The attachment is Judge Beetlestone's order enjoining two administrative-law rules about religious or moral exceptions to providing a health plan's coverage for contraception.

religious and moral exception rules enjoined.pdf

A client who currently owns 50% of a C Corporation (which maintains a safe harbor 401(k) plan...just mentioned that he and an unrelated party own a separate business - which is basically inactive.   They apparently maintained a SEP and  a profit sharing plan for the "inactive" business.  The business has not been terminated; apparently the plans have not been officially terminated either.  They do have account balances still just sitting there.  He does not want to roll them into the current plan.  His question is "can I just roll the old profit sharing account into my SEP and be done with it?"  I don't know, but I  assume the first step would be to officially terminate the old profit sharing plan.  It never had enough funds to file a 5500 according to him.  Thoughts, suggestions would be most welcome.  Thanks! 

Lately, all the publications have been alerting us that we need to check our mailrooms for the ACA Penalty Notices, because of the limited time to respond. I have been checking everywhere withing our organization, but so far, nobody is reporting that we have received any notice. Has anyone discovered a way to find out from the IRS directly (either by calling or through an e-mail or posting) whether a penalty notice has been issued?

I am trying to figure out best way to fix this or at least minimize risk.

Company is S Corp with no employees (except owner and wife, both over 50). 5305-SEP was adopted at Fidelity in 2006 and max has been contributed every year.

Company erroneously made 2017 contributions to SEP and later set up solo 401K. Request was made to Fidelity to return those funds to company (ECPRS), Fidelity sent the check and will be sending 5498 and 1099-R (very small gain, $0 taxable, and code E for box 7).

After check was received, salary deferral was started and deposited in 401K. No deposits have been made for profit sharing yet, but plan was to contribute maximum.

I am concerned that the 401K could be disqualified because the 5498 will show a fairly large contribution was made to the SEP in 2017, even though it was later withdrawn.

Schwab offers a prototype SEP (Fidelity doesn't). If prototype SEP is set up to amend existing plan with effective date of 1/1/17, does this solve the problem?

Or just leave it alone and deposit all profit sharing to 401K?

Plan document uses the safe harbor definition for hardships. Participant submits a current past due outstanding invoice for secondary education. However, the invoice is for a semester almost two years ago. Should this be denied based on the clause of "up to the next 12 months". Can historical education costs be paid or only costs associated with the next 12 months?

Payment of tuition, related educational fees, room and board expenses for up to the next 12 months of post-secondary education...

Thank you

Hello! I have a small business and a plan with no assets set up as part of a ROBS from personal retirement funds.  I've had a company file form 5500 each year.  Almost 5 years in business and we do not have any assets in the plan--I don't take a salary, there haven't been any profits, the admin is too much for my small business.   I would close the business but it does pay off the bank loan and my personal guarantee on the 10 year lease. 

A company that specializes in using personal 401K funds to start a business (ROBS) helped me set up and borrow from my retirement funds.  The $150K I borrowed is likely gone given our current lack of profits and trend.  The monthly fee to my company is a cost I need to verify whether it's necessary, if some shortened form (no census) would be acceptible and/or DIY.  OR, if partnering with the same person each year would be a smoother process.   However, finding anyone familiar with this kind of financial instrument has been difficult. 

Is filing the form 5500 necessary given the lack of assets? I've read less than $250K  is not necessary to file. The company who files for me yearly always is puzzled but I still fill out a census of every employee,  assign a value to company by best guess method.  It's always someone different handling the filing than the last year, it takes several emails/phone calls to clarify that although we have revenue, we are either losing money or realizing less than 10K profit/year on 1 million in sales and I have no extra time to make a 401K part of employee benefits.  The company I employ specializes in ROBS but the process seems too expensive for a once/year filing ($130/month + filing fees of another $150 or so).  I need to streamline and although this let me start a business when banks weren't lending to small business, I've had to accept the $150k is gone.   Apologies if this isn't the appropriate forum, I wear a lot of hats.  I appreciate professionals weighing in on alternates or if staying the course  is recommended.  Trying to sever ties with the admin company got me several letters of gloom and doom from them. Any insight would be very appreciated.

I am insured through my company and I chose to opt-out my family members since the rate would be too high to insure them. My question is if my insurance company can specifically require that I provide them with proof of insurance (company name, group, and group/id numbers)? Currently my HR manager is asking for this information and I don't wish to provide it. Is this legal that it be required information?

I live in California if that has any weight on the matter.

Employer has an old (obviously!) SARSEP.  No NHCEs contribute.  Owner should be allowed catch-up, right?  Are top heavy contributions required?  I think not...IRS examiner guidelines  say:

Determine if the plan is top-heavy or is treated as top-heavy and if so, confirm that top-heavy minimum contributions were made. If a the plan is a SARSEP verify that elective contributions made by non-key employees were not used to satisfy top-heavy minimums, but that elective contributions made by key employees (other than catch-up contributions) were used to determine the minimum that non-key employees should receive.

How do you feel about it if the owner has already contributed, say, $20,000, but withdraws the excess contributions before 12/31?

My question is on how to run the ACP test and the BRF test for 2 401k plans that are related but have different components - 2 related employers each have a safe harbor 401k plan providing the 3% safe harbor non-elective, but one 401k plan (401k plan 2) does not have a discretionary match (and this match formula is a tiered match based on years of service which requires a BRF test). The plans are being permissively aggregated to pass 410(b) coverage for the deferrals and safe harbor 3% non-elective purposes. It appears that the match component would have to be tested on a disaggregated basis because 401k plan 2 does not contain a match feature. So if the 2 plans pass coverage for purposes of the match by excluding the non-benefitting employees in 401k plan 2, then the ACP and BRF test for match would be run on the single plan level in 401k plan 1?

Any help would be appreciated.

Thanks!

Anyone know of plan document software that provides for 401(h) accounts in a money purchase plan?  I'm striking out everyplace I've checked.  Thanks!

One of the plan sponsors we work with recently mentioned that their U.S.-qualified plan has a couple of Puerto Rican employees participating in it. At least one of them has been contributing up to the 402(g) limit. No Form 480.70 or 6042 has ever been filed, although it's not clear to me whether this is a requirement or not. This brings up a few questions:

1. Should Puerto Rican employees participate in a 401(k) plan that does not have dual qualification?
2. If there is anything wrong with this situation, what needs to be done to fix it?

Thank you!

Dog

Hi

This question pertains to a plan that has less than 250,000$ so there was no need to file 5500EZ annually, and just need to file 5500 EZ for the final year of the plan.  If the plan was terminated near the end of 2017, but the assets were distributed in early 2018, I realize that you need to file 5500EZ for the short plan year of 2018.  However, do you also need to file 5500EZ for the year 2017 just because the plan was terminated in 2017?  What year is the final year of the plan in this case?  2017, the year the plan was terminated or 2018, the year assets were distributed?  

Thank you very much.

A governmental 401(a) plan has pick-up contributions only. Employees can elect different percentages to contribute based on the type of pay (e.g., up to 30% on payroll, up to 100% on bonus). If a participant goes over the 415 limit and has excess annual additions, does the plan distribute the excess to the participant?

Thanks.

Suppose I have a one person defined benefit plan. The owner is in the 55-62 age zone. If he wanted to draw his pension but not terminate the plan could he stop working for company x and start working for a newly formed company y? Company y does not enter into any kind of joinder or participation agreement regarding the plan of company x. In other words, is retirement on a controlled group basis or can it be viewed purely from the standpoint of the plan sponsor. I realize  many of the rules we apply are on a controlled group basis but was wondering if this a valid scheme 

We have a client who maintains a safe harbor 401(k) for 2017.   His spouse has a separate business and she wants to maximize a plan.  They do not participate in each other's businesses in any way.  The have a child who turned 21 in July 2017.

Spouses are considered a controlled group for testing purposes when there is a child under age 21.  The spouse has not opened her SEP or solo K yet and so at this time there is no child under 21.  But I will advise them that I assume the rule for 2017 is - a child under age 21 AT ANY TIME of the year unless I find otherwise.  I'm not able to find anything definitive yet.

Comments?  I was hoping to have her open a solo-k plan for 2017 and maximize if not a controlled group.  If deemed to be a controlled group, then I will have her sign a participation agreement with her husband's plan.  But that leads to another questionable item - can she defer $24,000 in this plan as her business is just now adopting his plan effective back to 1-1-2017 as a sole proprietor.  Or would her deferral be subject to ADP testing?

Tom

Client is a private High School with religious affiliation.

They want to include Rabbi/Head of School's parsonage allowance in the determination of the company contribution (5% of pay.)

I find for common law employee this is not taxable income so I don't see any authority to include this in wages.

is there something I am not finding?

Thank you

I've been talking to a woman whose ex-husband "forgot" to mention one or more retirement plans as assets in a divorce settlement. The ex is a physician who is the plan sponsor. She has been researching the plans and talking to ERISA attorneys and other who are knowledgeable about plans.

Apparently there was a money purchase plan that terminated in 2010 and the assets merged into a profit sharing plan. So far as we can tell, the profit sharing plan was still in existence at the time of the divorce.

Two ERISA attorneys have suggested that she involve the IRS or DOL. I am aware of EBSA's call centers that assist plan participants. I don't know of anything similar on the IRS side.

Regardless, I'm at a loss to understand what either agency can do about the fact that the assets of the plan were not disclosed in a divorce settlement. What am I missing?

Two calendar year plans with unrelated employers, Company A and Company B with corresponding 401(k) plans, Plan A and Plan B.

Plan A will be top-heavy for 2018. Plan B will not be top-heavy in 2018.

Suppose Company A sells its stock to Company B on January 1, 2018. All participants in Plan A are merged into Plan B on January 1, 2018.

Thus, Plan A no longer exists on its after January 1, 2018.

Will Plan B have to re-determine its TH status for 2018 by including the 12/31/2017 data from Plan A? Do the Plan A participants get any top-heavy minimums for 2018? Or how is this handled?

Company has gone bankrupt. They sponsor a fully insured Wrap Plan.

Fees for most recent 5500 will not be paid.

Is there any reason to file future 5500's and who assumes responsibility?

Have a Plan that uses Grouping method with two classes A and B.  Each class passes coverage individually.  The allocation method in each class is based on compensation (pro-rata).  Plan is not top heavy.

They are wanting to do a 5% allocation to Group B but not do any allocation to Group A.  As each passes coverage individually and a safe harbor base allocation (pro-rata) is used for Group B I do not see any problem - anyone have different thoughts?

Appreciate in advance.