- The problem with political jokes is they get elected. ~Henry Cate, VII

- We hang the petty thieves and appoint the great ones to public office. ~Aesop

- If we got one-tenth of what was promised to us in these State of the Union speeches, there wouldn't be any inducement to go to heaven. ~Will Rogers

- Those who are too smart to engage in politics are punished by being governed by those who are dumber. ~Plato

- Politicians are the same all over. They promise to build a bridge even where there is no river. ~Nikita Khrushchev

- When I was a boy I was told that anybody could become President; I'm beginning to believe it. ~Clarence Darrow

- Why pay money to have your family tree traced; go into politics and your opponents will do it for you. ~Author Unknown

- Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~John Quinton

- Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

- - I offer my opponents a bargain: if they will stop telling lies about us, I will stop telling the truth about them. ~Adlai Stevenson, campaign speech, 1952

- A politician is a fellow who will lay down your life for his country. ~ Tex Guinan

- Any American who is prepared to run for president should automatically, by definition, be disqualified from ever doing so. ~Gore Vidal

- I have come to the conclusion that politics is too serious a matter to be left to the politicians. ~Charles de Gaulle

- Instead of giving a politician the keys to the city, it might be better to change the locks.
~Doug Larson

- Don't vote; it only encourages them. ~Author Unknown

- There ought to be one day -- just one -- when there is open season on senators. ~Will Rogers

When applying the maximum employer contribution amount to HCEs (60,000 for 2017 with catch-up), are the deferral amounts deducted from that maximum to equal the actual amounts available for employer contributions?

Do the new disability claims procedures apply to flexible spending accounts? 

Plan is Safe Harbor match with a discretionary match and after tax option.  If the plan does not put in a discretionary match and employees decide to put in a 4% after tax contribution, does this need to be tested under ACP or can it be avoided?

Looking to change the current software providers for my dc and db administration/testing work-

any suggestions ?- cost effective

I've got a client who paid out their first bonus in a long time... and totally forgot that bonuses are subject to the same deferral election as 'regular' compensation, so he didn't do any withholding.  So the employees have compensation paid in 2017 (reported on the 2017 W-2) that didn't have deferrals taken from it where there was a valid deferral election in place.

What's the best fix?  If this was in the same plan/tax year, I'd consider letting him 'make it up' on the next payroll, but I'm concerned that going over the year will be a problem.  I was reading this nice article, and I was thinking that the option on the 3rd page of the chart applies, but no penalty other than earnings seems like a pretty light way to get out of this...

Thanks.

I have a plan that has an owner and 2 new participants who entered on 7/1.  I'm trying to run a max scenario. Allocation is on particpation comp. Plan is top heavy.

Owner comp "only" $110,000. ;)

NHCE1 28,000 (full) 14,000  (participation)

NHCE2 24,000 & 12,000

What compensation do I use as my 25% ceiling?  $162,000 or 136,000?

Is there any prohibition on asking for an employee's or their dependent's gender when enrolling them in group benefit plans similar to the prohibitions on asking for gender on job applications? I understand that you cannot deny benefits because of gender but are you allowed to even request that information or have your TPA request that information to administer benefits or is it prohibited? Any assistance it helpful. Thanks.

I have received a DRO for a participant who is only partially vested in a 401(k) plan.  The DRO instructs that  we value the vested and unvested portion of account as of a specific date in the past.  And then if/as the Participant vests in the future, the AP will receive a proportionate share of that vesting.  If the Participant doesn't vest, the AP doesn't receive any further funds. 

I am accustomed to qualifying the DRO and immediately segregating the assets, but I cannot give the AP unvested assets and then allow the AP to attain them as the Participant vests.  And I cannot imagine trying to keep track and move half of the newly vested portion over each year as the Participant vests further.  The risk of a recordkeeping error seems high.  This feels like a problematic situation.  The participant will not pay out from the vested portion and attorney indicates no other options.  

Would appreciate feedback as the only other DRO's I"ve dealt with were fully vested.

Does anyone know if a signature stamp is acceptable on the 1096?

I can't believe in all my years, I've never had anyone ask, but this year someone is asking me.

Thanks in advance!

Can anyone point me to a good write-up of what codes to use for Roth distributions.  There are dozens of combinations and permutations (maybe I exaggerate).  Qualified/nonqualified, rollover/non-rollover, Code 1,2,7 etc.  For example I cannot find even in the instructions how to report a non-rollover qualified distribution.  The instructions just don't say what to do.

What I need is a chart that goes through the scenarios and I can pick the codes.

Maybe I'm overthinking it and someone can set me straight 

i have some employees basically leaving and forming a new entity. we want to start a new plan and do a trustee to trustee transfer of their entire accounts to the new plan (as opposed to distributions/rollovers). would this be considered a spin-off and be allowed? we do not have an asset  sale. 

The 2016 Form 5500 including the Independent Account Audit Report was filed timely.

The Independent Auditor who prepared the Audit Report contacted me and the client, and informed us that the DOL required him to make a change on the Audit Report to comply with the standard for Fair Value. And he did made DOL requested change. Other than that the auditor informed us that he didn't change any number or any opinion on the audit report.

Is there any issue amending the 2016 Form 5500 in 2018 in connection with the change in the audit report?

My office use Relius Government forms.

Many thanks,

AdKu

On a plan with a 1 year wait, with entry on the date of completion of the 1 year, Relius determines the otherwise excludable employees based upon the statutory entry date approach. How do I code Relius to use the plan's entry dates for determining otherwise excludable employees?

I have found a few prior threads on this board, but the outcome is still a bit unclear. The EOB references an IRS response from the 2012 ASPPA conference, but the book does not take a strong stance:

A 401k plan is written with a safe harbor match formula of 100% of the first 4%. The plan allows for discretionary match. The plan sponsor wants to fund an additional 2% discretionary match so employees who defer 6% receive a 100% match. However,  I see this as two separate formulas:

1. safe harbor match is 100% of the first 4% deferred

2. discretionary match is 0% of first 4% deferred, 100% of next 2% deferred

Therefore, I believe they are subject to the ACP test because of IRC §401(m)(11)(B)(ii) where the rate of match cannot increase as deferrals increase. One of the large record keepers disagrees. They say this approach complies because the formulas are in a sense "aggregated" and the match is uniform and does not increase as the rate of deferrals increase.

Does this match formula indeed satisfy ACP?

Thank you

Owner and his wife max out on pre tax deferrals. They fund the basic safe harbor match.  He exceeds 401(a)(17) and she makes $48K.  They are considering amending the plan to add after tax deferrals.  He read a Wall Street Journal article and the thought of exceeding the max up to $73k per couple is enticing.  They do not put in a profit sharing contribution.  Does the after tax contribution negate the benefit? 

Can a QDRO BE changed 

I am currently an associate for an RIA in our Retirement Plan Division. I joined the division last year, and  have spent the year "learning by listening". All my energy outisde work on focused on finishing up the CFA.  I recently became a charterholder, and I have the AIF designation as well.

I am extremely confident of my understanding of markets and investments, where I am lacking is understanding ERISA rules, how to design plans to best benefit our clients, how rules affect certain things etc.

I was wondering if anyone here could provide some insight on where I should focus my energies.  I will be working as a 3(38) Investment Manager to plans - would it best to focus my energy on obtaining the QKA?  or would the CPFA better serve me.  Or maybe there is something else I should be focusing on.

I have some insights from my boss - I want to seek out other opinions though - thanks!

 I have a question on eligibility to offer a 125 plan. In this situation the employer pays 100% of the health & dental insurance premiums for the FT employees, and offers coverage for spouses & dependents but it’s at the employee’s expense. Part time employees have to pay 25% - 50% of their health and dental insurance premiums depending on how many hours they work. The employer also offers a pre-tax Flexible Spending account for paying eligible medical, dental, eye glasses, and day care expenses.  Insurance premiums are not eligible for this. The employer is a non-profit religious organization.

I’ve had one “benefits person” state the employer can’t have a Section 125 plan because the employer pays 100% of the (FT) employee’s health and dental premiums.  But I’ve had another “benefits person” state the employer IS eligible to have a Section 125 plan because some employees pay for spouse/dependent insurance premiums and most employees participate in the Flex plan.  

Does anyone have any insight they could share on this topic?

 Thank you in advance.