May 19, 2020
In this episode of Inside the Plan with the 401(k)
Brothers, Bill Bush and Andy Bush, advisors at Horizon
Financial Group, talk with Melissa Terito, CPA, Partner and
Third-Party Administrator at Sentinel Pension about some frequently
asked questions that plan sponsors have been reaching out to her
- 00:37 – Bill Bush and Andy Bush introduce Melissa Terito.
- 01:21 – How does COVID-19 sick pay play into what is counted as
- 02:57 – When can a participant get back in after dropping below
- 04:31 – What can be done with plans that have safe harbor
- 06:42 – What if more than 20% of the employees are terminated,
mean that everyone becomes 100% vested in the plan?
- 07:36 – Can you pre-fund retirement contributions to an
- 08:52 – If a plan didn’t adopt the coronavirus-related
distribution or the expanded loan provision, but a participant
wanted to take a distribution, could they still do that and
classify it as a coronavirus distribution?
- 11:22 – Where is the talk of a triple contribution limit
increase coming from?
- 14:28 – Melissa has been impressed with her team at
3 Key Points:
- With the Family’s First Coronavirus Response Act, if an
employee qualifies for sick pay, those wages are subject to
- Once you suspend your safe harbor, you no longer have the
top-heavy relief, which means you may have to make at least a 3%
- Communication with clients is highly important, especially
during the uncertainty caused by the pandemic.
- “The Family’s First Coronavirus Response Act basically expanded
on sick pay that you have to pay employees in family medical
leave.” – Melissa Terito
- “First, and foremost, if you have received a PPP loan and you
are making your safe harbor match on a per-payroll basis, keep
making the match, because those benefits are included in your PPP
loan.” – Melissa Terito
- “A partial plan termination is going to be based upon the
entire plan year.” – Melissa Terito