Has anyone seen or does anyone have insight into why we haven't received an update from the IRS on hardship and loan relief to victims of Hurricane Florence, similar to other hurricanes such as Harvey and Matthew? From a quick google search, it appears that the announcement was provided within a few days of the disaster in the past. The only update I can find is with respect to tax relief, but not hardships and loans.

https://www.irs.gov/newsroom/help-for-victims-of-hurricane-florence

Calendar year plan - we filed Form 5558 to extend the 5500 and the 5330 for a client.

Now we find that the late deferrals were not for 2017 but instead were for 2015 and 2016.

The client is asking to not file Form 5330 for 2017 because no late deposit of deferrals for that plan year.

Are there consequences for extending Form 5330 and then not filing one?

Thanks.

I'm looking for the rule that states what happens to the plan if a participant is allowed to take a non qualified distribution and is unable to repay the money back into the plan. IRS corrective actions state the money needs to be restored but doesn't state the ramification if it is not able to be restored.

Good Morning -

This is a question for those who have or are working towards the CPC.  I am curious how long it took you to attain this designation (or a module if still working towards it) once you received the QPA and began studying for CPC? I'm trying to plan ahead to see how long it will take.  I plan on reviewing the modules and taking the exams at an average pace whatever that means. For example, on the QKA/QPA, I averaged about one chapter per week and with review about 3 months between each exam.  From a quick review of CPC requirements, it looks like you have 4 required modules and 2 electives with online exams for each.  You then have a proctored exam at the end. 

Thank you!

ftwilliams volume submitter - Adoption agreement says match Safe Harbor is per payroll and employer wants us to calculate a true up. Is this legal?

I have received an inquiry regarding drafting a QDRO for a health reimbursement account (HRA), which is covered by ERISA, but can't find any resources for this online.  Has anyone come across this before?

Way way back in November of 2010 DOL issued proposed regs on TDF

is this matter still hanging out there?. I can not find that these regulations were ever finalized.  Am I correct??

Question - has anyone ever heard of any enforcement of this provision by any agency? 

It's been well established that there is no private cause of action to enforce it. I can't find that HHS has ever taken any action to enforce it. In theory, being out of compliance with it could trigger the excise tax under IRC 4980D, but does anyone know if the IRS has ever sought that? I cannot find any IRS guidance on it.

Has there been any consequence for failing to remove exclusions of certain types of provider, for self-insured health plans?  There are basically no court cases about this other than ones dismissing private actions.

Hi community,

I'm curious to hear from everyone what kind of wellness programming/workshops you offer at your office? Chair Massage, Yoga, something new, something old? Would be great to have a thread that others can use and be inspired by.

Thanks!

Plan A is merging into Plan B. Plan A allows for in-service at age 59 1/2 from deferral account and Plan B does not.  What needs to be done in order to protect this benefit?  Is an amendment required to Plan B's document, or do I need to just include language in the merger resolution?

I have 2 plans that are sponsored by the same company. They want to merge the 2 plans to make administration easier. One plan has a funding shortfall in the year before the merger and the other plan did not have a funding shortfall. Based on Rev. Proc. 2017-56, it seems like due to the fact that one plan had a shortfall and the other did not, that it does not qualify for an automatic approval. Therefore, we are requesting approval for a change in funding method. Does anyone know if this is required? As of the merger date, due to the assets in the 2nd plan, all shortfall amortizations are wiped out and the plan is over 100% funded. 

From what I can find in Rev. Proc. 2017-4, the user fee is $10,000. This seems excessive given the fact that one company sponsors both plans and the only reason they did not qualify for the automatic approval was the funding shortfall, which is taken care of as soon as the merger takes place. 

So have I got this right - probably not...

POP plan has salaried qualify after 1 month of service, and hourly after 3 months of service. Since the eligibility to participate for "that plan year" has everyone being eligible, does that mean it passes the reasonable classification? Or am I misunderstanding, and each "sub-class" must pass the safe harbor or the unsafe harbor test?

Edit - Well, they wouldn't necessarily ALL be eligible for the Plan Year, if they were hired quite late in the plan year. So I suppose that you would have to do the safe/unsafe harbor testing, which normally would pass with flying colors anyway.

Company A has a 401(k) Plan - On  March 1 of 2018 they were purchased by Company B ( no prior relationship). This was a stock purchase.  Company A terminated their 401(k) Plan February 27, 2018. All assets were distributed by June 2018.

My question is in regards to who signs the 5500 for 2017 and the final return for 2018.

Isn't the prior employer of Company A responsible for the 2017 filing.

Since this was a stock acquisition,  and the payouts and final 5500 are processed after the stock acquisition, is Company B responsible for the filing.  Or  does this responsibly still fall to the prior employer of Company A. 

Getting conflicting info from all the parties, so I thought I would ask the "experts"

Client is a religious organization with both 401(a) and 403(b) plans. Participant terminated employment and requested distribution- the distribution was delayed because of an incorrect address.

During the delay period (i.e. after the distribution would have otherwise been made but before it actually was), the plan administrator received a consent order for a pending divorce. Neither the sponsor nor the administrator (which is a MAJOR provider) seems to have any written QDRO procedures for the plans. Just a practice where the administrator generally receives a DRO and the plan administrator approves it. 

Any thoughts on whether the plans are satisfying 414(p)(6)(B)? Or whether the distribution should still be made? Given the financial situation laid out in the consent order, there is a chance that the spouse would get the full benefit available under one or both of the plans. 

Money purchase plan has single entry date.  If someone meets eligibility during the year, they become eligible as of the beginning of the plan year. 

Plan sponsor uses a temp agency to "test drive" workers.  If they like a worker, they hire them after 3 or 6 months.  Once hired as a regular employee and no longer temp, So it is possible for a worker to meet eligibility during the plan year and have worked as a temp for part of that plan year. 

The question is how to calculate the contribution for a participant who was a temp worker for part of the year.  Do you have to get the compensation paid by the temp agency for that period?  Or do you just use the compensation paid by the plan sponsor from the date the worker became a regular employee?

We have a 403(b) plan that excludes commissions and bonuses for deferral purposes.  Is there any nondiscrimination testing involved or is this okay?  Thanks.

Can this be done?

Plan A and Plan B are not a control group, but there is common ownership.

The Employers would like the service from either plan to count for both plans.  So Bob in plan A is hired and terminated with 2 years of service.  Goes to work for Plan B, has a year of service.  So his vesting in Plan A and Plan B would be 3 years of service.  Oversimplification perhaps, but this is the scenario.

Yes? No?  Thoughts?

If yes, have would you write the language in the plans?

Hi yall,

I'm working on a 2017 Form 500 for a plan and have a small issue

There was one participant got refund of $50 loan principal overpayment in 2017 for a 2016 loan.

How can i characterize this refund on 5500? 

I was thinking about putting that $50 as negative ($50) in other income or $50 in the Benefit payment - directly to participants.

 I looked into 5500 instruction 

Line 2c. Other income.  Enter all other plan income for the plan year. Do not include transfers from other plans that are reported on line 2l. Other income received and/or receivable would include: 1. Interest on investments (including money market accounts, sweep accounts, STIF accounts, etc.). 2. Dividends. (Accrual basis plans should include dividends declared for all stock held by the plan even if the dividends have not been received as of the end of the plan year.) 3. Rents from income-producing property owned by the plan. 4. Royalties. 5. Net gain or loss from the sale of assets. 6. Other income, such as unrealized appreciation (depreciation) in plan assets. To compute this amount subtract the current value of all assets at the beginning of the year plus the cost of any assets acquired during the plan year from the current value of all assets at the end of the year minus assets disposed of during the plan year. 

Line 2e(1) Directly to participant. payments made (and for accrual basis filers) payments due to or on behalf of participants or beneficiaries in cash, securities, or other property (including rollovers of an individual’s accrued benefit or account balance). Include all eligible rollover distributions as defined in Code section 401(a)(31)(D) paid at the participant’s election to an eligible retirement plan (including an IRA within the meaning of Code section 401(a)(31)(E));

How do yall think this should be in the 5500? I'm leaning more on the Benefit payments directly to participant. This is a new situation for me.

I appreciate all the inputs.

Thank you.

We have a couple of participants who have not been cashing their required minimum distribution checks for a few years.  The plan administrator is moving the funds from the stale checks into a forfeiture account (this is for a 401(k) plan) to be used to pay plan expenses.  Is this kosher?  I guess the participants have already been taxed on the distributions.

I've seen a few prior threads on this but wanted to get current input.

A plan's loan policy allowed 15 year loans for primary residences. Loans longer than 15 years (but assume still reasonable) were made. Plan sponsor is fine with amending the loan policy to allow longer primary residence loans (both for outstanding and future loans).

Section 6.07 of EPCRS (including current version now in 2018-52) allows for correction of loans in violation of 72(p)(2)(B) and (C), but here the primary residence exception applies and allows for a reasonable loan term. No violation of (B) or (C). VCP would seem to be required, but 6.07 only mentions correction by re-amortizing, which isn't the plan sponsor's preferred course because the original term is permissible under 72(p).

I suppose the alternative is to retroactively amend to conform to prior operations under the more generic VCP provisions of Section 4.05. 

Section 2.07 of Appendix B allows certain retroactive amendments under SCP. Section 2.07(2) allows a retroactive amendment under SCP to add loans to a plan whose terms did not allow them. But it does not mention amending under SCP to extend the term of an otherwise permissible loan. 

Is VCP required to retroactively approve the longer term? if so, would Section 4.05 be the appropriate section? 

Try SCP and document file stating that extending the loan term seems more analogous to SCP under Appendix B? 

Thanks in advance.