Client sent a fax of a request to complete an online survey at www.irs-ppbsurvey.org

I don't like the looks of it, but I could be wrong. Has anybody seen this or completed it?

Suppose a bank or financial institution offers to provide preferred commercial lending rates to a retirement plan sponsor if that sponsor moves their 401(k) plan assets to the financial institution. 

Can anyone point me to any white papers or articles discussing this topic? 

Thanks!

Hi to All,

My most thought provoking client called a few days ago asking whether we keep records back into the 1990s and of course, we don't.  He had a phone call from a former employee who received one of those infamous letters from the Social Security Administration saying that he "might" be due a benefit from my client's retirement plan.  My client did happen to have proof of some sort in his office showing that this man was indeed paid out in 1998 and no further benefits are due.

However, my client wants to know what would have happened if he didn't have or couldn't find this information.  We have his plan's activity in our computer software back to 2005, and we have paper copies of everything for the last 7 years, but nothing as far back as the 90s.  

Whenever this has come up before in the various places I have worked, the position has been taken that if the plan does not have a balance for a certain participant today, then he must have been paid out in the past.  So far no participants that I dealt with have ever insisted that I "prove" that he or she was paid out.

How are other firms handling these inquiries?  Have any of you had a participant who wouldn't take "no" for an answer and insisted on proof that he or she had been paid out in the past? 

Thanks as always!

If an employer over contributed on the 3% safe harbor match for the 2018 plan year, they do have to have the excess taken out by April 15th?

A plan sponsor was running payroll for another non-profit and allowed an ineligible employee into their 403(b) plan. Rather than doing a (relatively) simple correction, they'd like to try and recast the plan as a multiple employer plan. I don't even know if the prototype sponsor would allow them to do this. I guess my real question is would they have to refile 5500s for the years where the ineligible employee made contributions? Any other exposure on making this move?

Thanks. 

I have an employee who already took one withdrawal in February for mortgage delinquency, and now he’s requesting a second.  However, he’s using the same paperwork/event he used for the first withdrawal.  Based on the bill provided, he did not withdraw enough on the first event to cover the full expense.  But I’ve never had someone submit two different withdrawal requests using the same documentation, so I’m not sure if that would be allowed.

I appreciate any help/insight that you can provide!

My husband of 20 years just started receiving a pension he earned prior to our marriage which was subject to a QDRO.  We had to submit his paperwork at the end of the year for the pension payout and he chose a payout based on 100% survivorship. He just received a letter that outlined that his ex wife will receive 50% of the pension, per the QDRO as expected, and also that if my husband were to die, she’d receive the same amount - also expected as the QDRO did specify she would have death benefits. However the letter also specified that if my husband predeceases me I would only get about 1/6 of that amount .  I am confused. If my husband’s pension, in which he was 100% vested  - for simplicity’s sake - is 1000/month with 100% survivorship, if he dies is it appropriate/expected that his half of the 1000 virtually disappears?  With the ex wife getting her expected $500 still but the current spouse only getting $100?  This seems to imply that my husbands employer gets a windfall by being allowed to keep 400/month in which he was entirely vested with 100% survivorship just because he got divorced. How can the employer be allowed to somehow not pay the full survivor benefit given that he was vested?  This seems like it would be illegal. There is no argument at all with what the ex wife is getting , just confusion over why the current spouse would lose the remaining piece of the pension. Is this normal?  Should I be engaging a lawyer?

Consulting Agreement provides for a fee of 250K payable quarterly in arrears. Term of agreement continues until a liquidity event or an event of default under certain senior subordinated debt agreement. If an event of default exists with respect to that certain subordinated debt, fee payable under the agreement is limited to 125K.  Deferred amounts continue to accrue during the default period, and once default cured, the accrued amounts are paid to consultant, and thereafter normal schedule of payments resumes.  

Subject to 409A?

I have a calculator for lost interest that duplicates the DOL output, but helps with allocating the interest to multiple participants.

Anyway, I need the rate for the quarter ended June 30, 2019.  Are they behind due to shut-down?

Also, when I assume the rate was unchanged at 6%, I noticed something funny when I tried to recalculate my interest.  I entered corrections dates a week or two into April and the interest calc is identical to dates ending right at 3/31/19.  i.e., the DOL website uses 0% for April.  If anyone knows someone at the DOL, tell 'em Austin said this one is on me :).

What is the best source for state and local compliance calendar for health welfare plans? Has anyone seed a comprehensive calendar that includes multiple state/localities?

Hello.

In 2018 a client projected profits to be higher than they were, and in 2018 they deposited an amount above their allowable contribution amount for 2018.

Can someone point me in the direction of the correction for this?

Thank you!!

I know the rules for the deductibility of employer contributions, but a client wants the regulations to show to one of the contributing employers.  I can't seem to put my fingers on any IRS regulations regarding the timing, so does anyone have it handy?

Thanks in advance!

The owner of a large company deferred 18,000 in 2018.  He gave back his entire 2018 salary at the end of 2018. They now want a refund of 18,000 processed for him. Anyone ever had this situation?

For NQSOs issued to a non-employee director,  does the Company issue him/her an IRS Form 1099 to report the income on exercise?

Thanks

Have a 1 participant traditional DB plan that has existed for 4 years. The employer (and participant) never had or never will have any employees. The participant is age 55 and the plan currently has NRA of 62. If the participant's accrued benefit is grandfathered, is there any problem increasing the NRA to 65?

Thanks.

Participant took a hardship in 2018, but the ER did not suspend the deferrals.  What do we do now?

I think we just suspend the deferrals for 6 months going forward? 

What about the "no more suspension" rules for hardships?

Employer A was a participating employer in a PEO.  PEO had a safe harbor 401k plan.  PEO plan is a calendar year plan.

Employer A has decided to leave the PEO 401k plan and establish its own plan. Effective  in April,  they want to spin-out of the PEO into their own  plan. It is my understanding that client would be subject to  ADP/ACP test for the short year under the PEO since the safe harbor provisions were not in effect for a 12 month period.  Is my assumption correct?

My thought is that the  Plan  ( effective in 2019) would  essentially be a new start-up  plan for this Employer A with assets  attributable to them  being  transferred from the PEO. This would be Employer A's #001  plan.  However,...

If the 2019  Plan is a start-up (effective  April  1, 2019) and this Employer wants to have a fiscal year end 9/30 PYE, would they be eligible to establish this Plan as a Safe Harbor plan? There would obviously be more than 3 months left in the PY to make elective deferrals. BUT would this fail the safe harbor rules of no consecutive short plan years?  What about establishing the Plan Year as April 1 to March 31 for an initial full 12 months and then change to another fiscal year end  in the future if need be.

This is the first time we have come across this kind of request.  Any guidance or cites you can provide would be greatly appreciated.
 

Company A, who has a 401(k) plan, buys Company B (with no plan) today, and they grant all service with Company B.  The plan has the standard 21/1/semi-annual entry.  When do the new EEs enter the plan, assuming they all satisfied the 21/1 requirements?  Can they be held out until 7/1, or do they have to be immediately  be eligible since they have their 1 yr of service and already have passed an entry date, similar to a rehired EE.

Eligibility is 18 and 1 year of service - immediate entry date

Computation period changes to Plan Year if service is not met during the initial computation period ( date hire to date of hire).

Hired 4/1/2017

As of 3/31/2018 - employee did not complete 1,000

Moves to Plan Year 1/1/2018 - 12/31/2018

Question - as of 7/10/2018 employee completed 1,000 hours, does the employee enter 7/10/2018 or does he wait until the close of the 2018 year end and enter on 1/1/2019.

Does the determination of the 1,000 hours get done after 12/31 or when they are actually met?

Thanks