Got a new plan to us.

The plan document is written with 0% integration level on a 2 tier non-elective.

Why would some do this?  What is the logic?  I don't get it.

Years ago, three participants in this non-ERISA 403b plan opened up accounts at Equitable.  They all terminated in the early 2000's.  After that, the plan started making employer contributions and took more control of the plan (moving all employees to one RK), moving the plan firmly into ERISA 403b territory, which is when we got involved.  So only these accounts were still 'outside', and we've not been reporting them on the 5500 under the 2009 rules.

Now the NFP is terminating the plan.  We asked Equitable for options, and they told the plan sponsor that they have no authority over those accounts because they are individual tax-sheltered annuities.  The plan sponsor spoke to the participants who have agreed in theory to take the money from the plan... but haven't.

Does the 2020 IRS guidance apply here?  Can they just consider these accounts as not part of the plan any more and say the plan is done?

Thanks.

Hello,

Some background:

I had a sole-prop some time back and had a self-employed 401k plan with Fidelity with EIN of sole-prop

Then I created a s-corp and just used the same plan - changed EIN to S-corp, Name to a generic name - MKK-Plan. 

All good, no issues. I was thinking of shutting down the sole-prop but never did. 

Now, one of my clients (for whom I do most of my work) has changed their policy and want me to handle task based on my SSN (1099). Does not want to use EIN of Sole-Prop.

I'd asked earlier this question with the understanding that they could use EIN of Sole Prop and found that I could add the EIN of Sole-Prop to my current MKK-Plan. But client wants to pay under SSN only.

Can I do the same with my SSN?

Fidelity form asks for:

The term “Employer” includes the following Affiliated Employers covered by the Plan:, Should I add the following

MKK - SSN

Thanks,

Looking at a plan doc prepared by another. Calendar plan.

401k eligibility is 6 months (in which 1000 hours of service is required) with entry date first month following completion of 6 months. Can the plan require 1000 hours of service where eligibility is 6 months?

PS is 12 months with 1000 hours so this is fine. Entry date is dual entry, 1st and 7th months.

Thank you

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?