Help!  Currently have the following:  Current client Partnership with a 401(k) Safe Harbor Match plan, 2 other companies merged into my current client to become one company.  The two other companies are going to keep open their S Corps for pay purposes.  We will have 3 equal partners now.  One of the other companies has a 401(k) plan.  We want to either terminate or merge that into my current clients and then amend my current clients plan into whatever we redesign.  My question is should we terminate that other plan or do we have to merge it because the other owner is keeping his S corp open?

Our 401(k) client (the Buyer) acquired a company in November through a stock purchase.  The Seller has an existing 401(k) Plan that was not terminated prior to the acquisition.

The Buyer wishes to bring employees from the acquired company into their 401(k) Plan effective for the first pay period in 2022.  The plan document has boilerplate language that excludes employees acquired under a 410(b)(6)(C) transaction.

By preparing a Joinder Agreement, my understanding is that the transition period is voided since this Joinder would serve as an amendment to the Buyer's plan.  I assume the first line of defense is to freeze the Seller's 401(k) plan effective January 1, 2022 until the Buyer decides whether they will:

• Permanently Freeze the 401(k)
• Merge the Seller's 401(k) into theirs
• Maintain 2 plans (highly unlikely)

I have been asked to put together an outline that breaks down the implications of each decision.  I've found most of what I need, but I am having trouble locating information on freezing a DC plan.  In fact, it isn't clear to me why, in a stock purchase, a plan termination is off the table if the plan wasn't terminated prior to the acquisition.  

Let's throw another wrench in the works.  Existing client has a SH Match, and acquired client has a SHNEC.  What are the implications in a merger?  The more I think about it, the more tangled it becomes.

I have access to the 2021 EOB, but haven't found anything pointing to freezing a DC plan, or explaining why it is too late to terminate the Seller's plan.

Can anyone point me to a resource, or provide me with a location in the EOB that will assist me in my response.

Thank you!

If a participant opts out after auto enroll and deferrals are distributed under the permissible withdrawal rules, are those contributions included in the ADP test?

I am confused regarding correcting an excess 2020 deferral post 4/15. 1.) Does being taxable in the year of deferral imply issuing a 2020 1099R for the excess(if so what would be the codes?)or rather making sure the 2020 return includes the excess in wages? 2.) Do we wait and distribute the excess until otherwise distributable or distribute currently with earnings ? If distributed currently, is the correct code E?  

Plan allows for in-plan Roth rollovers at any time as long as the funds are 100% vested. 

Is this a protected benefit?

Has the window for a COVID distribution totally closed?  

A client brought us a one participant plan that filed 4 years worth of 5500s electronically late (they received bad advice that they could transmit them electronically and then do DFVCP instead of properly mailing them in).  When I looked at the asset amounts, the plan never had over $250,000 in assets.  This money was all cashed out this year and a final 5500 is due for 2021 regardless of the mistaken "late" filings.

My question is, to try to help this client, do we electronically file the final 5500 and then send the IRS a letter that they never should have filed in the first place until now, and here is the final, or should I just mail the final 5500 to the IRS with an explaining letter?

The closest I found to answer was this very old post:  

Just curious if you had ever encountered this. Non-Profit plan that otherwise would qualify for non-ERISA status, utilized (unintentionally, apparently) an ERISA 403(b) document. Has never filed 5500 forms. Obviously can use DFVCP program, so costs are not onerous.

I see no option. By executing an ERISA document, it seems to me that they have elected ERISA status, and they can't say it is "non-ERISA" just because they would otherwise qualify for non-ERISA status. Any other opinions?

Good Morning.  Looking for some direction.

I have a Cash Balance plan that is terminating.  I have a participant that wants to roll his cash balance money to a Roth IRA.

I believe this is allowed, but i have several questions,.  Do i withhold the 20% and report it as taxable on the 1099R  and  how would i code the 1099R? 

I appreciate any help.

Thanks!

Humbug. The Grinch and Mr. Scrooge are not happy about posting this.

Merry Christmas to all

christmas puzzle - 130 protected with answers.xls

Plan  is a basic safe harbor match - participant receives a $1000 bonus and elects to defer 100% of said bonus.  Does he get the sh match as well?  Thank you in advance - 

Seller of assets terminated its 401(k) plan the day before the asset sale to Buyer.  In connection with the transaction, some Seller employees became employed by Buyer, while others remained employed by Seller.  The transaction also created an affiliated service group comprising Buyer and Seller.  Employees of Seller hired by Buyer and employees remaining with Seller will all participate in Buyer's 401(k) plan, with Seller becoming an adopting employer of Buyer's plan.  Can Seller distribute the accounts under its terminated plan or is this a violation of the successor plan rule?

Hi

An LLC Has a DB Plan with only the two owners in the plan. The LLC is taxed as a corporation (and not as a partnership). Do they file an EZ or an SF? Thank you

Hi,

Hopefully all will be safe and well. The PBGC has shut down their site until 9PM 12/22. How can they close down during this period, when filings need to be done prior to 1/3?

Thank you for any help with this.

Greetings!!! 
I would like to clear few of my ambiguity regarding 401k administration jobs. 
 
Before starting I brief about my work experience, 
I have worked as outsourced associate for few of the leading TPAs for 6.5 years. 
Having hands-on expertise on compliance testing, valuation, trust accounting, Form 5500s etc. knowledge on distribution & loan. 
softwares handled: Relius, ASC, FTwilliams, Quicken, pension pro etc.,

completed RPF courses in 2016 

My questions: 

1. I on H4-EAD (work authorization for dependents of H1B visa holder). Will I be hired by TPAs in US. Will my visa be the problem for getting job as a 401k associate. 
2.  I have 4 years break in service. Since I worked for 6.5 years in same area I am still very much familiar with 401k. Does my break in service affect my job search. 
3. If I pursue QKA courses. Will that help me for my job search? 
4. If at all I find a job as 401k associate or administrator. What would be the average salary that I can negotiate for? 

Just would like to know your thoughts. 

Thanks in advance 

State employee participates in their plan.

He also works for wife's firm who has a 401(k) Plan.

I know 415 limits are plan specific.

But is there an individual 402(g) limit that combines contributions to the state plan as well as the private plan?

5 participant plan - 3 HCEs (1 older, 2 young) and 2 NHCEs (1 older, 1 young)

Plan provides 401k, 3%SHNEC and discretionary PS by rate group (each participant is in own)

The Gateway is 5% (satisfied by 3% SHNEC + 2% Profit Sharing)

I would like to restructure for (a)4 testing: 1 HCE (older) and 1NHCE (younger) based on cross-testing and 2 HCEs (younger) and 1 NHCE (older) based on allocation rate testing.

Is the coverage for Cross-Testing component coverage: (1NHCE/2NHCEs)/(1HCE/3NHCEs) = 150%?

and the Allocation Rate component coverage: (1NHCE/2NHCEs)/(2HCE/3NHCEs) = 75%?

The NHCEs EBAR is at least as great as the older HCEs

The Allocation Rate is the same 5% for the 2 young HCEs and 1 older NHCE -- 3% Safe Harbor Non-Elective plus 2% Profit Sharing

Based on this above, the Plan passes, correct?  Am I forgetting anything?

Thank you

Son owns 1/3 of company stock, and 2/3 is owned by a trust, where mother is an income beneficiary.  Sister owns no stock directly and I am noodling on whether mother's trust interest is attributed to sister.

Initially I thought "of course", then read somewhere that only actual interest would be attributed.  Then I looked in Who's the Employer and it confused me more.  I suppose we'd have to have the actual trust to see how and when mother could get more than just income, but let's assume she only has an income interest.

Or would any trust interest simply not be attributed under the rules against double attribution?

Any thoughts?

A non-governmental 457(b) Adoption Agreement defines compensation as "Base Salary".  A participant elected to have 5% of pay deducted and contributed to the plan in 2021.  The plan sponsor paid a "COVID-19 Bonus" in 2021, withheld 5% from that bonus, and contributed it to the 457(b) Plan.

The participant is fine with the 5% withholding so would a plan amendment to the definition of compensation to include bonuses suffice?  Neither the plan sponsor nor the participant is interested in finding a way to remove the funds from the account that has been established.  We're only talking about a $100 contribution so nobody wants to spend too much time on it, but I want them to do whatever is needed and to do it properly.

Group:
Plan sponsor adopted an esop in Nov 2021.
I'm told they have 200 participants.

I note they fall into a large plan.
Q: I've read that since the adoption date falls late in year (for short year) they don't have to file an independent audit until the following year (12/31/22 y/e)? 
I couldn't find a cite on the website where I found this information.

Is this accurate? Anyone have a cite they'd be willing to share? 

Q: How is it decided if the audit is performed as limited scope? Does the IQPA? Plan sponsor? 

Thoughts and comments appreciated.
Thank you