If a member of an excluded class was allowed to participate in the plan, do you need to retroactively amend the plan to allow for their participation and then file through VCP or can you just amend as part of SCP?

Insurance company trying to sell  a 162f plan to a client.  From what I can tell, the company can pay premiums on a whole life life insurance policy for an executive.  The premiums paid are taxable to the executive and the executive owns the policy personally.

Why is this different than giving the executive a bonus and having the executive go out and buy a life insurance policy on his or her own?

I presume there is something to it because the IRS gave this it's own section of the Internal Revenue Code.  But if I put on my cynical hat (which is handy at all times!) perhaps the insurance lobby requested this change so they could market it as a "162(f) plan" which just sounds like it must have some tax favored status.

a law firm has two 401(k) Plans,  plan 1 is for the Partners and Staff,  Plan 2 is for the Associate Attorneys.  

Plan 1 has deferrals and Profit Sharing (NEw Comp)

Plan 2 has deferrals only.  

There are HCE'S in both plans, and the plans have always passed coverage 

They would like to add a 2% match to Plan 2.     As long as it will pass coverage, is this allowable?   

Hello everyone. If a participant needs and obtains spousal consent for an in-service distribution, does that spousal consent remain in effect for subsequent distributions? If so, for how long does the spousal consent remain in effect if they want to take a second distribution after the first distribution?

Hello.  We are TPA for a plan that utilizes an auto-enrollment feature in the plan.  Client realized that he missed enrolling a handful of employees in 2017.  The client did not contact us to determine the best way to handle this situation.  They enrolled each employee approximately 3 months late.  Client did not know that by not providing a notice to the participants within 45 days of starting the deferrals, that client is now subject to QNECs for these participants. 

1.  Have we interpreted the ruling correctly that the client is now subject to making required QNECs for the affected participants?

2.  How are the participants reported on the ADP Test?  Do we include the QNEC contribution in the testing?

Please advise.  Thanks.

I am so glad I finally found this forum! Let me start with my case background. I have a QDRO from a divorce dating back from 1992. I am the AP. I am from Tennessee. I had forgotten about it until recently discovering the certified letter in my files from X10 in Oak Ridge confirming that I had the QDRO in place. I immediately contacted them as it was incorrect in last name and address and so I updated it. Several months went by and they sent me some plan materials but nothing of real value. I contacted them again recently and asked for better information and they got back to me and stated I did not have a QDRO so I sent them a copy of their certified letter to me. Last week I got a letter in the mail that stated that pursuant to 414(p) of the IRS code, I was eligible to commence my portion of the pension beneft due my ex husband. And it was payable for my lifetime. They then asked for proof of age, some tax withholding and direct deposit paperwork. so they could get me on the monthly payroll cycle ASAP.  But then I had some questions for them. I asked if I die, does my benefit continue to a beneficiary? No they said. And if he dies, does it continue to me? Yes they said. But then the lady I am in contact with said that they had just located the QDRO documentation and they are checking with their Administrative Committee on past payments and how to proceed with that. She will keep me posted on further developments but wanted to get me into pay status as soon as possible since it may take a while to determine the past payments.

So, my questions are, will I somehow be getting past payments of monthly benefits that I should have gotten as a result of the company losing the QDRO and not attaching it to my ex's benefit before it was distributed? And where will that money come from if it is determined that I am entitled to it? He, I am sure is retired as he is on disability and has been for quite some time. I am unsure of his date of when he left the company as we do not communicate at all (really bad divorce). I did ask the lady I am in contact with in Benefits for the date of when I was eligible to start my benefits but she did not answer that question in my last email.

Also, should I get a copy of my QDRO with all this going on? I can't seem to find a copy in my paperwork.

I would appreciate any advice in this matter.

I know that in-service withdrawals are a protected benefit, but what about limitations on such withdrawals?  For example, if the participant is only allowed 2 withdrawals per Plan Year.  Would this also be considered a protected benefit? Or would this be an administrative election?

We have a partial plan termination of a pooled profit sharing plan where 69 our of 76 participants have balances under $5,000.  13 of them have less than $200.  Our office uses a popular distribution company that charges $35 per person to prepare a distribution and they do the 1099-R at the end of the year.   We also charge a fee on a sliding scale for processing distributions, although for balances under $200, we usually do not charge.  In this case, we may need to charge something if we have to invest a lot of time in hunting missing people.  That issue aside, for 8 of the 13 people, there isn't even enough money to pay the processor's $35 fee.  My question is this:  are these little balances considered "de minimis" amounts and can they simply be forfeited?  Or must the employer pay the $35 per person so the distribution company can cut a check for as little as $4.26 up to $179.02?

Any advice based upon what you and your firm do in such circumstances will be greatly appreciated. Thank you!

I have always used the Up-84 mortality table when doing cross testing on a New Comp Plan.  My plan is failing the average benefits test slightly (69.89%)  I noticed in the administrative system that I use, there is a table called 2017 417 (e) (3).    If I use that table the Average Benefits test will pass at 70.20%.    The plan document does not state which table to use, so, Is it ok to use this table when running the test?   

Suppose the  record keeper received employee deferral  contribution through wire after the trade for the week was completed.

And the record keeper waited the next trade to deposit the deferral contribution in to each employee deferral accounts.

How should it be treated the days elapsed between employee deferral contribution received and deposited in to each employee deferral account for VFCP application and lost earnings purposes?

Client has a calendar year SH NE 401(k) plan. PS allocation conditions are 1,000 hours and last day.  The client wants to amend the plan retroactively to 1/1/17 to remove the last day requirement since operationally that is what happened.  Can we use an 11(g) amendment to accomplish this?  If not, is there any other way to accomplish this?

Can a nursing home 403(b) plan permit participants to make 15-year service catch-up contributions? I don't think they would be considered a home health service agency or health and welfare service agency. Could it be considered a hospital?

I’m single and have zero income so I haven’t had to file a tax return for the last couple of years.  If I take a small early w/d, say $5000, from my 401k would I need to file a tax return for an annual income of only $5000.  My rough calculations seem to show that between my exemption and standard deduction it would be a wash.  But I thinking that because of the source of the income I would have to?

So, if a company is owned 100% by an ESOP, is there any exception to the excluded stock rule in 1563(c)(2)(A) that would allow (or require) this company to be considered part of a controlled group? It seems like the stock is initially attributed under 414(b), but then disregarded under 1563.

If a 403b loan policy is amended to permit loans to terminated participants - in distinction from allowing an active participant to take the loan and then continue loan payments after he terminates.  Is there any down side to this? The loan policy provides for repayments via ACH so provided the terminated participant is able to set up the ACH deductions correctly and timely, I guess this is ok but have not really encountered it before and wanted to know if anyone has any experiences with this situation?

Thanks!

Does Medicaid follow the same rules as Medicare in terms of "Secondary payer" rules? For example, if someone is under a group health plan, (more than 20 employees) also has an HRA, and is ELIGIBLE for Medicaid, and Medicaid pays a provider for something,  the group health plan should pay first, then Medicaid?

What happens if there is a deductible on the group health plan - let's say $1,000, and the provider charge for services is $800. The employee writes a check for $800, then is reimbursed from the HRA. Now Medicaid or Medicare pays the provider as well. Is the provider obligated to send $800 to Medicare/Medicaid, or does the provider send $800 back to the employer HRA?

I really have no idea how these rules work. I believe the provider is required to bill the primary payer before billing Medicare. Then if the primary payer denies all or part of the claim, the provider bills Medicare.

Can an HRA even pay you if you are covered by Medicare or Medicaid?

I hate the control group issue.   I don't agree that a guy, who has 2 totally separate businesses in every way, must include both companies in coverage and testing.  That said I just need confirmation that there is nothing I am missing.

Guy is a financial advisor... independent RIA

He also has a real estate business

100% owner of both

Control group... yes?

Thanks

I know a participant can continue to make repayments on a defaulted loan (if an after-tax account is set up), but are they required to?  I've seen/read different things, so I want to be clear.

Thanks!

Hello, so quick question regarding a late 5500-SF:

Recently when going through finances I noticed that I forgot to file my 5500-SF on the efast.dol.gov website in 2015 and 2016. (Well, I didn't "forget" but rather I missed a special link in my payroll, which passes the final electronically-filled form to efast...). I have filed 5500-SFs in years prior, and had planned to continue do so. However I am a one participant plan with assets < $250K, so it is my understanding that it is was technically not necessary to file.

The other day out of panic, when I noticed those 2 years weren't filed in efast I submitted them anyway. However I realized afterward there is a substantial penalty for late filing, and these late forms are now visible from within efast...

My questions are as follows-

1) Will the fact that I submitted late 5500-SF forms to the efast website trigger an audit?

2) Will I be charged a penalty? And if so, is there a way I can pay any fees in a advance of receiving a bill from the govt? I noticed in the DFVCP penalty calculator it states "Form 5500-EZ filers are not eligible for the DFVC program." which concerns me greatly...

I have yet to receive any late filing notice but I fear the clock might be ticking...

Any advice would be appreciated!!

My husband divorced and we had a QDRO.  He passed away and never named a new person on his life insurance or the 401k.  Neither one of us married, he had no children. Does it go to me his ex wife