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 

Hello,

Do cash balance contributions get reported on the W-2?  If so, which box on the W-2?

Thank you!

We have a few small plans whose only tax deposit is for the annual withholding on participant RMDs.    This is usually done through EFTPS with no problem, but now as we approach the end of the year, they are being surprised that they are unable to login to their EFTPS accounts.     I was told by a representative that accounts are being inactivated due to not having made a tax deposit in the past 18 months.     Considering that RMDs were suspended in 2020, these small plans haven't made a tax deposit since 2019.    So they have had to go through the trouble of re-enrolling, waiting for the PIN to arrive in the mail, etc., etc.  and hope they can get the tax deposit in before the end of the year.   Just ridiculous.    

Looking for some guidance on amending a safe harbor plan before the plan year begins but after the notice was provided.  I have a safe harbor plan with a discretionary profit sharing (New Comparability formula) that has no allocation or eligibility requirements.  They want to amend the plan for 1/1/2022 to add 1 year of service, age 21 and last day of plan year with 1000 hours requirement to receive profit sharing.  Since this is late December, the safe harbor notice for 2022 has already been distributed.  Can we amend the plan since it has not started yet and send a revised safe harbor notice, or would the notice requirement of 30 days prevent this change from being made until 2023?

Confused...senior moment?

Sponsor of a plan has had 401(k) under existing company for many years.  

Sells assets of company, not the company, the employees stay with original company and receive the W-2 under the name of the newly formed company.

Buyer keeps company name, keeps employer ID number; my client changed the name of his company and has a new EIN, keeps the employees and the plan remains intact, no distributions.

I have been told by IRS (after being on hold for over an hour), that IRS agents have been advised to treat this in only one of two ways, neither of which makes any sense in this instance:  1. merge the plans or 2. terminate the existing plan and the new sponsor has to set up a new plan and file as an initial return.

This totally makes no sense, as the assets are not being merged, they are with, let's say Hancock.  Hancock just changed the sponsor to the new name and the contracts under the plan with the name change.  The plan is not being terminated, the  sponsorship has been terminated.

In the past, we have entered the name of the new sponsor in Box 1 and noted the change since the last 5500-SF had been filed in Box 4.  Doing so has been a disaster in previous years.

This has led to IRS Letters, Notices and Invoices ad infinitem asking for the 5500s for the old sponsor, and the client has really gotten angry and of course, blames the TPA.

Client receives letter from IRS, sends to accountant as client does not know what to do, accountant sends back to client at least one month later, after the response due date, and TPA, with POA of course answers.

Wouldn't it spare the client, TPA and accountant a lot of time and trouble if we mark the existing plan as terminated, do a final return; and an initial return under the name of the new sponsor and show either distributions or trustee-to-trustee transfer, as the Trustee has not changed. 

But then, wouldn't IRS be on the lookout for 1099Rs?