I know the subject of reinstatement of forfeitures on plan termination has been covered before, but I don't believe it was ever in the context of amounts that were forfeited under 1.411(a)-4(b)(6) for missing participants.  The PBGC seems to believe that a plan termination does not extinguish a participants right to claim a reinstatement of such forfeiture.  What about the IRS though?  Does the IRS expect all amounts previously forfeited for missing participants to be reinstated when a plan is terminated?  

Can the plan sponsor use the proceeds from the forfeiture account to pay the excise tax due on late ADP corrections?  I understand they will need to pay it directly and the potential get reimbursed from plan.

A participant received a 2020 RMD on March 1, 2020 (the individual is a terminated, non-5% owner who reached required beginning date many years ago). The CARES Act later waived the RMD for the 2020 year and the participant wishes to repay/roll this RMD back into the qualified plan from which it was distributed within 60 days (or by July 15th pursuant to IRS Notice 2020-23). However, the terms of the qualified plan document only permit incoming rollover by "employees." Since this individual is no longer an "employee," can the individual actually roll over such amount back into the plan as an indirect rollover?

Client completed paperwork to received lump sum distribution based on benefit estimate.  Long story short - by the time the paperwork was processed and check was issued, IRS issued new interest rates used to calculate lump sum.  Plan sponsor applied new interest rates, resulting in lower distribution than shown on benefit estimate.  When client received distribution check for lower amount, he began claims process to dispute benefit calculation (the appeal process is currently on-going).  He never cashed the distribution check, which is now stale.  Due to the passage of time, the applicable interest rates have again changed, but now in my client's favor.  If his benefit was calculated today he would receive more than the original estimate.  My question is this - what effect, if any, does the fact that he went through the process to request a distribution and received a check (but did not deposit it) have on his right to start over with the distribution process and request a new distribution based on the new interest rates?  

For Terminating plans I believe we can turn off the revenue credit getting posted into the plan, however will this require any plan amendment? 

Does anyone know of a phone number to call to see if a 5500-EZ was filed? 

I have a large plan and the auditor caught the fact that a participant who died 2 months after he was terminated was paid out at 100%. Should have been paid out  40%.  The 2 beneficiaries have already received their money.  Any options other than asking for the non-vested portion back from the beneficiaries, which likely will not work at all? 

I have a client that did not remit some salary deferral contributions deducted from  participant paychecks on a timely basis to the plan.  The excise tax was calculated, Form 5330 filed and the excise tax was paid.  It was subsequently discovered that the excise tax paid to the IRS was over stated by several thousand dollars.  Apparently close to half the late contributions were actually allocated to the plan on time.  Has anyone dealt with this issue before?  Can the excise tax over payment be recovered from the IRS?  Thank you.

Looking into a DB plan. Owner, spouse and an employee.

Owner is a financial advisor and has CLU, ChFC credentials.

I just cannot locate where it says covered/not covered. I remember reading something about this being an issue a few years back.

If you have any thoughts/references, would appreciate if you could share.

Thank you

If the participant has terminated service with the company and has a disability, what would be the correct code for the loan offset? The participant is under 59 1/2.

Thank you.

Is software needed to file a small plan form 8955-SSA, even if it is a paper form?  The IRS website has a pdf file but clicking on it the message comes up stating that my pdf viewer may not be able to display this type of document.  It then gives a link for the latest adobe, which I did and downloaded, and still will not display.  

Any thoughts or solutions are appreciated.

Below is the allocation formula for a profit sharing only plan provided to us by a plan sponsor.  The tiers are based on job classification.  The Tiers range from Tier 1 = trainees to Tier 9 = those who report directly to the board of directors.

What testing is required here - general testing? 

Hi,

A DB client left with owing four years or so in annual admin.  fees. (long time client, who kept saying each year, come on, after all these years you don't trust that I will pay you?). The new actuary is requesting a copy of the last valution report. While aware that per the code of professional conduct files cannot be held back due to outstanding fees, however, does this apply even to a val report that was previously provided to the client. Meaning is it permitted to say that being that this was previously provided to the client, if the client requests an additional copy he will first have to pay the outstanding fees ? Thank you.

I have a client that is deemed a tribal government that runs a casino. Their benefits plan covers both governmental employees and those who work in the casino. With the casino attribute I assume they need to follow ERISA law. For the Form 5500, do I only count those in the casino or all of the employees? 

Many thanks for your help. 

There was another thread that was super long on all of this stuff.  Curious to know if others agree that retirement contributions are almost certainly moot now with the 24 week period as opposed to 8 weeks?  Obviously a company that has been shut down since March is a different story, I'm talking about the for whom payroll over 24 weeks will exceed the amount needed for forgiveness.

I suspect that I already know what the best advice is going to be, but I'm hoping that someone can point me to something otherwise...

A new plan is starting up 7/1, and all employees will be eligible only if they have met the plan's service requirement of 1 YOS.  This requires the plan sponsor to review their records and see who actually worked 1,000 hours or more in a year for all employees... back to each of their hire dates, right?  There's no "only go back seven years" kind of cut-off?  The response I got was that they switched payroll vendors several years ago and purged records after seven years.

I'd normally try to remove the YOS requirement, but it's needed here because they're large enough with a relatively sizable ~10-15 hour per week staff such that if they included them all, it would put them over the audit threshold (yes, there are ways around that like multiple plans).  It seems like the best they can do is to take the records that they have, make notes that these are representative for the ones that they are consistent for, make notes for why they are including anyone who they think would have made 1,000 hours in any year, and keep the notes in their files.

Does anyone have a count of how many notices, statements, reports, and other disclosure items an individual-account retirement plan furnishes (or ought to have furnished) in a typical year?

Plan has a 4/30 year end.

For the plan year ending 4/30/2019 the ADP test fails, and a catchup eligible participant has a $3000 refund recharacterized as catch (for the 2019 plan year).

The participant had deferred $8600 from 1/1/2019 to 4/30/2019.

The participant then defers the full $16400 from 5/1/2019 to 12/31/2019.  Thus they have deferred the full catchup, and also had ADP refunds recharacterized as catchup.

Am I correct that the $3000 ADP recharacterization is now an excess deferral for 2019?

If so, is the correction to distribute the excess with gain/loss adjustment?  The participant does have an inservice distribution option available under the terms of plan.

Are there any further ramifications since the excess was not distributed by April 15, 2020?

Thank you.

Let's say there is $50 distribution fee charged to participants. Can a participant take out $100,000 (taxable distribution of $99,950 after the distribution fee) or $100,050 (taxable distribution of $100,000 after the fee)?

Thanks!

1. DC plans: have to wait at least 12 months to open a new plan to avoid successor plan issues. (or is it only applicable to 401k plan? Does the 12-months count from plan year end or plan termination date? )

2. DB plans: no waiting period in between. (but rumor says a client has to wait at least two years to open a new DB after terminating the old DB? any special rules or regulations regarding this? )