Leaderboard

A very smart person told me today, "The regs tell you what you can't do and what you must do. They don't tell you what you can do." And that is where this lies, I believe.

They lose the get out of top heavy free card for 2018. So if the TH ratio on 12/31/17 was more than 60% they have to satisfy TH minimum contributions for 2018. They lose the ADP/ACP free pass too, have to test for 2018. Since they are at 74% on 12/31/18 - they are TH for 2019. It's a bit too late now but given the facts the client should probably have been advised to keep the safe harbor through 12/31/18 and remove it for 2019 while also informing them of the TH nature of their plan and the implications.

Let me add my voice to the choir and say how sorry I am that you are going through all of this. Were it not for the fact that the calendar is unfavorable to you given that the October 15th deadline for pension filings is fast approaching you might have much more participation in this thread. Also, please recognize that those of us who use our real names might also be restricted not only from discussing when or how something might rise to the level of a crime but also from discussing the matter focusing on merely unethical conduct. With that said, I can't believe you are the first person seeking treatment from your treatment center of choice to face this issue. Have you asked them if they have already developed a completely ethical solution? Just thinking out loud here but maybe they are willing to send you summary billings from an associated doctor who uses a location other than the treatment center itself for his/her address? "Medical treatment" might be all that is necessary to satisfy the 401(k) gatekeepers, be they Fidelity or somebody associated with the plan's Administrative Committee. Here are a couple of links you might find interesting: https://www.employeefiduciary.com/blog/hardship-401k-distributions-frequently-asked-questions and https://www.irs.gov/pub/foia/ig/spder/tege-04-0217-0008.pdf Having both at hand will better arm you in your battle to legally and ethically arrange for your hardship distribution.

The IRS people that speak at various conferences (for example, EPCRS people) have provided their email addresses in the past as part of programs like ALI-CLE and others. Not sure if they are still dong that.

I have gotten emails from individuals in guidance and also from agents working my VCPs, but usually the IRS doesn't like to use email. I think they are worried about spam, hacking, etc. That may be written up somewhere. They usually want to communicate by phone and fax.