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. 

Group:

Does anyone have a sample (or a resource/guide/service

they've used) questionnaire they pass out for participants in an employer

sponsored plan? like a 401k, Defined Benefit, Defined contribution plan. 

For instance, a questionnaire asking if the employee/participant

liked a certain provision of their benefit plan (like a 401k matching

provision) among other questions.

Something to gauge if the employers intention and reasons for setting

up the plan are being met on an annual basis.

Thoughts and comments appreciated.

Warmest,

Joe

The 125 plans I've seen use disability insurance, and disability is determined by the insurance company, so the "new" DOL disability procedures wouldn't apply. Are there 125 plans out there where the situation is otherwise, so that the plan/SPD must be modified to take these procedures into account?

I am the owner and founding partner of a midsize TPA firm interested in acquiring a similar organization in the North East.  Please respond here or by phone at (516) 238-9639

Plan sponsor terminated their SIMPLE IRA plan 12/31/18.  They started a new 401(k) effective 1/1/19.  Employer just now realizing they missed depositing SIMPLE deductions/deferrals for payrolls occurring in December, 2018.  

Will it violate the exclusive plan rule to deposit the SIMPLE deferrals now (in 2019) along with lost earnings?  I'm thinking "no" because we are correcting late deposit of deferrals for 2018.

I'm probably overthinking as usual.

Any input greatly appreciated!!

I've seen wrap documents for Section 125 plans, that allow you to file just one 5500 form for all of the benefits that fall under the 125 plan. I've also just seen reference to a "Mega Wrap" document, which incorporates the cafeteria plan and underlying benefits, in addition to certain health/welfare benefits that are NOT under the cafeteria plan.

Is this a viable technique for doing only one 5500 form? Ignoring document issues, for now anyway  - just interested in the 5500 question. Thanks. 

I was looking through the loan regulations and couldn't put my fingers on anything.  Is there anything in the regulations that limits or doesn't allow a participant who has defaulted on a loan previously from taking a subsequent loan?

Thanks in advance!

I have a very simple question with what seems to be a very elusive answer:  When did the universal availability requirement first apply?

I'm looking at an early 1990s document from a major provider that has an age 21 and one year of service requirement in order to be eligible for deferrals.  I'm struggling with how that would have been permissible.  Code Section 403(b)(12)(A)(ii) was certainly in effect back then.

This is a general question regarding the assumptions used to value a QDRO for a defined benefit monthly accrual.

Is it appropriate to use the current year Applicable Table with the current 417(e) rates for both a public and a private pension plan payment.  Or, is there some other industry standard that is used.  Does it make a difference if the plan does not allow a single lump sum payment to the alternate payee?

Dealing with a cash balance/DC combo.  The Plan defines Comp period as the 12 month fiscal period ending within the plan year.

Example: 3/31 Fiscal Year End.  The 12 month comp period would be 4/1/2017 – 03/31/2018.

This plan has 4 entities (control group) participating. 2 w/ 3/31 fiscal years and 2 w/ 12/31 fiscal years.

The employer switched fiscal years after the completion of the 3/31 fiscal year to a calendar year.  I technically have two fiscal year ends (21 months of comp) within the 12 month plan year. 

4/1/17 – 03/31/18 and now 4/1/2018 – 12/31/18.  The plan year has not been changed and continues to be a 12 month calendar year.

We want to be able to include all 21 months of compensation for funding purposes during 2018 and then going forward 2019’s compensation will follow the 12 month plan year.  How do we include compensation from 4/1-17 – 12/31/18 for funding purposes for those 3/31 fiscal EE’s that had their fiscal year switched to 12/31?  

Can this be accomplished in the 2018 plan year?

For sake of simplicity I will just use an example

1000 shares in suspense in 2017

Original amortization schedule is 20 payments of 160 (total payments of 3,200)

160/3,200 x 1000 = 50 shares released with $3,040 in remaining loan payments

Year 2018 the amortization schedule was updated by the valuation company and is 20 payments of 155 (total payments of 3,100)

should the 2017 share release be recalculated to reflect this updated amortization schedule? 

Insurance providers report claims paid on their Schedule A letters, but not a separate item for Claims charged. I'm wondering if this amount should be entered on Sched., AIIIb under both (1) Claims paid and (4) Claims charged. Reason I wonder is that the SAR pulls the 'claims paid' number from the Claims charged entry.

Hello,

I am sorry if this is a basic question. I'd like to ask what do we mean when we say that the employer has to guarantee a return of 3.75% on employee contributions? For example, assume that someone, aged 65, has just started in a company and this year's employee contribution is 10,000. Then what's the amount of the lump sum that he will receive when he retires (assume at 67)?

Thank you in advance for your help.

I need some guidance as to what someone would do in this situation, or if anyone knows of a cite that they can refer me to.

I have a client who was sued (settled 2018) by an employee for vacation pay from 2016.  For simplicity, let's say they were awarded $3,500.  The client was also ordered to pay a penalty on that amount of say $1,500. 

The plan is a safe harbor non-elective plan.  The client then submitted the 3% SHNE contribution on the $3,500 plus lost earnings on the $3,500.  The participant is now asking for the 3% ($45 plus lost earnings) on the $1,500 penalty.  

Here is what the SPD reads (for the readers digest version)...

Does plan compensation include monies paid to me during an absence or after my employment ends?

Usually, only the amounts paid to you while you are an employee are considered plan compensation (described above). However, the plan may consider certain types of pay as plan compensation, though paid during an absence or after you leave employment.

 If you are totally and permanently disabled, compensation under your plan will not include disability related salary continuation payments.

 Payments you receive after terminating employment might be considered plan compensation, if they meet the definition of "post-severance compensation. "To be considered post-severance compensation, the payment must be one that you would have received had employment continued, such as your salary or wages. Post-severance compensation does not include severance pay, or other amounts you receive only because your employment ended.

To be included in plan compensation, post-severance compensation must be paid to you by the later of the end of the limitation year in which your employment ends, or within 2-1/2 months after the date your employment ends.

Payments for unused accrued sick, vacation, or other leave that you would have been able to use if your employment had continued are not included in your plan's post-severance compensation.

Thoughts?

The debates here, are several...1) She should not have gotten the SHNE on the vacation pay to begin with.  2) Vacation pay could be considered post-severance compensation (as she would have received it, had she not terminated), but the last paragraph kind of negates that.  3) None of it was paid within 2-1/2 months after employment ended.

Thanks in advance!