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Or maybe the doc has an ownership interest in the surgery center too? That NEVER happens, right? And then you scratch the ASG scab........... 😱

Yes, you can use the corrective amendment rules of 1.401(a)(4)-11(g) to correct a failed non-discrimination test. However please read your plan document carefully. Most plan documents I have seen provide for an automatic waiver of the last day and/or hours of service requirements as needed to pass the gateway test. This would usually apply only if the participant was otherwise eligible for a contribution that would require them to be included in the test, such as a top heavy minimum or a safe harbor non-elective contribution.

He would be considered an HCE and Key employee of B because he is an HCE and Key of a member of a controlled group with A & B by virtue of his more than 5% ownership in A.

§ 2520.104b-3 ...the plan administrator shall furnish this summary, written in a manner calculated to be understood by the average plan participant, not later than 210 days after the close of the plan year in which the modification or change was adopted.

Generally plans can be (and often are) terminated in connection with a sale without any prior participant notice. Of course, it's always better to have a clear approach going into it so everyone is on the same page. There may have been one that has not been communicated to you (not sure your role in the process). If the plan was not terminated by a resolution effective before the stock sale closed, there will likely be a successor plan issue as I assume the buyer (or another member of the buyer's controlled group) has or will start a 401(k) plan. The seller's plan may need to be merged into a plan of the buyer.

Nope. If it isn't regulatorily required, we wouldn't do it (nor would I, if I were in private practice). ANYTHING over and above what is actually required becomes a potential issue - and possibly one of litigation/liability. Keep the "educational" stuff separate from the "regulatorily required" stuff. And for the record, we use Relius - but have them customize our document and SPD - so we do "control" the content.

I meant you need to talk to the plan's actuary and ERISA counsel and work through these issues. I believe if the plan permits the beneficiary to take a lump sum in leu of monthly payments (you need to work with ERISA counsel to ensure this is permitted), the beneficiary cannot rollover the MRD amount applicable for the year of payment. These rules are tricky for DB plans so you will need to read the regs. Yes, the beneficiary can rollover a lump sum, part of it will not be eligible for rollover due to MRDs. Whose MRDs govern after the rollover I am not sure.

This whole thing smells. I would bet dollars to donuts that this will not stand up under audit. Run.

I going to guess that the independent contractor is really still an employee. But if the employee really is an IC then you can do it. I assume you are talking about a true short plan year after employee's termination date with prorated 415 limit or you are likely going to have first yer problems with coverage and testing in 2021 based on the W-2 service already.

Well it's 3% of full year comp to be SH NE so the ee is eligible for SH 1/1/2020 and gets the 3% NE. You can't have a short year NE it's got to be 12 months.

Thanks, Belgarath, for the on-point rev ruling. Here are the good bits: So if you can classify the fee reimbursements as "restorative payments" then they would not be treated as contributions. However: If the fees being paid out of the plan are reasonable, then there is probably not a reasonable risk of fiduciary breach, and therefore they could not be reimbursed with restorative payments. Time to find a new custodian.

Perhaps this will help. https://www.irs.gov/pub/irs-drop/rr-02-45.pdf

Sometimes they're kinda cranky about not being able to take a real vacation for a couple of decades (without toting along a computer to put together a daily email newsletter). Still, they just paid off the mortgage, the boy was able to go to a good college, and there's money set aside in connection with this retirement concept that one hears about. Plus there couldn't be a finer group of subscribers and message board users, and in some sense our intrepid Internet pioneers have helped the cause of retirement security as well as helping people find good jobs and do their jobs more easily and effectively. So it's all good! Here's our "amendment and restatement" in a work photo (Gymboree in pinstripes, doncha know) that dad took and fiddled with in 1995, when this world-wide web thingie got started. Joey will be 27 in a couple of months. He has no interest in employee benefits, though, and the former Floridian prefers to work as a snowboard instructor and maintenance engineer at a ski resort near Mt. Hood in Oregon.

As far as I know your expectation is wrong. it has always been my understanding that a fiduciary can't ever fully delegate their duties. They always have to monitor and review what the experts do to make sure they do their job right. I don't think they can just assume a TPA has sent notices for example. They need to know they were sent in some way. If it is an internal trustee that is a participant did they get a copy of the notice for example? That is a big part of the Greatbanc settlement. It sets out guidelines, and I have always understood them as a guidelines not a safe harbor, to help trustee's understand if they have discharged their duty in regards to the stock appraisal. When you say are there guidelines that say you have discharged their duty and can't be assessed a penalty it sounds like you are looking for some kind of safe harbor rules regarding fiduciary duties. I think the reason you aren't finding anything is because they don't exist. I am happy to have an ERISA attorney, which I am not one, and tell me I am wrong. Every attorney I know on this topic says the way to defend yourself in this area is document your procedures and how you followed them. As long as the procedure was reasonable and they were followed you tend to have a strong defense in this area. As far as I know you can't just claim you hired professionals. They have to follow up to make sure the professional did their job.