Husband and wife each own a business.  The businesses are unrelated and are not members of a controlled group or ASG.  The wife has a SIMPLE IRA.  The husband wants to sponsor a 401(k) plan and exclude the wife.  Is there anything preventing the wife from contributing to her SIMPLE IRA after the husband's 401(k) plan is established? 

A Safe harbor Match plan distributed a SH notice for 2021 but now, (12/23/20) would like to rescind the notice, NOT make a SH Match in 2021.  Does the plan need to follow the 30 day notice rules and actually begin SH Match January 2021 or does it make a difference that the year for which the SH Match was promised has not yet started?  

Plan wants to amend to remove the AE feature of the QACA SHNE and change to traditional SHNE. Will the vesting schedule still apply to those SHNE contributions already made under the QACA SHNE provision?

President Trump has not signed H.R. 133, and made remarks that call into question whether he will sign.

The bill passed both bodies of Congress with votes more than the two-thirds that would be needed to override a President’s veto.  House: 327–85, 359-53; Senate 92-6.  Yet, Members might vote differently in a different political context.

If the President neither approves the bill nor returns it with his objections “within ten Days (Sundays excepted) after it shall have been presented to him, the [bill] shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.”

I recently quit my job (10/2020) and have a 401k with a 3% non elective safe harbor. Usually, my employer would make the entire 3% contribution mid February the following year (a 1% match contribution was made on a monthly basis). My question is: If I were to make a cash withdrawal of all my vested funds prior to receiving the 3% SHNEC, what happens? Does my former employer open a new/ reopen my old 401k account to deposit the funds? Do I receive a check? Do I get nothing? I don’t think I’m going to have to do this, but I am curious. Below is some additional information. Thanks for the help!

-I am not a HCE

-I am only expecting about $2000 from the safe harbor

-I am only 30 years old

-I worked 1,500+ hours this year before resigning

We have a client with unique situation with a payment to an employee.  The employee has been out on short-term disability and also collects social security.  The insurance company offset his disability benefit by the amount he receives from SS and the company is paying the employee for this offset.  The money is not for wages nor has anything to do with work production.  The Plan sponsor has a signed agreement from the employee that the company will pay the taxes on this payment but will not pay the employee 401k contribution.  Will this suffice when the audit determines his payments were not all subject to the 401k deferral?

I have several plans that have an extended due date to December 31, 2020 as a result of Hurricane Laura.  However, the IRS Fire Website is down for maintenance until after the first of the year.  Should I go ahead and file once the site is up knowing they are late and write a cause letter when penalties are assessed? 

I have a Plan that's just a husband & wife and they want to move to a Cash Balance/Profit Sharing combination.  For contribution deductibility, do we have to integrate the Plans (meaning if the Cash Balance is more than 25% of the eligible compensation, you are limited to 6% in the Profit Sharing)?  Or can the plans not be integrated, allowing the full $57k in the Profit Sharing as well as the contribution in the Cash Balance?

Thanks everyone!

Are there any legal loopholes that an employer can use to not pay former employees for a SIMPLE IRA plan that was not administered properly (at all)?  For example, an employee was at the company for 5 years and during this time there was a SIMPLE IRA plan in place but the employer failed to notify any employees for 12 years.

Fast forward to 2020 and the employer was notified and fixed the mistake for the current employees but never contacted any former employees. 

When the employer hired an ERISA attorney to handle the VCP, is there anything available to the attorney to NOT consider past employees, especially when they could be easily contacted?

Thanks

Is it possible to amend a 401(k) Plan with a non-elective safe-harbor to add In-plan Roth Rollovers before the end of the year?

We are planning to restate for cycle 3 plans in the process of terminating. so there are 3 kinds of terminating plans.  Curious as to thoughts about this.

1) Plan termination amendment prior to 8/1/2020 but funds still in the plan after that date.

2) Plan termination amendment after 8/1/2020 and funds paid out in fall of 2020.

3) Plan termination amendment after 8/1/2020 and funds not out of the plan until January 2021.

Thank you for your comments.

A client wants to set up a funded 409a Top-Hat/SERP Plan for executives with participant direction. As I look for a provider that offers this, I wonder about any tax reporting requirements. The funds remain an asset of the employer until distribution and are in an investment account. Do the earnings on that account need to be reported as they have increased the value of the employer's assets? Or is their an exemption for a 409a Plan? Thank you in advance.

The Consolidated Appropriations Act, 2021 (if enacted) amends, retroactively, the CARES Act to allow a § 401(a)-qualified money-purchase plan to provide a coronavirus-related distribution.

Coronavirus-related distribution from money-purchase plan.pdf

Today’s Consolidated Appropriations Act, 2021 treats a situation in 2020 as not a partial termination “if the number of active participants covered by the plan on March 31, 2021 is at least 80 percent of the number of active participants covered by the plan on March 13, 2020.”

Temporary rule preventing partial plan termination.pdf

Here’s a brain-teaser for the super-smart BenefitsLink mavens.

A section of today’s Consolidated Appropriations Act, 2021 amends Internal Revenue Code of 1986 § 401(a)(36) to allow a § 401(a)-qualified plan to provide a distribution to a worker not yet separated from employment as soon as age 55.

But that change applies only for “a multiemployer plan . . . with respect to individuals who were participants in such plan on or before April 30, 2013, if—(i) the trust to which [the before-separation provision] applies was in existence before January 1, 1970, and (ii) before December 31, 2011, at a time when the plan provided that distributions may be made to an employee who has attained age 55 and who is not separated from employment at the time of such distribution, the plan received at least [one] written determination from the Internal Revenue Service that the trust to which [IRC § 401(a)(36)(A)-(B)] applies constituted a qualified trust under [IRC § 401].”

Which unnamed plan gets this tax law?

Curious to know what "fix" - if any, might be available. Say an employer withheld HSA contributions in a prior year (let's say 2019). Never deposited them into the HSA. W-2 for 2019 showed the deductible HSA amounts. Now the error is discovered.

Is it just a case of "so sorry, too bad" and a revised 2019 W-2 must be done, or is there a "correction" such as depositing the HSA funds now (although I suppose the HSA custodian might not allow it anyway...)

In the 401(k) world, these things can be fixed, but I don't know about HSA's...

If a participant terminates in December of 2020 but has small compensation and 401k paid in January of 2021, should they be included in all of the testing for 2021?

Hello, I am a retired American living in the Philippines since 2003. I retired from the Federal Reserve Bank which is not government but private enterprise. I need some advice on a very difficult problem. Due to Covid-19 the Philippines government has stopped all deliveries of US mail to customers indefinitely. My pension check is sent to me through the mail and I have not received one since April 2020. Direct deposit is not possible since US banks do not allow direct deposits to foreign banks.

Of course, I have been in contact with the FRB's Office Of Employee Benefits for some time now but the last notice I received from them was negative about any further help changing the way the checks are sent out. I had suggested that the checks be sent out by private courier instead of the mail so that it would come directly to me. I even offered to pay for the service myself but since no provision for that is included in the directive manuals of the FRB, I was told nothing could be done. So I am without my retirement benefits and apparently will be for the foreseeable  future.

I am just wondering if anyone has any ideas that could help me. I don't know if any rules or regulations exist that govern the sending out of pension checks. In this case I doubt that anyone could have anticipated this problem due to Covid-19.

Does ERISA has anything to say about this problem?

Thanks.

In a topic on this board at some time in the past, I recall a couple of users chiming in that it was possible to rescind a plan termination by corporate resolution. Assuming this is true, is a distribution to a pre 59.5 active employee after the termination date too problematic such as to preclude the rescinding action? The employee is an NHCE;I doubt that has any bearing from a qualification standpoint. Any input is appreciated.

I have a 401k with 350k. I am 61 and want to start withdrawing every month. Is there a calculator to use? What percent of the balance am I able to withdraw every month and still have a balance in 25 years?