Plan participant with a loan was termed 4/23. He stopped making loan pmts when termed & was re-hired 10/15. The way I understand it is the cure period would have ended 9/30. Is there the possibility that the participant can make up loan pmts & interest and continue with the loan at this point or is it too late? Thanks

Is it permissible to have a passive HSA Open Enrollment? Can I just let the 2012 payroll deductions for HSA carry into 2013? We do allow employees the ability to change the deduction amount at any point during the year, so it's not like they are trapped all year with this deduction as they would be for an FSA.

The mentality for most of our employees "If I am happy with my current elections, then I don't need to do anything" (this mindset persists even when I beat them over the head with communication telling them otherwise).

Curious to know if it is permissible.

Considering signing a contract with Guardian to be the TPA on a client's plan with assets at Guardian. Does anyone have any experience with the company that they would be willing to share?

Thanks!

Does anyone know what the penalty is for a late 8955 SSA?

if this lady applies for a job watch out

http://www.viddler.com/v/800b0af0

My client says they did this with a prior administration firm in the past. (of course)

This is a totally participant directed plan and the trustees are going to make a "special" investment of Trust assets in a piece of foreign property. A notice is to go to all active participants stating that they have a one time option to invest in this property with lots of notes about how highly speculative, aggressive etc this investment is. Any participant may elect to direct some of their account into this investment. (Assumption being that they have enough owners who want to be in this investment that they can cover the purchase price). Once in the investment it will be treated like a pooled fund - with annual valuations. Participants with a share of this investment can only get out of it in the month following the annual appraisal. Once in a participant can only get out of it entirely (i.e. if their share is 10,000 they can transfer out the total but not 50% of it). I've not seen this before and would welcome any thoughts.

My initial concerns regard the fact that it is a directed and yet pooled investment. How does this effect fee disclosure, quarterly valuations, etc.. Would this be similar to allowing participants to keep some of their assets in a trustee directed fund?

Thank you in advance.

(edited to add more information).

I am now informed that one participant wants to borrow money from the plan to invest as an individual as well.

Three doctor offices each with three doctors (9 total). They created a billing company that, initially, will perform billing services exclusively for the three offices. All doctors have equal ownership with the billing company. Each doctor office has their own plan.

Does the billing company create an ASG with any or all of the doctor offices? It would seem at first glance that the billing company would be a "B-Org" and the doctor offices are an "A-Org" and also an "FSO". Curious if the billing company is affiliated with each separate office could all four are combined as one ASG...

A 403(b) Plan installed by a 501©(3) in 2002 which is funded solely by employee deferrals and employer matches of 100% of pay up to 3% of pay and the matching has a 5 year graduated vesting schedule.

The Plan has never filed a 5500.

Should The Plan have filed 5500s since 2009?

If the match had been immidiately vested, would that have made a difference?

I would like to thank you in advance for your input?

Rene

Old firm sponsored Old plan which included 401k benefits.

Old firm dissolved. Many, but not all of the old law partners formed New firm, for which New plan was set up, with a 401k feature.

As Old and New firm constitute a control group, those employees of Old firm that went to work for New firm when it was set up did not separate from service.

Not understanding fully the separateness of the two plans, the administrator/trustee of Old plan allowed those that did not have a separation of service and requested (on an individual choice basis; not a trustee-to-trustee transfer) to directly roll his or her benefits from Old plan to New plan. Four individuals chose to do such; all four being under age 59 1/2.

I have been asked to prepare a VCP for Old plan, so that it can correct the fact that the benefits left Old plan before those employees had distributable events and without having been provided proper notices and explanations. The correction will include the return of the funds from New plan back to Old plan.

My question is whether a VCP application needs be made for New plan also, as it received into its trust what were improperly rolled benefits and as part of the correction will be paying those funds out, back to Old plan. Is a VCP for New plan required as one is for Old plan?

A rehired employee who was previously a participant in the plan is rehired. The document requires the person to immediately resume participation in the plan. But the auto enrollment provision that was added to the plan since the participant left requires advance notice. Do you simply offer the option to defer immediately, wait for the expiration of the notice period and then auto enroll them? If so, how do you answer the auditor's question about why the deferral rate is less than the stated percentage for automatic enrollment?

i know the order is not called a QDRO. my question is when calculating what is marital property in divorce involving a participant in a federal TSP does state law apply (eg. in florida contributions prior the marriage plus earnings are is not marital property) or is there a federal law that supersedes that when dealing with what is marital property.

Is there a mandatory interest and mortality rate when converting from one form of benefit to another i.e. convert a plan's normal form life with 10 yrs guaranteed to life only?

When you have both a DB plan and 401K plan,

do employee deferrals count towards 415 limit

ex. comp $250,000

DB contri 100,000

3% SH 7,500

Can you also have employee deferral of $16,500?

I understand that the full DB contri is allowed plus 6% DC contri

Is the employee deferral also included?

ex.

$250,000 comp

100,000 DB

7,500 3% safe harbor

can you also have 16,500 employee deferral?

25% of comp is $50,000

The advisor wants to set up a closed MEP for this organization to avoid the audit requirements? How is that possible? I'm very confused.

Have a possiblility of obtaining a large client and creating a multiple employer plan. I have not worked on these before but have 22 years experience as a TPA. Hoping someone will email me or respond here with maybe an overview of why a multiple employer although it appears so that the audit requirments can be waived except for the plan sponsor and not the co-sponsors. Also, the advisor want to become the fiduciary who is bringing me in and I have read where TPA firms as well become one of the fiduciaries??? Little confused on that. What I really need as well and I"m sure you will want to email this is how you go about charging for one of these. These employers seem to want a closed MEPP plan.

Thank You

Does a 10% federal withholding apply for corrective distributions on ineligible deferrals. Such as participant made deferrals without being eligible.

The ADP test for a plan year that ends on 6/30/12 failed. One of the HCE's reaches age 50 three months after the plan year end (Sept. 2012). Can the excess deferral for this HCE be recharacterized as catch up even though he turns 50 after the plan year ends? He has only deferred $7,700 for the plan year.

Interesting question came up. Employer has a calendar year plan. Was a PS plan only, and was amendmed to add a 401(k) provision, including the 3% safe harbor, on July 1.

Several participants terminated PRIOR to July 1. Must they receive the 3%? The IRS approved prototype document language is basically silent on this issue; the adoption agreement says "for purposes of the ADP test safe harbor contribution, the term "eligible participant" means any participant who is eligible to make elective deferrals..."

Depending upon your interpretation, the regulations, including example 4 of 1.401(k)-3©(7) don't really address this directly.

Since the plan is using plan year comp for the safe harbor contribution, my interpretation is to say that yes, since participants who remain are receiving the 3% based upon comp prior to the safe harbor being implemented, the same treatment must be accorded those who terminated, in spite of the potentially opposite conclusion based solely upon the AA language. But I can see a reasonable argument being made for the opposite interpretation - in other words, taking the AA at face value and not overthinking the issue.

Just wondered if anyone else had grappled with this rather specific situation?

Hmmm - the more I think about this, the more I disagree with my initial conclusion. I think they don't need to receive it. If they return to work this year, they are immediately eligible, and would then have to get it based upon entire plan year comp. Otherwise, since they were never eligible to defer, they don't need to receive it.