Hi

DOT is 12/31/2020

NOIT - termination notice - given by 10/31/2020 - to satisfy 60 days

NOPB - notice of benefits - given by 11/9/2020

Can I file 500 with PBGC on 11/10/2020 or have to wait till after 2021?

I believe it can be done earlier i.e. do not have to wait till 1/1/2021 but cannot remember.

Thank you

If an entity purchases another division and wants to merge the existing 401(k)/retirement plan into their existing plan, what steps can they take to limit the purchasing entities fiduciary and liability exposure if the merging plan was not run correctly?

I had a couple of question regarding nonstatutory stock options.  

A nonstatutory stock option is includable income in the year granted if it is includable in the employees taxable income.  But what exactly are the circumstances that would cause the option grant to be includable or not includable in income, and how is that income generally reported.  I know that it would be on the employee's W-2 at the end of the year, but is it reported as part of their paycheck, for example, when the option is granted?  So if they had a deferral election for a 401(k), the compensation related to the grant would be included in that deferral election, unless the compensation was excluded?

If a plan were to switch from using the W-2 compensation definition to a definition that excludes stock options, would the safe harbor 415 compensation be the better option, since that excludes not only compensation from exercising an option, but also when an option is granted?  

Thank you very much.

Starting restatements almost immediately. There exists an option to to do a "minor modification" and submit to the IRS on a from 5307, if necessary. Question for any of you who might have a contact at the IRS - is this form and/or instructions going to be revised any time soon? Current version is, I believe, 2014. If no revision contemplated, then I guess we use the current one! (Not that I'm planning to anyway, if it can be avoided...)

https://www.irs.gov/forms-pubs/about-form-5307

We had a participant request to come and review the financial reports of the qualified plans (i.e., essentially the 5500s).  The participant does not want to pay copy costs and just wants to come to the office.  We are limiting access to our office due to COVID and do not want participants coming in to the office.  So, the two options I can think of are (1) let the participant come but limit his time and place him in an unused office and require a mask the whole time or (2) waive the copy costs and send him the documents.  Does anyone see any issues with these options?  

Thank you. 

Just a general question...what did your firm charge for the PPA restatement and what do you plan on charging for the Cycle 3 restatement? Thank you!

as we approach restating plan docs, curious if there are thoughts about merging existing 401(k) and separate Money Purchase plans by the same sponsor? My initial reaction for long standing plans is to keep them separate. Though certain fees would be larger as applied to two plans, merging them might be complicated and risk prone.

A Takeover 401k Plan. The plan has  1) deferrals, 2) safe harbor, and 3) PS contributions. The deferrals and safe harbor are of course 100% immediate vesting. The PS contributions are 100%  immediate vesting as well, (they are used to offset the DB Plan and only the vested PS balance can be used to offset the DB). Each participant has one total balance at year end and each participant's balance is not allocated between the three money types (deferrals, safe harbor, and PS contributions). Hardship distributions are not allowed in this plan and in service distributions after retirement age are allowed for all three money types. Distributions are made after a terminated participant requests payment for all three money types. Question:  Since all three money types have 100% immediate vesting and all share the same specs listed above, is it ok, that each participant's balance is shown as one total balance and is not broken down per money type?  Thank you in advance for any insights on this matter.

I have a Cash Balance Plan that provides a substantial benefit for most of the NHCE's.  The Average DB Allocation Rate for the NHCE's is 3.5%.  At least one of my HCE's has an Allocation Rate in the Profit Sharing Plan of 15%.  The Average Benefit Test and Rate Group Tests pass with no problem when I provide a Profit Sharing Allocation of 4.5% to the NHCE's.  Is the minimum gateway for the Profit Sharing Plan still 5% based on my one HCE at 15% in the PSP.  I understand that the DB/DC gateway minimum increases from 5% to 7.50% but can my DB offset drop what would have been a 5% Profit Sharing Gateway to a 4.5%. 

Sorry if this question has already been answered.

Thanks for your help. 

I was Fromerly employed at a government contracting agency and was wondering how do i gain accsess to my 401k account and if i can withdrawl money

For our plans that have the "maybe" safe harbor, we have always provided the client wanting safe harbor treatment the notice saying they will fund the 3%, the maybe notice for next year and the amendment 30-90 days prior to the end of the year.  I assume that process does not change with all the new Safe harbor rules. I know there are new rules about declaring safe harbor treatment into the next year.  I'm concerned about what needs to be done this year for these "maybe" safe harbor plans.  Can it be simplified such as - ignore this year end and provide a notice next year up to Nov 30 for 2020?

So my mind starting twisting around in circles over this question.  A solo 401(k) plan is exempt from ERISA and therefore presumably exempt from the new "Long-Term Part Time" employee rules.   Or is it?  Because if it is not exempt from those rules, there are an awful lot of solo 401k plans that will no longer be solo 401k plans.  And that would really make me go Hmmm....

Anyone know what the story is?

My husband recently retired, he has been lieing to me for years about his finances. I trusted him. His company matched, mine didn't. I am a tax preparer and certain flags were raised. He pulled money out of the qualified plan but reinvested in a personal investment with a transfer on death to someone other than me. This year he has moved about 300k in the same manner.  And this is just the tip of the iceberg. Is this legal, can I fight It?  All his secret savings and checking account have POD other than myself. I retain home and my office, due to survivorship rights, so I will be so cash poor, I will lose both properties. I won't even be able to keep utilities on. I show 70,000 debt he has 1.5 million in investments and 500k in savings checking and cash. He has always had me pay the bills so he could do the investing. I quit paying bills 5 years ago when I caught him cheating on me. He pays nothing of mine and never has. Is all this legal? I know it is not morally right.  27 years of marriage. I had no debt he had 20,000 debt coming into the marriage. 

General Partnership with individual ALC's and the main company's employees within a single PS plan.  One of the member ALC's is terminating his relationship with the firm and leaving practice but would like to leave his account within the plan. I'm not sure if that is possible without having a formal entity anymore?

We have a couple former employees who are in our medical plan because they left on Long Term Disability -- our medical plan says former employees on LTD remain eligible.  The medical plan is being amended to no longer cover employees on LTD.  Normally, this wouldn't trigger COBRA, but, since we never offered COBRA when these employees initially left employment, do we need to offer them COBRA now?  Thank you!

This probably sounds elementary, but what is the significance of subscriber to member ratio when negotiating contracts with vendors.  Is a higher ratio (3.5) better than a lower (2.0) or is it the other way around.  I would think lower is better if my understanding is correct.  

I am the AP on a Separate  Interest  QDRO. The( ex-spouse)participant is 54years young, employed at Chrysler. According to the plan, I can start receiving my portion of the funds on the participant’s earliest retirement age. I was told, by the representatives at Benefits Express,  I would receive a kit in the mail, with instructions so that I can commence payment. The next day I received a call saying I can not start receiving the funds until 01/15/2027, when the participant is 62 years young,  Chrysler’s normal retirement age. The QDRO has the following:

Quote

a.        Distribution to the Alternate Payee of the portion of the benefit awarded to him or to her pursuant to this Order may commence at the request of the Alternate Payee on or after the Participant's attainment of the earliest retirement age as that term is defined in Section 414(p)(4)(B) of the Code and shall commence no later than the Participant's benefit commencement date or the Participant's Normal Retirement Date, if earlier. If the Alternate Payee elects to receive his or her benefit prior to the Participant's Normal Retirement Date, the benefit shall be reduced for early commencement, as applicable.

I am confused as to why I can’t start receiving my  portion. Please help me understand what is going on. 

We have several employees who terminated this year (7/31/2020) and as part of a severance agreement their H&W benefits were continued including health FSA

1 of the employees severance benefits continue into 2021

We offer changes at open enrollment . Should we offer him the opportunity to do health FSA for 2021?

Does anyone see an issue for post July 2020 healthcare FSA deductions being allowed.

Much thanks

Alexa

Has anyone seen a good source or webcast that addresses specifically what changes from Bipartisan Budget Act, SECURE, and CARES apply to 457(b) plans, and what amendments are required, and when? For both Governmental and tax-exempt plans?

Hi

Having a bit of brain freeze again.

Current plan has only 401k and SH provisions. Effective date of the plan is 2017.

Planning to add PS provisions for 2020 (never had before).

As with the addition of the PS provisions and the vesting for PS, can the plan exclude service for PS portion? i do not think so as this is an ongoing plan but just curious if I missed something here.

Thank you