I need some direction and thoughts.....

A Partner passed away in May 2019 and, evidently, ceased to be a Partner per the partnership agreement.

Fast forward to year end and previous Partner is owed the 3% SH and Profit Sharing per the plan document.

Who pays the 3% SH and PS for 2019?  The other partners? The previous partner's estate?  I lean to the other partners, but I just don't know.  Where do I go from here?  What do I ask?

Thanks

What are the considerations regarding terminating a 457(f) Plan.  I am obviously aware that we need to be concerned with presumption of a substantial risk of forfeiture.  Are there guidelines?  Let's say for example scenario A) is the organization voluntarily terminates the Plan; and scenario B) is the organization is actually ceasing operations (perhaps because they lost their primary grant).  These are hypotheticals, but I am curious to know what the rules are concerning terminating one of these things.

We have a client with a Profit Sharing plan that includes 2 life insurance policies.  Can they still file 5500-SF or do they have to file full 5500?

Plan document says one month lookback to determine 417e rates.  It is early in January and the December rates are not yet entered.  Any good guess on the rates?  It looks like they will be a small amount higher than November rates.

A participant wants their lump sum right away (probably to use their LS for immediate bills).  25 year olds have no understanding nor patience.

We have a participant who is receiving a Premium Tax Credit. As such, we have suspended his retiree HRA account for the time period he is receiving the PTC. Participant sends in reimbursement request for expenses incurred prior to receiving PTC. Currently, we deny participants from receiving reimbursement because the account is in 'suspension'. Therefore, no activity allowed in HRA period. Participant is claiming that expenses were incurred prior to receiving PTC so they should be eligible for payout even while account is suspended. 

IRS PTC Q&A states the following:

What if the retiree coverage consists of retiree only health reimbursement arrangement (HRA)?

If an individual is covered by an HRA, including an individual coverage HRA, for a month, regardless of the amount of reimbursement available under the HRA, the individual is not eligible for the PTC for that month.

Looking for clarification on "for that month" - does this mean that only expenses incurred and submitted for reimbursement while receiving PTC 'for that month' are not eligible or does this also include any previously incurred expenses while the account is suspended or frozen?

Thanks

Betty 

An employee was excluded from plan.

I know they must receive a nonelective employer contribution, but how do you determine the amount?

It is also a 3% safe harbor plan, so they get that piece as well.

Plain language of SECURE Act prohibits loans from a 401k plan using credit or debit cards, effective for loans made on or after 12/20/19.  Despite this, plan sponsor issued loans to multiple participants after this date using credit card method (but has since ceased doing this).  Any other remedy other than issuing 1099-MISC to these participants who got loans via credit card after 12/20/19?

I believe this is permissible, but am hoping someone with more testing experience can confirm. 

Say Company A acquires the assets of Company B. Company B employees will become Company A employees at closing. Company A has a safe harbor match 401(k) plan, and Company B has a safe harbor nonelective 401(k) plan. If Company A assumes sponsorship of Company B's plan, can both plans be maintained separately (for their respective pre-acquisition employee populations) during the 410 transition period without any adverse testing consequences? 

Thanks in advance.

I have a successful QDRO in place that cover both the debt incurred in marriage and my 50% hence my ex husband did have a loan balance that incurred during our marriage that he has now paid back into his 401K in the state of Missouri. He is now behind on child support hence he hasn't filed income tax for the last 2 years. I can guarantee that he's not going to file for 2019. 

My question is how can I amend the judge signed QDRO to collect on the arrears he has incurred? Is it possible to collect on 3 months of future payments as a safety net that he doesn't fallback in the near future?

Client contributes 7% as er contributions if ee contributes at least 5%.  Less than 5% employees receives $0.  In testing this plan for nondiscrimination testing, would it fall under ACP or 401(a)(4)? 

my company offers 401K, but they're shady and don't deposit the funds in the 401K acct for months and only do it when they're caught after multiple reminders and much pressure. also no match. tired of the cat and mouse game with them. would like to contribute nothing this year and instead do my own IRA.

if i read this right https://www.irs.gov/retirement-plans/are-you-covered-by-an-employers-retirement-plan , if i contribute nothing to my 401K all year, then i'm not considered covered and i can contribute to IRA as if my employer didn't have a 401K plan.

am i interpreting it right?

Hello:  We have a client whose plan allows for hardships from 401k Deferrals and Safe Harbor sources using the safe harbor rules.  The participant is in a situation where his dependent needs to have a $2,000 prescription each month, and the medication is not covered under their insurance coverage.  The participant initially asked if it was possible to get a hardship to cover the cost of the medication for the next 3 years ($2,000 each month for the next 36 months).  My argument here is that he won't actually have proof of the hardship for a total of $72,000 - he'll only have a monthly bill for the medication.  Which leads me to him having to submit a hardship request each month to cover the cost of the medication.  Anyone have any other thoughts on this?  Suggestions?

Medical plan requires that a participant be "actively at work" to be eligible. The definition of "actively at work" includes the following:

"As required by HIPAA, absence from work due to any health factor (such as being absent from work on sick leave) is treated, for purposes of the Plan or coverage under the Plan, as being actively at work."

I have not ever heard of such a requirement under HIPAA. What provision(s) of HIPAA or the regs address(es) this?

As always, thank you!

I’m divorced for 7 years and all property and assets were split but not retirement and pension (QDRO). When we split we used her lawyer who was mediator trained and it greatly reduced the cost. I hired a lawyer to look over what I was signing as I needed someone with a fiduciary relationship towards me. Divorce went fine, I had my attorney draft QDRO through my company trustee for 401k and pension (and I paid to do that) but my ex and her lawyer for some reason never signed it(didn’t understand or didn’t want to deal with it). My lawyer a few years go said don’t press the issue as if he never signs it then it will not be agreed and not split (she passes away - I do not wish that as we have children).  

Pension if I work for 30 years she could be entitled to portion the 10 years while married (1/6 of pension)

401k when I had 600k her portion was 200k (from my recollection). Since I have been maxing it out and it’s grown is worth 1.2M. Don’t know how much her portion of growth would be but I imagine it would be 400k. Clearly that will need to be recalculated by working through the pension/401k trustee.

Question: should I bring this up and settle (ex will likely think I’m doing that for nefarious reasons - just always thinks I’m up to the worst despite trying to give her what’s fair) or should I listen to my lawyer? 

Benefits to do in my mind are to get it behind me and have clear understanding of what’s in my 401k. Downside is dealing with her on this and purely losing financial benefit. Clearly there is a legal recommendation and a ethical consideration (I always try to do right thing but it will come with drama and argument)

I appreciate anyone who has had experience on this topic.

We have a situation that I am trying to sort through.  Attorney sponsors a prototype document from a national provider.  Gets opinion letter on that document so all of the sponsored plans adopted by plan sponsors are covered by an opinion letter for that firm.  Attorney is retiring and will no longer sponsor the prototype effective 3/31/2020.  Plans adopted are in essence abandoned.  Per my reading of 2015-36 Section 10, those plans can’t rely on opinion letter and now fall into IDP arena.  

Assuming all amendments are up to date by 3/31/2020, is the biggest issue with entering the IDP arena is, if I understand, that the Plan wouldn’t be eligible for SCP under EPCRS.  Am I missing something?

ideally, we’d like to restate to our document (which conveniently enough is through same national provider) when Cycle 3 becomes available, hopefully before 12/31/2020.  They would avoid clients having to pay for a restatement to our sponsored PPA document  followed in close timing to Cycle 3 document.  

What risks am I missing? Are we on right track?  What would you do in this situation?

Husband and wife own a small business and sponsor a qualified retirement plan.  Both are over age 70 1/2, and take RMDs.

Husband died in 2019 before taking RMD.   As his beneficiary, wife took his RMD, and also took her RMD.  The balance in the plan was then rolled from the pooled account into an IRA in the wife's name and the plan was terminated, in 2019.

The questions is:  how many 1099-R forms must be filed?  One for his RMD paid to her from the plan as beneficiary, and one to her for her own RMD from her account in the plan, and a third to her for the rollover to the IRA.  Is there any reason to do a separate RMD for his remaining balance in the plan that rolled to her IRA?

Thanks!

I apologize, I'm sure this question has been asked and answered - so if someone could point me to the correct thread, I'm happy to read up on it. 

I also wasn't sure if this question was better suited for the distribution message board or this on. 

I don't deal with PBGC covered plans often - so my apologies in advance if I am using the wrong terminology or asking the wrong type of question. 

PBGC covered plan - terminated and closed. There were a about a dozen participants whose benefit was sent to the PBGC per the lost participant rules. 

We are now preparing 1099-Rs for the plan. The participants who elected something ( lump sum cash, rollover, etc) I have no problem preparing the 1099-Rs. But I don't know how to report those whose benefit was transferred to the PBGC. 

Do they get 1099-Rs? I'm thinking yes - but I've been wrong before

If they get a 1099-R what code goes on the form?

I'm sure there is a publication or guide that deals with this - I'm just not sure where to look. 

I called the PBGC for an answer and was told I would get a call back - but I haven't heard yet so thought I would ask all you smart folks here. 

The flat benefit formula using the fractional accrual rule--the question I am having is when is the 415  comp limit first applied. Is it to the projected benefit first, or  to the accrued benefit. We have  a plan document where it is not specified.  My interpretation has been that without specific language in the plan as to when it is applied, it seems it should be applied to the projected  benefit first since we can't accrue a fractional benefit to something that exceeds 415. In this plan the normal retirement benefit is 300% of average comp for 25 yrs of service at NRA.  Consider an employee who is 40 yrs old, NRA 65 and has $300,000 average salary. 

I am trying to determine the proper calculation for an RMD for a non-spouse beneficiary.

The original account holder was a greater than 5% owner and was taking RMDs before the time of his death. His sole beneficiary, his wife, became the account holder and opted to leave the funds in the plan. She continued to take RMDs using the uniform life table based on her D.O.B.

This beneficiary, now the account holder, died and the account fell to her sole beneficiary, her daughter. Her daughter opted to leave the funds in the plan as well. The beneficiary was 88 at the time of her death in 2017, in 2018 she would have been 89. Using the single life table, this results in a factor of 5.9. The daughter was 68 in 2018 which results in a factor of 18.6 using the single life table.

Is the single life table the correct one to use in this situation?

If so, am I correct to use the greater factor of the two and reduce the 18.6 factor by one each following year?

If not, what is the proper way to calculate the RMD for the daughter?