Must all fees be applied to each adopter in a PEP ?

One of the adopters in the PEP is the 3(38) for the PEP.  They do not want to charger their 3(38) fees for just their plan.

Are they allowed to do that ?  Would it take a supplemental service agreement ?

Thanks!

A nonprofit wants to use a PEO, a for profit company, for a division of its employees.  The PEO will be the employer of record for tax purposes and will be the employer who issues payroll and W-2s.  The nonprofit will direct the work of the employees, so they could be considered common law employees of the nonprofit in a co-employment arrangement.   The PEO has indicated that it can withhold 403(b) contributions from the employees' wages and forward them to the nonprofit's 403(b) plan provider.  Although the employees may be eligible to participate as common law employees, I don't see how the employees will have "compensation" which is defined as W-2 compensation as reported by the nonprofit. The PEO also can't be a participating employer because it is a for profit company.   Has anyone run into this before?  

We have a Plan that terminated in '23.  There have been some residuals that came in that we are going to allocate to the participants who were paid out as part of the termination.

There was a participant who terminated in '22 and had their distribution processed in early '23, prior to the Plan Termination.

Would they get their piece of the residuals or no, since they were paid out prior to the termination?  Just want to confirm.

Thanks!

This is in fact a purely academic question for the attorneys out there, not related to anything, but merely idle curiosity on my part, so please don't waste any time on it.

Suppose a client comes to you for a legal opinion - I don't have any specific subject in mind. Further suppose that in your best judgment, it is a coin flip - 50/50 either way. Do you say that you can't give an opinion? Or do you present both sides, with the potential advantages/disadvantages/consequences for either choice? Or is the answer to this question purely facts and circumstances, so there's no "general" method? I've often wondered about this, but such a situation has never come up - fortunately.

I'd love to hear any opinions, but again, please don't waste your valuable time if it isn't a quick and easy response. Thanks.

If the Wrong Date of Marriage is filed under the Court when the Parties Divorced and you are now working on a QDRO, should you use the actual dates of marriage (includes common law) or use the incorrect dates of marriage that the court has?

If one party refuses to sign a Domestic Relations Order, should you put "Declined to Sign" on the dotted line where the party would be required to sign. Also, I know Clerks of a Court can issue Subpoenas. Can a Clerk of Court also sign off on a Domestic Relations Order pursuant to a Judgement of Absolute Divorce or does a Judge have to sign off. This is in relations to an Order in Maryland.

What is the IRS Code that states QDRO's can be used for Alimony, Child Support or Marital Property in general?

I have a plan that is a 3% safe harbor and a cross tested profit sharing (each person is in their own group).  There is a last day and 1000 hours requirement for the profit-sharing allocation.  This is a 12/31/2023 plan year end.  Can I do an amendment in 2024 to take out the last day and 1,000 hours requirement for the 12/31/2023 plan year by the end of 12/31/2024?

Hi everyone,

I am an insurance broker looking for software to manage FSA Plans. I am currently reviewing WEX and Alegeus, and I would like to hear thoughts from anyone with experience using this software, including their pros and cons. Alternatively, I am open to recommendations for other software to use. Any help would be greatly appreciated...

Thanks in advance.

So, it is my understanding that the IRS, when calculating the "turnover" rate, considers all employees ELIGIBLE to defer as participants for purposes of calculating the participant numbers. The fact that the DOL has altered the definition of "participant" for purposes of 5500 counting does not affect this IRS stance. 

Anyone disagree, or have other thoughts? Thanks.

Hello. I'm not sure about the rules on here or if I have to say more. The question is in the title. Please point me toward sources/citations that can help me answer the question (if possible). Other thoughts are also welcome. Thanks.

I'm hearing about more and more vendors that claim to be able to save self-funded employers on their rx spend by sourcing FDA-approved name-brand medications from countries such as Canada, the UK, Australia and New Zealand. The vendors contract with employers to offer this program to employees, then the vendor works directly with employees to obtain their prescriptions from pharmacies outside the US under FDA personal importation guidelines. These vendors tell employees they can get their drugs for a $0 copay and generally charge the employer a percentage of the savings when the drug is sourced. I'm wondering what the legality is for the both employers offering these programs and employees participating in these programs. What compliance issues should employers consider before implementing these programs?

Thanks for any insight!

I had a financial advisor ask me about this today.  It's been awhile since I've had any contact with this topic.  My recollection is that regular IRAs are exempt from bankruptcy up to $1,000,000 and rollover IRAs (from qualified plans) are unlimited.  But is there a difference between federal and state bankruptcy.  I think bankruptcy laws are a state thing not federal.

The ob/gyn client with $5 mil just retired and wants to keep the K plan open indefinitely. I told him only for a year at most.  I told the FA to have the client contact an ERISA attorney.

Still - any comments  are appreciated.

Profit Sharing Plan is terminating. Does the 10% penalty apply to any Participant under the age of 55?

Thank you for your help.

My ex and I never signed our QDRO. He recently passed away and I went to claim my portion of the pension. That's when I found out. Is it an issue getting it signed off by the judge now? Is there case law that supports a judge signing it? BTW it is discussed in detail in my divorce decree if that helps. TY

I was reviewing the Department of Labor Handbook and I see that a QDRO can contain more than one retirement plan. Would you recommend including two retirement plans into one QDRO -- Pension and 401k if it is the same employer?

XYZ CPA is a small CPA firm that employed Bob, Sue and Dick.  Bob and Sue are husband and wife, Dick is just the other partner.  No rank and file employees.  Dick decided to retire so XYZ is changing to Bob & Sue CPAs LLC.  B & S CPAs has its own EIN.  

Questions:

- I'm pretty sure that I don't need to terminate the old plan... I can just amend it to change the plan sponsor... correct?
- On the 5500-EZ, would I make the necessary changes and file?  (put in the new sponsor and EIN?)

Thanks

Can you draft a QDRO for Alimony payments?

If there are two retirement plans to be divided, should you submit both Domestic Relation Orders to the Court at the same if the other spouse refuses to sign.

Hello,

I have a client interested in acquiring or merging with a small to mid-size 401(k) TPA firm. Their services include, but are not limited to, plan designing, plan valuation, preparing renewal packages, census scrubbing, contribution calculation (including profit sharing), and compliance testing (Coverage, ADP/ACP, 416 top-heavy tests, 401(a)(4), and top-heavy). They are open to opportunities in any location.

If you know of any firms available for acquisition or merger, please send me a direct message.

Best regards,

John