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In order for a mapping to preserve protections under 404(c), the new investments must have reasonably similar characteristics, including risk and rate of return, to the old investments. If you think your target date fund will meet that standard, then go for it, but I think that's unlikely in most cases. If you can't map them to like funds then you will have to get a new investment election from the affected participants.

IRS has been squishy on this over the years. I remember a story from a TPA who had a client in arrears on payroll withholding deposits. IRS finally hoovered up their bank accounts - including the plan assets - since they executed the levy based on the EIN. So a separate number is best practice, but there are thousands of plans using the EIN on accounts.

No, the "no amendment" rule is not that broad. It only prohibits changing coverage under the plan (i.e., if you make an amendment that substantially changes coverage, you lose the transition rule). Changing the trustee will not impact.

Effective date would be 1/1/2017 Assets at BOY would be assets as of 1/1/2020*. Plan year would be 1/1/2020 - 12/31/2020. *filing can be on cash or accrual basis as long as you are consistent going forward.

But shouldn't the trust accounts be set up under the Plan's EIN and not the sponsor's?

They may be able to get the money to an IRA without effort, but likely uninvested. Banks won't invest unless the account holder completes something.

Plenty of banks would be falling over themselves to get more of their clients' money. If the participant brings the rollover request form into the local branch of their regular retail bank I'm sure they could find someone to help them fill out the paperwork.

No practical ramifications. If 1099-DIVs are suppressed on the accounts, as they should be, then the IRS isn't getting anything to find anything wrong with in a cross-checking process (and I believe if it is a corporation they're not cross-checking anyway). Having said that, we do exactly what you do. (I guess) the former TPA was waiting until there was a distribution to get an id number? Or in fact using the 'er id for distributions...that opens a different can of worms. I see not getting a trust id number right away as just delaying the inevitable deactivation, but it's not really a crazy approach.

I am not sure I understand the question. Millennium Trust will set up the IRAs for a plan. You get an agreement and all that has to happen is you send a spreadsheet in their format and wire the money. The IRAs get set up. A lot of our clients use it for their lost participants.

Penchecks may be one.

In general, plan sponsors (and the TPAs they hire) will do better to follow the plan document rather than the broker.

Good question. 1103 didn't change the definition of an employee benefit plan, it directed the Sec of Treasury to modify the requirements for annual filing purposes. I think you can argue it both ways, but I would stick to what the instructions were in 2016 and file DFVCP with an SF.

Right. But you could adopt a 401(k)/PSP with only the profit sharing provision effective for 2020.

Payments to employees for paid sick leave due to the COVID-19 pandemic should be included when determining compensation under a plan, unless that plan’s provisions specifically exclude this compensation from the definition, e.g., specifically excluding compensation related to sick leave and/or family and medical leave.

What? No FORTRAN?

1. Yes, as long as M remains a separate entity (i.e., it was not merged into S after closing). 2. Yes, but generally it's recommended to appoint someone on the buyer's side if the sellers will not remain involved with M after closing. Also, M's plan cannot be terminated in 2021; if not maintained separately, it would have to be merged into S's plan to avoid successor plan issues.