I have a company that has 2 divisons, but they are operated as seperate companies. it is 100% a controlled group, Each of the companies has a 401(k) set up, but one company is an all-union shop, so no participants can be in the plan. recently, a new, non-union member joined the company, so he would be the only participant. is the best course of action to set up a division at the custodian to keep them seperate? does the new employee need to be kept separate from the original 401(k) plan?

We have a plan that missed providing deferral opportunities for quite a few employees over the years.  They are going to go back and make good on calculating and depositing what is required for these individuals.  However, several individuals have left the company years ago and they may not be able to locate them on their own.  Any recommendations on a public or private services that can be used to search for lost participants?  

Thank you

Hope you all have a wonderful Holiday break. Watch out for crazy drivers! There were already a lot of people in a heckuva hurry this morning...

Never encountered this - one person plan and the owner died.  Spouse survives him, though she was never in the plan.  Does she sign the plan termination paperwork?

Getting word that a plan I've been chasing is going to come with us.  Sounds like they haven't yet gotten their safe harbor or EACA or QDIA notices from their current TPA or RK yet for 1/1/23.  It's a SHNEC, so we can pass on that if we have to, fine.  I'm getting information rapidly, but what if we just can't get enough to produce the EACA or QDIA notices by 12/1/22?  I don't see any kind of remedy, like "hand it out as soon as possible" anywhere.  What kind of pickle are they in?  Thanks.

Client has pension in TIAA, rolling $50,000 to Roth IRA and paying tax on that.

He is also required to take an RMD, which is about $15,000.

Can the $50,000 coming out of TIAA and going into the Roth cover his RMD requirement?  

It seems like that would be a 'no' but I am not an expert on this.

Thanks.

When I was doing some random browsing, I saw something on this that made be do some additional browsing. There are MANY websites out there that say you are a HCE if you had more than $150,000 compensation in 2022. 

Now, while true, it seems to me that this is very misleading, as some of the charts, etc. would lead someone to believe that the THRESHOLD is $150,000, rather than $135,000, so that if you had, say, $145,000 in compensation in 2022, you would not be a HCE in 2023.

Are others seeing this, or getting questions due to this type of information out there?

Hi

My very first age 72 RMD.

Turned 72 in September 2022, when is my first RMD due from the DB plan?

Is the AB based on 12/31/2021 AB if starting 4/1/2023?

If participant wants 2022 RMD and withdraws in December 2022, can he receive annual lump sum by 12/31/2022?

Thank you

We have been attempting to terminate a Plan for about a year that is with Ascensus. We have a handful of terminated employees and a deceased participant. The deceased participant's spouse does not want the funds and refuses to sign paperwork (they were estranged for many years). We would like to force them out to an IRA and finally close this Plan. However Ascensus refuses to let this happen. They say that Plan cannot terminate until beneficiary signs forms. No one else can be forced out as they want checks to be cut at same time. I have countered that they are excercising  control over Plan Assets and acting as a fiduciary but they claim that in the termination paperwork they require you to sign, the Plan Sponsor requests no one gets paid out unless they sign a form. I don't know how many years Ascensus expects them to continue the Plan for this beneficiary. Does anyone have this experience or ideas?

Hi

One life/owner only CB plan. 3 years old. Business is sold, needs to terminate by 12/31/2022

Plan document states any excess to be reverted to the corporation (there will be no DC plan as QRP- qualified replacement plan).

The participant is nowhere near the 415 limit and the excess, if can be provided to the participant, will be eliminated.

Can the plan be amended so that the excess can be provided to the plan participant rather than being reverted to the corporation? I am aware of the 5 year rule but always wondered it was only for switching from participant to the company. 

Thank you

Hi

Cash balance plan with 10 groups, some groups cover individuals (like founding member) and some groups cover multiple participants (like support staff).

Benefits are to be frozen.

Can 10 different 204(h) notices be provided for each group separately?

Thank you

Does anyone have access to the Relius/Sungard amendment for a Money Purchase Volume Submitter plan?  Looking for one for a takeover client.

Are there any special rules in terms of hardship distributions and the impact of a hurricane?  The participant is looking to use the money to fix her car, due to damage from a hurricane.  However, by the letter of the law, this wouldn't qualify as a hardship.  Before we just rejected the request, I wanted to be sure there wasn't a special exception out there.

Plan participant’s account is hacked by an outside fraudster. Participant sues plan sponsor for negligence. The two parties end up settling before trial. Can the plan sponsor deposit the settlement amount into the participant’s plan account? I seem to remember some IRS guidance saying it’s allowed if it is the result of a dispute that would have resulted in fiduciary breach. Does anyone have a cite? 

What type of calculations do you normally use for RMD calculations for Cash Balance and/or Defined Benefit Plans? I am aware that one option is a lump sum option in which a calculated monthly benefit from last year's valuation report * 12 months = current year RMD. Just wondering what has worked for you and if the method you use helps reduce the amount of taxes paid for the affected participant taking the RMD.

Can a 6/30 fiscal year tax-exempt plan sponsor adopt a calendar year nongovernmental 457(b) plan today, having an effective date of 1/1/2022?  The plan will have no employee elective deferrals, so the only contributions will be employer nonelective contributions.  The idea is for the employer to be able to contribute the maximum of $20,500 for 2022 based on full-year compensation of eligible employees by providing for either a retroactive 1/1/2022 entry date or a current entry date while including pre-participation compensation since the beginning of the calendar year.  Relatedly, must employer nonelective contributions for 2022 be made by 12/31/2022?

We have a plan that terminated and distributed all of the assets.  Unfortunately a residual dividend came in, despite the money having been liquidated into cash.  It's a small amount, so what's the best way to handle this without having to cut everyone a $0.50 check?

Can the plan sponsor issue an invoice to the Plan for mailing, etc. and pay it that way?

We are taking over a plan that has an insurance company document.  The document indicates spousal consent is not required for distributions (unless the plan includes a source that requires such - and there is no such source in the plan.)  The plan offers 5 annuity options as alternative forms of benefit.   We never have those in plans and I'd like to eliminate these with our restatement effective 1/1/2023.  It's been awhile since I looked at this.  Upon some quick research it appears that yes these can be eliminated prospectively with a 90-day advance notice and provided the plan has the lump sum option.  

I like to get the opinion of this group which is very trustworthy - more so than my own "research." 

Thank you, Tom

I'm really not sure about this. Suppose you have a tax-exempt (non-governmental) corporation sponsoring a 457(b) plan. This corporation also has a couple of 1-person LLC's that are "disregarded entities" for tax purposes. Question is - can those employees (1 in each LLC) be allowed to participate in the sponsoring organization's 457(b) plan? (Assuming they otherwise qualify in the select group of management or highly compensated employees.) Common sense (to me) says yes, but does anyone know of anything concrete one way or the other? Or have an opinion? Thanks!

A small CB Plan is terminating.  2 participants have elected deferred annuity.  3 participants with a balance of 5K did not return the forms.  Cumulative value for those 5 is about 60K.  Need a recommendation/reference/contact info who would underwrite this if anyone?  What are the options if no insurance carrier is interested?