to Roth. Is there a prescribed fix for this? Seems fixing payroll is the only reasonable correction. Not sure what else would be equitable."

2 replies so far   |    Click Here to Add a Reply

Lex created a topic in Health Savings Accounts (HSAs)

Using 2023 HSA Deduction Amount on 2022 Earnings

"My company farms out the payroll to a very large payroll company. Our last pay period of 2022 went from 12/19/2022 to 1/1/2023. 1/1/23 was a holiday and since it fell on a Sunday, was celebrated the following Monday and went on the next paycheck (no one worked that day at all). Which means all earnings on that final 2022 paycheck issued on 1/6/23 were earned in 2022. For some reason, this payroll company used the new year (2023) HSA deduction amounts that each employee selected in November to begin with the new year for 2023 earnings instead of the 2022 HSA deduction amounts for each employee. (This is the amount each employee contributed to their HSA account each paycheck) I cannot get them to correct this or show me any proof that they are allowed to withhold 2023 HSA deduction amounts on 2022 earnings So I guess my question is- Is it legal to use the following years HSA deduction amount on the previous years earnings if that previous years check is distributed in the following year, but contains no following year earnings?"

1 reply so far   |    Click Here to Add a Reply

Plan Doc created a topic in 457 Plans

Nongovernmental 457(b) Catch-Up

"Can the 3-year pre-normal retirement age catch-up apply to allow employer nonelective contributions in excess of the applicable dollar amount ($22,500 in 2023)?"
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Plan Doc created a topic in 401(k) Plans

Loan Options for Spouse/Participant Inherited IRA Rolled Into 401(k) Plan

"Can a participant who inherited an IRA from her late spouse roll over the IRA into the 401(k) plan in which she participates? The plan allows rollovers from all permissible sources. Can she then take a loan from these rolled over assets, given the plan allows loans from all sources?"

2 replies so far   |    Click Here to Add a Reply

Leopurrd-401k created a topic in 401(k) Plans

Late Deposit Safe Harbor Timing vs 5500 Audit

"I'm excited about the new process for determining if a plan is subject to an audit starting with the 2023 plan year -- it's now looking at participants with a balance -- yay! However, it leads me to wonder if the definition for large vs small plans will be extended to the DOL safe harbor regarding timing of employee contributions for small plans. I looked at the federal register and it doesn't specifically link to 5500 status, it only states '100 or more participants'. What are your thoughts on this? I'm thinking that unfortunately, we are going to have a larger difference of small vs large now between the SH rule and the 5500 filing than in the past [since 100 ppt filers did not have to file a large 5500 until they hit 120]."

2 replies so far   |    Click Here to Add a Reply

ajc0202 created a topic in Defined Benefit Plans, Including Cash Balance

0 hours for eligibility, 1000 hours for benefit

"We have a plan with 0 hours required for eligibility and 1,000 hour required for benefit. 1 owner that works 1,000 hours and 2 employees that don't work 1,000 hours. Are we going to have testing issues? Is one of these employees going to need to benefit?"

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 Sales Consultant - Retirement Plans

Sales Consultant - Retirement Plans  View details

CBIZ - Retirement & Investment
CA / CO / MO / TN / Hybrid

View job as Defined Benefit/Defined Contribution Administrator

Defined Benefit/Defined Contribution Administrator  View details

Heritage Pension Advisors, Inc.
Commack NY / Hybrid

View job as Sr. DB Plan Administrator

Sr. DB Plan Administrator  View details

Nyhart, part of FuturePlan by Ascensus

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