I cannot find a good write  up anywhere that answers tehse questions. Can someone point me in the right direction?

1) Participant dies AFTER meeting 5 year rule.  Distributions from the Plan are tax free to the beneficiary, this much I know. What happens if the beneficiary rolls the money to an inherited IRA?  Does the 5 year clock have to start over? What if the beneficiary has another Roth IRA in which they did meet the 5 year rule? Is it determined seperately?

2) Participant dies BEFORE meeting the 5 year rule.  What happens if they leave the money in the Plan until the 5 year rule is met?  Does that get them a tax free withdrawal?  Or does the participants first year of contributions become a moot point?  What if they roll their money to an inherited IRA?  Does their 5 year clock start over when they first roll the money into the inherited IRA?  Even if they waited 2 years to complete the rollover?

To me this is incredibly complex and I cannot find a comprehensive guide with these answers anywhere...

client is a single member LLC which holds a 5% interest in a retail store organized as an LLC partnership

her share of partnership income (all active) is reflected on K1 to the single member LLC

can she have her own qualified plan for her LLC income?

Thanks

There is a plan where the existing document is profit sharing only- it does NOT include 401(k) provisions. Well, last year they made deferrals, and according to them, they have W-2s showing deferrals. I believe based on there being W-2s showing deferrals, there was an intent for the plan to be amended to include deferrals, but that was not done. Can the plan be amended retroactively to reflect the way it was operated and would this also have to go through VCP?

We've recently taken over as TPA for an older 401(k) plan. It has an enhanced safe harbor match and an automatic contribution arrangement, but it is not designated as an EACA or QACA. Looking at prior administration records, it looks like they've treated it as a Safe Harbor plan for purposes of the ADP/ACP and Top Heavy testing benefits, which I can certainly see the argument for. It also looks like they've met all the criteria to be a QACA without calling it one.  So I'm looking at this and thinking, well, it walks and talks like a duck, so maybe its actually a QACA? And on the other hand, if it isn't a QACA, would it still have the ADP/ACP and Top Heavy testing benefits that the SH Match provide in a normal 401(k) situation?  I feel like the answer to the latter is yes but I can't quite pinpoint why. 

I was asked by a financial advisor of a single member client just now:

"should the plan issue a 1099-NEC to a person who did some work on the property the plan owns?" 

Thinking it through I would say yes.  I would also guess that whatever account pays the RE tax bills would be the account that issues the 1099-NEC. 

Anyone have a quick answer?  Of course the 1099 was due yesterday.

Thanks

If I have a plan and the 2 owners and only HCE employees have rollover money in the plan, do I count their rollover balances when determining how top heavy the plan is?  I would think not.

When offering a lump sum window, I understand that a sponsor is required to also offer eligible participants an immediate annuity that satisfies the QJSA rules.  However, I generally see lump sum window designs that limit the annuity options for participants who have not yet attained early retirement age to the QJSA (or QOSA), while providing the full suite of optional forms of benefits to those over early retirement age.  Is that legally required (perhaps based upon the anti-cutback rules), or simply a design choice?  Could all lump sum participants (who are not otherwise eligible for a distribution) be limited to the QJSA/QOSA?

I've been using this website to obtain covered comp data for calculating EBAR's. It doesn't seem like this has been updated yet for 2022.   IT says "updated for 2021" so I know it's not just me missing something! 

http://actuarialtools.com/

Does anyone else use this tool, and/or know when it will be updated? Or does somebody have a link to another table that they could share with me that has been updated for 2022? 

Hi, 

one of the Terminating plans has few part who were terminated 6-10 years ago and the plan is now terminating, none of these part re-joined the company/service since they still HOLD a balance I believe they should be 100% vested correct?  

Thanks 

A client is paid on a K-1.  Her line 14a SE income is 124,961.  She and I are coming up with a different result.  Here is my work:

142,500        Current year TWB    
124,961         K-1 SE Income
115,401.48    1402(a)(12) Deduction  (.9235)
    
7,747.58        FICA (6.2%) paid up to TWB
1,673.32       MED (1.45%)
9,420.90      Total SE Tax                    
    
115,540.10    K-1 SE Income - SE Tax
    
25        Desired Cont %
    
92,432.08    Adjusted Comp (115,540.10/(25%)+1)
23,108.02     Contribution (25% of Adjust Comp)
    
Calculation Check    
    
92,432.08    Adjusted Compensation
9,420.90      Total SE Taxes                           
23,108.02     Contribution                         
124,961.00    K-1 SE Income 
 

Am I good?

Did Relius provide any guidance for how the new LTPT plan specs impact administration and/or how to use those fields?

A 401k plan has over 70% in each of its rate groups for its nonelective contributons when the ratio percentage test is performed - does that allow the plan to avoid the ABT when deferrals have been made?  Having to consider the deferrals in the ABT would sink testing.

If there is over 5K for a missing participant in a non-PBGC covered defined benefit plan or cash balance plan can it be rolled over?

Does anyone have a good resource for a high-level health plan compliance items/dates by state?  For example, Massachusetts has a Health Insurance Responsibility Disclosure that is annually due.  I'd like to track some of these big ones if I can. 

Thanks!

I'm having a meeting with my cybersecurity consultants on Monday, and I figured I'd bring them the latest guidance we have to try and follow.  Are those 3 pdfs from the DOL in April 2021 (news release here) pretty much what we have officially (or semi-officially)?  Thanks.

Hi

Here is a new one for me.

Fiscal DB Plan - 7/31 year end. Overfunded 500k. This is a husband and wife plan only. They got paid out max 415 limits (compensation not dollar)

Plan terminated 7/31/2020. Benefits rolled into respective IRAs March 2021 and the excess was transferred to the QRP (profit sharing plan) by 7/31/2021 with a small remaining residue in October of 2021.

The DB account is still open with $0 balance.

The idea was to eat up the excess within 7 years as much as possible.

They now have opportunity for large salaries for 2021/2022 and wanted to see if a new DB plan can be set up and the excess can be transferred back into the new DB for satisfying the contributions?

Can this be done? If yes, I will have follow up questions.

Thank you

hello! Can anyone point me in the direction of where the Lifetime Income Disclosure calculations are explained in detail. I have found the DOL calculator but I'm not great at finance and need to see all of the steps. Thank you!

401k participant has appreciated company stock
Separated from service in 2021
He took (in 2021) a distribution of dividends (from employer stock)-  It's not clear whether he took the distributions while employer or after severing service. 

My understanding is (one of the many NUA requirements) is to make lump sump distribution in the a single year.  Does him taking a distribution (of dividends) nullify NUA?  If so, would he be required to wait under the next "triggering event" to NUA qualify?

All help is appreciated. 

Just to check how they designed? or database stores all the individually designed plan documents?