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Different, but related topic: get some pre-marriage counseling!

I don't think the employer has such an obligation. An adviser that advises participants on whether to take a rollover has an obligation to make sure such advice is prudent. However, the employer has no continuing obligation once the money leaves the plan.

Well, you're coming close to suggesting that because I didn't go to law school I should handle pre-approved prototype documents, which at times requires quite a bit of skill and expertise even if I did not write the document for start to finish (frankly, neither do the attorneys--they almost always start with a template). Believe me I wouldn't touch a ROBS with a 10 foot pole, I'm just not sure it's that much further down the road I drive on every day...

There's only one way to answer this question; you must read the plan's document. Good Luck!

Absent a pre-nup to the contrary, isn't the overriding presumption that the participant and the new spouse are committed to taking care of each other? If there is no wish to make sure that the second wife is properly provided for, why are they marrying? If the second wife is not in agreement with respect to making sure that the child(ren) from the first marriage are properly provided for (if the participant is so committed), how can the marriage be expected to work?

EPCRS VCP submission Appendix C Part 2 Schedule 8 says Defined Contribution plan only - The plan will distribute the required minimum distributions (with Earnings from the date of the failure to the date of distribution) to affected participants. For each affected participant, the amount to be distributed for each year in which the failure occurred will be determined by dividing the adjusted account balance on the applicable valuation date by the applicable distribution period. For this purpose, adjusted account balance means the actual account balance, determined in accordance with § 1.401(a)(9)-5 Q&A-3 of the Income Tax Regulations, reduced by the amount of the total missed minimum distributions for prior years. my old notes had (so maybe its a 2 step process, 1 is the self correction, the 2nd begging for 50% waiver You can’t ask for the penalty to be waived until you have actually taken the distribution. This is proof you are trying to fix the situation as soon as possible. Fill out form 5329. Write letter begging for mercy, explaining the reason you didn’t receive the minimum distribution was the incompetence of the investment house or something similar. Years ago, it was required to send in the 50% penalty and hope the IRS would have leniency and waive the penalty and return the money. Now simply send in the letter with the Form 5329, and if they don’t accept your lame excuse they will bill you. Make sure there is enough evidence in the folder that your co-worker gets blamed

To clarify, "frozen" might be an acceptable informal way to describe the activity. But I try not to use informal words that have a real meaning in a different context and don't like it...had a very difficult time with a client once who kept using the term "distributions" to mean "contributions" and he was asking why we were giving "distributions" of new company money to participants who hadn't been employed for some time. Sort of a "who's on first" routine b/c the conversation made no sense until we started talking about actual names involved.

I'd rather see an adjustment where you are taxed on (income - SS/Med taxes). Right now, you are taxed on the ss/med tax. So, Box 1 would be (Gross - 401k - ss/med).