TP is over the age of RMD and 100% owner of an S Corp. Currently funding the 401(K) with maximum tax deferred amounts per year.

Wondering if a participant like this (IE the age being my primary concern) fund after-tax and use in-service Roth conversions.

Currently they have $25K deferral plus 25% of salary.

 

I am trying to help a client file through VCP to bring their plan document up to date.  They missed both the 2010 and 2016 restatement deadlines.   I have a copy of the adoption agreement that was executed in April 2003.  I am trying to track down a copy of the Basic Plan Document that accompanies the Adoption Agreement.   The Adoption Agreement was sponsored by Universal Pensions, Inc. which I believe sold out to Bisys, who then later sold to Ascensus??  The adoption agreement is the Standardized Adoption Agreement.  The bottom of the document indicates # 8016 (8/2001)   Anyone out there that might have access to the Basic Plan Document that accompanies this Adoption Agreement?  

A client (an LLC) was entering into discussions to provide a SERP to a top executive. The SERP would provide nonelective deferred compensation (no election by executive or deferred compensation agreement) payable in fixed installments over 5 years (at termination of employment, disability, death, etc.) with death benefits paid in the same form and at the same time for the surviving spouse.  Sadly, the executive died before the SERP was executed. The client wants to complete and execute the SERP and provide the death benefits to the surviving spouse. I think this is possible (I have put in non-elective SERPs with effective dates retroactive to the first day of the executive's tax year), but have never come across this issue before. I am a bit concerned that Reg. Section 1.409A-1(b) defines a deferral of compensation plan as a plan where the service provider has a legally binding right during a taxable year to compensation that is payable to or on behalf of the service provider in a subsequent taxable year. Technically,  the service provider didn't have a legally binding right to the SERP before death, and is no longer a service provider when the SERP is executed.  Any thoughts and comments are welcome!!!

Currently the plan makes all match contribution each payroll period. However the match is based on annual comp/deferrals -  aka a True Up.

The employer wants to change the match to a payroll  period only.  No true up.  Can this change be implemented mid year?

Thank you.

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You can get a similar list for any member -- here's one way. When you're reading a topic on the message boards, click on the member's display name (displayed next to each message). Then click on the resulting "See Their Activity" button.

Another way, if you know the member's display name: use the message boards search engine (which, if you're using a desktop monitor, will appear as a box toward the top left of each page on the message boards, with a magnifying glass icon in it, and the word Search...).

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S Corp ESOP transferred shares for a number of years to profit sharing accounts within the ESOP to avoid a non-allocation year under 409(p).  The company revoked the S election early in 2019.  Can they transfer the profit sharing shares back to the ESOP? 

Assume appraised value would be used for the transfers.

Ran across a prospect that sponsors a Prem Only Plan.

Account says no 5500-SF needed.

Plan excludes employees who are part of Division C.  Employees of Divisions A & B are included.  Compensation for each division is tracked separately, though everything is on one W2.  Plans definition of comp is W2, no exclusions.

Several people do work for A or B as well as C.  Some do work for all three.

For profit sharing purposes, can/should we exclude the income from C?

Example:  He entered the plan in, say 2014, as an employee for Division A.  Jim makes $60,000 for 2018.  However, $20,000 was for work he did as an employee for Division C.

What is his compensation for PS purposes?  $60,000 or $40,000?

Plans must provide a notice of the availability of the Privacy Notice at least once every 3 years. Can this "notice of the Privacy Notice" be merely posted on the company's intranet/website?  Does it follow the same electronic disclosure requirements applicable to qualified plans?

Can someone please explain the benefit of adding someone who is clearly a fiduciary as a "Directed Trustee."  Our document allows an individual to be named as a directed trustee.  Shoudl we always be using it or is it a moot point for someone like a business owner or a non-owner CEO, etc. when they are clearly a fiduciary anyway?

My previous employee was just purchased 6 months ago and the new owner is closing the ESOP. I left my former employee 2 years ago and have not been paid my shares yet. I understand they have up to 6 years to pay. The current employees are being paid out at 2X the share value. I was told that terminated employees will only be paid at face value not the 2X - is that legal? I guess the question is - are my shares still valid shares as a terminated employee?

One Plan; Two entities:  one entity is a partnership, partners receive K-1s.  other entity is a participating employer and a professional corporation (PC) (one person/participant). 

Participant takes a W-2 from the PC and makes the total ($18,500) deferral contribution on the W-2 wages but also has K-1 from the partnership (50% partner).

Should the plan use as income the K-1 from the partnership and the W-2 from the participating employer PC?

With the new changes in Hardship Rules, is documentation from the participant required for pre-approved plans? Or can they rely on the representation requirement?

Thank you.

1. Effective 9/1/2018 company a acquired a group of employees from company b

2. The plan was amended to  allow the employees employed on 9/1 would be eligible to join company a's plan immediately.

3. Payroll is twice a month.

4. Due to some payroll issues, deferral withholdings began with the 9/30 payroll. Match is made each payroll period.

5. the plan makes a true up at  year end.

Question.

Must the plan include the wages earned for the first payroll (9/15) even though deferrals  did not begin until 9/30? Needless to say if the 9/15 wages are included in the true up, these employees will have an additional match due.

Although the document has an effective date of 9/1 since deferrals could not begin until 9/30 is there is issue if the 9/15 wages are excluded when determining the true up match???

H divorces W1.  H names children from W1 as death beneficiaries of his 401k plan benefits.  Then, H marries W2.  Three years later, H dies.

Does W2 have any spousal rights to the death benefits? I.e., does H's later marriage to W2 trump his previously having named the children as death beneficiaries?

My software is coming up with "401(a)(4) Failed; both the gateway as well as the ABPT passed.

How is this not passing 401(a)(4)

It seems that with the recent Abbott Labs Private Letter Ruling (201833012), as well as announcements from large recordkeepers (Empower and Fidelity), there is a lot of noise about integrating a student loan repayment program with a retirement plan. Now, we can argue whether it makes sense to do such integration, but nevertheless, HR managers are seeing the headlines and are asking questions. 

Suppose a company provides student loan repayment program under which the company will reimburse (ie - make a payment directly to the employee's creditor) dollar for dollar of the employee's student loan repayments of up to $1,200 each year. The employer would develop procedures to substantiate the student loan repayments made by the employee. Further, I assume that the $1,200 reimbursement would be taxable to the employee. 

Further also suppose that this company offers a 401(k) retirement plan that provides a 50% up to 6% non-safe harbor matching contribution. So for an employee with compensation of $40,000 and a 6% deferral rate, the employee would receive a $1,200 matching contribution. 

The company wants to manage employee benefit costs, so the employer would not want an employee to receive both the $1, 200 student loan repayment AND a $1,200 matching contribution under the retirement plan. Could the plan document be written to exclude "Employees Participating in a Student Loan Repayment Program" from being eligible to receive non-safe harbor matching contributions? Assuming that the plan's matching coverage is greater than 70%, are there any other problems with this approach?

My ex-employer had been bought out. They then vested us on our ESOP at 100% and paid us out 3 times the value. I did in fact receive the first half of my pay out but they then said we had to wait 9 to 18 months for the second payout due to IRS audit. It's now been about 21 months and we all keep getting the run around. Where can I get help? Is this IRS audit even true? Any advice or help would be greatly appreciated. Thank you in advance. 

Company terminated PSP recently and wishes to put in a new 401(k) Plan in its stead. Does the 12-month rule apply to terminated PSPs in the same way that it applies to 401k Plans? That is, are they allowed to setup a 401k within 12 months of terminating a PSP?

Hello,

I am hoping to find study materials (willing to pay a discounted price for used materials) to prepare me for taking DC-1 and DC-2 exams. Unfortunately, my current employer isn't a supporter of receiving designations, so I must pay for everything myself. I did receive an APA while working for a TPA firm years ago, but I understand how valuable the QKA designation is, in my industry. 

My goal is to obtain a QKA before this year ends :).

Any help would be hugely appreciated.