I'm pretty sure I'm right on this, but someone was arguing with me so I wanted to confirm:

Plan amended eligibility to be 21 & 1 with Quarterly Entry Dates as of 01/01/21

Who does that impact?  If someone was hired in 2020, but had not yet gained eligibility, is their eligibility decided by the old rule (21 & 1 with Immediate Entry) or the new rule (where they'd have to wait to the start of the quarter)?

Thanks!

I am looking to retire soon, I am 63.  However I ran into the following problem, the waiting period for final distribution of my 401K.

per the web site reads.

Your plan sponsor requires a waiting period of 999 days, after leaving employment, before you can request a transaction. This time may be used to provide important information to (deleted name of plan administrator that we have been with for 24 years) and to deposit the final contributions into your account. Your personal options may change based on information provided by your plan sponsor.

This seems excessive to me, that is 2-3/4 years!

I cannot prove this but I do not believe it was published in the past. I believe that it said something to the effect, that my plan sponser has certain requirement that must be met.

Going through all of my hard copy paperwork for my 401K there is nothing concerning a waiting period for final distribution.

 My plan sponsor (employer) tells me that he does not know about this and he will set up a meeting with the companies accountants for an explanation sometime in June or July

Who determines the 999 days. 

I really need to get this changed. Anything will be helpful.

Hello,

Is it possible to charge administration expenses to a fully-insured H&W plan?  We are updating the plan docs and SPDs which is an administrative expense thus this question.

Thank you,

Good afternoon to all,

Company A owns 100% of company B. A person works at both Company A and Company B and owns 20% of Company A. Would this participant be considered an owner of Company B for HCE determination purposes?

Thank you.

Let's say a company that qualifies as an ALE simply did not provide health insurance to all FTEs from 2015-2018. Just didn't do it. Company just received ESRP assessment (total $ in the low 6 figures) for 2018. We are assuming that the IRS will look at prior years. If IRS assesses similar penalties for those years, it will put the client out of business. 

Will the IRS negotiate the amount of the penalty when the issue is NOT whether it was calculated correctly?

Any thoughts on talking to IRS to get a settlement for all years of liability and not just 2018?

Any other ideas or tips? 

Thanks!!!

One of the 401 (a) is terminating and its have a MPPP through the plan sponsor had opted for annuity they never purchased an annuity and now the plan is terminating.  I believe the plan sponsor needs to provide annuity only for those who elect however since this plan sponsor has opted for Annuity and has not purchased an Annuity, will the client need to first purchase annuity for everyone who will elect for annuity and then proceed with the Plan termination? Also In case of the Non-responsive participants can the plan sponsor do a force out without purchasing an Annuity?

Deleted. 

I just got a call from the plan sponsor's controller.  The company was purchased by an Investment Group.  the current owner is retiring.  It is my understanding that they bought the stock and not just company assets.  the company has sponsored a 401k for many years, and is a large audited plan.  The corporate attorney sent an email to the controller saying ' the sale is final today - notify payroll and the TPA to shut the plan down today."    Geez - apparently no thought was given to the 401k during the sale negotiations.    I got the impression that the Investment group will not be sponsoring a 401k but I don't know why they would want to terminate this benefit for 100's of employees.  Anyway, I am not an attorney, but need some guidance.   It is my understanding that whenever a plan terminates, there must be notices sent out (like 30 days?) and the plan amended to current law.   I assume the new company (investment group) has the right to terminate the plan, but I don't think they can just shut it down as of today.   Thoughts and advice from you who have dealt with this type of mess/opportunity before.  Thanks for any insight.

Has anyone successfully uploaded PBGC Forms after the update on PBGC's website.  We can log onto the site with no issues.  We can even see all our Plans via "List Plans".  However, when we select "Upload Filings" the Schema Validation - Select XML File button does not appear.  

We sent an inquiry to PBGC and they think it is a problem with our web browser.  We have logged onto the PBGC site using Internet Explorer, Google Chrome, Microsoft Edge and Fire Fox and we have the same issue with every one.   

If anyone has had success what web browser are you using?

Thanks,

1.  It's my understanding company cannot have both SEP and 401(k) plan in same year (defined for this question as calendar year).

If no contribution has been made for current year in the SEP, can it be terminated as of end of last year and the 401(k) plan then started mid year? Or would the 401(k) have to wait until the next year?

Understood that the PS plan can start up this year since last SEP contribution was for last year.

2. As we know, under SECURE Act, plans can now be started up prior to tax returns filed the next year.  Is there any kind of exception here where an SEP has not been terminated yet, but no contribution has been made for the prior year, so that the PS plan can actually start up and be effective for the prior year?  Otherwise, this provision doesn't particularly benefit employers with SEPs.

The 415 test we just performed for plan year 2020 included the sum of the 2020 401(k) deferrals, the lump sum 2020 401(k) match determined and deposited in 2021, [there were no 401(k) forfeiture allocations made in 2020 or in 2021], the 12/31/20 ESOP contribution allocation, and the 12/31/2020 ESOP forfeitures allocation.  Under this test let's say there is 415(c) room to do a Mega Backdoor Roth Contribution and for the sake of argument let's say the room is $20,000.   I assume that this after-tax $20,000 should have been contributed in 2020, with an immediate Roth 401(k) conversion after each payroll contribution if that's how we do it.  What happens if the participant over-contributes, for example, we allowed an after-tax contribution of $22,000 in 2020 vs the finally determined $20,000 that the max should have been.  I assume the $2,000 plus earnings could have been returned by April 15, 2021 to avoid double taxes?  Is that how a Mega Backdoor Roth is administered?  Generally speaking, it always involves a return of excess before April 15?  The earnings are taxable in the year of distribution, so no 2020 W-2 needs to be changed, right?  Your advice would be appreciated.  Thank you!

Good afternoon to all,

A prospect, a doctor, has one employee who is currently paid W-2 wages.  He wants to terminate her as a W-2 employee and then engage her as a 1099-R independent contractor.  After all that is done, the next month he wants to start up an owner-only type of 401(k) plan that covers only himself and his wife, who he will bring onto the payroll.

Do you see issues with this?  We feel like it's a very aggressive posture to take but not necessarily an illegal one.

Your advice is always appreciated.

A physician practice would like to make a loan to a surgery center as an investment from the plan.   The loan will earn 10% interest and it'll be for 1 or 2 years.   He would like to loan them $100,000 out of $1.8 million assets.   This is a pooled profit sharing plan, 6 participants.  Is this investment allowed?   If so, anything that must be done to allow for it?  

We are starting the process of selling our TPA business.  We focus exclusively on administration, compliance, and plan documents.  Our book of business consists mainly of DC Plans plus a handful of DB plans.

If you are in the market for buying a book of business or know somebody, please let me know.

A new 401(k) plan is setup later in 2020 with an effective date of 1/1/2020.  Profit sharing effective 1/1/2020,  deferrals and 3% SH Nonelective effective 10/1/2020.  All ees hired on or before 1/1/2020 are eligible for the plan.  Comp is full year comp (not date of participation).

Employee is hired in 2019 and thus a participant in the plan on 1/1/2020, but terminates on 8/1/2020.

Question:  Is this participant required to receive the 3% safe harbor because they were eligible to participate in the Plan on 1/1/2020, or do they not receive the safe harbor because the safe harbor portion of the plan was not in effect until after their date of termination?

Thanks very much.

Plan reports show funds distributed and it is reflected as a distribution.  The following plan year the vendor reflects the funds as unclaimed property and returned back into plan.  How is this reflected on the 5500?  The funds were also then redistributed and cashed

This one always gets me.  The deadline to furnish the SMM is 210 days after the plan year in which the amendment is adopted.

So, if a plan amends to allow in-service withdrawals effective Feb 1, 2021, they don't have to tell the participants about it until August 2022?  19 months after the effective date of the amendment?

Doesn't seem right.

We are filing an anonymous VCP.  What should we use for plan sponsor, plan name, plan number and EIN on pay.gov?  We will redact the plan information in the attachments but what do we use for the online 8950 Form?