Message Boards Digest

May 17, 2023

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

TPApril created a topic in 401(k) Plans

401(k) and Safe Harbor Eligibility

"I recall that 401(k) and safe harbor plan eligibility are best kept with the same eligibility requirements. I can't remember the drawback to having them different."

7 replies so far   |    Click Here to Add a Reply

Santo Gold created a topic in Retirement Plans in General

Spousal Consent When Spouse Is Non-U.S. Citizen Not Living in U.S.

"A participant in a 401k is a US citizen. Her spouse is not a US citizen and does not live in the US. She wants to name her 2 children as beneficiaries for her 401k account. Would spousal consent be required to do so in this case?"

2 replies so far   |    Click Here to Add a Reply

bluehavana2 created a topic in 401(k) Plans

401(k) Loan Repayment Question

"When an employee obtains a second 401k loan, is this a separate repayment schedule or can the initial loan get paid off and 'refinanced' into the new loan? I am the owner of a small business (2 employees, including myself) and am the administrator of our Safe Harbor 401k plan.... My employee obtained a 401k loan about 3 years ago and his remaining loan principal balance owed is about $4000.... If he needs $10k now, and this is possible (I believe it is), what is my better option? [1] Continue his current payroll deduction (3 more years, $4000 + 5% interest) and create a 2nd loan/payroll deduction (5 years, $10000 +9.25% interest) [2] Create a new loan/payroll deduction combining both loans (5 years, $14000 + 9.25% interest) and distribute $10000 to him, effectively paying off the 1st loan. [3] Something I haven't thought of.

"Looking back, I wish I had known that being the administrator of our plan could get complicated. More work than I expected but I've sure learned a lot!"

1 reply so far   |    Click Here to Add a Reply

BG5150 created a topic in 403(b) Plans, Accounts or Annuities

Measuring 'Normally Works More Than 20 Hours Per Week' When Work Schedule Varies

"What kind of time frame are we looking at here? If someone has been working 18 hours a week for half the year, but then summer kicks in and they work 25 hours a week for a few months, are they in the plan? Also, how do you measure? Is it an average? Over how long? What if someone works 35 hours a week every other week? It averages 17.5 hours a week. But each week they actually do work, it's 35."

1 reply so far   |    Click Here to Add a Reply, Inc.
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