Does anyone know what's involved in getting a plan to become a dual-qualified plan so a person who lives in Puerto Rico could be eligible?  Are there forms/fees involved in completing the process?

It's something I've never done and I have a client that's looking to hire a Puerto Rican citizen and wants them to be able to participate.

Thanks in advance!

We have a defined benefit plan with 21 retirees and no active participants. The employer wants to purchase annuities for the retirees now however we feel they should go through the PBGC plan termination process first. Can they purchase the annuities now, pay out the retirees and then file with the PBGC with 0 participants and $0 assets? The employer has not initiated any formal plan termination process.

Participant takes 50k loan from two plans sponsored by unrelated employers.  Subsequently, the unrelated employers become a controlled group, and now the participant has loans that exceed 50k from the new controlled group.  Is there a violation and how to fix it?  My initial thought is there is no violation, but want to get other opinions.  Thanks.  

A plan participant in a 401(k) plan elected a lump sum distribution upon termination of employment. However, he has changed his mind and now wants an annuity payout option offered by the plan. He has not cashed his distribution check. It seems that since the check was not cashed that these are still plan assets and he should be entitled to make another distribution election. However, I can also argue that once the election is made its final. Any thoughts.

The employer maintains a health plan that provides for immediate eligibility to officers of the company, and all other employees are required  to complete 60 days of service. Thus, eligibility for the cafeteria plan is tied to eligibility for the health plan. Does the bifurcated eligibility requirement for the cafeteria plan violate nondiscrimination?

Hi

Plan year is 7/1/2021 to 6/30/2022

Limitation year is plan year.

What is the 401k deferral limit?

Thanks

It seems to me that it isn't, as the "Retiree" arrangement allows participant voluntary after-tax contributions, whereas the HRA's are, as far as I know, employer-funded only.

I don't work with Health Insurance plans at all, and I'm finding the available information pretty fragmented and confusing. Is there a source that anyone knows of that gives a good, solid explanation of what these plans are, and the "rules" in relatively succinct form?

Thanks. 

Both spouses (business owners) were taking RMD's. Husband dies. Wife dies 8 days later. No 2022 RMD's taken yet. Both spouses had each other as primary beneficiaries, 2 adult children as 50/50 secondary beneficiaries.

These questions are more difficult than pre-SECURE Act, which is why I'm double-checking myself. Since there are multiple "Other Designated Beneficiaries" - the 2022 RMD is calculated as usual - using the deceased participant's age to calculate the 2022 RMD.

1099-R's , since neither spouse is alive to receive the RMD, will go to the beneficiaries (children)? For future years (although I expect children will roll over entire remaining accounts to inherited IRA's) the RMD's would be calculated on the older child's age, unless separate shares, etc.

Have I got that right?
 

Plan excludes bonuses from compensation and has a potential 414(s) failure.  Assuming ADP and ACP testing passes using 415 comp are corrective contributions required?  I read conflicting information about that.

Thank you for any guidance   

Plan sponsor is considering excluding certain HCEs, but not all, from the safe harbor from a safe harbor match.  Would such a design still be considered to be a plan consisting "solely" of a safe harbor 401(k) arrangement? 

Thanks for any guidance.

If a plan doc allows for certain provisions (for example, voluntary after-tax contributions) but none of the service providers include that in their offering, what right do participants have to demand it?

Thank you!

Can it be repaid by the estate or family prior to the Beneficiary taking a distribution?

I worked for a company that had their qualified retirement plan at Nationwide.  When i retired i requested a rollover to vanguard.  Nationwide cut me a check for the full balance of the account and I completed the rollover.  Six months later, they claim there was an error in calculating the vesting percentage and want that amount returned.  They have agreed to accept either the dollar amount of the error or the current value of the amount of stock purchased with the error amount.    Assuming I agree that there was an error, my questions are :

1. Has anyone seen this?2

2. Is there a way to correct this which would not involve selling shares of my rollover IRA and creating a taxable event

3. Can I pay this with funds outside of my IRA?  

Has anyone come across whether the NYS HWB program is required be included in compensation for deferrals and match?  I would have thought since it is being run through W2 wages (although exempt from state taxes) it would be treated like any other "bonus" and depending on the definition of compensation, included for deferral and match.  However there was specific language from the NY DOH that says "Employers are not requird to match 401k or other retirement accounts for the bonus payments under the HWB statute".  I am well aware that federal trumps state law but as this is being pushed out imminently I would like some more solid footing to consult my NY clients.

Comments appreciated.

Probably a very basic question for most of you, but I am pretty new to the industry.  I know the 2022 SIMPLE IRA contribution limit is $14,000 (or $17,000 with catch up if over age 50).  Does that contribution limit apply only to the amount the employee contributes, or does that limit also include the employer matching amount?

Thanks!

The Plan document currently provides that forfeitures may be allocated to Nonelective Contributions and to pay Plan Expenses.  The Employer would like to amend the Plan to allow forfeitures to be allocated to, in addition to Nonelective Contributions and Plan Expenses, also to: (1) Additional Matching Contributions, (2) Applied to Reduce Nonelective Contributions and (2) Applied to Reduce Matching Contributions.

My initial thoughts are this amendment should be effective the beginning of the next plan year to avoid a potential Anti-Cutback violation?  Any other issues I may be missing?

If the plan has elected the safe harbor rules for hardship distributions can the plan sponsor rely on employee certifications with respect to the amount to satisfy the financial hardship and the employees need for the hardship distribution? I want to make sure we are okay to just have them sign a certification statement without having to also request documentation proving the hardship. 

I'm working on a plan with year end asset on 12/31/2021 $125,000 at John Hancock & plan made profit sharing contribution amount of $30,000.

Do I need to consider bond amount on $155,000 (with PS receivables) of 10% or only count on $125,000 (John Hancock)? 

Thanks!

I contributed the maximum 401K limit amount of $20,500 from Jan 2022 to June 2022. Today, Aug 23, my 401K shows a QNEC contribution of $100. 

1) Will I have exceeded the 401K limit by $100.00 now due to QNEC contribution? Does QNEC count towards the $20,500 basic 401K limit?

2) I turned 50 years old this year in March. Will the QNEC contribution count towards catch-up contribution even though I have not asked my company to deduct my paycheck for catch-up contribution? Should I start deducting for catch-up contribution (with limit of $6400+$100QNEC = $6500)?

3) Does the QNEC contribution show up in my W-2 as "Elective Deferrals" with a total of ($20,500+$100 = $20,600 + $6,400 =) $27,000 as one entry on W-2 or separate entries for Basic 401K limit of $20,500, separate entry for QNEC, and another separate entry for catch-up contribution?

4) Do I need to fill out any special IRS forms when doing taxes for QNEC especially if it counts towards the basic 401k limit of $20,500 which I would have now exceeded by $100? 

Thank You!

I'm retired and looking into purchasing real estate with some of my funds from my 457 account.  I'm trying to figure out the federal tax rate If I make a withdrawal.  Does it count as income that will it be added to our annual income between my retirement and my wife's salary?  If that is the case it will probably bump us into a higher tax bracket.  Or is there  straight federal tax rate when you make the withdrawal?   I live in California so I know they will want their share as well.  I plan on talking with my CPA, but I thought this forum would be a good starting point and get advice from others on here.  Thanks!