We recently moved our plan to a new RK. There was one beneficiary of a former employee who was missed from the blackout mailing. Can we send a copy of the original blackout notice that was sent?  The plan just went live with the new RK last week. 

I was reviewing the Form 720 the IRS revised in March 2023 and noticed in IRS no. 133 has last year's data listed (date and fees). Has anyone else noticed this, too?  Or am I missing something?   If I am not losing it does anyone know when the IRS plans to send out an updated version?  https://www.irs.gov/pub/irs-pdf/f720.pdf  

From what I read the 10% penalty is still due on a hardship withdrawal unless the participant is 59 1/2.  The participant asking for the withdrawal is only 40 and it is a construction expense (he said he over-built) for his prmary residence.  This is from a qualified plan.  Is there any relief from the 10% for this participant?  

I just want some more back-up because he is relentless on the WHY?

If the participant isn't electing to withhold anything now (understanding that withholding isn't mandatory on a hardship), can the amount taken still be grossed up to include an amount to cover taxes to be paid later?  I see discussions here on how to actually figure out how much is an appropriate amount to gross up - we're going with a simple 20% of the amount requested, for better or worse.    But I don't see anything that says that if you're not electing to have the taxes withheld now, that takes away the ability to have the distribution increased for the taxes that will be due, so long as you're still under the amount that you have available under the terms of the plan.  Right?  Thanks.

Just trying to decide how many years worth of old emails to save.

Hi All.  I have searched for my answer, to no 'recent' avail.

I have a small business owner (himself, his wife, and 3 employees) in a 401(k) plan who would like to invest his balance in a Limited Partnership (which holds real estate).  This group is already in segregated accounts, but the owner's investing of almost 100% of his own balance is still way more than 5% of plan assets.

The plan would still need an independent audit, correct??  Obvious answer, I think.

Besides this question, can someone please point me into some reliable source for learning more about question #6 a & b on the 5500SF - ineligible plan assets and the subsequent plan audit requirements?

I greatly appreciate it.

Hi All.  I have searched for my answer, to no 'recent' avail.

I have a small business owner (himself, his wife, and 3 employees) in a 401(k) plan who would like to invest his balance in a Limited Partnership (which holds real estate).  This group is already in segregated accounts, but the owner's investing of almost 100% of his own balance is still way more than 5% of plan assets.

The plan would still need an independent audit, correct??  Obvious answer, I think.

Besides this question, can someone please point me into some reliable source for learning more about question #6 a & b on the 5500SF - ineligible plan assets and the subsequent plan audit requirements?

I greatly appreciate it.

We have direct seller who get a W-2 from us; the majority pf what they do for most is 100% direct sales. They are excluded from H&W & 401k benefit plans.

Must these direct sellers be counted in ACA testing?

thnaks

Alexa

Has anyone had trouble looking up a 5500-EZ filing? We filed electronically and received an acknowledgement number for a 2020 filing.

It is easy to find 5500 and 5500-SF filings on the DOL website but we get nothing when looking for the electronically filed EZs.

2 Year Old plan. First year assets were less than 250K. 2nd year they were over. Hence I'm doing the 1st year filing in the plan's 2nd year. Is my beginning balance $0 or do I use the ending balance from the previous year( that was under $250K)?

2 Year Old plan. First year assets were less than 250K. 2nd year they were over. Hence I'm doing the 1st year filing in the plan's 2nd year. Is my beginning balance $0 or do I use the ending balance from the previous year( that was under $250K)?

BenefitsLink helpfully posted the IRS’s prepublication release of Notice 2023-43 https://www.irs.gov/pub/irs-drop/n-23-43.pdf.

Here are my open questions for BenefitsLink neighbors’ observations:

1.    What does this IRS guidance let us do tomorrow that we couldn’t do before December 29, 2022?

2.    What were you hoping for that the IRS isn’t yet allowing?

3.    If an Eligible Inadvertent Failure is one that may be self-corrected, under what circumstances might one prefer to submit a VCP application?

For a Safe Harbor Plan that contains a Pro Rata Profit sharing element does the ADP ACP and Top Heavy testing only relate to the Pro Rata profit sharing piece or does the entire plan now need to be tested for the ADP ACP and Top Heavy even though some of the contributions were made under safe harbor? 

I have the same question for a New Comparability Plan. Does the entire plan now need to be tested for the ADP APC Top heavy and cross tested even though some of the contributions were made under safe harbor? 

Thank you as always for the insights and knowledgeable responses. A portion of a Plan's assets were discovered as unclaimed funds and returned to the plan sponsor. This was done by a company that specializes in finding unclaimed funds, and this company is charging a fee (commission) for finding these assets. Can plan assets be used to pay this fee? Is this considered a settlor  or a non settlor expense? Thank you.

Multiemployer pension plan.  Participant files an application for benefits.  States he is not married and chooses a non-spousal, 60 sum certain form of payment.  Lists son as his beneficiary.  Participant received payments for about a year and dies.  Just to complicate matters, participant never cashed his payments.   Son began receiving the payments that participant was entitled to before his death, along with the remaining payments for over a year now (and continues to do so).  The Fund has now learned that participant was married at his effective date and at his death.  Spouse now wants her pension benefit.  Not that we are obligated to follow it, but the probate court has awarded her spousal benefits.

No idea if it is applicable, but our plan document does include a statement that if a participant, beneficiary, ect makes a false statement/furnishes fraudulent information relevant to a claim for benefits, then benefits not vested shall be denied, suspended, or discontinued.  But the fact that we are dealing with vested benefits, I'm not sure we could have the participant's actions effect the wife's entitlement to benefits.

Any suggestions on how to handle this situation?  Just spitballing here, but it seems like we need to stop the son's payment ASAP.  With SECURE Act 2.0, its likely gonna prove difficult to seek an overpayment from son, unless we have on record some fraudulent statement made by him, which I doubt.  Once the wife applies, we should adjust the form of payment to a spousal pension, and give her the payments participant was entitled to prior to his death, and spousal payments until her death.  I don't like the thought of having to pay out some benefit periods twice, but I'm not sure there is any way around it.  We probably should also set the record straight with the probate court about federal preemption.  

Any and all guidance is appreciated.  

I work for a bank that is trustee of a 401k plan.  One of the participants passed away in 2019 with no beneficiary form.  He has $590 in his account.

He was not married.  He has 6 children.  In the state where he lived, 18 is the age of majority.  4 of his children are older than 18.  The other two are 15 and 17 years old.

Each bene is due around $95.  For the 2 children who are not 18, must those checks be paid to a guardian?  I think those 2 kids might be living with a grandmother.  If the payment has to be made to the guardian, do I need to request something to substantiate who is legal guardian for the two minor children?  Thank you! 

Hi. Just curious if the change to 414(v) (based on Section 109 of SECURE Act 2.0) is mandatory.  In other words, a plan sponsor may choose to permit age 50 catch-up contributions. If permitted, then *must* the plan permit the full increased catch-up limit for ages 60-63, or *may* the plan impose the same catch-up limit for all age 50 catch-up contributions regardless of age?

Survey says...

TIA for your insights.

Hi, 

Good Evening!  looking for help on Puerto Rico plan termination.  This is the first time I'm handling a Puerto Rico Plan that needs to be Terminated.  I would like to under how different this is from a regular plan termination specially when it comes to a 1) forced distribution for the unresponsive participants. 

2) Any special notice that needs to be sent out to the participants? 

3) Can Participants be rolled over to an IRA account? should that be Puerto Rico Individual Retirement Account only? 

4) What are the option available for a participant that has loan? 

5) how does 5500 and Non-discrimination testing work?

Thanks

Good morning everyone!  Is the 408(b)(2) required for a Trustee directed pooled fund?  It doesn't appear that the investment people do it, and the client is asking.  I wanted to confirm if it was required under this scenario or not.

Thanks in advance!

Is it common to amend a plan at year end to add in a profit sharing arrangement?

Or is it okay to have a profit sharing arrangement in the plan that is not used? For instance we have a discretionary profit sharing arrangement for Pro Rata profit sharing on the plan but they do not do a pro rata contributions. If the plan also makes a safe harbor match then would they still not need to do compliance testing? Or does it lose the exclusion from compliance testing with safe harbor because it is an option for them to profit share?