CPA has come to us at the last minute (of course) with a self-employed consultant who wants to set up a plan.  CPA is telling me that he does not have a business, he is being paid directly and to set up the plan under his SSNO.  I told her we would not set up the plan with a SSNO.  Now CPA is asking me does he have to create an LLC just to sponsor a plan?  Any suggestions?  Thanks!!

As a participant in an ESOP, I have over 12% ownership in company stock in my account. I am 72 years old. Am I considered an owner for the purpose of RMD under the 5% RMD?

Taking over a plamn where NRA is just 55.  Are there any special rules to be aware of?  Is there any way to use an older age for testing?

I've read there are complications with using SSRA in place of NRA.  Any ideas? 

ALSO Does anyone have an extended chart of dispiary factots?  The one I am using (which is from the regs) only spans 60 to 70.  I think the regs say you can use any reasonable method to extend up or down.

Does anyone prepare Form 945s and complete the "paid preparer use only" section of the form? If you do, do you have a PTIN? We let our PTINs lapse because they are not required for Form 5500 preparers. But the Paid Preparer section asks for the PTIN.

Anyone have a decent forfeiture transactional report that they might be willing to share?

Client maintains standalone 401k with match.  Had he give appropriate Not ice of Safe Harbor by Nov 30th, would it have been possible to amend the plan eff 1/1/19 to a safe harbor match?  

There are many employees that are not contributing, causing both ADP and ACP to fail.

This is a standalone plan and employer has not used the PS potion of the plan and does not plan to.

What does he do with the other already in the plan, obviously count them as participants and not match, what about top heavy contribution?

Do we have until the end of the 410b6c grace period to align the HCE definition?

A 401(k) Plan permits rollovers for participants only. A recordkeeper permitted an employee to roll over funds before he met the Plan's eligibility requirements. They did not check with TPA. We found out about the rollover because the employee tried to obtain a loan from the Plan - which was denied.

When we requested that the Recordkeeper disgorge the funds, they never acted on the request. Because the Plan has a 3 month waiting period, the employee is now eligible. If the funds stay in the Plan (with Trustee direction), should we do an Amendment to permit this employee early participation for rollover purposes? If not, what are the ramifications. This is an audited Plan.

A plan has a fraud prevention procedure that delays issuing a participant loan request by a couple of days after the request is made. A participant's vested balance is $10,000 on the day they request a $5,000 loan. The market drops during those 2 days so their vested balance is $8,600 when the loan is issued.

Can the plan issue a loan for $5,000 or must they redo the amort schedules etc. and only issue a loan for $4,300?

Hello.

We have a client that just informed us that they would like to convert their FYE 11/30 safe harbor plan to a FYE 12/31 safe harbor plan, so we would basically have a 12 month SH plan that ran from 12/1/17 to 11/30/18, then a 1 month SH plan (12/1/18 to 12/31/18)  followed by a 12 month SH plan (1/1/19-12/31/19).  So I do believe that we meet the requirements to make this change and keep the SH status intact.  BUT...

My issue is the timing of the amendment, since the short plan year has already started.  The EOB indicates that the amendment should be signed BEFORE the short plan year began, which has not.  Has anyone else ran into this issue?  Or has there be some further guidance that the amendment can be signed after the short plan year begins, but before ends.   Also a concern, is that a new SH notice should have been provided by 12/1/18 for the 2019 PY.

FIY: the plan provides a safe harbor non-elective contribution of 3%.

A dental practice is owned by two dentists' individual corporations.  In April 2018, one of the dentists sells his part of the practice to another dentist, whose individual corporation now becomes the new partner.

The partnership has a 401(k) plan.

The new dentist's corporation also has a 401(k) plan.

If the new dentist's corporation does not adopt the partnership's plan, can the new dentist operate his existing plan separately under the coverage transition rules?  Or does the formation of the new partnership and ASG negate the coverage transition rules?

If the coverage transition rules do apply, does the coverage transition period end if the new dentist's corporation adopts the partnernship's plan (that is, before the end of the allowed transition period).

Thanks very much.

For you and your family and friends. Drive safely!!!

Can someone clarify if the partner/member contribution for the deferral + match cannot > 402g limit?

A plan has 401(k) & safe harbor on a mutual fund recordkeeping platform, and the profit sharing in a pooled account.  Participant P has a current balance of $200K in his individual accounts and $50K as of the latest valuation in the pooled account, and the segregation amount is slated to be $130K.

For the sake of ease, obviously, it would be awesome to pay out the QDRO from the platform.  The attorneys are writing that into the QDRO.  Do they have that right?  Isn't that the Plan Administrator's authority to decide where to pay the QDRO from?  As long as the dollar amount is satisfied, that should be all they care about, I'd think.

Any thoughts?

Hello,

I am almost 100% positive- but please confirm that a Profit Sharing Plan only is not subject to successor plan rules as there are not 401k and or other qualified contributions in the plan?

Thanks!!

The employer has 200 participants and 1 HCE (the CEO) in a 401(k) plan. They ran their 2017 ADP test; it failed; they processed the ADP refund and forfeited the related employer matching contributions of the 1 HCE in March 2018. Late in the 2018 year, they determined that the ADP test was run incorrectly--ineligible employees who were not participants were included in the ADP test as 0% deferring.   As a result, the plan would not have failed the ADP test by as large of an amount and the HCE received too large of an ADP refund.  The HCE was distributed in 2018 more of his salary deferrals than he should have been (and more of his employer matching contribution were forfeited than should have been if the ADP refund were less) for the 2017 plan year. As a side note, the board of directors of the employer gave the HCE additional comp during 2018 to make-up for the HCE not being able to fully defer into the 401(k) plan and receive the full resulting employer match.

First, I believe the ADP test must be rerun correctly so that a correct ADP test is maintained in the employer's files  (even though we know that it will not indicate additional refunds that must be made, but an overdistribution of refunds)? But then what is the employer required to do? I've never seen this happen.

I have a question. I realize that LLC can be taxed as either Partnership/Sole Proprietorship or a Corporation. What about PLC? Can it be taxed as either one as well or can it only be taxed as a Corporation?

Thanks,

We have a client that wants to change the allocation method of their recapture account effective 12/31/2018.  Currently the service agreement (not addressed in the plan document) states that after expenses are paid from the account, the account will be reallocated pro-rata based on account balances.  We have not yet seen a copy of the 404a-5 disclosure to see if it contains such details.  

The client wants to change the reallocation method to be based on the investments of the participants and whether those investments generate revenue sharing income.  If the allocation method of the recapture account is not included in the initial 404a-5 disclosure, can the employer change the allocation method without a 30 day change notification to participants?

A Solo 401(k) sponsor wants to add a Cash Balance Plan.  Is this OK, or is it advisable (or necessary) for the sponsor amend the Solo 401(k) into a regular 401(k) to have any overlapping provisions coordinated?

Client just called and one of his employees works for another company and the employee has determined that he contributed too much in salary deferrals and now has a 402g limit issue.

Can the funds with earnings be returned now or do we have to wait until 2018 has ended and return the funds in 2019 before April 15, 2019?