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Why do auditors ask for prior year 5500's? All the filings going back to 2009 are online, and can be downloaded in an instant.

I would think death would imply automatic resignation and no notice is required. Just documentation.

Are you talking IRS, or independent CPA audits of large plans? If it's the latter, you gotta realize the mindset of auditors. They audit that which is provided to them. It's not the auditor's role to go outside to gather data (even confirmations are officially requested by the client to go back to the auditors). If they want something changed, they tell the client to change it and send it to them, they don't do it themselves. I get it, but taken to extremes it seems weird and highly inefficient.

They disappear to another dimension. Few have crossed over, only one has returned, matthew mcconaughey. He reported vast wastelands full of 401k plan documents, annual reports, and participant notices. And socks. Soooooo many socks. And yet, not a single matching pair. I need coffee...

I like that idea, Bill. I have also had issues where the Trustee has died. So, he is not likely to be getting his mail or email anymore. Also, as the TPA, we are typically the last to know; and it is generally a couple of months (so more than 30 days).

These hyperlinks to BenefitsLink posts might help you find more information. https://benefitslink.com/news/index.cgi/view/20211104-168474 https://benefitslink.com/news/index.cgi/view/20211102-168431 https://benefitslink.com/news/index.cgi/view/20211029-168386

The transferred assets have to be allocated no less rapidly than ratably over 7 years. So you have to do at least 1/7th in the first year, then 1/6th of what remains in the second year, and so on. 415 limits permitting. You can use a non-safe harbor method to allocate, as long as it is permitted by the plan document and satisfies all applicable testing. I don't know that the IRS has ever actually come out and said that the 20% excise tax applies on any amounts that remain unallocated after 7 years. However, to be on the safe side, I would suggest not leaving any unallocated assets if at all possible, meaning get everyone to their 415 limit rather than leave unallocated assets. No. It's not a forfeiture account. However if the plan generally pays certain expenses, I don't see any reason why those expenses couldn't be charged against the QRP account the same as any other account.

As I mentioned, our notice has a "you're done 31 days after the notice" regardless of whether they sign. A provision like that should be in the trust agreement.

Employees that take on the role of plan trustee and then terminate without communicating about the cessation of duties... deserve their fate? Maybe that's a bit harsh. But I think you know what I mean.

Shortly after 98-52 I remember going to a benefits conference and someone asked the IRS where the 4% came from. To paraphrase, their response was "We made it up because we thought it was a good rule."