My divorce was finalized in 2004; it included a QDRO.  I recently retired (2018) and after several of the payments I received a letter from the Plan Administrator advising me that the calculations were incorrect ($60,000) and they will be deducting a couple hundred dollars out of my monthly payments.  Now I am stuck!  How can this error happen and I suffer the consequences 14 years later.

Can a non-spousal beneficiary withdraw more than the required amount?   Plan does not allow for partial distributions after termination.  The RMD is about $500 and she wants to take $5,000.     IF she can, would the whole distribution be taxed at 10% or just the RMD amount?    

I have long term disability through my company as well as Social Security Disability. My daughter qualified through me as a Family Supplmental Benefit until she turned 18. We managed to get it extended until she graduated from high school. My company plan subtracted my Social Security and hers from their benefit that was payable to me as an offset. No where in the policy does it address what to do when the family benefit goes away. I notified the disability company when the family benefit ended. Several months later, I noticed on my monthly EOB that they 'quietly' reduced my total benefit by the amount that was paid to my daughter yet they did not increase my payout. So it is a numbers game at this point. I have found on the internet the same situation and the lawyer advised that person that they were entitled to that part of their benefit to be reinstated again. I sent a certified letter to the company recently asking for either an explanation or the back benefit and for it to be reinstated. It has been ignored. My questions are: Am I entitled to that benefit and the back wages? What should I do now if I am? Hire a lawyer? This is a big name insurance company and I worked for a large company. Should I contact others that I feel sure have been done the same way to initiate a class action suit for them also?

We have a client that wants to have us work without their SS#'s.  I know Relius has an Employee ID feature where DERs can be done just with EE#'s. 

Has anyone ever taken this approach? How did it go?  I assume the whole point is to allow us to do the work without SS#'s.  I assume the SS# can be blank?

I realize there will be some inefficiences, but I think I can work around those.  Obviously it's not a 10 person plan so worth a little extra effort! 

Controlled group.  3 companies A B & C.

A does not pass coverage on its own, B & C do.  

I can test A & B together, b/c together they pass coverage excluding C.  C passes excluding A & B.

Can A & B have different SH formulas?  Ie, one a 3% and the other SH Match?

If not, could I have A with SHM plus a discretionary match (that satisfies ACP SH) and B with just the SHM?

If a profit sharing plan terminates do all participants become 100% vested (even terminated participants)?

I have a prototype document that reads service requirements for elective deferrals/profit sharing completion of 1 year of eligibility service.  Hours of service necessary for a year of eligibility service 1,000 (not to exceed 1,000).

Does this mean they have to work a year with at least 1,000 hours and then enter the plan on the next entrance date or they can enter on the next entrance date once they complete 1,000 hours even if it has not been a full year?

Does anyone know if Relius Documents can prepare spanish notices?  I guess I doubt it but curious to know if anyone knows the deal...

Hi!

If you have a Savings Account and there has been established a beneficiary, then I have the possibility to change the beneficiary while this is an active account at the bank.

But if the money has been escheated. How do I reclaim the money without the benificiary getting to know that I'm reclaiming the money? Can I change benificiary while the account is in an escheated state?

Plan year has been April 1 - March 31 for some time, but is then amended for PYE Dec 31. One plan year ended March 31 2019; the next plan year will be short, ending December 31, 2019. For PYE 3/31/2019, what is the deadline for depositing a profit sharing contribution? Does the deposit need to take place by 12/31/2019 (i.e.,  the last day of the following/short plan year)? Or does the sponsor have a full 12 months...until March 31, 2020?

Only asking about the allowed timing. Not about deductibility, comp, or limits on amounts.

Thanks

Participant requests a lump sum cash distribution payable to herself.  It gets overnighted to her and received, but she dies before depositing it or cashing it or whatever transaction she was going to do.

The participant's son wants to deposit it into the participant's checking account to make it part of the estate.  The plan beneficiary (who is the late participant's mother) wants to have the whole transaction stopped and re-processed, arguing that since the check wasn't cashed yet, those are still plan assets and therefore the payment should now go to her as beneficiary.  So I guess this really comes down to when are the assets considered paid out from the plan - when the check is cut from the recordkeeper (which is what it shows when you log into the RK's website), or when the check is cashed?

Any guidance (other than "tell them all to hire a boatload of attorneys" - which is where this might end up, anyway) is appreciated...

If a plan purchases an annuity for a participant to remove them from the plan, does the plan still have to issue a 1099-R? Would it show the annuity purchase amount and that it was not taxable? I know the annuity company will issue a 1099-R for the payments the participant receives, but what about on the plan's side? 

We have a bunch of plans that allow in-service and/or partial withdrawals fall all accounts, whether or not they are fully vested.

Can we amend those plans to allow inservice or partial withdrawals only for fully vested accounts?  Would that be a cut back?

Hi,

We have a plan that has late contributions every year for the past 3 years. It is my understanding that we can only rely on the VFCP correction method (and using the VFCP calculator) if late contributions happen at most in 2 of the last 3 years. Is that correct? If that's the case, what happens if the plan used the VFCP method in the previous 2 years (2016 and 2017) and had late contributions again this past year (2018)? Should we use the plan earnings to calculate what the participants are due? What if the plan lost money in 2018?

Thank you.

Rather shocking. We were asked to clean up a non-compliant plan. Just submitted an uncomplicated VCP filing in mid-October for failure to timely adopt a PPA document. Received IRS Compliance Statement already! Since I'm always quick to bash the IRS for taking too long, I have to give them kudos for doing this one so fast! Never had one turn around in 4 weeks previously.

Current plan year is from 12/1/18 to 11/30/19. Compensation is defined as calendar year ending within fiscal year. for this plan year, it is 2018 w-2.

Switching the plan year to 12/1/19 to 12/31/19 i.e. a short plan year.

Assuming that will need to use the full 2019 w-2 for the short plan year, what proration is required if any, dc and db plans purposes other than hours?

Thank you

Current plan year end is 9/30/19. RMD is taken for 2019 based on 9/30/18 balance - 1.401a9-5-Q&A3

Amending the plan year to a short year from 10/1/19 to 12/31/19.

As a calendar 2019 RMD is already taken, will there a need for further allocation requirement based on 9/30/19 balance?

If there is, what is the methodology?

Thank you

Although  this is a related topic, it is not connected to a different discussion I initiated in another recent thread.

When we do our 408b-2 disclosures, we specify the amount/formula for any Revenue Sharing all in the one disclosure document. However, I believe it is acceptable under the regulations to have this in more than one document, as long as the required information/format is used.

Just curious if folks out there generally combine all in one document, or use two or more. For example, a basic 408b-2 disclosure that has everything except the Revenue Sharing formula, and then referring to an attachment prepared/published by the mutual fund company that describes the specific Revenue Sharing amounts/formula/calculation?

Plan has a pooled account. Would there be a concern with placing terminated participants into a separate pooled account that just contains say a Money Market fund?

If a plan uses first day of each payroll period as an entry, does the plan sponsor start withholding deferrals on the pay date associated with that payroll? What if there is an overlapping paycheck? Example: Employee enters plan 10/27 (first day of next payroll period) with a 11/15 paydate. Paycheck on 11/1 for 10/13-10/26 pay period.