A safe harbor match 401(k) plan currently has a six month eligibility (no hours per month requirement).  

Due to some part time students who work on an as needed basis, the Employer would like to amend their plan to require 200 hours per month as part of their 6 month eligibility.  They would like this amendment effective date 1/1/2019.

I believe the amendment is permissible, but only PROSPECTIVELY with a 30 day notice.  

A coworker believes the amendment can be effective retroactively to 01/01/2019 because it will only apply to those hired on/after 01/01/2019.  

I'd appreciate some input.  

using just today's CPI factor (256.092), I have the following

(far column hce limit unrounded 130,192)

As an ERPA, do you put a Circular 230 blurb at the bottom of your correspondence?

Just e-mails?  I can't remember ever getting any paper correspondence with that disclaimer on it (nor can I remember I got any paper correspondence from an ERPA).

I have a sole prop DB plan where the benefit is limited by the 415 comp limit.  The Comp limit is still being phase in over the 10 year period.  Question: Can the 404 "Cushion Amount" include the increase in the 415 comp limit during the year?

A calendar year plan was created with a short initial plan year 7/1/15 - 12/31/15.  It had a 3 year cliff vesting schedule and the plan's vesting computation period is calendar year.  Service prior to the effective date of the plan (7/1/15) is counted.

We have an individual who was hired 1/1/15 and has 1000 hours in 2015 and 2016.  Then he terminates employment in early 2017 without 1000 hours.

So, does this participant have 2 or 3 years of vesting service?  It would appear to be only 2.  But because of the short plan year, does the participant get credit for all of 2015 and then also for the short plan year as well, giving him 2 years of vesting service as of 12/31/15?

Another question:  The plan amended to a 2/20 vesting schedule as of 7/1/17.  This was after the participant had terminated.  If the same participant was 0% vested at termination in early 2017, would he now be 20% vested due to the new vesting schedule, even though he was not employed at the time the new vesting schedule was adopted?

Thank you

We terminated a DB plan, that was effective 1986 and froze all benefits as of 1/1/92 for all participants, in 2015.  

Now, in 2019, the participant comes forward asking about the plan.  She was terminated in 1996.Plan sponsor send out notices, certified, return receipt in 1996-7-8.  All came back unable to forward. 

All assets had been distributed and Final 5500-SF as well as Post Distribution Certification have been filed, showing the plan had $0 as of 12/31/2015.

What should be done here??

So, suppose you have entity "A" which sponsors a Section 125 Plan. Entity "A" is now changing their name, and will become entity "B." Same employees, but new name, EIN, and management roles.

Can the new entity simply adopt the existing plan assets and liabilities, via a resolution and amendment, similar to what happens in a 401(k) plan, or are there different requirements for this situation for the 125 plan?

I have no details whatsoever, other than that they do have an FSA - don't know if there are other types of benefits as well. Assuming they have premiums paid through this plan, do you have any experience with whether the insurance carriers just allow the policies to "transfer" to the new entity, or will they have to re-apply, etc.?

With the newly released Summary Annual Report model notice updates, were any changes actually made to the wording from the prior version?  

A participant was covered under an EACA.  He was int he plan a few years and his auto-deferral went from 3 to 4 to 5%.  Then he left.

When he comes back, I know he is automatically eligible for the plan and enters immediately.

But at what rate?  The initial 3%?  Or his former 5%

I have 2 plans that are part of the same controlled group.

Plan A:  No age/service, daily entry  Plan B:  21/1 YOS/Semi Entry

When determining the groups for coverage, when doing plan A ratio, we count everyone since there is no age/service.  When doing Plan B, do we only count those that have 1 YOS/21/semi for determining the benefiting group? I am trying to figure out who is excludable (for age/service) to those that are non-excludable not benefiting. 

Q: Do the final regs around terminating a 403(b), in which the sponsoring employer must "Generally, stop contributions...to any other 403(b) plan during the period that begins on the termination date and ends 12 months after all benefits have been distributed from the terminated plan" apply to an employer terminating its relationship with a 403(b)(9) church plan?

Client set up a Safe harbor 401 (k) Plan effective 3/1/2019.  They initially wanted a 3 month eligibility with entry dates monthly-following.  Now we are in June, and they are wanting to amend their document to say only 60 days  wait - (to agree with the wait for health benefits with their company).  No one so far has been made to wait 3 months to start deferring.  Thoughts?? Any IRS problems that they could run into?

Has anyone used the penalty relief program ($500 flat fee)?  Experience?  We had someone use it, filed/paid in January, and they've received two letters so far saying "we need more time" implying they are researching it.  Seems weird...or maybe not, I can see how hard it might be to cash a check and check a box.

Plan is a traditional defined benefit plan.  Plan has 4 participants who elected annuity forms of payment, and are receiving their payments from the plan trust.  The plan is going to terminate through a standard termination with the PBGC.

Can the participants already in pay status make new elections on plan termination if they want to, for example, get a lump sum from the plan.  Let's assume that the plan will be fully funded and can pay out 100% of all benefits due.

TAG says that 401(a)(9) allows for a change of election upon plan termination, and I just wanted to double, triple, quadruple check with the community as well.

Thanks!

1) All references are to Ohio jurisdiction besides ERISA;

2) Divorce of 20 years was finalized in 2007 with each waiving rights to each others pension;survivor rights were not stipulated in decree;

3) Ex husband passed in July 2018 with exspouse naming me as beneficiary for all benefits including 401k, pension, etc;

4) Former employer refuses to provide application for survivor benefits stating that since ex was not married at time of death, there are no survivor benefits to be paid and the plan does not allow for payments to dependent children (two children-currently 15 and 21);

5) In December 2018,  I was appointed the administrator of estate in order to resolve estate on behalf of children and subsequently requested copy of employment file.  Employer responded with an incomplete file and has failed to respond to subsequent requests;

6) It is my understanding that if our domestic court judge approved a QDRO designating me or children as  estate designated survivor then former employer would be required to honor QDRO.

However, I do not know how to proceed on unraveling and pursue a claim on behalf of myself or estate.  I know that I need an attorney but I dont know if I need an ERISA, domestic court or probate attorney or all of the above.

Any guidance would be appreciated.

Thank you

Survivor

I continue to struggle with the excess assets issue in a terminating pension plan. The rules under 4980 seem to permit the maximum 415 lump sum to be exceeded. 

I'm wondering what happens if ex spouse dies before QDRO completed? There are 2 accounts, 1 is a defined benefits pension, other is 401k. The divorce was finalized 1 year ago, QDRO started as soon as decree signed by judge. Ex spouse is of retirement age now, but not collecting pension yet. My attorney outsourced the QDRO & that company says they don't deal with clients, only with attorneys. Located in New York

Hi, A DB plan is invested in numerous annuities. A FASB report was prepared and the fair value of the plan assets used was based on the gross contract value, as opposed to the contract value less the withdrawal charge (surrender value).  1.Is this ok or should the value be the surrender value? 2. If the plan is overfunded either way is this an immaterial issue? Thank you.

Participant is taking an in-service distribution from their Match Account "today" (cash out/non-rollover).  As it turns out we are just about to tell the client they failed ACP testing and a refund is required for this very participant.

Can anyone give me a reason why I can't take the position that the in-service distribution covers my ACP refund?  The excess match (and then some) is about to be be removed from the Plan.  I just don't have time to get the ACP test finalized to process it as an ACP refund yet.  The participant has an urgent need for the funds, so no delay availalbe.

I will certainly send a letter saying the amount of the ACP refund was not eligible for rollover.

Can someone please tell me if my interpretation is correct?  A SH 401(k) has dual entry, January 1/July 1, with deferral modifications allowed any payroll period.  If an employee becomes eligible to participate on July 1 and chooses not to contribute at that time then changes their mind in September, can they start contributing immediately or do they have to wait until the next entry date of January 1?  I consider the election not to contribute as a deferral of 0% which is then subject to the deferral modification dates and they can contribute the next payroll period.