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Yep Yep. Yep

Generally those things are covered in the representations and warranties in the acquisition agreement. In almost all cases, the transaction will be asset based and the prior owners will retain all lingering liability. Often the sellers will obtain some kind of tail coverage (much like a physician) to cover ongoing liability. The acquiring firm will have 0 liability assuming they have a decent attorney. ETA: if it's still a client, TPA #3 will probably have some responsibility to repair the issue, but any excess fines/legal costs generally is deducted from the payout to the sellers.

I agree with Lou S and Rather Be Golfing. However, if you "need to be very sure we understand exactly how this works," I doubt that relying on Internet message board posters fulfills your need!

(For those readers not familiar with the bizarre world of 90s professional wrestling, the one in shirt and suspenders was known as "Irwin R. Shyster" or "IRS." His gimmick was that he was a tax collector and would go after other wrestlers who he accused of being tax cheats.)

I'll repeat ratherbereading's question and ask why? What's your goal? If we know more about what you're trying to accomplish it will help us point you in the right direction. Are you trying to break into the industry? Move into a different role at your company? Impress people at parties with your encyclopedic knowledge of qualified plans? ASPPA's Retirement Plan Fundamentals is a great place to start. Everyone at our company (a TPA) completes this within their first few months. ASC did a 5-part webcast series earlier this year on the fundamentals of qualified retirement plans. I didn't attend personally but I head it was good. Off the top of my head, if I were to come up with a list of things you need to know in order to have a solid grasp of the fundamentals, it would include: eligibility coverage non-discrimination including ADP/ACP top-heavy safe harbor plans distributions, including QJSA and rollovers taxation including sec. 72(t) RMDs annual additions/maximum benefit limits elective deferral limits compensation limit vesting and forfeiture deduction limits participant loans form 5500 prohibited transactions and fiduciary issues

The Code Section 402(g) limit on the amount of elective deferrals and the annual limit on the amount of catch-up contributions are calendar year, not plan year, limits. Even if you had a short plan year, they are not prorated. In the 401(a)(17) compensation limit regulations, the fact that contributions are made each pay period can be ignored when deciding whether proration is needed, but you are using just 3 months' worth of compensation to compute contributions to the 401(k) and 401(m) portions of the plan. So, yes, the compensation limit needs to be multiplied by 3 months divided by 12 months for those portions of the plan. If you have an employer nonelective contribution being made, the compensation limit does not need to be prorated for that contribution source.

Ignoring any special Covid rules for a Covid distribution to "Qualified Individuals" If it is a "Qualified Loan Offset" (and you can look at the 1099-R instructions for a definition) then it can be rolled over as late as the tax filing due date (including extensions) for the year of the offset.

I would feel very comfortable relying on the clear intent and spirit of the guidance and I'd allow it. Hard to imaging the IRS trying to argue this point, given the circumstances. On another tangent, In "normal" circumstances I'd imagine that this direct trustee-to-trustee requirement is sometimes missed, and the payment is made to the participant and the 60-day period is used to roll into another plan. Anyone seen this, and if so, can it even be corrected or are you stuck after the 60 days has passed?

Peter, this is from the 5500 instructions in the Signature and Date section: Note. If the plan administrator is an entity, the electronic signature must be in the name of a person authorized to sign on behalf of the plan administrator.

I did not do the math but make sure that, she does not make any profit sharing (or any match, if it exists) contribution for 2020 during 2020 as 6% profit sharing (or any other employer) limit is going to kick in. If she has no 401k feature, she should add for 2020. If she puts in excess of 6% employer monies into the DC portion, less deductions will be very low (31% rule kicks in). The next question is, how many year does she want to contribute. This would be a good way to determine the years of participation for 415 limit and what the 415 lump sum would be at the end of so many years.

1. By any reasonable administrative procedure. How does the plan designate a distribution as a hardship distribution? Presumably the plan administrator knows because the participant checked a box for "hardship" on their request form, and provided some substantiation. The same reasoning should apply for a CRD. If the employee checks the box for CRD on their form and attests that they are qualified then the plan administrator can treat it as a CRD. 2. No, the plan has to be amended. Otherwise the plan document will require that the plan provide a rollover notice and withhold 20%. 3. Yes.

As far as I know, the only electronic signature that the DOL will accept is using EFAST credentials. I know at least one frequent poster on this forum has his own particular interpretation of what that means. Here is what the 5500 instructions say about service provider signatures (emphasis added):

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Thanks Ed. Good to know, but it does suck! Also, doesn't it also guarantee that problem of late deposits of on-going deferrals?