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.

Wouldn't it be useful to view all topics started by a particular member, or to which the member has contributed (i.e., added a reply message)? For example, if you find Texas attorney Luke Bailey's contributions to be particularly valuable to you, you can use the message boards search engine to generate a list such as this one (click).

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...).

1. Click the word "Search..." in that box
2. Click the "More Options" radio button
3. Click Members
4. Enter the display name of the member that you see being used here on the message boards (sometimes it's a full name, sometimes it's a "handle" of one or more words)
5. Click the magnifying glass
6. You'll get a screen that includes a box with brief bio information about the matching member, with a "Find Content" button for you to click.
7. Fetch a fresh cup of coffee and begin browsing the accumulated wisdom graciously contributed by that member to the employee benefits community!

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. 

Can an EACA arrangement be amended for auto escalation any time during a plan year or must the auto escalation be effective as of the beginning of a plan year?

It has been an EACA arrangement but did not previously have an auto escalation feature and they want to add one.

thanks in advance!

Dual entry, SHNE with profit sharing. for initial year of participation, compensation based on w-2 from date of entry. In reading the EOB, compensation must be based on full years' W-2?

If the beneficiary form clearly states the name of the retirement plan and the name of the insurance policy, can the one form be used? A client of ours was trying to cut down on making employees fill out two different beneficiary forms when the employee wants the same beneficiary for both.