A Participant went on line and changed from 10% to 2%.  

Should the excess be forfeited as a mistake of fact and the Participant made whole outside the plan?

Should it be distributed to the Participant as an excess with the Plan issuing a 1099?

if terminating due to acquisition/plan termination do you need to provide 30 days notice?  i don't think so but wanted to confirm. 

Plan has this elgibility:

Age 20 1/2

1 YOS (1,000 hrs)

Entry date:  First day of plan year following.  That's it.

Ont he surface it seems it violated the 18 months rule, but I am half-remembering (probably incorrectly) that the age 20 1/2 somehow buys me an extra 6 months, but I can figure it out.

I know there are different rules, since it's similar to a Defined Benefit Plan, but can Plan expenses be paid out of a Cash Balance's Forfeiture Account (similar to a 401(k))?  For instance, TPA Fees?

Thanks!

We have two companies that are only a little bit related -- in the 10-20% range.  So they definitely wouldn't be considered a single employer under 409A.  However, when certain employees leave company A to go to company B, they continue to participate in company A's nonqualified plan.  I can't find any reason why this is a problem -- is there anything I might be missing?

Plan is safe harbor non elective with a 100% of 2% non safe harbor match.

A rehired employee was not giving the opportunity to defer for 2017.

I know that the fix for the deferral piece is 50% of the 3% plus the 3% safe harbor.

My dilemma is the match piece.  If my brain is working correctly, I understand the regs to be... 2% match.  The employee's missed deferral was 3% (because of safe harbor non elective) so the match is 100% of 2%.

Can I get a confirmation or denial?

Thanks

The ACP test fails.  Corrective distributions will apply.  If the match is made after the plan year end, is it acceptable to say the earnings for the corrective distributions are zero?  

Let's say husband and wife own 50% each of Company A. They also have some ownership in other companies, which could form a potential Brother-Sister Controlled Group. Would you consider them both as 100% owners when determining the if the controlled group relationship exists for a Brother-Sister Controlled Group, because of attribution, or would they just be considered 50% owners?

Thanks.

We have a 401(k) plan with a participant who died last year.  She has a sizeable amount in the plan (over $200k), and as far as the sponsor knows, she had no will and both her husband and daughter predeceased her.  They believe she has some adult grandchildren, but so far none has contacted them.

I suggested they contact one of the grandchildren to find out the status of her estate.  But the question arose as to what we do if no one asks for the money.  And also, what happens in a couple years when the participant would have turned 70 1/2 (RMD)?

Ideas??

Three dentists share office space as well as a few employees.

Clearly this is a controlled group.

One of the dentists split - moved his practice to another location and is now totally unrelated to the others

One or two of the employees now work for this dentist part-time as well for two of the three remaining tests part-time as well.

Since this is not a controlled group situation - common control is 33.33% - must the part-time employee still be counted and receive a contribution from either plan?

I might be overthinking this.  John Doe worked for company A.  They have a match with a last day (12/31) and 1,000 hr requirement.  John quits A in June and goes to work for B.  A and B sponsor the same multiple employer plan.  They are not related employers.  John did work 1,000 hours at A and did not work 1,000 hours at B.  John is a participant and deferred at both companies, since all his service counts for eligibility.  

Does he get the match?  He was not at A on the last day and did not have 1,000 hours with B.

I do not think there is clear guidance for amending a QACA. Sponsor set up QACA in 2014 with initial rate at 3% and escalator of 1% after the end of the uniform period. Now sponsor wants to amend the plan 1/1/19 to set a 6% deferral rate to only the new hires on or after 1/1/19. I do not think this will result in a uniform QACA or it sets up 2 QACA designs in one plan. I think it blows the safeharbor.

Any comments?

I'm trying to figure out whether the 4975(g)(2) exception for 414(d) plans would apply to HSAs offered in connection with a health plan sponsored by a governmental employer.  Assume that the HSA arrangement is treated as employer-sponsored for ERISA purposes. Or -- does 414(d) refer only to 401(a) qualified plans?

Thanks for any thoughts.

Office manager has just voluntarily left her job.  I just completed testing calculations for 2017, and the employer was horrified at what office manager's pay was last year (why he didn't pay attention through the year is a different issue).  If her pay was incorrect, then her safe harbor match was also incorrect.  Assuming that it can be proven that she falsified payroll, can her safe harbor match contribution  be corrected?  The money has already been allocated to her account. 

Thanks in advance!

A client maintains a non-safe harbor 401(k) for non-union employees and contributes to an MEP for collective bargaining unit members. In 2015, one of the union members stopped paying dues, even though he remained covered by the collective bargaining unit. As a result, (1) the employer stopped MEP contributions, and (2) the erroneously allowed the ineligible employee to begin deferring and receiving match under the 401(k) plan. The employee has satisfied the matching contribution vesting requirements.

The plan has over 350 participants, and this is the only participant affected by the error. The participant has an account balance of around $12,000 and total plan assets are around $9M.

QUESTIONS:

Is this eligible for self-correction as an insignificant operational error? Can it be considered insignificant even if we have to issue corrected 1099s for 2015, 2016 AND 2017?

Are there any correction methods available in this case OTHER THAN returning contributions and issuing 1099-Rs?

Thanks in advance for your thoughts.

A dentist owns 100% of her PLLC; this company currently has a solo 401k Plan.

She also owns 50% of an LLC with two other people.  Neither of the other two people are related to the dentist. There are no employees in this LLC

The issue is that the LLC is going to purchase a Dental Clinic with employees.   Is this a controlled group, and would she now have to offer the 401k to the dental clinic employees?   The LLC will own 100% of it.

Is a 457f plan subject to any regulatory limits on compensation? For example a plan has a formula of 5% of annual compensation and executive earns $300,000 can we use the full compensation?

thanks!

Let's say it is June and we see that we missed a deferral election for 4 months.  
The missed deferral was $2,000.  The correction will be 25% or $500.

Will the $500 QNEC be counted in his 402(g) limit for 2018?

Calendar year DB plan. Plan termination date = 9/30/17.

The final due date for the 2017 MRC changes to 8.5 months from 9/30/17.

The 2017 5500 filing due date does not change, correct?  

I suspect the answer is "No" but employer has a SIMPLE IRA with 100% matching up to 3% of compensation and their match is deposited in a lump-sum after the year concludes.  They would prefer to not add matching dollars to one former employee's account.  The former employee was terminated for cause and has violated his non-compete. 

Is there any way for the employer to not add matching for this one former employee where hard feelings still persist?