Get the Message Boards Digest by Email logo   

BenefitsLink® Message Boards Digest

June 18, 2024

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

Tom created a topic in 401(k) Plans

Spousal Consent to Distributions

"Assume there is a 401(k) that does not provide for QJSA/QPSA as the plan contains no contribution sources requiring such nor does the plan include the annuity options electively. A 401(k) plan primary beneficiary must be the spouse unless the spouse consents to an alternative. Assume the participant wishes to take in in-service distribution. Do TPAs typically look up the beneficiary before approving a distribution to confirm the spouse is the primary beneficiary or that the spouse consented to an alternative? If a non-spouse was named without spousal consent, then that would be in invalid designation and the spouse would remain primary beneficiary. So it would seem distributions can be approved without reviewing beneficiary designations?"

1 reply so far   |    Click Here to Add a Reply

kmhaab created a topic in Correction of Plan Defects

Can Freezing the Wrong Plan Be Corrected Through ECPRS?

"Apx 10 years ago plan sponsor adopted an amendment to freeze contributions to a money purchase pension plan, but the intent was to cease contributions to the profit sharing plan instead. The plan sponsor has been operating and making contributions to the pension plan as if it were not frozen and has made no contributions to the profit sharing plan since that time. Thoughts on whether this can be corrected through VCP by retroactively amending the pension plan to revoke or rescind the freeze amendment? The plan was operated as if it were not frozen, participants' expectations were that it was not frozen, and I believe revoking the freeze amendment increases the benefits to participants (as they are entitled to $0 with the freeze amendment in place). (The profit sharing plan has a discretionary contribution and a freeze amendment was not necessary to effectively cease contributions, so the profit sharing plan has been operated correctly.)"

No replies yet   |    Click Here to Add a Reply

John314 created a topic in Defined Benefit Plans, Including Cash Balance

412(d)(2) Board Resolution vs. Plan Amendment

"If a plan sponsor had a board resolution in place by the 2 1/2 months after the end of the plan indicating their intent to amend the plan, but the amendment itself has not been signed, can you reflect the 'amendment' in the valuation'? Lets assume the board resolution is very clear on what should be changed in the plan."

No replies yet   |    Click Here to Add a Reply

Jaded created a topic in 409A Issues

Attempt to 'Buy Out' a Promise of 'Lifetime Benefits' Under Severance Agreements - Impermissible 409A Acceleration?

"A company has several ex-employees who were promised they could stay on the employer's group health plan until death or, in the alternative, be reimbursed for cost of substantially similar coverage until death. The insurer finally caught on and kicked these people off the group health plan. Company does not want to reimburse these people every year for the next 20+ years and wants to buy out this privilege in a lump sum. They used actuarial calculations for various people's expected demise, and also certain assumptions about how insurance costs will increase over the next 20 years, to come up with rather significant lump sum payouts ranging from $50,000 to $500,000. They want to make these payments to non-employees without paying any tax on them....

"I advised this lifetime payment stream was deferred comp and absolutely subject to taxation (after the first 18 months of COBRA, which I understand can be provided tax free). I also advised that by paying a lump sum, they are accelerating the benefits in violation of Section 409A so these people getting a $500,000 check are going to owe self-employment tax, income tax, and an additional 20% excise tax. Does anybody disagree with this assessment?

"So then the employer said they'd bump up the lump sum to cover all the taxes, so that one individual (who is in a 35% tax bracket and a 10% state bracket) would get a 35% fed + 10% state + 20% excise + 15% FICA bump for a cool buy out of $900,000.

"I've been trying to figure out how the employer should report this? I've seen that deferred comp is reported on Box 1 of 1099-NEC. But I've also seen that Section 409A failures and penalty are to be reported on Box 15 of 1099-MISC. Are these people going to get 2 different 1099s? And in my example, would the 1099-NEC show the full $900,000 but the 1099-MISC only report the $500,000 (prior to the bump up for taxes)?"

2 replies so far   |    Click Here to Add a Reply

Brad Steven created a topic in Qualified Domestic Relations Orders (QDROs)

Need Help with QDRO in Maryland

"I was Divorced in 2005 and was awarded 50% of my husband's Pension and 401k Plan. I am now working on a Domestic Relations Order for his private pension and a QDRO for his 401k Plan. I reside in Maryland and I would like to know if there is a statue of limitation to filing this QDRO in Maryland. Also, I was awarded alimony of $3700 a month for 25 months, first as mortgage payments and then directly to me. Never received the Alimony and the house foreclosed. The alimony would have ended in 2007, Is there anyway I still have a Judgment issued for Alimony Arrears even though it's been past 12 years. I was gravely ill physically and mentally during that time period; I have medication documentation. Is that a waiver for statute of limitation?"

No replies yet   |    Click Here to Add a Reply

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

Medical Waiver for Retirees

"Our employer offers early retirement packages to qualified employees. One of the benefits is a substantial medical waiver payment in lieu of retiree health insurance. The employee gets the waiver for three years and then is offered the option to join the health insurance at the same benefit they would have had at retirement. Medical waiver while employed is fully taxable to the employee. Is it still so taxed as a non-employee benefit. There is a Cafeteria 125 plan in effect but it doesn't address this issue."

1 reply so far   |    Click Here to Add a Reply

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

View job as Senior Retirement Plan Administrator

Senior Retirement Plan Administrator  View details

Envoy Financial
Colorado Springs CO / Hybrid

View job as Senior Retirement Plan Administrator for Envoy Financial
View job as Enrolled Actuary

Enrolled Actuary  View details

Corvus Pension Actuaries, LLC

View job as Enrolled Actuary for Corvus Pension Actuaries, LLC
View job as Senior Defined Contribution Consultant

Senior Defined Contribution Consultant  View details

Remote / CT / FL / GA / IL / MN / NJ / NY

View job as Senior Defined Contribution Consultant for Aon
View job as Defined Benefit Consultant/Enrolled Actuary

Defined Benefit Consultant/Enrolled Actuary  View details

Pension Plan Specialists, PC
Vancouver WA

View job as Defined Benefit Consultant/Enrolled Actuary for Pension Plan Specialists, PC
View job as Actuarial Consultant

Actuarial Consultant  View details

Nyhart, part of FuturePlan by Ascensus

View job as Actuarial Consultant for Nyhart, part of FuturePlan by Ascensus
►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 2024, 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 the production of such links and are not responsible for their content.

Unsubscribe | Privacy Policy