My Company has a Master Trust that the IRS would call a Direct Filing Entity (DFE).  The Master Trust has the plan assets for several individual Defined Benefit Pension plans that we also file separate Form 5500s.  We also file a separate Form 5500 for the Master Trust itself as required by the IRS.  We use the Plan sponsor's (my employer) EIN for each of the Pension Plan Form 5500 filings, but we are not certain as to the proper way to report the EIN in box 2b for the Master Trust Form 5500.  The IRS has assigned us a separate Master Trust number that they would refer to as the TIN or maybe even the Trust EIN.  The Form 5500 instructions are not very clear with respect to whether the "Employer Identification Number (EIN) in box 2b should be either a)  The EIN number of the Plan sponsor for all the individual Pension Plans OR b) the Trust ID Number that the IRS assigned for this Master Trust.  Does anyone have any thoughts on this?  If so, if someone can actually point to an IRS source, other than the Form 5500 instructions, that clarify this? 

The SCP program suggests for a non safe harbor 401k plan that an acceptable correction for a missed deferral opportunity  is a QNEC equal to 50% of the ADP for that group. If the only two eligible NHCEs were left out in the first year of eligibility then my conclusion is that the ADP% for the group is 0 and the QNEC is 0. Hence, the ADP test is failed and the HCE deferrals must be returned or recharacterized.  Does this seem a reasonable interpretation?

Wife has a solo 401k that goes over 250k. In the same year the husband starts a solo 401k for his unrelated business. Husband and wife have a minor child, so they form a controlled group as I understand it. The EZ instructions say that all plans of the employer must file the form if the combined assets are over $250,000. My thought is that the husband must file as well. Wondering if others agree. 

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?