"If an employer issued a forgivable loan to an employee (say, forgiven in three years if the employee continues working and if not, must be repaid), I had understood that the forgiveness would be included on a Form W-2 at the time of forgiveness and subject to withholding, FICA, etc. at that time. I also understood that the alternative, if it was not considered a bona fide loan, is that the amount of the loan should have instead been included on a Form W-2 at the time of funding. Reading through some of the case law on this it seems like some employers are actually reporting the forgiveness on a Form 1099-C and not a W-2. Any thoughts or guidance on this front? I am concerned with the idea of an employer reporting through a 1099-C rather than a Form W-2 but haven't yet found the authorities on this. Reporting at the time of forgiveness on a W-2 seems a safer approach."

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Written by Lorraine Dorsa, this is a must-have for ERISA pros working with traditional and cash balance defined benefit plans. Covers DB/CB combo plans and DB plan corrections. Please contact jpecina@erisapedia.com for more information.

"Am I correct in thinking that, since the determination for who is a high-earner for purposes of catch-up contributions is based on the calendar year, and catch-ups are generally determined based on the calendar year, then all plans with 2023 high-earners would need to have Roth available starting January 1, 2024 to allow catch-ups after January 1, 2024, even if the plan is an off-calendar year plan? Let's say I have a 401(k) plan with a 6/30 plan year end, and currently does not allow Roth. I think I'm correct that the determination of the high-earners for purposes of determining whose catch-up must be Roth is still determined using the 2023 calendar year. So let's say I start the new plan year 7/1/2023 with no Roth provisions. I come to 12/31/2023 and determine there are participants that earned more than $145,000 in 2023. Some of those participants like to front-load their deferrals early in the year. Would I be correct that we could not allow any catch-up from 1/1/2024 to 6/30/2024 if we do not amend the plan before 6/30/2024, since we have high-earners in the prior calendar year, and no Roth option? If we do amend the plan starting 7/1/2024, then everyone would then have the opportunity to make their 2024 catch-ups?"

"A plan has a trustee-directed profit sharing brokerage account and individually directed 401(k) accounts at a recordkeeper. They allow for hardship withdrawals and immediate distributions upon termination of employment. They are transferring the pooled PS into the individually directed accounts. Do they need a blackout notice to make employees aware of period of time that they cannot take a distribution from pooled funds? Or are pooled accounts entirely exempt from blackout notice requirements?"

"Assume, for a retirement plan: A beneficiary designation states that the participant has no spouse. That statement is logically consistent with the employer/administrator’s records about the participant’s health coverage. Nothing in the plan’s documents requires that a beneficiary designation (if it needs no spouse’s consent) be witnessed by, or acknowledged before, anyone. The beneficiary designation is not made through the plan’s identity-controlled internet site. For such a beneficiary designation, do you: Require an original ink-on-paper form showing the maker’s signature? -or- Permit a fax, scan, or other copy as a possibly valid beneficiary designation? For either answer, why do you require ink-on-paper, or permit a copy? If you permit a copy, what controls do you use to guard against a writing that is not the participant’s act?"

"A participant who terminated in 2017 applied for and was approved for a loan in March 2022. The participant is making repayments on a quarterly basis outside of payroll. The plan document states that loans are allowed to only active participants and repayments must be made through payroll deductions. It turns out that the participant's termination date was not entered into the platform which was what enabled it to be initiated. The Plan Sponsor discovered this during 2023 and wants to know how this gets corrected. Thoughts?"

"I have a 401k Plan that had a participant listed as PRN on the census data. In the filing of Form 8955-SSA for 2016, she did not get put on the form with a deferred vested benefit. And subsequent years, was completely missed. I was hoping to do a DFVCP filing and pay the fee for a late filing on only the 8955-SSA. But I cannot find where you can submit this form alone, without also filing for a late Form 5500SF. Anybody have experience in correcting an oversight like this?"