Group Insurance broker was bought by another firm mid-year. So two different brokerages received commissions, even though the Employer did not formally change brokers.

On insurance carriers' Schedule A provided information letters, they either indicate one or the other for the whole year (ie if their system is not updated, they list the prior firm name, if updated the new name) with the grand total for the whole year.

To what extent is it necessary to break out what amounts were paid to which firm, even though it's the same broker group?

I'm in the process of enrolling in a 401k with trowprice. I'm a bit confused in this enrollment stage (screenshot below). There's the Roth 401k and the Pretax selection. My assumption is that the Pretax is the traditional 401k account? If so, why do they give you the choice of opening both traditional and Roth 401K accounts? 

I administer an ESOP plan that only holds Employer Shares.  When a participant terminates the participant sells his shares to the plan in exchange for cash.  The "cash" paid is a cash contribution to the plan and in turn paid out to the terminated participant.  The shares "sold" to the plan are allocated to the remaining participants eligible to receive a contribution to the plan for the year.

However, because of diversification the value of the shares sold this year exceeds the 415 limit for contribution allocation. 

What can be done? Does the value of the shares in excess of the 415 limit belong to the Employer Sponsor outside the plan?

State of Oregon, parties are now dealing with the reality that they did not withdraw enough from 401K plan to pay off all bills and also pay IRS.  Husband now wants to renegotiate the pension settlement and wife just wants the bills paid off. Can they renegotiate the 401k settlement and file an amended or new QDRO? Is it allowed to go back ? They had done a 50/50 split before but failed to account for the tax consequences of not rolling over into another retirement plan. Plus the bills turned out to be more that they thought after paying lawyers :(

Employer was 20 days late with employee deferrals, matching, and non-elective QACA contributions. Prior to this error they have always submitted the three money types together to participant accounts every pay period.

For the missed contributions do they need to use the VFCP lost earnings calculator for all three money types or just for the employee deferrals?   

Anyone see any concerns with this structure:

New hires eligible to participate voluntarily after 90 days of employment.  Auto-enrollment kicks in after 12 months of employment for those who as of that date have not voluntarily enrolled.  

We have a combo cash balance/401k safe harbor nonelective profit sharing plan.   The DC plan has the failsafe language.  Eligibility both plans,  age 21/1, 000 hrs.   One HCE,  5 NHCE.   One younger NHCE terminated in 2017 so the contributions needed to pass substantially increase contribution as well as benefits.  All that is needed pass 401(a4)  is one more younger NHCE.   Does it matter which one,  assuming there are two? BTW,  (a) (26)  as well as (b) (10) are both passed. 

New p/s plan adopted in November 2018 and the 401k was going to start 1/1/2019. They decided not to make a profit share contribution for 2018.  So no assets for 2018 at all. 

Do I still file a 5500 with 0.00 for 2018 ?

I'm preparing GUST, EGTRRA and PPA restatements for an employer who is under IRS audit.  The employer has been applying a 1300 hours requirement for a participant to receive the annual profit sharing contribution.  Obviously, that is not an option in the non-standardized document I am using.  The employer has asked me for a citation as to when 1,000 became the maximum number of hours permitted. 

Is it an IRS rule? Part of ERISA? I haven't been able to find something in writing to give to the employer.  I don't think it will be sufficient to say the document doesn't permit it.  

Thank you.

Two dentists (husband and wife) have separate corporations.     Their corporations are both participating in  the same 401k plan, which has a safe harbor matching provision.  The husband and wife both make the maximum 401k contributions to the plan from their separate payrolls.    The wife's corporation contributes the safe harbor matching contribution to the plan for her, as well as the safe harbor contribution for the husband.   Is this OK, and does the wife's corporation get a tax deduction for both safe harbor contributions.

In general, in a plan with multiple participating employers, can one entity contribute for another entity's participants.

After submitting under the 5500EZ Penalty Relief Program, along with check, Plan Sponsor has found their missed 5500 which apparently was filed after all....

Any success getting the application taken back? Can't seem to find a number to call.

Below the scenario:

Plan was originally effective 1997. Taking over the administration of the plan 2019. 

No copies of the original plan document, the GUST and the EGTRRA restatement. Some amendments are in place, most interim amendments.

So would we have to create all these documents and submit to VCP?

Not sure why I am not in full agreement with approved plan of action.

Any guidance would be really appreciated. 

We have a plan transitioning to us, can we eliminate partial withdrawals for terminated participants?  We prefer full distributions only for them.  Is it a cutback?

Ok, say we can.  Plan signed sealed and delivered.  Restated for no partials.

Now, there is pushback.  The plan wants it back in.  Can we do the partial withdrawal now, then amend it retroactively to allow it?  Similar to when a hardship is granted when the plan initially allowed it.

Group:

In 2017 taxpayer/client sets up a leveraged esop where loan payments were to be made by Oct. 15 of each successive year.  Client has recently began an audit by TEGE dept.. No IDR response nor any site visits have taken place.  Client failed to make first year loan payment due Oct 2018.

Do I wait to cure late loan payment before auditor even questions why payment was not made?  After discussing with the TPA I'm leaning towards curing late loan payment + interest prior and make this part of our response in an effort to get in front of potential issue.

What has been your collective experience in auditors view on late ESOP loan payments and curing?  For what it's worth, there are a number of communications from advisors informing client to set up separate ESOP account but no account was even set up.

Thoughts and comments appreciated.

Warmest,

Joe Dadich, CPA, Esq.

When is the cut off for an employee to normally enroll in 401k plan?  For example, they meet eligibility on 7/1 but don't hand enrollment form until 7/15.  Is this ok?

Thanks.

Employer maintains defined benefit and 401K/SH.

Profit Sharing is discretionary.

How do you handle the top heavy combination?  Must a 5% contribution be made to the PSP, or 2%?

Attached is a screen shot of the details on how Costco matches employee contributions on their 401(k). I'm not too sure if I understand it. 

My Assumption: Costco will match 50% of your contributions. So if you contribute $42/month, then their match would be $21/month?

Is my assumption correct? 

Good afternoon to all,

We have a prospect that has about 1800 employees, mostly in lower paid jobs, in the service industry (think restaurants as an example).  Of the 1800, only 600 would be eligible if we use 1 year of service, dual entry, age 21.  There are 12 HCE employees.  All these employees are spread out over several corporations, but they are all owned by one man, so it's a controlled group.

They have been presented a standard 401(k) plan with a safe harbor match to cover everyone and have rejected it.  What they say they want is a deferral-only 401(k) plan for the NHCEs and a separate "carve out" plan (their terminology, not mine) that benefits only the HCEs for which the company would be willing to provide a match.

We are somewhat aware of the existence of Non Qualified Deferred Compensation plans but our understanding of them is that they have so many drawbacks that they are not very popular anymore.  We don't really think that the 12 HCEs will appreciate their contributions being a general asset of the employer, being subject to taxation if they leave and take the funds, etc.  We understand that the contributions could be put into a Rabbi trust, but even then, they are still subject to the claims of creditors if the company experiences bankruptcy.  All that makes this look like a doubtful solution.

Are we missing some cutting edge, new plan design possibilities within the world of qualified plans?  How have you addressed such requests, if you can share?

As always, your comments and experiences are much appreciated.

The default benefit under an money purchase plan is a joint and survivor annuity.  As a defined contribution plan, it cannot pay this benefit straight from the account; it must acquire an annuity from an insurance company.  What insurance company will sell an annuity contract to a plan trustee without a participant signature on the contract application?  MetLife already has its hands full trying to find participants on contracts it sold to willing buyers.  An MPP with a retirement once ever so many years cannot buy a group annuity for just this.  With investments all in mutual funds for active participants, there is no insurance company involved in the administration or normal investment.  Does anyone know of an insurance company taking this business?

Does anyone know where I can find old revenue rulings online? I am specifically looking for Revenue Ruling 80-155 which is the one that talks about money needing to be allocated if deposited by the end of the plan year. 

We are having a (hopefully brief) disagreement with an IQPA auditor, and I'd like to provide them with a copy, not just secondhand sources.