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Holding company has 15 wholly owned subsidiaries which all have separate qualified plans (mostly 401k plans). 

Does anybody have any tips/tricks for simplifying the process of performing (or avoiding?) coverage (and other?) testing across the controlled group? 

I'm not as familiar with Governmental Plans, but have a governmental hospital who is wanting to exclude a class of employees who choose to receive a higher compensation and give up their rights to participate in the plan?  Is this allowable?  I know they aren't governed by ERISA, so I wasn't sure what classes of employees could be defined to be excluded in the plan document.  This hospital has a 457(b) and a separate 401(a) for the employer match.  Thank you so much for any guidance you may have.

The Plan has a number of real estate properties held under the trust, including several that receive rent payments.  I believe that rents received from assets under the trust a part of the investment return.  My logic is that the properties are owned by the trust, and any rents received would be "investment earnings" and not contributions.  Am I off base?

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I of course know about the ERISApedia and JH free webinars.  I need more than I've been able to get through that.  I do try and do the ASPPA spring/winter virtuals as well.  Any other suggestions out there?

I need this for ERPA designation.

A Solo 401(k) plan is part of a controlled Group. The owner of the company owns 100% of another company. He is not paid through that other company but has 2 employees.

The owner is not contributing anything to the Solo 401(k) in 2024, but he did not tell his employees in the other company about the 401(k) Plan and that they are eligible.

What would the correction process be?

Based on this link: https://www.dwc401k.com/knowledge-center/missed-deferral-opportunities, it looks like the correction method is to fund the average deferral rate of participant's group. However, nobody is receiving any contributions in the Solo 401(k) plan. Would there be no Missed Deferral Opportunity in this case?

Thanks!

ERISA does not bar plans from obtaining a line of credit/loan from a bank or other financial institution, but assuming the bank is a party in interest, is there consensus about the ability to rely on 408(b)(17) service provider exemption (adequate consideration requiring reasonable interest rate/terms).  And if collateral is required, do parties take the position that posted collateral is not plan assets, similar to collateral posted for derivatives?

Hi, 

The plan termination date is 06/30/2025 however is it okay that the plan details report notes 12/31/2025 as the testing end date? 

If an ERISA-governed retirement plan has access to a recordkeeper’s or third-party administrator’s IRS-preapproved plan documents, what plan provisions or other circumstances would lead a plan’s sponsor to state the plan using an individually-designed document?

(I have no stake in this because my law practice is not, and won’t become, available to write a plan document for an ERISA-governed retirement plan.)

I applied for my lump sum in July since my age 65 100% date was August 1st. Paperwork says 15-20 biz days for distribution. I received confirmation email July 22nd confirming all docs received and in good order.  (Plan is fully funded) I received a call on August 5th I answered thinking they were confirming  my rollover check was being sent out, however I was told my distribution was being delayed until October 15th due to the annual audit.  I asked why I wasn’t told this when they accepted my docs July 22nd and she said she didn’t know why.  Being in the industry for 25 years (mostly in DC) I had never heard of anything so ridiculous, I said that and hung up. I’ve spoken to a few friends in DB biz and they said the same that this isn’t allowed under ERISA.  The company that I worked for IS the plan admin and they have a history of doing whatever they feel like…..can someone please comment and give me an opinion on this? 

A client maintains a separate 401(k) plan for its collectively bargained employees. In some cases, non-bargained employees participate in the plan. My questions are:

(1) does the portion of the plan benefiting non-collectively bargained employees need to satisfy coverage and does that portion of the plan have to either satisfy ADP testing or have a safe harbor design? As a corollary to the question, does the plan need to provide that this portion will be required to satisfy the ADP test or have a safe harbor design?

(2) If the sponsor elects to permissively aggregate the portions of the plan benefiting collectively bargained employees with the portion benefiting non-collectively bargained employees, must the plan provide in all cases that the ADP test or a design-based safe harbor must be satisfied with respect to both collectively bargained employees and non-collectively bargained employees? If so, can the application to collectively bargained employees be made conditional upon the sponsor's election to permissively aggregate both groups?

IRS regulations at 1.410(b)-2(b)(7) provide that a plan benefiting solely collectively bargained employees is treated as satisfying  minimum coverage requirements. If a plan benefits both collectively bargained employees and non-collectively bargained employees, the portion of the plan benefiting collectively bargained employees is treated as a separate plan from that portion of the plan benefiting non-collectively bargained employees. The portion benefiting collectively bargained employees automatically is treated as automatically satisfying the coverage requirements.

Turning to IRS nondiscrimination requirements, Reg. Section 1.401(a)(4)-1(c)(5) provides that the nondiscrimination requirements are treated as satisfied by a collectively bargained plan that automatically satisfies the minimum coverage requirements. As applied to 401(k) plans, generally the regulations follow the rules applicable to the minimum coverage requirements. Specifically, with respect to collectively bargained employees, the regulations permit the portion of a plan benefiting collectively bargained employees to be permissively aggregated with the portion of a plan benefiting non-collectively bargained employees. See Reg. Section 1.401(k)-1(b)(4).

If an employee is LTPT (but not yet eligible for the 401(k) plan under the Plan Document's eligibility conditions), is that employee part of the Average Benefit Test or is he/she excluded?

Thanks!

I have a client whose plan document says:

A person enters the plan after 1 year of service with quarterly entry dates.   The plan is clear you enter on the entry date coinciding with and next following meeting the entry requirements.   

A person hired on 10/2/2023 has 1,000 hours by 10/1/2024.  I would always say this person enters on 10/1/2024. 

My client is asking for a cite.  I really am thinking there is an IRS regulation that covers this situation.   I just am not finding it. 

Can I get some help from the smart people out on this board?  Does anyone know if it is in the regulations and where it is? 

Thanks in advance 

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Just curious how people handle this, because I've had it multiple times where I client inadvertently doesn't give us a Termination Date on the Plan Census.  So this leads to the participant count being incorrect (for instance, someone terminated in '23 but we weren't notified so they were included in the Active Count).

Do you:

1) File an amended '23 form, to correct it?
2) Just file the correct count for '24 and ignore the '23 issue?
3) Carry the mistake forward for consistency, but have the Year End numbers correct for '24?

Obviously the easy thing is to just amend the '23 form and move forward accurately, but I was just curious how everyone handles this.

Thanks!

I believe we filed a DFVC for a client, but did not snapshot each page.

Is there any way to check if it was filed and if in fact, did go through?

I can't believe they do not have a database.

A client has a VEBA that provides for certain benefits including a personal benefit, which is an individual account that is funded exclusively by employer contributions. The assets in the account can be applied to pay for medical benefits to the extent not otherwise covered under the primary medical plan, severance benefits, supplemental unemployment benefits, disability benefits, scholarship benefits for dependent children for post-secondary education or for payment of premiums for COBRA Coverage or retiree medical coverage. The questions is whether the personal benefit account is an HRA It walks like a duck in that it is totally employer funded, quacks like a duck in that it can be applied to reimburse medical expenses and pay certain medical premiums, but, if it goes into the pond for a swim, its feathers are all wet and it cannot fly for at least 30 minutes after it emerges from the pond -- to the extent that it pays more than eligible medical benefits. IMHO this is NOT an HRA and would not have to do Section 111 filing with CMS. Thoughts?

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One of my clients was killed. He was also the trustee of the 401k plan. A new trustee was appointed and an amendment was done. The resolution did not address removing the old trustee as I didn't think it needed to be addressed since he was deceased. Shold I have had some language addressing the removal of the deceased person as trustee?