For small plans, are salary deferrals considered timely deposited as long as they are deposited to the plan within the 7 day safe harbor deadline or do the deferrals have to be allocated to the participants by the deadline? For example, for an employer who has weekly payrolls, would they be in compliance by depositing the employee deferrals into a pooled plan account each week and then allocating the deferral amounts to participants monthly, quarterly, etc.?

From hot-off-the-press IRS Notice 2012-61 (9/11/2012):

"(b) MAP 21 does not change the annuity substitution rule. Accordingly, for purposes of measurements to which the MAP 21 segment rates apply, the present value of a distribution that is subject to § 417(e)(3) is determined using the MAP 21 segment rates to discount the projected annuity payments in accordance with § 1.430(d) 1(f)(4)(iii)."

I the Non-profit that sets up a 403 b plan for it's employees. what are the responsigilities of of the non profit - sdo they have to approve the individual investments available for employees. Is the level of oversight different from the level required of a 401 K plan trustee.??

A single participant defined contribution plan wishes to make an investment in a rental property. The Plan would hold about a 10% interest in the property. The other 90 % would be held by an LLC or LLP in which the sponsor (and participant) is the sole member. Is this a Prohibited Transaction under IRC 72(t)? Or is it exempt?

Could the Plan make the down payment and hold the mortgage in the Plan?

When applying FAB 2009-02 to 5500 reporting should the excludable participants (meeting the 4 criteria) be excluded in the participant count and the assets reported or can I just excluded them from the participant count but still report the total assets as stated by TIAA?

Thanks in advance

A terminating participant has an outstanding loan. He doesn't want it to default, doesn't want to pay it off fully and there is no provision to continue paying after termination. He is rolling over the funds to a different 401k Plan. Is there any provisions available in the original Plan that would allow this to occur? I haven't been able to find anything. Thanks.

415 statute uses the high 3 year average for definition of average compensation. what happens if a participant doesnt have three years of compensation - how does this affect the calculation of the 415 limit for that participant?

Hello,

Have not worked with an LLC lately. Recently came across a small SH 401(k). 3 partners. All 3 partners have appx same membership %. With lowest at 32%. His SE earnings (Box 14a) was $315,838 for 2011. I recall deducting Sec 179 from that ($12,083) and then I believe you deduct deferrals ($22,000), the sum of which you multiply by .9235 (.9435 this year) then multiply that sum by .0145 of which you deduct from the previous sum(after .9235), which you arrive at earnings to calculate SH match/p.s.? Am I on track? Wayyyyyyy off?

Now that we can no longer use the IRS forwarding service, does anyone use a good company to search for lost participants? Google does not always work.

Has anyone else been notified by their clients about receiving a letter from the IRS stating the 2011 Form 5500 is not signed? We received two so far and both submitted in May 2012 electronically through EFAST2. I don't understand why we are getting these letters and I wanted to see if anyone else was getting them.

C corporation with Esop wishes to make deductible dividend payment to esop participants. Instead of writing checks to

each participant it would rather make direct deposits into their checking accounts. Are there restrictions on doing this?

Do they have to give participants a choice? Can they give some participants this choice but not others? Thanks.

I pay for my employees medicare supplement and medicare part d through my business. I just read that the medicare part d is not deductible in 2013. Is this true.

Thank you.

*edited to delete post*

A plan has missed it's July 15 contribution of $25,000. To cure this at once, my understanding is that sponsor should contribute $25,000 now. He would not have to contribute a greater amount now that reflects the 5% penalty and extended discount. However, before the year's contributions are completed, the sponsor will have to contributed enough so that the discounted contributions, including penalties, at least equals the plan minimum.

Does anyone belief that in curing the missed quarterly, that the delay and penalty would have to be recognized at that time the curing contribution is made? E.g., contribute $25,437.

The attached court decision found no responsibility to reinstate a 401(k) account that an ex-wife stole from her former husband.

The participant neglected to change his address in the plan's records when he moved from the marital residence.

The ex-wife used a plan mailing with information about identity-control procedures to change the participant's password.

Comments?

Foster_v_PPG_Industries.pdf

Any feedback would be appreciated.

I have a current plan that is a safe harbor match plan with a formula of 400% of the first 2%.

The prototype for the enhanced match section reflects that the match percentage must be at least 100% (so 400% works fine, but then the section for the salary deferral to be matched has a parenthetical indicating that no less than 3% can be inserted.

As this 400% of 2% meets the enhanced matching formula, do you think ignoring the "insert a percentage not less than 3%" parenthetical put the plan in off-prototype status?

Seems like a crazy parenthetical since the formula inserted meets safe harbor requirements or it is not a safe harbor contribution plan, but it is sitting there in the adoption agreement.

thank you in advance for any feedback.

When moving funds for a lost/missing participant from a terminating DB plan to the PBGC, what 1099-R code is used for the distribution from the plan?

Even though it's not an actual "rollover", would Code G be appropriate?

Thanks!

My client is planning a sizeable reduction in work force this week, one that will impact more than 20% of their domestic work force and therefore result in a partial plan termination of our 401k plan.

1) Do they need to notify participants in any way about the PPT and if so, what timelines are attached to this notification? If notification is required, is it only those participants affected or the continuing (non-affected) employees as well?

2) Some of the employees who will be notified next week will be kept on up through 3/31/13 in order to complete some projects. Since they will be notified next week but will remain employed what time period for the PPT determination can stretch beyond one plan year if circumstances require it. Does that mean that the PPT period would be from 1/1/12 to 3/31/13? and if so any employee involuntarily terminated (even for performance) between 1/1/12 and 3/31/13 would need to be fully vested?

If compensation is earned in the last pay period for the year but not paid until the next year, which year would this compensation fall under?

Can someone provide me with the actual Section of the law where I can find the answer?

Is there an issue with a sole proprietor transferring stock in-kind as a contribution to his Db Plan? He has two accounts with the same vendor. One is the trust for the Plan. Rather than sell the stock in the other account and then contribute the money to the Plan and re-buy the same stock, he wants to transfer the shares over. Is there an issue with this? Does the contribution need to be cash?