Would you consider commissions to be classified as irregular pay? If so, why?
We use Relius documents and bonus is listed as irregular pay. Client I have has a plan doc that states deferrals come out of irregular pay unless the participant elects otherwise. This plan also has commissions. Plan sponsor did not withhold deferrals from either bonus or commissions. I realize that this is part of the administrative procedures, but we want to make some things clear to the client so they know how to handle this properly going forward.
Yes, the former owner, "AW" sold his shares in July 2014. We had him as Key in 2014 (since he was a more than 5% owner in 2014). In 2015 he is listed as former key. I wasn't sure how long this was going to hang on and my cheat sheet is from before 2002.
So in essence, AW will remain a "former key" and only the owner and his son are keys at this point. Since the son has never deferred, if he does consider to start making deferrals, the plan might become top heavy again (it is not for 2016, at just over 57%). Thanks for the discussion!
I have a client who has dropped down to 57 1/2% on the top heavy test and is so happy he doesn't have to do the top heavy minimum for the 2016 plan year. He is now the sole owner, and his son also works there, but doesn't defer into the plan. The former co-owner sold his shares to the current sole owner in July 2014. Is he still counted as key for 5 years (2014 thru 2018) for determining Top Heavy?
My client is trying to do some planning to see if his son can defer, and someone I talked to thought this had changed...the number of years a non-key is counted in the test. Note the former co-owner still works there and still has assets in the plan.
Participant requested a hardship earlier this month. Today he contacted out distribution administrator to tell her that the sale might not go through as the current owner found out the property had a lien on it (from a prior owner I guess) and current owner doesn't want to pay/might not show up to the closing today.
Do, if participant doesn't close on this house, what should he do with his h/s distribution? Taxes have been paid on the disbursement and MassMutual sent the money to his bank account. If the closing doesn't go through today, the participant will continue to look to purchase another primary residence.
We have gotten some updates on this problem since I initially posted it last month.
The participant was still employed at the time of her death. She had been hospitalized and the employer was told she died in the hospital. They do not have a death certificate. This answers my vesting question.
Our distribution processor has access to a search program. The participant doesn't come up listed as dec'd in the search for other relatives and we thought that was strange since she died in 2014 - or at least that is what the employer was told.
I have indicated in my initial post (#3) what the document states is the beneficiary order if no beneficiary was named. Our people search does come up with a female (and a male) relative that could correspond to children/issue.
Should we try to correspond with these two individuals to indicate that we are looking for this participant and if she is actually dec'd (employer has no death certificate) we are looking for her beneficiary?
Would the employer be able to obtain confirmation from the state or the hospital she was in that this participant actually is dead?
Client notified us that a participant who term'd in early 2014 has since died. I don't know how the client found this out (this plan is currently in transition to me from a co-worker). Debra, dec'd ee, did not designate a beneficiary. Plan sponsor heard thru the rumor mill that she had an estranged daughter. The plan sponsor is located in FL, the participant in Nevada. She was 60% vested at the time of her termination from the company. Her current account balance, vested or not, is still under $5,000, the force out amount.
1) Can the plan sponsor roll her assets into an IRA payable to the Estate of, a possible assumption on their part?
2) Can the assets we escheated to the state of Nevada? I don't know if they pay state taxes there (we do not here in FL) and I also didn't think you could do this anymore...
3) the plan doc indicates that the order if there is no bene on file is spouse, issue, parents, estate. Is the plan sponsor required to try to find out if there really is a daughter out there? How would they do that?
4) Would her vesting change? The plan does vest 100% due to death, but she was already terminated when she died, so I am not sure if that applies. On the fence about that one.
Thanks for your thoughts!
They go by a calendar year, correct? My renewal is next year and I have enough credits for my 3 year cycle, but if the new cycle technically starts on 1/1/16, then I will sign up for the APC that SunGard is going to have here in Orlando in February.
I last renewed in 2013 and am drawing a blank on this....
This was a great list! I think I am a little younger than the rest of you, being a '60s child, but I remember plenty from your list, Andy:
using the manual lawnmower we had to mow the lawn we had in Philly that was the size of a postage stamp.
party line - my grandparents shared one with my great-grandparents up the street until they sold their house in 1983. Great-grama died in 1992, so I guess that ended that. They lived in rural NE PA - farm country. My grandparents had a wringer washer (can't remember it ever being used, as Grama had a regular washer when I was little) in the basement (with a pencil sharpener attached to the staircase!), a clothesline outback and yes, they had milk delivered by the Dallas Dairy (I assume that is where the milk from our cows went)
Grama also had one of those old singer sewing machines that you pumped with your foot. I can't tell you what my dad did to it one night after I was out with some of his old high school buddies....
I spent most of my pre-collage school years in Catholic schools, so I remember when nuns actually wore habits. Some still do, it depends on the order. My aunt was in a cloister for a couple of years and they wore the full blown habit. I have to say I was working at the store one day and one of the nuns from my high school came in and I didn't recognize her out of her habit!
penmanship - it is so wrong that they have stopped teaching this is some places. My godson started collage this year and his handwriting is really bad.
I still have my 8-tracks (although nothing to play them on anymore) and LPs in various speeds: 33 1/3, 45 & 78
I had a pogo stick back in the '70s, had a zim-zam too - plenty of cement when I lived in the city, but not a lot of grass for the zim-zam (tall stick with a tennis ball on a rope that you and another player would hit back and forth)
We had Woolworth's 5 & dime in Philly, but my parents grew up in Wilkes-Barre area and they had a Kresges.
I didn't go to the drive in much, but I do remember the last time we went was in 1984
Talk about coal bins - my aunt and uncle bought a home in the poconos that they converted from a summer vacation home to a year round home. The house was built around 1914 and it did have coal heat, evidenced by all the stuff in the basement (where the servants quarters were) and the big coal bin. It was years before they converted over to electric I think. The house had 4 fireplaces and they did get a huge keroscene heater too. They bought that house in 1978.
I will admit that I had a 13" B&W tv that my mom bought me around 1979. That no-name brand tv was great! My mom accidently poured a drink in it one night but it kept working! I finally got rid of it when I moved in 2004.
We had this problem a couple of years ago when Disney installed new card swipers (I am drawing a blank on the actual name for this thing). When you swipe the card, the strip should be facing the register. Nowadays, I let the person try to figure it out, then tell them to "turn it around" if they swipe it wrong. I don't think these readers can handle the new chips, but they can read the magic bands real good!
I know that a more than 5% owner and any terminated participants are required to take a distribution once they turn 70.5. We were discussing the options open to those who are 70.5 and still employed (non-owners). I say the option is open to those people to take it if they want to - assuming that the plan allows for in-service withdrawals of course. My coworker disagreed. What are your thoughts?
I have a fiscal plan that I just took over at my new employer. I discovered that a participant who terminated in the 2012 PY was rehired late in the 2013 PY. This rehire was not reported on the 2013 PY census, and she was subsequently reported on the 2013 8955-SSA because she still had a balance. So now she is an active participant, how do I report her on the 2014 SSA? She was never paid out while terminated.
The instructions for this form indicate that she should NOT be reported under Code D merely because she return to the service of the plan sponsor. So do we just leave it go or report her each year as a "b" with updated data? The summary report I ran out of Relius indicates that she should be a "D," but that is contrary to the instructions....
Plan was set up in 2014 with an age 21 and 6 mo of service entry requirement, monthly entry dates.
I found out this week that the census I was provided was not all employees, just those who participate, even though our form requests all info.
1 part timer apparently went full time this month and the client asked me if she has to wait 6 months to get in since she was hired in January 2014. This is how I discovered this problem. The annual val and 5500 is complete and filed.
We are waiting for a corrected census from the client. Isn't the correction for the ER to fund a 3% deferral for those ees that were not offered the plan timely? This is a deferral only plan.
3 person PSP where the owner has a life insurance policy within the plan.
She paid the premium of $6500 by moving assets out of the profit sharing pooled account. The life insurance policy is titled under the plan.
Would you put this $6500 on line 8d - benefits paid including direct rollover and insurance premiums to provide benefits, or maybe on line 8g - other expenses?
Plan is new - started 1/1/14. It has almost $71,000 in profit sharing receivables as of 12/31/14. No other type of receivables.
Would you include the PS rec'bles in the top heavy test?
There were also rollovers into this plan of a significant amount. I have them marked as a regular/outside rollover. They came from a terminated plan but from a different plan sponsor - company name and EIN entirely different. Because of this, I did not mark them are related. I assume that all participants were given an option to roll the money from the old MPP under the other company to this new plan or put it into an IRA.
Thanks for your thoughts.