I'm filling out a pre-QDRO questionnaire.

One of the questions asks if there are any survivorship benefits, and if any elections were made?  Does this mean did he fill out a beneficiary form?

I ask, because later, in a separate section, it asked who the beneficiaries are.

Plain ol' 401k/PSP.

We have a potential client with the following plans:

1) ERISA 403(b) Plan covering non-union employees.  This plan excludes union employees by way of the following employee exclusion - " Employees who are eligible to participate in a plan of the Employer offering a qualified cash or deferred election under Code section 401(k) or a contract described in Code section 403(b)." 

2) non-ERISA 403(b) Plan covering union employees (deferral only, limited employer involvement).  Multiple vendor options.

3) 401(a) Plan covering union employees (employer contributions). One vendor option.

Questions -

1. Would employer contributions to a 401(a) plan for the union employees eliminate the ERISA exemption for the union 403(b) Plan?  I see nothing indicating that employer contributions to another plan would impact non-ERISA status, but if anyone has info stating otherwise, please share.
2. Is there any reason the 401(a) plan would not be subject to ERISA? I would not think so, but I am searching for a 5500 on the DOL website and don't see one (gulp).
3. Since I believe that the 401(a) Plan is subject to ERISA, I feel like they could easily stop allowing deferrals to the non-ERISA 403(b) and make them available in the 401(a) plan.  It would not eliminate the non-ERISA 403(b), which would be near impossible to terminate, but would at least allow them to restrict where new deferrals are going to simplify the contribution submission process, rather than sending to three different investment providers each pay period.  I don't see any downside to this.  Do you?

Thanks!

The plan sponsor's Adoption Agreement (adopted in 2016) provides for a Match formula of 100% of the first 3% of  deferred compensation.  The TPA treated this Match as being discretionary, but entered the formula in the document in the event that it would be made.  The "Discretionary Match" box was not checked, and my understanding is that a single Match is either fixed or discretionary anyway . . . not both.

Because this Match was treated as being discretionary, it has not been provided in the years since adoption.  The plan sponsor has been making a 3% SHNEC + discretionary Profit Sharing instead.

Does the plan sponsor have a document error or an operational error?

Not sure if I should be asking this here, but.....

Does anyone have experience with the pros and cons of the ERISA Outline Book (online versions) vs. ERISApedia Research Tool?

Someone in one of our plans receives Medicaid payments as he has Down Syndrome.  We were informed her benefits would be ceased if his retirement account balance exceeds $2,000. He was auto-enrolled and had a few  deferrals, but it's only amounted to about 200 bucks.

The deferrals have been stopped, but the plan is a 3% safe harbor plan.  This year, it won't probably push him over $2k, but next year probably will.

Is there a way to have him excluded from any Employer contribution so he doesn't lose his Medicaid benefit?

I have a current 401(k) plan, there are 6 doctors that own the current practice, company A.  They are acquiring a new practice, company B;  the new entity will be owned 80% by company A and 20% by the new surgeon at Company B.  I think they will be considered a controlled group since Company A owns at least 80% of company B and can be part of the current plan with no problems.  Am I thinking correctly?  (Just need to amend to allow for participation and counting of prior service for company B.) 

Employer is selling its assets to a buyer in connection with a bankruptcy.  Pursuant to bankruptcy order, the buyer is not assuming any COBRA obligations as part of transaction.

Assume closing is on June 20, at which time most employees' employment will be terminated.  Health coverage (fully insured) for these employees will end on June 30 (end of month).  A few employees will be kept on post-closing to perform wind-down activities until, say, July 15, and employer wants to continue to provide health coverage for them during that roughly two-week period.  After the period is up, employer intends to terminate the health plan.

If the employer were to terminate its health plan on July 30, it would not have any COBRA obligation but my reading of the rules indicates that it does need to offer COBRA for the wind-down period because it is continuing to maintain a group health plan for that period.

My question is how should the employer handle the COBRA premiums for that partial month period?  If the monthly premium for coverage is $1,000, can/should the employer provide in the election notice that an electing employee can pay a pro-rated amount for the coverage (i.e., $500) for that short period?

Can an employee who is actively contributing to a 401k Plan also contribute to a Thrift Savings Plan offered by Military at the same time?

We are trying to sort out my uncle's estate. The company he worked for since 1967 was sold in 1999. He continued working there until his passing last November.

He had a Quickbooks account he called Frozen Pension Fund and there are 23 contribution to the fund AFTER the merger with the latest in 2018 all totaling 5x the original shares.

This uncle told his brother that he thought he "owned" this pension free and clear. He passed a couple of months before his retirement. A person we talked to at the pension office says the estate is not entitled to any funds.

This all seems a bit weird. Was the pension frozen in 1999? How do I find out? If it was, why was he making additional contributions to it? Was he giving away his money or is the estate entitled the the post freeze assets? Am I asking ignorant questions - what should I be asking and of whom?

Thanks for your help!

- Brad

I need to fill out a Schedule D to list all the subaccounts. I have 3 pages worth; however, I can't get to Page 3 as it is grayed out. I am using Datair.   I have 2 page TWOs.  Does anyone know how to get to Page 3?

Question on TPA's that offer FSA debit cards and hold employer funds as a benefit plan "pre-fund” amount: do you typically base that amount off a percent of the total annual elected amounts for the FSA Health or a atraight dollar amount? If you go by a percent, what percent you do utilize? Is that across the board to all clients or something taken on a case-by-case basis considering the size of the plan? 

Just curious to see what TPA's are doing in this situation. I have come across some that do a flat dollar amount ($5k) which I find interesting considering that amount to one plan could be nearly the whole annual election totals but could be a drop in the bucket to another. 

Would appreciate thoughts on this analysis regarding excluded interests under the controlled group/common control rules.

LLC (taxed as partnership) is owned 50/50 by two S corps (S Corp 1 and S Corp 2). S Corp 1 is owned 100% by Individual 1. S Corp 2 is owned 100% by Individual 2. Individuals 1 and 2 are unrelated. Individual 1's spouse is an employee of LLC. The LLC operating agreement has standard terms regarding permitted transfers, right of first refusal, etc. that constitute substantial restrictions on the right of S Corp 1 or S Corp 2 to dispose of LLC interests. 

For the parent-subsidiary controlled group analysis, the stock exclusion rules apply because each parent S Corp owns at least 50% of the subsidiary LLC. For purposes of whether S Corp 1 and LLC are in a parent-subsidiary controlled group, the stock exclusion rules would result in at most 50% direct ownership (or 0% ownership if stock deemed owned by Individual 1's spouse is excluded). The other 50% is owned by an unrelated person and is not excluded under any other rule, so S Corp 1 and LLC cannot be in a parent-sub controlled group.

However, when looking at S Corp 2 and LLC as a parent-sub group, it seems that S Corp 2 would be deemed to own 100% of the outstanding interests in LLC. S Corp 1's 50% interest in LLC is deemed owned by Individual 1, which is then attributed to Individual 1's spouse, who is an employee of LLC. That 50% interest deemed owned by an employee of LLC is subject to restrictions in favor of LLC, so is excluded, making S Corp 2 the deemed 100% owner of LLC.

So the end result is S Corp 1 and LLC are not a parent-sub group, but S Corp 2 and LLC are. 

It seems odd that the people with more involvement in the ownership and operation of LLC avoid affiliation, but the person with less involvement is affiliated. I also see the logic that having an employee own the other 50% gives S Corp 2 more "leverage" in the situation, but the employee's ownership is only deemed through another equal co-owner. 

In any event, would appreciate any thoughts.

          A 401(k) plan has about 10 participants in it. There is the owner, the owner's wife (who is terminated) are both 100% vested. Both the owner and wife also have individual IRA's. Here's the question: the owner died several months ago. Is there anyway that his 401(k) account balance, either directly or indirectly, can be rolled into his wife's 401(k) account?

We have a client that is the Plan Administrator to a very large number of plans.  Is anyone aware of any way the Plan Administrator can bulk sign all the filings or does the Plan Administrator have to sign each Form 5500 individually?  In short, is there a way to sign all the Form 5500s at one time?  Thanks. 

Hello, 

I left the firm where I began my 401k contributions. Upon leaving, I transferred my 401k balance to Wealthfront. 

I recently deducted the full balance. I have two medical ailments requiring surgery.

Am I to contact my ex-firm to determine whether the medical procedures I'm anticipating will be covered under their hardship deduction? 

Thank you. 

I have a client asking to include after-tax contributions (not a Roth) up to the DC Maximum for two partners in a Plan.  Are there any ramifications for doing this?  I haven't had to handle a plan with it in some time.

Thanks!

Seems that the majority of 5500-EZ's that are filed late and then use the IRS Penalty Relief Program have a similar reason in that they simply didn't know they were supposed to file (ie upon reaching $250K in assets).

Anyone have experience with submitting a Reasonable Cause for late filing that they Plan SPonsor did not know of the requirement and is now trying to make good on their obligations?

Another question - when reviewing the IRS instructions, it doesn't seem clear if a 5500-EZ should be submitted to the standard address, as well as to the Penalty Relief address, similar to filing for relief for regular 5500's.

One of 2 brother/sister companies covered under one 401k was purchased.  Buyer already has a plan and doesn't wish to merge or transfer and only wants one plan post acquisition.  Does entire brother/sister plan have to be terminated before acquisition to avoid the successor plan rule issues? Should they separate into 2 plans and then terminate the soon to be acquired company's 401k before acquisition?  

Client instructs participants to make elective contribution changes in their payroll system.

In error, the online elective contribution change feature was activated on the record-keeper's website.

Several participants made elective contribution changes on the record-keeper's website despite instruction from the plan sponsor to only make changes in the payroll system.

Does the sponsor need to recognize the changes on the record-keeper's website?

Thanks in advance for anyone's thoughts on this!

Hello Pension Gurus,

Is it required that a direct rollover check from a 401k to an IRA have the verbiage "FBO Participant Name" in the Payable To?

The receiving IRA Custodian has asked us to take the "FBO" off the check.

Just to note:  This is a direct rollover via participant distribution request, not a trustee to trustee transfer.