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?

I didn't think this was an issue, but the client was told something by a friend so I wanted to be clear:

Company 1 - Owned 100% by husband (wife not on the books)
Company 2 - Owned 100% by wife (sole employee)

She was told that since they have minor children, this would be a controlled group and needed to be tested together.  I didn't think so, but I just wanted to be clear.

The only complication is that Company 2 is a law firm that does do work for Company 1.  I'm not sure that it's the sole work that they do, but while that could create issues it shouldn't be a controlled group issue.

Thanks in advance!

Accountant asking for advice, told him to consult an attorney.  

Apparently an old  client sponsored a profit sharing plan, back in the 70's.  Original plan doc, nothing since then, no 5500s, owners died about 5 years ago, no successor trustee, spouse of one owner still around.  All employees paid out in the past.

Funds with bank, they want to pay the account and get rid of it.  Less than $100k, to one of the owners, so he says, wife is beneficiary, not a trustee. The bank looking for corp resolution naming the trustee so they can pay out the account.

Not getting involved, just asking if anyone has ever had such a situation.

I don't even know what an attorney would advise.

I've never had reason to look closely, and the enactment of the 457(b) trust requirement predates my time in practice, but is there a particular reason why many governmental 457(b) plans seem to use custodial accounts (that meet the trust requirements under 457(g)(3) and 401(f)) instead of trusts?

Can a plan charge a participant for shipping/handling as part of its direct-to-consumer COVID-19 shipping option and stay within the safe harbor so that it can limit reimbursement to $12 for at-home tests purchased out-of-network?

One of the large (largest?) PBMs is currently stating that is the case.  To me, that doesn't seem to be within the spirit if not the letter of the current FAQs.  I haven't seen any guidance on that, either in the at-home test realm or even in the pre-COVID-19 general preventative care arena.

Regardless of the answer to the above, can a plan charge (e.g., not reimburse) a participant for the cost of expedited shipping, if the participant requests it?  That seems more defensible but I haven't seen any guidance on this either.

Thanks!

Good Morning!

Need clarity on handling distribution for a successor plan.  There was a stock acquisition and seller plan did not terminate a day prior to the sale date since the termination date and the sale date happened to be the same date this lead to a successor plan situation.  The terminating plan has about 26 participants with balance out of which 3 are terminated part and 2 retired the rest are Active participants.  There are 2 participants who have active loan as well ( Active part), the acquiring company counsel has advised the 5 participants funds can be distribution however the rest of the 21 part should be transferred to the successor plan ( acquiring company 401k plan). I have couple of questions. 

1. Since this is a successor plan situation will this be a Transfer or Rollover ? 
2. How will the tax record be handled? 
3. Again should we simply be transferring the loan to the successor plan or will it be a rollover to the successor? 
4. I believe a final 5500 will be required correct? 

Thanks

Hello,

I am terminating a one-participant DC plan.  The plan document requires declaring an effective date of termination in writing with the company holding the trust, then disbursing assets from the trust within a year.

If I declare effective date of termination in February, then the assets are disbursed in, say, April, do I owe two "final" 5500ezs (one for partial year jan-feb to the effective date of termination, one final for partial year jan-April declaring zero assets) or just one final 5500ez for short year Jan through April showing zero assets at the end?  i.e. does "effective date of termination" per the plan doc have any effect on the 5500ez filings?

Thank you!