Leaderboard
Popular Content
Showing content with the highest reputation on 03/08/2019 in all forums
-
Delayed deposit of employee deferral
RatherBeGolfing and 3 others reacted to Kevin C for a topic
1) NO! Deferrals don't stop being deferrals when the employer keeps the money. 2) NO! See 1). 3) Yes, it is a prohibited transaction. 4) Yes. The employer needs to correct the PT by depositing the deferrals plus lost income. An excise tax applies to the PT (Form 5330) unless the employer files under the DOL Voluntary Fiduciary Correction Program (VFCP).4 points -
I don't think we are on the same page. The parent company plan can provide that one division is completely excluded from the plan and still be safe harbor. However, if the plan doesn't pass 410(b), there are other problems. Good luck and TGIF1 point
-
Delayed deposit of employee deferral
Mike Preston reacted to C. B. Zeller for a topic
1. No. The $1,000 was withheld from pay per the employees' elections, it is a plan contribution. 2. n/a 3. Yes. It is treated as a loan from the plan to the employer. 4. Deposit the late contributions with lost earnings, pay the excise tax on the prohibited transaction, and optionally file VFCP. See https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-you-have-not-timely-deposited-employee-elective-deferrals1 point -
Affiliated Service Groups
CuseFan reacted to Mike Preston for a topic
smh1 point -
Working copies as Luke described are fantastic tools. People who administer plans for our clients LOVE THEM, and we often will prepare one even if there has been only one amendment.1 point
-
I would give her a raise. She doesn't even make minimum wage. (I'm only half joking).1 point
This leaderboard is set to New York/GMT-05:00