Curious about the following:

Set up a PS plan as a qualified replacement plan (QRP) and billed the client.

Excess assets from the DB now transferred to the QRP. Now QRP has only excess DB assets and no other PS contribution will be made for 2020.

Client now wants to pay the document fee from the new PS plan assets, can they?

Thank you

I know the Secure Act changed the notification requirements, etc but wasn't sure the impact on this.

Have a case that wants to change from a 3% Safe Harbor to a Basic Safe Harbor Match as of 1/1/21.  Is there a deadline for the amendment to be signed/notice to be given to the employees?

Quick Question, Four Veterans who were working for the company, were members of the company ESOP, were called back to duty for one year during the Iraq conflict. They came back after their service and were reinstated to their jobs after 1 year. It was found out later, the company took back 20% of their ESOP stock while they serving in Iraq.  Is this allowed?

We have a plan that has a discretionary match formula in the document.  This year they did something unusual that I have not seen before and I am trying to figure out if I really need to do a BRF test for it.  The annual match is based on the average weekly deferral contribution of the participant.  Average deferrals of between $1 - $100, annual match is $200; between $101 - $100, annual match is $350; between $200 - $299, annual match is $550; over $300, annual match is $800.   The plan does pass the ACP test but the only employees with the $800 match are the HCEs.  It isn't a lot of money and looking at the percentages of compensation it benefits the NHCEs more but having only the HCEs with the $800 may not look right.  Are the results of the ACP test enough to just move on and not look any further at the way the match was done?

Im a vested member of the IBEW and have a 401a plan through the Union. I have made a career change after almost 20yrs and was under the assumption that I could roll the balance of the account into a self directed IRA or some other qualified plan. I just got off the phone with the plan admin and Im being told that this is not an option. According to the admin  no action can be taken until I reach age 55 1/2. Is this accurate? Thanks in advance for any insight.

I have a 1 man plan where owner just reached NRA this month and is under 415 limit on payout but getting close. The question I have is can I terminate the Plan effective 12/31/2020 to have full plan year, but have have him elect a lump sum now and rollover to IRA so possible gains don't push him over 415 payout? He is not married so spousal consent not an issue.

I don't think there is an issue but wanted to make sure I wasn't missing anything.

If we have everyone in their own group, and no allocation conditions, for testing purposes, can we exclude those with less than 501 hours and term'd?  I don't think so/just checking.

I'm looking at a plan that provides for a safe harbor match of 100% of deferrals up to 4% of compensation, available only to NHCEs.  The plan also has a discretionary match, which excludes NHCEs.

Consistent with the otherwise applicable requirements for safe harbor status, the plan states that matching contributions will only apply with respect to deferrals that do not exceed 6% of plan compensation and to the extent that any matching contribution formula is discretionary, the total amount of discretionary matching contributions will not exceed 4% of plan compensation.

However, I am concerned about the exclusion of NHCEs from the discretionary match.  It seems that this plan design might negate any reliance on the safe harbor.  Any thoughts?  Does the exclusion of HCEs from the safe harbor contribution make any difference insofar as upholding the plan's safe harbor status? 

I have an ex who retired on purpose after coming into 62,000.00.  He retired on purposed in order to reduce his support obligation to me because we have a 10 year old child together.  He was married before and they had 2 children who are grown adults one is actually married.  His attorney is claiming that his former spouse is entitled to 347.00 per month of his pension payment because of a QDRO.  I do not understand this?  I did not receive a QDRO in my divorce and I was married to him longer than his first spouse.  They were married 5 years and we were married 8.  How can this woman be entitled to anything when the children are grown and gone and how can the amount that he has to pay her have anything to do with my child and the purpose of calculating his support obligation.  I do not feel she should get anything but if that is the law then at the very least the 347.00 she receives should not reduce his monthly income for calculation of support for his daughter with me.

I've got a new plan where the potential ASG issues are complicated enough that I felt that they should go to an ERISA attorney to make sure which side of the line they fell on, and they are in the process of doing so.  Are those attorney fees includable in the start-up costs for the new plan credit?  Seems like it should be.  Thanks.

Hey, guys,

I'm writing with a question regarding rollovers from US plans to TSP plans for Federal employees in Puerto Rico. There are two federal employees (doctors) that recently relocated to Puerto Rico and work at the VA Hospital in San Juan. 

They both have Stateside qualified plans (one in Michigan and one in Florida). I know that they wouldn't be able to rollover from a USA plan to a PR plan unless it is dual-qualified; however, I'm unsure what the rules are when they are Federal employees. Can they rollover from a Stateside 401(k) or 402(b) to their TSP here in Puerto Rico?

Plan sponsor has 403(b) plan which complies with ERISA, and each participant has individual account.  Plan sponsor makes matching contributions each payroll.   Wants to convert plan to 401k administered by Paychex.   Plan sponsor does not have  HR director, and feels it would be easier to have the same payroll company and TPA.    Assume 403(b) plan termination occurs as of 6/30/2021, and want to start new 401k  7/1/2021.  

Are there any special legal issues in terminating the existing plan or starting the new plan, considering that participants are not terminating employment

Is there a required 12 month wait between the termination date and the new plan starting date.

How must the individual accounts of the 403(b)  be handled.     Do participants have a choice of taxable distribution, rollover to IRA, or rollover to new 401k plan, or a combination of choices.   

"In the case of a Former Employee who under the Plan does not have a nonforfeitable right to any interest in the Plan
resulting from Employer contributions, "

Has anyone found a good article from a good source on what this means.  I feel like you need a table with entries for the following:

Eligible for 401(k) but never made any contributions

Eligible for 401(k) but took  a distriubtion shortly after termination

Eligible for 401k and never took  a distriubtion

Eligible for profit sharing but never received an allocation

Eligible for profit sharing and took  a distribution shortly after termination

You ge tthe point.  There is a different logic for each of these scenairos.  Anyone ever see anything that really go through this in detail?

Company A acquired Company B and each have 401(k) plans.  Plans will be merging 12/31/2020.  Company A 401(k) Plan (surviving plan) has immediate vesting for all sources.  Company B 401(k) Plan (merging plan) has a 6-year graded vesting schedule for match and profit sharing.

1. Can the surviving plan continue the 6-year graded vesting schedule for all of the merging match and profit sharing money (active and terminated participants)?  I think this is yes but value opinions.

2. Can the surviving plan continue the 6-year graded vesting schedule for the merging terminated participant accounts while providing 100% immediate vesting for merging active participant accounts? I'm not sure on this one.

3. Can the surviving plan provide immediate 100% vesting for all of the merging match and profit sharing money (active and terminated participants)? I'm not sure why they would, but need to cover all options.

Taking over a plan that is 401k and does not have profit sharing as an option in their current document.  Never encountered this before and we always have the profit sharing as an option in our plans.  Client wants to add PS for 2020.  I believe that is permissible but making sure I'm not missing something.

Hello everyone. The husband just died a month ago and he was employed. The wife already called Fidelity, and they have submitted a form. The wife is not residing in the united states because the husband was just in the process of petitioning the wife when he died.  I wonder how long would it take for the wife to claim the benefits? 

It was discovered that a self-directed IRA has invested in a collectible that does not meet any of the exceptions in Code Section 408(m), and therefore the IRA is treated as having distributed the cost of the collectible to the IRA owner.

Two questions.

1. In addition to the deemed distribution, does the IRA's investment in the collectible constitute a prohibited transaction, or could a prohibited transaction arise if appropriate steps are not taken?

2. Does the IRA custodian have any duty to ensure that the IRA owner correctly handles the deemed distribution, or have a reporting obligation regarding the deemed distribution?

Any thoughts are welcome. Thanks! 

Plan has discretionary match but no allocation conditions (no last day rule).

Plan sponsor now considering making a 2020 discretionary match but wants to amend to add last day rule.

OK or a prohibited cutback for participants who deferred in 2020 but have terminated employment? 

We have a 401k plan that allows for after-tax employee contributions.  The plan sponsor is an LLC that is taxed as a sole prop.  Can the owner deposit the after-tax contributions up until his tax return due date or does he have to deposit those by 12/31?  

Thank You 

I know for Plans with less than 100 people, the DOL requires contributions to be deposited within 7 business days of being withheld from payroll.

I have a multiple employer plan with more than 100 participants, though no single employer has more than 100 employees in the Plan.  So the question is:

• Does the employer need to make the contributions within 7 business days?
• Or, since the Plan as a whole over 100 participants does it fall under the 15th business day of the month following the month in which the amount was received by the employer (so if something was withheld on October 31, I guess that means it's due 11/15?)

Thanks everyone!