Nothing wrogn with this right, ADP and ACP Safe Harbors still apply?

Yes I know about the 415 limits and will caveat about that.

I will like to know if profit sharing and pension contributions to a plan are tax deductible or not through the state of New Jersey for a New Jersey employer. There are some confusing reports about this. 

Hi everyone! We are a small organisation (less than 10 staff) and have been told by our payroll company that we need to establish a cafeteria plan to be able to do pre-tax health & dental insurance. The payroll company offer a POP plan doc for $400 which includes a NDT kit. We think we qualify for a simple cafeteria plan and if we are right, NDT shouldn’t be necessary. 2 questions: 1-is there anything we should be alert to using the payroll company plan doc ie is that usually ok or should we be getting the doc from somewhere else? ; 2-who could tell us whether we do in fact qualify for the safe harbour ie who advises on this stuff? We are NFP so fee conscious. 

A self employed person with no employees uses a payroll company to handle payroll.  They have no employees and no other business.  

The Owner intended to set up a Solo(k), and the payroll company took $20,500 as a pre-tax deferral for 20,500. The Owner never drafted documents to get a Plan set up and the $20,500 is setting in a  business savings account commingled with other monies.  They have already filed their 2021 taxes.

How would you handle? Would you draft a document and have the move the $20,500 (plus earnings) into an investment account?  And if so, would you also calculate lost earnings due to the late deferral?

Or just tell them not set up a Plan at all for '21 and start with a Plan for '22?

Ugh, these Solo(k)'s can get so messy.  Probably needs to be some more regulations around these so people don't continuously mess these up, IMO.  

A recent court decision treated as proper an individual-account retirement plan’s provision, stated at least on the plan’s beneficiary-designation form, that: “The Allocation % [between or among a class of beneficiaries] must be whole percentages.” The participant submitted a form that asked for “33 1/3%” for each of her three siblings. The court found that—even if the plan’s administrator might have had discretion to accept the not-in-good-order designation (Honeywell argued it did not)—rejecting the participant’s attempted designation was no breach because a fiduciary administers a plan “in accordance with the documents and instruments governing the plan[.]”  Gelschus v. Hogen, No. 21-3453, --- F.4th ---, 2022 WL 3712312 (8th Cir. Aug. 29, 2022) https://ecf.ca8.uscourts.gov/opndir/22/08/213453P.pdf

How common is this whole-percentages provision?

Do plans require a whole-percentages beneficiary designation because the plan’s sponsor or administrator seeks to fit within a recordkeeper’s or other service provider’s software and systems?

If a participant specifies 33%, 33%, 33%, does an administrator reject the form as not adding up to 100%

Or does an administrator accept a form that adds up to only 99% (or 96% for six beneficiaries)?

If an administrator accepts a less-than-100% designation, does the plan or a plan-administration procedure provide an adjustment rule so the beneficiaries’ shares exhaust the whole of the participant’s account?

BenefitsLink neighbors, how does this work in the real world?

Our wonderful Participant Success Manager informed us all that tomorrow, the Friday after Labor Day, is known in the industry as "401(k) Day" - does that make today 401(k) Eve? Just wondering.

Simple enough, an individual who does significant work for herself but does not have a separate business name/EIN.  She wants to start a 401k with her SS#.   Is this permitted?

Thanks

Lump sum distribution is taken, then rolled over.

Just curious about the 1099-R for the distribution. I'm thinking that it is marked as nontaxable (ie nontaxable amount = zero). Or alternatively is there a second 1099-R issued where it is rolled over (doesn't make sense to me but just trying to cover all bases)?

Got a plan that has always been a closed MEP due to common ownership.  For some reason, it was thought by a previous provider that this MEP was open and needed the two employers to file separate 5500s going back to 2018.  My question is how do you amend a 5500 that should never have existed?  The only option I can really think of is to just amend last year's returns and show it as a transfer of assets to the "main" plan and as a final 5500.  

So today one of our very few clients not on our document, tells me he just now is seeing my communication regarding the restatement deadline.  I reminded these clients to contact their document provider to make sure this was done.  It's possible the doctor just doesn't remember signing it.  It is an owner-only plan.  

If it hasn't been updated, what is the fix step?

Thank you

Client wants to amend the plan to 6 months and 1000 hours for eligibility. Currently the plan has 1 year and 1000 hours. Can this be done? If so, are there any ramifications to having this? I have had 6 month eligibility before but not with an hours requirement.

Thank you!

A 401(k) is TH and has SHMAC and prevailing wage. No discretionary match or discretionary non-elective.  Is 3% TH required?

Realtor is 50% owner in a real estate business with a 50% partner (not related).  Realtor's spouse owns a business 100% - a salon.  No services are performed for each other's businesses.  The Realtor and his spouse have minor children so they are deemed to own the interest in each others' business.  But to be a controlled group they need GREATER than 50% common ownership to EFFECTIVE control I believe from what I'm reading.  Would you agree?

Thank you!

Wondering what other practitioners' thoughts or experiences are on how expenses of the adoption of an embryo could apply under an Adoption Assistance program under Code Section 137?

We have a situation in which a company is acquiring a new subsidiary in a stock transaction.  The acquiring company has a 401(k) plan. The acquired company had a 401(k) plan before the transaction, but it was terminated immediately before the transaction to avoid the rule that you can't terminate a 401(k) plan if the employer maintains another 401(k) plan.

Acquiring company would like to provide that an individual's election regarding deferrals in the acquired company's plan would carry over to the acquiring company's plan.  (Obviously, employees can change their elections at any time, but that would at least be the starting point.) That seems to me like a perfectly reasonable thing to do, so that you don't have to get new elections from all the employees at once (and risk having some of them offended that they have to make new elections when in their mind they already made elections).  But everything I can see refers to employees making elections under a plan--not employees making elections under one plan and having them carry over to a different plan.

Has anyone experienced this situation?  And has the IRS ever approved or disapproved of it that you know of?

Strange one here:  SAFE HARBOR Match Plan

Plan excludes a number of items from their definition of compensation for deferral purposes (including several types of special bonuses).  For the SH match, they exclude the same things as deferral, but have an additional "bonus" exclusion.    414s testing would be required for both the deferral and the SH match definitions of compensation.  My understanding is that the  plan must pass 414s testing.   The plan does not pass 414s for deferral, but does for the  SH match.   In a Non-SH plan, I would run the ADP testing on total compensation and be done.   What are my options for a SH plan?  If the SH match compensation failed, I would amend the plan and recalculate the match. 

Thoughts?

A $1,000,000 contribution was made to a db plan on 7/1/2022. Are there any problems assigning a portion of this contribution to the 2021 plan year, i.e. $700,000 will be shown on the 2021 Schedule SB, and the remaining $300,000 will be shown on the 2022 Schedule SB? 

I am a trustee of my company’s ESOP and historically we have always issued distributions from the plan in the form of a check. However every year or two we will have a check get lost either in the mail, by the participant, or by an investment brokerage.  When this happens we will put a stop payment on the check and renew the stop payment one or two times while efforts are made to locate the check, but eventually if the check isn’t found we end up closing the checking account which is a hassle. 

We would like to move to an electronic form of payment so we don’t have this problem, but ACH payments won’t work because there’s no way to indicate who’s account it should go to when you route it to an investment brokerage’s bank (there’s no memo field as with electronic wires). Electronic wires are expensive because there are fees at both ends of every transaction.  And the daily check writing limit is prohibitive for using our bank’s Bill Pay system.

What method of payment do other ESOP companies use?  Is there a good way to make distributions electronically?

Thanks!

Hi all

MD office, less than 10 employees

Owner also owns 2 pizza restaurants with a few employees.

If a DB plan is set up just for the MD office, is it covered by PBGC?

If a DB plan is set up with the pizza restaurants as additional employers but the MD office being the plan sponsor, is this DB plan covered by PBGC?

Thank you

I have never dismissed a client  - I am lost as to how to commit this to writing.  I took over a DB plan I never should have, I should have known from my conversations with, and then an in-person meeting, this guy was totally clueless as to what plans he had - but always expected someone else to do the job.

I'm sure a few TPAs have fired clients - any "sample" wording?  The only thing I can think of would be totally unprofessional unprofessional, but ha been a total waste of my time.

TX.