Message Boards Digest

March 24, 2023

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

TPApril created a topic in 401(k) Plans

SECURE 2.0 and New Plan in 2022 / Saver's Credits

"New plan, effective date 1/1/22, adoption date 12/1/22; 2 HCE's & 2 NHCE's.

  • Startup costs - Because adopted prior to 12/29/22, they only get 50% of startup cost credit, or $500 in this case/yr, for taxable years 2022-2024. Say startup cost in 2022 was $2,000, then $500 credit in first two years only to equal $1,000, or 50%.
  • Contribution credits - plan is still eligible for credits on NHCE PS contributions (< 50 ee's); up to $1,000 at 100% for 2023 (2nd year of plan); 75% for 2024 and so on."
No replies yet   |    Click Here to Add a Reply

waid10 created a topic in Health Plans (Including ACA, COBRA, HIPAA)

Direct Bill of Health Insurance Premiums to Employee While on Leave

"While an employee is out on leave and not receiving a paycheck, the employer direct bills the employee for their health insurance premium. The employee pays the premium with after-tax dollars. When the employee returns to work, does the employer have any reporting or other obligation regarding the fact that if the employee had been actively working, the premiums would have been paid with pre-tax dollars?"

1 reply so far   |    Click Here to Add a Reply

TPApril created a topic in 401(k) Plans

New Plans and Immediate Eligibility vs 1 Year of Service

"Startup Plan has owner and spouse, both employed over 1 year. Their 3 employees have less than one year of service. I'm curious which of these approaches is preferred:

  • Immediate eligibility for all 3
  • Immediate eligibility only if already worked one year of service, so that the 3 employees will not be in the plan for the first year."
3 replies so far   |    Click Here to Add a Reply

thepensionmaven created a topic in Distributions and Loans, Other than QDROs

Annuity Contract Change of Ownership: Is This a Rollover?

"Coming from an insurance company pension department, if a profit sharing plan was funded with individual bundled annuity contracts and a participant terminated employment and wanted to keep the same underlying investments, it was advised to change the ownership from the XYZ profit sharing plan to the individual and the beneficiary to a non-plan beneficiary. Plan does not require spousal consent regardless of over $5000. Insurance company, of course, told the plan trustee no 1099 required as this is a rollover, even though same contract. We all know insurance company personnel can be and usually are giving out wrong information and IRS requires 1099s for any money leaving the plan, whether rollover or cash distribution with withholding. Question, is this transaction truly a 'rollover'. I am inclined toward a 'yes' and the participant is due a 1099, code G for rollover."

2 replies so far   |    Click Here to Add a Reply

regsmurphy created a topic in 401(k) Plans

Safe Harbor Eligibility

"If a company has a 401(k) plan with safe harbor contributions, and the company wants to implement a one (1) year of service requirement for said safe harbor contributions, can we implement this requirement retroactively to January 1, 2023 or do we need to specify a date in the future, since there are 2023 hires who are eligible under the current requirements - or lack there of?"

1 reply so far   |    Click Here to Add a Reply

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

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Benefits Advisor (Bilingual)  View details

Employee Benefits Security Administration [EBSA]
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View job as 401(k) Plan Specialist

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View job as Retirement Services Client Support Spec I

Retirement Services Client Support Spec I  View details

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