Everything in this makes sense except for the timing of the notice to Participants:

"... within 60 days following the date the discretionary match is made to the plan."

Why would the notice come after the match is contributed?  Wouldn't it make more sense to have the notice precede the match?

Thanks!

Patricia

Employer has several late remittances of deferrals to the trust.  Prohibited transaction.  Fix (perhaps) under VFCP.

Is it also an operational error?  Corrected under SCP?  If so, what "operation" under the plan doc did they violate?

A client has asked me if they can make their PPA credit balance elections via email.  Meaning the email itself would contain the election language, and the signature would be their email stationery text at the bottom (e.g., "Name, Title, Address, etc.".)

Would this satisfy the regulations, or would an actual scanned signature in a Word document be required?

Hi

A sole-proprietor wants to set up a db plan for 2020.

I can technically set up a db plan now starting 2/1/2020 with PY ending 1/31/2021 where minimum funding is due 10/15/2021. Plan document would read income used for the calendar year ending within the plan year.

What is your thought on this?

Thank you

As of 1/1, a company changes its name and as well as the plan's name.

FIling 5500 for the prior 12/31 pye before such changes take effect.

I'm thinking 5500 is filed with original plan name, but with new plan sponsor name.

Then the following year the plan name is updated on the 5500.

I could be off base here.

My old employer's payroll department gave me an incorrect vesting date prior to my departure.  The company had a 3 year vesting schedule for 401k match.  They told me I was fully vested as of June 2021.  I left the company on 8/11/2021,  7 days short from my 3rd year anniversary date based on this communication with the payroll department.  Fidelity forfeited almost $7000 when I rolled over my 401k to a roll-over IRA account.  It was really surprising to me.  After discussions, the employer acknowledged their mistake and decided to just give me a check for the amount + extra amount to pay the tax.  The confusion was that ADP had a rule saying only 1000 hrs had to be worked in a year.  When the plan was moved to Fidelity, it was strictly about the anniversary date.  Now, I don't want to pay any penalty on this amount.  I would like to deposit back into an IRA account.  Is this even possible?  Wouldn't IRA consider this as a "withdrawl" from a retirement account and the amount would be subject to a penalty?  I am 50 years old.  I would like to know what my options are in this weird situation.  The employer said it's best to do it this way because their plan can be considered non-compliant and cause a lot of headaches.  I would appreciate what you professionals think about this situation.

Suppose you have the typical medical practice partnership with about 20 employees. The partnership sponsors a 401(k) plan. This medical practice partnership is owned 25% by each of the physicians corporations. The physicians are each 100% shareholders of their corporations. So the 401(k) plan is sponsored by the partnership and each physician corporation adopts the plan as a participating employer. In this case the Participating Employer Adoption page makes it clear that each participating employer will abide by the same plan rules and provisions as the sponsoring employer.

There was an employee of the partnership that terminated employment about 2 years ago and was an eligible participant in the 401(k) plan. She was paid her full distribution last year. Last week, one of the physician corporations hired her on a very part time basis.

Generally, when a former eligible employee like this terminates employment and returns within a few years, they immediately participate in the plan. Since the partnership and corporations are all related employers, I would think she participates in the plan immediately, even though she is re-hired by a different (albeit related) employer.

Anyone disagree with this?

Thanks.

I have been retained to review a Qualifying Court Order drafted by another attorney involving an active member of the Army

National Guard. The issue involves the formula used to divide the future pension. Where is a good source for this information? Thanks

Say Subsidiary is dissolving but its benefits plans are moving to ParentCo. Aside from some definition and title changes in the plan docs and an assumption agreement signed by both companies, what else would go into a to-do list for ParentCo to assume the plans? Filing Form 5500 and 401(k) safe harbor notices as usual? Any notices to employees of plan sponsorship change? New to benefits work and feel like I'm missing something.

I have a client (non-ERISA 03(b)), who defaulted on a loan in 2019 (it was also deemed in 2019 and a 1099R issued) who is now 59.5. They want the defaulted loan removed so they can take another loan. I was under the impression that once a client has qualifying event, that they would be able to offset the defaulted loan. But reading the requirements for what offsetting a loan, I don't think it would be allowed b/c the loan is not in good standing. Outside of the participant paying back the defaulted loan, is there any other option for the participant to "cure" or "offset" the defaulted loan? Could they just request the defaulted loan to be "distributed" to them since they have a qualifying event? In that case, since a 1099R was already issued for the defaulted loan, we wouldn't have to issue another 1099R right? Any guidance would be appreciated.

participant who took a cares act distribution is deceased. Can his beneficiary repay the distribution?

Since I'm distinctly not a DB person, I'll spare you the weirdness of this situation and just ask one small question: When you have a terminating plan that wants to offer a lump-sum window, and the AFTAP is too low to allow it without (in this particular case) going with the special bonding rule to allow the lump sum to a couple of Highly Compensated people...

For these purposes - are the "top 25" HCE's or former HCE's determined under the 414(q) definition, or does it mean the 25 highest paid, regardless of whether they are HCE's under 414(q)? I believe it is the former, but I'd love to get confirmation from someone who knows something about all this! Thanks in advance.

My husband retired from two major aerospace companies that were bought out by Boeing.  My husband divorced his first wife, obtained a QDRO during their divorce process.  The QDRO was entered into the divorce record with the court.  Later, we married, I want to get a copy of both of his two ORIGINAL private pension plans, but I am not sure how or where to begin looking for these documents?  I do not trust the Boeing Pension Dept, they hired a third party firm to handle retiree's pensions.  In the last 8 years since my husband's passing, the Pension Plan Division has changed their name at least 3 times as well as their address!  They were very unprofessional in helping me to receive a small death benefit policy.  They finally issued a check to me, and them nearly 2 years later, sent me a threatening letter saying that unless I sent them a certified copy of my husband's death certificate, I would be responsible for repayment of the one time death benefit payment !  I asked them if they really really REALLY have any protocol that would release funds without it then take nearly two years for them to discover such a breach?  I sent them copies of the docs and envelope with return receipt from the USPS.  Yet they continued to threaten me until I sent ANOTHER certified copy of his death certificate !  Finally I re-complied.  My sending them court certified copies several times cost me nearly $150.00, and took over 1 year to finally receive.  Then after all of that, they harrassed me 1-1/2 year later to repeat the nightmare.

So after all of this, I don't trust them to tell me if I have any rights as a 2nd spouse and as my husband's survivor (his EX wife preceeded him in death, with a QDRO).  I know that the QDRO he had with his divorce settlement WAS FILED with the court, though I don't know if copies of BOTH PRIVATE PENSION PLANS were entered into the court record?

I read where if an Alternate Payee/Spouse passes away BEFORE the Participant, the Participant is free of the QDRO arrangements?  Is a Second Spouse (subsequent spouse, SURVIVING spouse) entitled to a private pension plan according to ERISA?  Again, I have ZERO TRUST in the Boeing Pension Dept !  I am hoping that if I can get COPIES of the ORIGINAL private pension plan(s).  If I find or need an attorney, it will cost me a lot less if I already have the original document to present to an attorney.

Thank you very much for helping to clarify this. 

SITUATION ; 

Retired partipant REMARRIES then dies (alternate payee/ex wive PRECEEDED Participant's death)

(full retirement plans from two aerospace companies) 

(a little background) 

(1) Participant divorced, with QDRO agreement

(2) Participant later remarried

(3) His ex-wife aka "alternate payee" died before he did

QUESTION ;

Is the second wife aka his "surviving spouse" entitled to any of his pension benefits ;

(1)  BEFORE participant's death?
(2)  AFTER participant's death?

"What happens to a private pension plan when an (Alternate Payee/EX spouse) before the Participant dies?"
 

Seller is a sub. of holding company.  Holding company sponsors the health plan that seller's employees participate in.  Purchaser buys seller from holding company and merges seller into purchaser. 

My thought is tat seller employees, who are merged into purchaser post-close, receive 2 1095s: 1 from holding company that sponsored health plan pre-merger and 1 from purchaser? 

Does this sound correct?  Thank you so much in advance! 

A single employer has sponsored two 401(k) plans for many years. One covered employees hired prior to a specific date and the other covered employees hired after a specific date. All 30 employees of the company are covered by one plan or the other depending on when they were hired. Both plans are now much the same.

The employer now wants to just maintain one 401(k) plan and cover all employees under one plan. There has not been any company sale or acquisition here. 

Are there a number of special rules involved in merging plans like these?

Participant divorces his spouse/alternate payee in the 2000s and the divorce decree directs that a QDRO be drafted to split the participant's retirement account 50% between the participant and spouse/alternate payee for the period of the marriage.  QDRO is never received by the Fund.  Participant and spouse/alternate payee get re-married several years later and participant recently applied for pension benefits.  Does the Fund need to find out whether a QDRO was drafted?  Does the Fund need this QDRO before processing participant's application for benefits?  Any guidance appreciated.

A plan participant needs spousal consent since he wants to receive 100% of his accrued pension benefit. However, the spouse is in Haiti, and they have not spoken in years, and numerous attempts to contact her have not been successful. Is there any relief available here or will he just have to keep trying to get the spousal consent or elect a 50% QJSA?.

For a money purchase plan participant the only asset in her account is a life insurance policy with a cash surrender value. She has to take required minimum distributions so i assume the RMD would be take each year from her cash surrender value. Agree? However, the plan sponsor was not aware of the ability to use cash surrender value for RMD  and instead used other plan assets to pay her RMD through the years. Now the policy has a zero cash surrender value. Would you agree that the employer has the responsibility to make the plan whole given that the cash surrender value is zero?

This plan is terminating and there are several DB participants who will not complete their distribution forms.  It is a PBGC plan.  Two participants are still employed and so I think they can be coerced.  The other terminated a year ago.  All have $5,000 to $7500 balances.  I'm told by the actuary that no insurance company will quote on something that small and that completing the form is the only option.  Well if they won't, then what?  We are told their balances may not be transferred to IRA, the PBGC or state unclaimed funds.  The plan sponsor was acquired and the acquiring company has a 401(k) plan, but certainly spousal consent would be needed to transfer the funds.

About all I could tell the sponsor to do was "threaten" in a nice way the two still employed to fill out their forms and go to the home of the terminated participant and be a nuisance.

Comments?

Thank you,

Tom