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In my experience, a fiduciary might balance a retirement plan’s needs and interests in not “wiping out” low-balance participants while also not burdening high-balance participants more than is prudent. One way to do so is to allocate a portion of an expense on a by-accounts method and another portion on a by-balances method. What’s “fair” and prudent turns on the particular facts and circumstances. And a fiduciary must evaluate her decision considering only the retirement plan’s exclusive purpose, not her self-interest.

Brian Gallagher.

Shouldn't be too hard to spot Bart Simpson at the conference... See you there!

I would suggest that your cooperation is "as soon as we are paid our outstanding fees for work already done, we will be happy to get you whatever we can get you so long as the client also pays the fee for that process (and in advance)". That's cooperation. Occasionally, I have to explain to a client that they do have to pay the outstanding fees to another entity because they have already done the work and we need their cooperation and we can't get that if fees are outstanding. It has (so far) always worked.

I'll be there, too...my first one.

I have a slightly different take than RatherBeGolfing (anyone surprised?). FWIW, I was also involved in drafting the original Code of Conduct many years ago. Question: Do you have to provide the 2018 valuation? NO. It's that simple. You haven't been paid, so they don't own that work. Just FYI, in our shop we get paid FIRST before we do the val, so we just don't have that particular problem. Question: Do you have to provide another copy of the 2017 val? NO. You previously provided them what they paid for; they owe you for work you have done but they have not paid for. You owe them nothing until they pay what they owe you, at which point you can provide them copies of prior work and you can charge them for that (get paid in advance, obviously). Now, here's what I strongly disagree with. RBG said: "Basically, you don't have to hand over the 2018 valuation or your calculations/testing, but you do have to hand over the underlying data you collected from the client or third parties in order to do the 2018 valuation/testing like W-2s, K-1s, financials etc." I disagree with the highlighted part of that sentence. The data we collect from clients is filled out on our forms or is provided as COPIES of original source documents (like W-2s). It is OUR information; none of it is the client's. We don't accept original documents (if we get them, like a prior plan doc, we copy and return the original at that time). Copies of financial statements that come directly to us are OURS, not the client's. Copies they make and send to us are ours, not the client's. Basically, none of that data rises to the level of "... any and all records of the Principal that are necessary for the Principal to comply with federal tax Law". We are happy to provide copies of data, reports, etc from our files to a client who, for example, is leaving us. BUT, when they inform us they are leaving, we send them a letter (our "sign off" letter) and remind them that they have been given EVERYTHING that the new service provider needs to take over the client, but if they want things from our files, we have a fee that applies (and gets paid in advance), and we don't make it inconsequential (but it's also not outrageous - at least, I don't think so and I get to decide! ? ). Hope you find that helpful.

Be aware of potential 415 control group - if person owns more than 50% but less than 80% of multiple companies, there is not a control group for 410(b) or 401(a)(4) purposes, but that person has aggregated 415 limits among all DC and DB plans sponsored by such entities. If X owns 51% of companies A, B & C, and a different unrelated individual owns the other 49% of each then there is no control group but X has one $56,000 DC 415 limit and one $225,000 DB 415 limit combined among any plans sponsored by A, B & C.

The deferral limit is an individual limit and not a plan limit. So each person only gets $19,000 + $6,000 catchup regardless of the number of plans for which they are eligible.

John, you don't have ANY loans from the plan, you had distributions made that were taxable and subject to penalties if appropriate. Calling an elephant a horse doesn't make it so. You have no loan procedures followed and no loan payments made. That ain't a loan; it's a withdrawal. Depending on how much money is still in the plan could impact my analysis of how to handle this. If the amount left is small and he is planning on taking it all out and paying tax on it (not trying to roll it over), I would suggest that: 1) He failed to report taxable distributions when he took the money out; 1099Rs need to be prepared for those years and submitted. He needs to talk to his accountant about filing amended returns (there are substantive questions as to statute of limitation issues, but IRS could claim longer than the normal 3 year period would apply). 2) Take the balance out and report it as taxable income. Don't try to roll it over because there are questions as to the qualification of the plan.