Okay, so my company, what's taking out 401K Contributions and then all of a sudden, they stopped. I contacted h. R. And they said I was never supposed to have been signed up 401 k because I just started. So I asked them well Where is my money then. Cause it shows on my pay stub. So they contacted the person who handles the 401K. And said that because I came in when they're transitioning over to a new company. That the money was just floating in the air or whatever so they say that they're gonna cut me a Payroll check for the amount that they took out. I asked what about our company match. They said because it never reached voya, Who represents or handles my 401K that I don't get the company match and I explained to them that I don't want to get penalized or anything like that and they said no. But the check was considered loan refund or something like that. So  I signed up for the non union plan which is the one i now qualified for and they started taking out money for 401K again. only 2 payments was received while now. 3 payments was received by voya. When i get paid weekly.  My other contributions were never. Received so how do I handle this situation.  It's been a week and work hasn't said anything to me.

I have a Client who was divorced by Judgement of Absolute Divorce. In the JAD the wife (Plaintiff) was to receive Rehabilitative Alimony for 30 months. The Defendant never provided those payments to the Plaintiff. Now we are 20 years later and the Plaintiff is working on a Qualified Domestic Relations Order to receive the Pension benefits awarded to her in the JAD. Now she is also trying to file a petition to receive the Alimony payments never received, but I notified her that the statue of limitation has passed. However, she can use a QDRO to receive the Alimony payments that she is entilited to receive, as the state that she resides has no statue of limitation on QDROs.

Now to get to my question: I am drafting a QDRO for Alimony in a 401k Account, should I include only the exact dollar amounts awarded to her or should the QDRO apply the interest of the investment accounts on the wife's Alimony share, as any account would?

How can the President of a company maximize total contributions to the plan? The plan is safe harbor. There is only 1 other employee who is an NHCE in the plan. 

He is over 50 so he can defer $30,500 in 2024. Match is 100% up to 6% They have a discretionary profit sharing provision. Roth deferrals are allowed but no after-tax contributions. 

What is the best way to reach the total annual additions limit of $76,500 for the year? 

EOY valuation plan, if we use $1k PFB to offset MRC for 2023 plan year (line 35 on SB), should I reflect that in AFTAP/FTAP calculation by reducing $1k PFB? and also override SB line 14? I think so but can't find an official guidance on this.

Hello. We have an employee requesting a hardship withdrawal to prevent eviction/foreclosure of a mortgage on their primary residence. The documentation provided shows a mortgage statement under someone else’s name, however the address matches the participant’s ID and he considers it his primary residence. Not sure how the two are related, but perhaps it’s a relative or partner in which I assume he pays rent to (although there is not lease or rental agreement). My question is: can we approve this? 

Here is the safe harbor definition: “payments necessary to prevent the eviction of the employee from the employee’s principal residence or foreclosure on the mortgage on that residence.”

For a Cash Balance Plan, which doesn't have the last day requirement, I know it's irrelevant.  If someone went out on leave (whether it's maternity or not) and had already worked over 1,000 hours they are eligible for a contribution.

How about a Profit Sharing Plan?  We have a plan that has multiple people on Maternity Leave and someone else on Medical Leave.  They are all getting paid disability, if it matters.  Are they eligible for a contribution for the year?

Question:  Is the employee's termination date the last of active employment or the first day of non-employment?  

For example:  I worked on 1/31/2023 is that my termination date? or is 2/1/23 termination date?

So I have this plan with 4 terminated employees who each have a small residual balance due to interest/dividends.  

1¢
$20.03
$8.92
$208.82

For the $208, we will send her the money.... issue a 1099-R.  For the rest, send them the money... is a 1099 needed?  I'd like to just expense it out.  What does everyone do in this case?

Fiscal year 6/30 organization wants to contribute funds in June, 2024 to a 457(f) plan being adopted on June 1, 2024.  I am told the employer has been "setting aside" funds to contribute on behalf of the executive for past services for the organization.

This sounds to me like a 409A, if not a 457(f) violation, as I don't believe contributions can be made for services performed before the executive has become a participant.  Nor do I believe it permissible to make the plan retroactive to a date before its adoption such that the executive could become a participant as of an earlier date, July 1, 2023, for example.

Am I right?  If so, can a contribution be characterized as something other than for past services to enable the contribution in the current fiscal year even though the plan didn't exist for the first 11 months of the fiscal year?

Hi,

Thank you all, as always, for all the insights.

Now that the Secure Act allows for a DB Plan to provide for in-service distributions starting at 59.5, is a DB Plan now allowed to adopt an NRA of 60? Or is 62 still the lowest safe harbor NRA for a DB Plan?

Thank you.

Hello, I had a consult with an actuary/administrator about starting a cash balance plan this year. However, I maxed out my solo 401k contributions 69,000 this year by myself with fidelity. He states that he can create a new solo 401k plan (?) and reclassify the excess as after-tax contributions for this year so I can start my cash balance plan this year.

Hi

Did not have to deal with one of these in many years so a bit rusty on the process.

Everything is on a calendar basis.

Joe and Mary are 50/50 partners of a law firm - no other employees. They both get K-1s. Let's call this LawLLP. All they have is a SEP.

July 1, 2024 they will go their own separate ways.

Joe sets up a PLLC (filing as a sole-prop). He will bring in some of the clients from LawLLP. Is this an ASG issue?

Joe wants to set up a DB plan for 2024.

Can he:

1. Use prior service and income (limited to 5 past years) to start the DB effective 7/1/2024 (ending 12/31/2024 for a short plan year) so that he can have an AB as of 7/1/2024 for pre-funding?
2. Assuming that he can, plan year must start on 7/1/2024 to avoid Mary to be involved in the DB, correct?
3. What needs to be pro-rated, if anything? His net c will be 200k and he wants to put away as much as possible. Of course it will depend on what can be used from prior firm.

What else am I not asking or thinking about?

Thank you all.

We have a small plan whereby each participant has a separate broker account.  We directed the financial advisor to deposit into each person's account their 2022 employer contribution in Sept 2023 and actually again in Feb 2024.  It did not get done until May 2024.  The contribution was made to the plan on time for tax purposes - deposited into a general fund plan .account.  The financial advisor has agreed to deposit lost earnings.

The FA is now getting into areas that in my opinion they should not -asking us if Form 5330 is needed and if the 2023 5500 needs to be amended to reflect the earnings receivable.  I do not see anyway to report this on Form 5330.  The employer did not benefit so it is not a prohibited transaction.   As for the 5500, I lean toward just showing the earnings on the 2024 5500 since that is when they will be deposited.  I suppose we could split our calculation between Oct 1 and Dec 31, 2023 and show that as a receivable and amend the 5500 but that seems unnecessary.  It is filed on an accrual basis since we add in the employer 2023 contribution receivable even though not paid until 2024.

Thoughts?

I know that SECURE 2.0 allows you to terminate a SIMPLE IRA and start a 401k/SH plan in the same year after 1/1/24 (got to love those pro ration calculations!), but what about the other way around?  The fact that I'm not finding that you CAN do it makes me think it's not allowed.  Thanks.

Can someone explain to me why fees associated with Insurance Services would fall under the new line 2(i)5 "Investment Advisory and Management Fees"? No where in the 2023 5500 Form Instructions does it say this nor in the 5500 Regulations site. Shouldn't insurance service type fees just fall under "Other" for expenses on the Schedule H P2?

Thanks!

Sort of an Angels dancing on the head of a pin item here.

The 401(k) regulations are very clear that the sole prop (or unincorporated partner, for that matter) must complete a deferral election no later than the last day of their taxable year. Very common for such a deferral election, if it doesn't specify a specific dollar amount or percentage, to  say "maximum" or something similar.

Now, suppose a sole prop has an election where s/he specified "maximum." But once Schedule C income is known, s/he does not want to contribute the maximum, for whatever reason. Is this a problem? If instead, the deferral election said something more along the lines of, "an amount from zero up to the maximum allowed" or something along those lines, is this an acceptable election? Curious as to whether anyone has EVER seen or heard of the IRS opining on the issue - I have not...

And please don't beat me up with arguments about how stupid the regulations are on this - I absolutely agree that it is foolishness, but I don't make the rules - just try to play by them!

Thanks in advance for any thoughts.

Can a partner who receives a k-1 from a partnership participate in an HRA? Partnership is setting up a fertility HRA and would like all employees and partners to be eligible. 

Has anyone come across guidance regarding whether Code section 72(t)(2)(A)(v) applies to distributions made to rehired employees.  Any guidance is greatly appreciated. TIA.

Safe Harbor 3% plan for controlled group.  We have a location that we have been excluding and now cannot pass coverage or average benefits (unless a significant profit sharing is made to the staff of the eligible location).

My question is, can we bring in the staff needed to pass the 70% coverage test at the excluded location? Would we have to allow them to defer since they would now be considered a plan participant?

If someone wanted to freeze a Cash Balance Plan, what is the deadline to do it?  Like if they wanted to freeze the Plan for 2025, when do they have to make that decision by?

Thanks in advance!