Recent acquisition (last year or two).  Both plans are calendar year.

Scenario A

Both plans have the exact same match formula and eligibility.  Can I merge these plans together mid-year (Say May 1 2020)?  Eligibility would be expanded to additional people after the merger because the surving plan has a more liberal eligibility policy.

Scenario B

One plan with a dollar for dollar match on the first 4%, would merge into a plan with the basic safe harbor match.  I assume this would be a reduction in match?

I know Notice 2016-16 solicits comments on the need for additional guidance, but what are we to do in the interim?  I feel like Scenario A is doable but probably not B.

I saw Tom Poje had posted the idea of changing the plan year ends to create a short plan year, but I just don't think that is realistic in this case.

I have a participant who has terminated from his 401(k) and has maintained his account balances in the plan. He is over 70 1/2 and has started to take RMD's. He now wants to transfer all of his assets into an IRA and use a portion of those assets to make charitable donations. He was told by his accountant that he is not allowed to transfer his entire balance as the amount of his RMD for 2019 would need to be removed first. Everyone agree with this?

I have seen in presentations that a participant stuck at the 415 comp limit post NRA will suffer an impermissible forfeiture unless

a suspension of benefits notice has been timely provided. If this is true what are the acceptable corrections. If the Plan contains a RASD

feature can this be uses? If not can the Plan simply self correct by paying the forfeited annuity payments with interest? 

We are working with another TPA on a combination straditional DB with 401(k) SHNE - no PS.

There are 5 employees, 2 principals, 3 NHCEs.

For some reason, it was decided to exclude on of the employees from the DB, but he is included in the 401(k) with the SHNE contribution.

I believe both plans can be tested together so 410(b), 401(a)(4) and 401(a)(26) can pass, but would the excluded employee be included in combo testing?

Has anyone used FT Williams Distribution Tracking Software (DTS)?

It has some features that look very appealing but I'm wondering how much time you spent setting it up and if you have had success getting clients to use it to initiate and sign off on distribution and loan requests.

Thanks.

Physician with calendar year SH 401(k) wants to switch to SIMPLE IRA for 2020.  Total 5 employees plus the doctor, but only two employees plus doc contributing. Does he have to formally terminate the 401(k) as of 12/31/2019 or can he just not allow contributions to 401(k) beginning 1/1/2020.  (There may be additional contributions in 2020 for the 2019 plan year.)  

Where is this addressed on the IRS website?

Thanks!

Hi,

I was wondering if there's any updates on this topic. Has the new law actually passed? Are tax-exempt employers now required to pay income tax on transportation fringe benefits?

Any insight is appreciated!

Thank you!

We have a company that files a 5500 for the Master Trust and then two additional 5500 for the 401k plansa (3 total 5500). The  401k plan 5500's were filed for extension. The MTIA 5500 was not extended. Is there a late fee for the MTIA? Can we use DFVCP for MTIA? Seen conflicting information and wanted to confirm. Thanks!

the latest and greatest figures based on today's CPI release

this is a revised spreadsheet.

added 2 new columns which might never be used.

1. indexed limit for minimum distribution which was planned last year but never passed

2. indexed limit for catch up at age 60 which was part of the secure act if that ever gets passed

of course, the year I have it indexed to might have to get adjusted someday

indexed limits and soc sec.xlsx

100% owner of an LLC business that has a 401k plan also has two household services employees (W-2).  Do the two household employees count as employees under the control group rules, or is there an exception where their employment is not in the pursuit of a profit? 

Facts:

Single member LLC with no employees other than the single member.

Properly formed pension plan, and properly formed 401k/profit sharing plan.

IRS opinion letters issued with respect to both.

Plan contributions made timely and in allowable amounts.

The Single member LLC has filed for bankruptcy

Issue:

The trustee in the bankruptcy case has said that (i) under the US Supreme Court decision of Raymond B. Yates, MD, PC Profit Sharing Plan v. Hendon, a single member LLC having no employees other than the member cannot have a plan that is ERISA qualified, and (ii) if the plan is not ERISA qualified, then the plan cannot be tax-exempt under IRC sections 401 and 501 (and as a result cannot be claimed as exempt in bankruptcy).

Question:

I agree that a qualified plan that does not cover any employees (just the owner) is not subject to ERISA.  However I think the logic is flawed that if they are not covered by ERISA then they cannot be tax-exempt under IRC 401.

Does anyone have an opinion on this? 

Participant had 20% withheld on full distribution.  However - part of the distribution was for Roth money which was not taken into account and the full distribution was treated as pre-tax money.  Need to issue amended 1099-R.  Original withholding was done for $5,000 but upon revision the withholding should only have been $3,000.  When issuing the amended 1099-R how do you show the withholding amount - what it actually was or what it should have been?  Also - what is best way to get the over withholding back?

Plan sponsor has an ownership interest in an IRA provider. Can they force out (terminated <$5k) participants into IRAs with that provider, or would that be a PT?

I remember reading about a PTE that would allow banks to force out participants in their plans into IRAs held by the bank, but my search skills are failing me at the moment and I can't find it again. If I'm remembering correctly it would seem to be relevant guidance.

Is there any reason why the ASG rules wouldn't apply? Never happened to see a situation where a non-profit member of an ASG sponsors a 457(b) plan, but I wouldn't think it is unheard of.

Does anyone know when an employee on layoff with recall rights under a CBA is treated as terminated for purposes of a qualified retirement plan?  Neither the plan nor the CBA appears to covers this issue. 

Appreciate any input or sources.  Thanks!!

PEO takes on the W-2 pay, benefits etc. for employees who work at multiple different companies.

For Health & Welfare benefits, they file one 5500 as a Single Employer Plan. Is this possible?

A plan accepts rollover contributions of participant loans. The plan permits only one loan outstanding at a time. A participant has two participant loans with his former employer. Is he permitted to rollover the two loans or only one of the loans? Is the treatment of the two loans determined with respect to the plan's loan policy or rollover contribution provisions?

An employer can deduct from wages the cost of a health insurance premium that an employee agrees to.  When an employee is on an unpaid leave of absence pursuant to the Family and Medical Leave Act, the employer must maintain the employee’s health insurance coverage but can require the employee to continue paying his share of premiums.  Since the leave is unpaid, the payment cannot be made via payroll deduction.  Typically, the employer will require the employee to submit checks for payment.  Are there any other options available to the employees for the payment of premiums? For example, can the company permit the employee to catch up on premiums when they return to work via extra payroll deductions?  Would that be a permitted payroll deduction?  Maybe do it as a loan from the Company to the employee? Is it still considered to be a health insurance premium, or has it become a loan that must be repaid to the employer?  Thanks

Can a plan be set up that the eligibility for Deferrals is greater than the eligibility for Safe Harbor non-elective?    

Deferral eligibility is one year of service and semi annual entry dates. 

SHNEC eligibility is one year, but immediate entry after one year.   

So someone hired on 8/17/2017 is eligible for the SHNEC on 8/17/2018 but not eligible for the deferral until 1/1/2019.   Is that allowed?   

We have a potential client that employs people in several different unions.  They want to start a plan for those union ee's only.  But there are different requirements for eligibility for each union.

The ER wants to put in "as specified in applicable CBA"

Is that kosher?