I'm having trouble finding a clear answer on the precise definition of an arrangement. 

Say a mid-size employer has a written policy, or a series of individual agreements, that applies to executives (say VP or above) who retire with 10 years of service at age 55 or later. Once they retire, the employer will reimburse them up to a fixed dollar amount per month for the retired executive's personal payment of individual health insurance premiums. Reimbursement will last until Medicare eligibility. Substantiation is required. No other medical benefits are provided; just a capped premium reimbursement for a fixed amount of time. 

What, exactly, is this? An HRA or something less? For purposes of ACA market reforms and related guidance, it's called an "employer payment plan," and the guidance seems to draw a distinction between an HRA and an employer payment plan. (In any event, if limited to retirees only, it's not subject to the market reforms.) The guidance makes it clear that this arrangement is a "group health plan," but it's not exactly clear to me what that would require given the exemption from the market reforms and lack of penalties. 

Does this need an ERISA plan document, SPD, 5500 if covering 100+ participants? COBRA rights? 

Any input appreciated.

Hello everyone - I hope you all and your loved ones are well. Can anyone provide me the IRC section for the 0.5000 safe harbor weighting for contributions?

We have a situation where the client has an overfunded DB which is just sitting in an investment account; client wants to set up a profit sharing plan, with a 25%, no 401K.  Client is self employed with employees, not a PBGC.

Is this doable?  Usually, we would set up  a combination DB and a 6% profit sharing plan.

Not sure how this would work with an overfunded plan when no contributions can be made.

Group, 

Taxpayer received DOL inquiry and IDR for its ESOP and 401k plan right before Covid. 

As I began coordinating with service providers, Covid pandemic hit. Of the almost 100+ IDR requests I had only received a handful.  The investigator provided us with an extension until end of May. 

I note the DOL Notice 2020-01 doesn't provide any relief for enforcement actions at this time. 

I may not be looking in the correct Govt website or other forms of guidance for relief.

Anyone know if the Dept of Labor will allow enforcement actions to be suspended while businesses (and my taxpayer/client) are still dealing with the pandemic?  Thoughts and comments appreciated. 

Thank you 

I'm wondering if this is a possible upcoming issue with respect to loan defaults.

Assume a plan is not allowing participants to suspend their loan payments (I think the IRS Q&A said this was optional?).

Loan program allows a grace period to the end of the quarter following the quarter in which the payment was missed. 

If I'm laid off in the second quarter due to the coronavirus, my loan would default 9/30/2020, and I could claim the defaulted amount as a CRD.

If I'm laid off in the 3rd quarter due to the coronavirus, my loan would default on 12/31/2020, one day after the last CRD is allowed?

I'm probably missing something here so fire away!

Owner age 83, has been taking RMD's since Age 70 1/2.  He wants to take a distribution in 2020 in the same amount as would be required if he took an RMD.  

Question , can he take as an RMD OR must he take as a regular distribution and have the 20% mandatory withholding taken out?

Thanking you in advance for any help.

Be safe everyone.

Richie

Does the CARES Act allow a "qualified individual" to repay 2020 Roth IRA distributions within 3 years?  The law says that only CRDs that are eligible for rollover under section 408(d)(3) can be repaid, and it doesn't look like that section covers Roth IRA rollovers. 

Thank you.

A client wants to fund the employer profit sharing with the PPP loan that they received.   It's a new comp plan with 1,000 hour last day rule.     What would be the best way to calculate the amount they can put into the plan?    could it be deposited to the participants accounts or would they need a suspense account?    

This is the first question I've gotten on this, so I'm hoping it's an outlier and not the beginning of a trend...

The plan uses W-2 definition of compensation.  The sponsor noticed that their payroll company was not applying the deferral election for those who elected a percentage of compensation to be deferred against what was being coded as "FFCRA EE Sick" pay on their paychecks (so it was being calculated from "regular wages" only).  The plan sponsor asked the payroll company, and the response was to double-check the plan because "by default" FFCRA wages aren't included.

I admit that I haven't paid much attention to FFCRA from a consulting standpoint, since I figured that it wouldn't matter - taxable wages are taxable wages, so we'd count them.  But this deferral thing is concerning.  I don't know what payroll company they're using, but what can they be thinking?

Does this really give everyone a blanket suspension on loan repayments until July 15?  I didn't read it that way, but the latest ERISApedia webinar with Derrin Watson said that's what it meant (though the loan has to be caught up by 12/31/20).

So... since you don't have to be a "qualified individual" like for the coronavirus suspension, are all loan repayments for everyone suspended until then?  Or just if requested?  I assume this is mainly a mechanism to postpone defaults.  And of course the Notice doesn't say anything about accruing interest or reamortizing... I don't see the recordkeepers just giving everyone a few months off.

Imagine a group of commonly controlled business organizations.  All have a § 401(k) plan.  None is a safe-harbor plan.  The group has no troubles with coverage, ADP, or ACP tests.

Some plans allow hardship distributions; some don’t.  Imagine that resulted in § 401(a)(4) discrimination in favor of highly-compensated employees.

For a year that ended, what may the employers do to cleanse the discrimination defect?

If it can’t be done by self-correction, what would the IRS ask for?

Doing a DB plan termination. Of the 40 participants with a lump sum greater than $5000, two selected an annuity. We had everything set for June 1 lump sum distributions but the plan sponsor is only now dealing with the annuity purchase. Am I correct that because the Notice of Annuity Information is just now going to be provided they cannot pay the lump sums until the 45 day advance notice requirement is met?

We have recently taken over an individually designed cash balance plan effective 11/1/2007. The prior TPA argues that because it was an individually designed plan, it was not required to be restated for EGTRRA. The plan was, however, amended for 436 and HEART. In addition, I find it concerning that the original plan document does not come with a favorable determination letter. Is it correct that this individually designed plan does not require a FDL or any restatements? Would appreciate any guidance you can provide. 

The 2018 census indicated that an employee was on leave as of 01/01/2018 (given the nature of the client's business, this is common).  The 2019 census indicates that the employee is retired as of 01/01/2018.  Participant's DOB is 10/20/1948.  Should this participant be required to take an RMD now for 2018 which would have been due by 04/01/19 prior to distribution of her remaining benefit in the plan which will be rolled over to an IRA?  

How do you interpret and apply IRS Code § 411(d)(3) in Defined Benefit Plan termination?

If the plan terminating in May 2020 and  if there were participants terminated in 2019.

Do you make those terminated participants in 2019 100% vested when the plan terminate?

How about anyone terminated in earlier years with accrued benefit in the plan (2018, 2017, 2016, 2015)?

How about anyone terminated in earlier years  whose accrued benefit entirely distributed to them (2019, 2018, 2017, 2016, 2015)?

My client received a 1099R for a distribution taken during 2019 from an Inherited IRA account.   My client was the non-spouse beneficiary of this IRA and inherited it several years ago.  The funds are held in an inherited IRA.  My client is over age 59 1/2 (actually 61 yrs old).    The 1099R is coded with a "1" in box 7.   That seems wrong to me.  If she is over 59 1/2, shouldn't it be a code "7" normal distribution so that the 10% early w/d penalty doesn't apply?

Any guidance or advice is much appreciated. 

Thank you.

Senior moment - where on Form 5500-SF, if at all, would you report a defaulted loan?

2 people whose comp is in excess of 80% of  the TWB +$1.00.  One is the owner who wants his contributions to max out.  That means he gets an $18,600 profit sharing.  His remaining contribution is $9,221.33, which added to 5.40% of his  excess = $18,600.  That means 3.29% goes to staff ($9.221.33/$280,000) -- does that percentage also go to Person #2 who has excess comp?   See example below.  Thanks!!

Does anyone have a good reference they would not mind sharing that shows for which state's taking a plan distribution may affect the individual's unemployment benefits?

Thanks.

AN  employee has quit working except for PRN but had been full-time and  qualified for the retirement plan - took a loan and stopped paying on it when he went PRN  - the asset platform is wanting guidance on whether the loan should be deemed distributed or just in default and accrue interest on it?   If he is PRN then is he  technically terminated if they pay him wages and not 1099 misc.?  What are your thoughts on how this loan should be handled and reported.  Thanks!