We use Sharefile and I suppose it is OK, but it is too complicated for a lot of our clients and I presume there must be a better option out there.  I'm curious if anyone uses a different system. Sharefile is integrated with Outlook so we can easily encrypt our attachments, AND our clients can upload files directly to our own personal in box.

But the password thing is clunky, clients always forget their passwords, etc. Anythng better out there?

Has anyone done an Anonymous VCP submission through pay.gov yet? I'm wondering how to handle the payment. They only take ACH and credit cards. Doesn't seem very anonymous.

There are two entities -- A and B -- in a controlled group together.  Each have their own 401(k).  We want to eliminate B's plan at the end of the year, but over the course of the next few months, we are going to have a bunch of B employees moving over to A and they will be immediately eligible for A's plan.  So, we are going to violate the 2% rule under the successor plan rule because at least 2% of the participants in the B plan will have participated in the A plan in the 12 months leading up to terminating the B plan.

Is there a way we can spin off the accounts in the B plan of the people we expect to transfer to the A plan?  That way we'd have B1 holding those accounts and B2 holding the other accounts.  At the end of the year, we can terminate B2 without any successor plan issues, and merge B1 into the A plan.  Any thoughts or issues?

A client has a DB plan, started in 1998. The plan was subject to a Hard Freeze in 2016, and a new pension plan was established.  The frozen plan is DB001, the new plan DB002.   Both plans are overfunded with significant excess assets. DB001 accrued benefit is $12,000/mo, DB002 $1,500/mo.

Both plans terminated in 2018, participant is now 70. The aggregate 415 limit is $14,166.67/month ( C limit) and the aggregate 415 LS (both plans) is $1,799,000. Note the accrued benefits in both plans is $13,500 < 415 limit. The question is how do I apply the 415 limit to each plan? The plan doc says to apply the 415 limit first to DB001. The problem comes from the MPV which impacts the 415 limit even though the total accrued benefits as annuities do not exceed 415. The PVAB ( MPV) is $1,700,00 in DB001 and $225,000 in DB002.

It seems that DB001 pays the full PVAB  and  DB002 get the knife. This doesn't seem right. Is there another approach?

The notice is due by November 1st - is there a limit to how early it can be distributed?  Thanks in advance!

Is anyone else receiving CP259 Notices from the IRS asking for a 945 form for 2016?

I received copies of the notices from two completely unrelated clients, both of which have plans on a recordkeeping platform in which distributions are processed under the recordkeeper's EIN. 

Since we have a small number clients I thought this might not be just a coincidence.

Thanks.

Two companies (A & B) with idential ownership:

owner #1 = 25%; owner #2 = 25%; owner #3 = 25%, owner #4 = 8%; owner #5 = 8%; owner #6 = 4% and owner #7 = 4%.

I've had a brain freeze...where the CG rules state "the same 5 or fewer", it doesn't matter if there are more than 5, just that 5 or fewer own 80% or more, correct?

There will be a significant number of retirees from the company our company in the next year. The company has a significant amount of Cash on the balance sheet that might not all be included in the valuation. The Company and trustee are unwilling to let anyone else review the valuation report. Is there anyway to dispute the valuation on the basis it is too low? The ESOP owns over 70% of the company, but the CEO and CFO seem to be hiding the cash until after the current round of retirements.

 I have a new client who has a solo k. They will have a number of new employees in 2020. We want to set up a new plan for the company plan 002. ( Client want's to keep current plan, but will make all contributions for owner and employees to new plan )

I am thinking that this will be fine but I need o freeze solo k, Solo K has 100% vesting - new plan would not. Are there any BRF issues if solo l is frozen?

I realize I will still need to aggregate for Top Heavy. Any one see any issues here? What it be an issue of the solo k was not frozen?

I am never sure who this is....participants with account balances (both active and non-active), beneficiaries receiving benefits under the plan -

but does it include ALL employees who have met eligibility but have no account balance?  

I have a client that wants to purchase land with his 401k assets and have a non-related party develop it.   It is my understanding that real estate held by a 401k plan can only be a passive investment and that this deal would not meet the requirements.  Do you agree?

Hello all!

Participant turned 70 1/2 on 9/1/2019.  In 2018, he was an over 5% owner, but sold his ownership in June 2019, prior to turning 70 1/2.  He is still working.

I have looked in the ERISA Outline book, and it seems pretty clear that he would not have to take an RMD since he was not a 5% owner upon attainment of age 70 1/2.

BUT!!!!!

His son (with whom he formerly shared ownership) is now the sole owner. 

Is this 70 1/2  participant still considered an over 5% owner due to family attribution, and therefore would need to start taking his RMD's?  I cannot see this answered clearly in the EOB's.

Thank you to all for the help!

Can anyone provide any citation or guidance regarding the definition of modified cash accounting for Form 5500 reporting purposes. It was my understanding that this method reports all activity on a cash basis with the exception of employer/employee contributions & distributions which are accrued. However, I've seen audit reports completed stating the Form 5500 was prepared on a modified cash method & that contribution receivables are not required to be reported.

Would uncashed checks still be considered assets of the plan if they remained uncashed into a new plan year?

For example, 401(k) plan terminates on September 15, 2018. All checks are written and other distributions made by September 14, 2019. Someone doesn't cash their check until January 2020. 

Does the plan need a 2020 5500 and audit?

Does the uncashed check mean all assets are not out of the plan within 12 months and the original termination date of September 14, 2018, is no longer valid?

It was discovered in 2019 that a rollover received in 2017 from an outside plan into a 403b plan included after tax contributions.  The Plan that received the rollover specifically says in the document and SPD that it does accept after-tax dollars as rollovers into the Plan.  Can the current Plan distribute the ineligible after tax money to the participant, with earnings, and do 1099R for the current calendar year?  Or does the plan try and send the ineligible after tax funds back to the original plan and ask them to correct the 2017 1099R?  What about the earnings?  Are they taxed in the year distributed, or 2019? 

Could the participant do an In Plan Roth Rollover or Transfer in the current Plan?  

The IRS says the SPD has to be delivered within 90 days after the Participant enters the Plan. If the participant is given the SPD prior to becoming eligible for the Plan, does that satisfy delivery requirements? 

(NYS) My ex- wife received a portion of my annuity (via the first executed QDRO), medical benefits through me for life, and cash as part of our divorce settlement in the 90s. The QDRO was signed by all parties, the judge, and filed.

Flash forward to now. we recently began to process of receiving my pension and annuity and my union demanded we send a waiver for signature to my ex wife. She refused to sign, lawyered up, and filed another DRO (already accepted by the plan administrators) with the judge who has also signed and delivered the papers on to me. 

I would like to fight this, as I’ve seen the chances of her winning aren’t great, and want to know what the logical and rational response to the judge should be.

id planned to file a motion indicating, among other things, that the pension was NOT a part of the divorce settlement.

no minor children involved...

any help will be greatly appreciated!

ESOP was terminated 8/1 due to an acquisition and a request for favorable determination letter was filed.  Trustees (execs of plan sponsor) have been operating as the Plan Administrator based on the plan terms stating that if the Company fails to appoint a Committee as Plan Administrator the Trustees shall act as the Plan Administrator. 

Is there any issue with appointing other individuals to serve on a Committee as the Plan Administrator after the plan has been terminated, in order to oversee the distribution and wind up activities?  That's not something that must be "frozen" on the termination date, is it?

I just need a reality check, as I'm getting push back from high-level executives on this...

Company A acquired Company B in a stock transaction.  Company B's ESOP was terminated by Company B just prior to the transaction, as required by the purchase agreement. Company A is now responsible for winding up the ESOP, right?  Because Company B no longer exists...

Company A executive keeps telling HR not to worry about the Company B ESOP because it was terminated before A bought B, but in a stock transaction that is irrelevant, correct?  

Someone please confirm...I want to make sure I'm not missing something...

Thank you!

I have an ESOP that defines Normal Retirement Age (NRA) as age 65 and 5th Anniversary of Participation.   When the plan started it was a 9/30 PYE.  The first PYE was 9/30/2015.  In 2016 they switched to a 12/31 PYE.  So they have a short plan year of 10/1/2016 to 12/31/2016.  

I have a person who entered on 10/1/2014 the Effective Date of the Plan.   As of 12/31/2018 he is over age 65.  

Does he have his 5th Anniversary year? 

Do you count it as PYE 9/30/2015, 9/30/2016, 12/31/2016, 12/31/2017 and 12/31/2018  which comes to 5.

Or

Do you count actual anniversaries 9/30/2015, 9/30/2016, 9/30/2017 and 9/30/2018 which comes to a count of 4 by the time the person terminates. 

It makes a difference as his YOS for vesting are at 5 as he got a YOS in the short plan year.  However, this is a 2/20 vesting scheduled so by YOS he is 80% vested.  If he has hit his NRA he is 100% vested.