Can an employer sponsor a 401(k) and a SEP at the same time?

Only 3 employees plus owner (who gets no compensation except health insurance reported on K-1 as guaranteed payments).

One employee long-term, other two employees less than 3 years service.

Owner wants to reward long-term employee but doesn't want to create big taxable income for him, so considering doing a SEP contribution.  Long-term employee would meet 3-of-5 years eligibility but other two employees would not for the current year.

Thanks.

Anyone offer 3(16) services as a TPA?  What details can you provide with regard to experiences?  Thank you.

I have a QDRO that pays a specific dollar amount plus gain/loss through distribution date. Can the participant specify the fund he wants the alternate payee to be paid from or does it have to be pro-rated across all funds in his account?

An alternate payee is ready to take her QDRO distribution out of Nationwide.  Part of the money she received from her ex spouse is Roth money.  There is no prohibition on her rolling the entire Roth balance out, correct?  She's either rolling everything to an IRA or to another 401k plan.

I work on a mid-sized DB plan that generally doesn't pay lump sums, but has opened up a lump sum window until the end of the year. One terminated participant, who would like to take the lump sum, was born on 7/1/1960. Therefore, he will complete 59 1/2 years on 12/31/2019. If his distribution is not processed until 12/31/2019, can he avoid the early withdrawal penalty?

Thanks for any responses!

My employer is closing our 401k Safe Harbor account 8/31/2019.  As of yet they have given no written notice of this and also indicated they would not be required to make the 3% contribution for the year.   Is this correct ?

J

I am trying to find a table that would come close to a rate for a very very old governmental plan (that was using an insurance company annuity rate of about $130 F/$112 M age 65 - interest would be 6.5%

Any legal issues with an employer policy that pays employees full pay when they take intermittent FML, but no pay for employees taking continuous FML?

If a plan excludes those who work less than 20 hours/week as ineligible to make deferrals and the match requirement is a year of service (no hours), would those who work less than 20 hours/week be excluded from the 410(B) test for the matching even if they have more than a year of service?

HI ALL.  I AM  LOOKING FOR 412(i) PLAN TPA FOR 1 PERSON PLAN.  THE PLAN WOULD BE FOR ME.  

THANK YOU,

RAY J. Jr.

I have a question on how to calculate the 25% deduction limit.  The IRS says:

However, an employer’s deduction for contributions to a defined contribution plan (profit-sharing plan or money purchase pension plan) cannot be more than 25% of the compensation paid (or accrued) during the year to eligible employees participating in the plan (see Employer Deduction in Pub 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans).

My question is - who are considered eligible employees participating in the plan?  For profit sharing purposes, does this include employees who were participating during the plan year but terminated before the last day of the plan year, specifically if the plan document states that profit sharing won't be paid to employees not employed on the last day of the year?

Thanks!

Recent acquisition (last year or two).  Both plans are calendar year.

Scenario A

Both plans have the exact same match formula and eligibility.  Can I merge these plans together mid-year (Say May 1 2020)?  Eligibility would be expanded to additional people after the merger because the surving plan has a more liberal eligibility policy.

Scenario B

One plan with a dollar for dollar match on the first 4%, would merge into a plan with the basic safe harbor match.  I assume this would be a reduction in match?

I know Notice 2016-16 solicits comments on the need for additional guidance, but what are we to do in the interim?  I feel like Scenario A is doable but probably not B.

I saw Tom Poje had posted the idea of changing the plan year ends to create a short plan year, but I just don't think that is realistic in this case.

I have a participant who has terminated from his 401(k) and has maintained his account balances in the plan. He is over 70 1/2 and has started to take RMD's. He now wants to transfer all of his assets into an IRA and use a portion of those assets to make charitable donations. He was told by his accountant that he is not allowed to transfer his entire balance as the amount of his RMD for 2019 would need to be removed first. Everyone agree with this?

I have seen in presentations that a participant stuck at the 415 comp limit post NRA will suffer an impermissible forfeiture unless

a suspension of benefits notice has been timely provided. If this is true what are the acceptable corrections. If the Plan contains a RASD

feature can this be uses? If not can the Plan simply self correct by paying the forfeited annuity payments with interest? 

We are working with another TPA on a combination straditional DB with 401(k) SHNE - no PS.

There are 5 employees, 2 principals, 3 NHCEs.

For some reason, it was decided to exclude on of the employees from the DB, but he is included in the 401(k) with the SHNE contribution.

I believe both plans can be tested together so 410(b), 401(a)(4) and 401(a)(26) can pass, but would the excluded employee be included in combo testing?

Has anyone used FT Williams Distribution Tracking Software (DTS)?

It has some features that look very appealing but I'm wondering how much time you spent setting it up and if you have had success getting clients to use it to initiate and sign off on distribution and loan requests.

Thanks.

Physician with calendar year SH 401(k) wants to switch to SIMPLE IRA for 2020.  Total 5 employees plus the doctor, but only two employees plus doc contributing. Does he have to formally terminate the 401(k) as of 12/31/2019 or can he just not allow contributions to 401(k) beginning 1/1/2020.  (There may be additional contributions in 2020 for the 2019 plan year.)  

Where is this addressed on the IRS website?

Thanks!

Hi,

I was wondering if there's any updates on this topic. Has the new law actually passed? Are tax-exempt employers now required to pay income tax on transportation fringe benefits?

Any insight is appreciated!

Thank you!

We have a company that files a 5500 for the Master Trust and then two additional 5500 for the 401k plansa (3 total 5500). The  401k plan 5500's were filed for extension. The MTIA 5500 was not extended. Is there a late fee for the MTIA? Can we use DFVCP for MTIA? Seen conflicting information and wanted to confirm. Thanks!

the latest and greatest figures based on today's CPI release

this is a revised spreadsheet.

added 2 new columns which might never be used.

1. indexed limit for minimum distribution which was planned last year but never passed

2. indexed limit for catch up at age 60 which was part of the secure act if that ever gets passed

of course, the year I have it indexed to might have to get adjusted someday

indexed limits and soc sec.xlsx