What are y'all naming your trusts?  I was thinking if the name of the plan is ABC 401(k) Plan the trust would be named ABC 401(k) Plan Trust (as in the trust established for the aforementioned plan).

Relius just sent us a notification that the trust name can be the same as the Plan name but that just felt awkward.  Things that are different should have different names!

Can the spouse of a 1/3 owner of a company service as the broker for a 401k plan?

Hi

A PS plan in existence as of 1/1/2020.

Adding a 401k provision now.

Can they add non-elective SH for 2020?

I do not believe so as the 401k feature was not in existence for 3 months?

Just checking.

Thank you

Is the Auto Enrollment Tax Credit ($500 per year for 3 years under SECURE Act) available to ALL EACA's, or just EACA's that cover ALL employees (i.e., an EACA that includes a sweep of existing eligible employees).

A lot of EACA's only apply to those who become newly eligible. 

Hi

If the plan adopts the 2020 non-elective SH between 12/1 and 12/31/2020 i.e. 4%, what needs to be done/when to switch to 3% for 2021?

Thank you

I have a plan that terminated and 2020 is the last plan year.  It’s a short plan year.  Do you have to file a Form 8955-SSA to report the short plan year as the final year even if there is no one to report on the form? 

It appears that there is a penalty if you don’t report the plan termination. I see no actual field to report that information on the Form SSA.  Following is from the penalty section of the Form SSA instructions:  

“In the case of a failure to file a notification of a change in the status of the plan (such as a change in the plan name or a termination of the plan), or a change in the name or address of the plan administrator, section 6652(d)(2) imposes a penalty of $10 for each day during which such failure occurs. The penalty, up to a maximum of $10,000, is imposed on the person failing to so file unless it is shown the failure is due to reasonable cause.”

Any clarification here is appreciated.

Suppose an employer has a plan with 100 otherwise eligible employees, including 10 H2A employees. Can the employer exclude the H-2A employees as a class (will easily pass coverage testing). I'm seeing conflicting information on this - some indicating that under IRCA you cannot exclude them as a class, other information indicating you can. Anyone have any experience with this issue?

We have an individual who wants to rollover their SIMPLE IRA from a previous employer into our 401(k) plan.  I do not see anything which would prohibit this, but want to check.  A SIMPLE IRA is treated like any other IRA for distribution purposes - so as long as the SIMPLE IRA has satisfied the 2-year requirement, it appears to be ok, but I'm afraid I'm missing something.  Does anybody have any other information?

I am not sure whether this forum would be helpful to my situation or even appropriate for me to ask here. It looks like most people are professionals here and I am definitely not. I looked through many places for insight into my situation. Unfortunately, I did not find much public information so far. So I hope to have better luck here. 

I am self-employed and I have a solo 401k opened in 2019. I opened a defined benefit cash balance plan and a regular 401k this week with a third party administrator. The intention is to roll over the solo 401k fund into the regular 401k and contribute to the DB plan as well for year 2020. 

I just realized that there will be excessive profit sharing for year 2020, because the profit sharing is reduced to 6% due to the cash balance plan. I wonder what options that I have right now to correct the mistake. The solo 401k is at Vanguard and I am told by Vanguard excessive profit sharing is usually treated as contribution for future years. I also need to file Form 5330 and a pay 10% penalty. 

Does it mean I can not close this solo 401k and rollover the fund into the new regular 401k this year, until the excessive profit sharing is resolved? My understanding is the excessive amount may take two more years, given my expected income. At this point, both the DB plan and the solo 401k were already filed with IRS by the third party administrator, but no accounts have been opened anywhere and no money has been contributed. 

Any insight is greatly appreciated. 

We have an ex-Exec started severance in Feb 2020 for net 3 years(before my time). She is having Roth 401k deductions taken out of her ongoing severance pay. Is that ok?

It was my understanding our system is setup to stop 401k deferrals on severance pay and it seems to be for other employees. But perhaps since Roth is after-tax?

Thanks

Lexy

Ok....  On line 6(f) of the 2019 5500 (total participant count) we reported 26,988 participants, which is correct.  BUT on line 6(g) (participants with account balances) we reported 988.  Obviously a brain freeze on the part of the filer.  It is not a small plan and it has over $1 billion in assets.   We have a difference of opinion--it is worth amending?  I think it is a red flag to have such a discrepancy between participants and the number of account balances.

Is there a compensation limit on a Simple Plan for calcuation purposes?  Is it the same as 401k Plan?

Thank  you.

A foreign company sponsors a 401(k) plan for some of its employees who are US citizens living in a separate foreign country.

415 limit deadlines are based on when a company's US tax return is due correct?

So how does one determine the deadline for non-safe harbor contributions if the company sponsoring the 401(k) doesn't have a US business tax return to file?

I'm hoping to avoid looking through treaties. But it is 2020...

An old agreement was never updated and has some definitions that do not comply with 409A (CIC, separation from service).  Executive has separated from service and is receiving installment payments (in year 4 of 5).  I assume the arrangement still needs to be corrected under the plan document correction procedures? Is that correct?

What about a scenario where the benefits are entirely paid out when the failure is discovered? 

Thanks in advance!

Assuming the DB allows it, Can a 401(k) or PS account be rolled over to a regular DB or a 412(e)(3) and the funds remain segregated? I'm particularly concerned with the rollover to a 412(e)(3).

A small firm wants to start a 401-k plan with salary deferrals but all are 1099 employees.  Are they able to do salary deferrals?  Would they have to "take" a salary to make a deferral?  Thanks

We have two entities owned separately by husband and wife that are under common control due to a minor child. Minor child will be 21 mid-2021. At that point, ASSUMING no other attribution rules apply for the spouses (no ownership in the other entity by either or management/oversight, not in a common law state, etc.), can a plan be opened after the child's 21st birthday with an effective date of 1/1/2021? Must it have a short plan year or fiscal year beginning after the birthday since the entities were under in a controlled group at some point in 2021?

I'm struggling a bit with the proper use of the VCP submission forms. The 14568-B doesn't seem to quite "fit" a 403(b) plan that had a written plan document, yet failed to restate by the extended deadline this summer. https://www.irs.gov/pub/irs-pdf/f14568b.pdf

Has anyone else submitted one of these yet, and if so, with any results? It appears to me that you'd have to check Section I(A) last option (other). "B" does not appear to apply, and Section II(B) doesn't appear to apply either. 

Looks like you'd check the Section 1(A), describe them as a nonamender, and include signed updated docs and any Amendments. Am I missing something obvious here?

Thanks.

Our firm is interested in strategizing on best practices for pursuing robotic process automation into our TPA practice.   Do any of your firms currently utilize BOTS and if so, how did you get started? Do you have internal staff who were able to write/program basic bots or did you utilize the services of a different firm/contractor to learn your processes and write these for you?  Do you have firms you could point us to that would explain their practices so we can begin pursuing this type of automation in our firm?  Any direction you may provide is greatly appreciated as we begin to explore what works and doesn't work and what will be most beneficial for our firm.

Thank you!

I have a client who is being purchased by another entity, effective 11/16/2020. As these things usually go, we were just notified a couple days ago ? The seller (our client) sponsors a 401(k) safe harbor match plan. The buyer has required that the existing plan be terminated, prior to the effective date of the sale. Accordingly, the plan has an 11/15/2020 termination date. Our client runs monthly payrolls at the end of each month; the last payroll was 10/31/2020 and the next payroll date would be 11/30/2020.

My question is this - Is there any accrued benefit cutback issue with employees not being able to make deferrals and receive safe harbor matching contributions on the first two weeks of November? Or, is there no issue since the payroll date for that period of work falls on the other side of the sale/termination date? Does it make sense that the benefit isn't considered accrued until the payroll date? If so, I would assume it would follow the same logic as a plan who ends the safe harbor provision 12/31/2020 and then processes a payroll with a January 2, 2021 payroll date (without safe harbor). I just don't feel confident applying that logic to a plan termination without a rule to tie it to.