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K2retire last won the day on January 18

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About K2retire

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  1. Or are they saying the employee wrote a check for it?
  2. Your document should specify. Our plans that have similar provisions use comp from the match entry date to calculate the match.
  3. I don't know about the earlier scheme. But I do know that Bryan Cave is a large, well respected firm in Missouri. ERISA is only a small part of what they do.
  4. It's my understanding that you only have to do an ADP test in a year in which they amend the plan to remove the safe harbor provisions.
  5. This plan sponsor changed payroll companies at the beginning of 2016 because their prior company was calculating compensation wrong for years. That VCP filing cost them about $50,000 in QNECs and missed match. They are not happy that there are new and different issues with the new provider. It's not rocket science -- why can't payroll companies follow the regs?
  6. All deferral elections are made online through payroll company software. The payroll company claims it is not possible to have different deferral limits based on date of birth, and therefore requires separate elections for deferrals and catch up contributions. Participant elected to defer 7% of pay. That would have yielded a total contribution of $18,740.03, but for the payroll company requirement that catch up be elected separately. (It is not yet known if the participant intended to make a catch up contribution.) Does this require a correction because less than 7% of pay was withheld? Or is it permissible to require a separate online election for catch up contributions?
  7. The client and their prior service providers will have to provide you with the information to do the proper calculations.
  8. I contacted a client who is delinquent in sending their census information for 2016. It's a safe harbor plan, so testing refunds are not a concern. I asked about a tax return extension to decide if I needed to be concerned about the getting them contribution numbers by March 15. During 2016 the plan sponsor was bought out. They responded by saying that the new owner is a sovereign nation and does not file a tax return. Based on questions that they asked before the buy out, I know that this is somehow related to being owned by a native American tribe. But it is a payday loan company and not in any way related to tribal government. Do any of you who are more tax savvy than me have any idea what they're talking about?
  9. And that's why my attorney friends refer to it as "Disney law".
  10. Does the document specifically say true ups are not allowed? Some do, others leave it as discretionary.
  11. I was just offering a practical solution that works in many cases, not an opinion on whether it is legally correct.
  12. Sometimes TPAs set fees high to discourage clients from asking for things they don't really want to do. As for an attorney drafting one for $700, I would love to find one that charges less than $1,000.
  13. At one time I had a single person money purchase plan with Vanguard. They never mentioned anything about 5500 filings. If I hadn't been in this business I would not have known I needed to do that, or even what that was. At the time of the EGTRRA restatement they told me that it was not legal to restate a money purchase plan to become a profit sharing plan. Even when I explained that I was doing exactly that for most of my clients, they wouldn't consider it. At the time of the PPA restatement they told me they were getting out of the business and I would have to either terminate the plan or move it elsewhere. I chose to terminate it, but I don't remember if they issued a 1099-R for the rollover or not. Sometimes you get what you pay for!
  14. The check is endorsed by writing "for deposit only" on it. Once in the account of the payee, how the funds come out of the account is another matter. If there was a joint owner of the account -- problem solved.
  15. The only tricky part of this is remembering to watch for assets to grow enough to need to begin filing again -- and tracking the limit below which no filing is needed to be sure it hasn't changed.