Town DB plan with employer pickup contributions (yes - formal action was taken when implemented).  Town is amending plan to retroactively include position that was previously excluded.  Employee will need to make up contributions for period of credited service she will be granted (and she will start contributing prospectively for future service as well).  Do the contributions for the period of past service need to be made on an after-tax basis or is there some way to draft the plan so that these contributions are picked up by the employer as they would have been  if she had been included all along.  I know she can't be given a choice, but can the plan specify that payment of the past contributions will be paid over a certain period and will be picked up by the employer? 

I have the same question for making up contributions after returning from a leave of absence.  If the plan bridges service and requires the participant to contribute for period of leave, can these be picked up?

I'm requesting input from the daily plan administration community.  We are trying to minimize risk and not tak on too much fiduciary responsibility in our actions.   In our practice as a daily record keeper we direct the trade orders.   Some in our firm would like a client affirmation prior to processing ADP corrective returns.  Others know practically, involving the client or participants in this process is a frustrating process that only creates anxiety and has its own monetary risks and service problems.    What are others doing? Processing without approval?  Explaining the process upfront and not asking approval at the time of processing?  Asking for approval and processing after a # of days regardless? Asking for approval and not processing until approval is received even at the risk at missing the corrective distribution deadline?

The text of the House Bill has been released.  Let the fun begin.

https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf

The proposal would be to subject NQ plans to income inclusion upon the lapse of a substantial risk of forfeiture (later of contribution or vesting) and existing deferrals would need to be subject to taxation no later than 12/31/2025. 

SEC. 3801. NONQUALIFIED DEFERRED COMPENSATION.

(a) IN GENERAL.—Subpart A of part I of subchapter13 D of chapter 1 is amended by adding at the end the following new section:

SEC. 409B. NONQUALIFIED DEFERRED COMPENSATION.

(a) IN GENERAL.—Any compensation which is deferred under a nonqualified deferred compensation plan shall be includible in the gross income of the person who performed the services to which such compensation relates when there is no substantial risk of forfeiture of the rights of such person to such compensation.

I have a controlled group, 2 companies.    They have passed coverage separately  in prior years with sometimes combining for a better result in the ADP test/ACP test.    Company B wants to increase their match but also exclude bonuses from compensation.     Will this effect Company A for any reason?   

A ERISA plan that we don't maintain the document for is transitioning from one platform/recordkeeper to another.  When it was set up with the recordkeeper that they are leaving (~10 years ago), spousal consent was necessary for distributions and loans.  In 2015, the plan was amended to remove the QJ&SA rules, but it doesn't seem that the recordkeeper was notified - or if they were, they never updated their records.

Now the new recordkeeper is asking who they should follow - the plan doc or the old contract.  My instinct says "plan doc" since it is an ERISA plan and the plan sponsor has the authority to make those changes to the plan.  Any reason that wouldn't be OK?

We prepared a preliminary adp test for a client since their test failed last year. Based on this test, the HCE has contributed about $4000 too much. Can this amount be sent back to the employer then have the HCE's pay corrected on the payroll end? 

Can you tell that I work for a payroll company?

I know that advertising is not permitted in these forums, but I'm asking for assistance in finding a source for ESOP record keepers - whether you could point me to a list or just let me know if you company handles recordkeeping for ESOPs.  Prefer a firm with experienced advisors on hand that would identify if we are doing anything incorrectly with our ESOP.

Thanks in advance.

A small non-profit (no HCEs) has a simple IRA that they have been contributing to all year.  They are considering a 401(k) and want to know if it is possible this late in the year to start the 401(k) and submit the simple IRA under VCP.

Is this even possible this late in the year?  I know the VCP process for correcting simples is more streamlined, but I had always thought that the later you get into the year the less likely the IRS would approve.

Thanks.

We have a physician group "A" that split into two groups B and C effective January 1, 2017.  They continued to maintain the existing 401(k) plan for 2017 to date.  They will each adopt their own plan effective January 1, 2018.  In my mind this will be handled as a spin off from Plan A with the assets transferred to B and C.  The participants would not have incurred a severance of employment.

The national retirement plan Company who currently has the A plan is holding firm that the participants will have to elect distribution.  Their basis I think is that Plan A is terminating.

Seems simple enough to me that Plans B and C represent successor employers  and the retirement plans are replacement plans and would not allow for distributions.  

Any thoughts would be appreciated.

Due to hurricane participant takes 2017 RMD in January of 2018.   they were given until january 31 under the hurricane relief. which tax year is it included for, 2017 or 2018?  

Anyone seen a write-up about how a 401k plan for these things would work?  Are there any special caveats to be aware?

Searched for this but did not find matches...

Exisiting DC Plan has husband, wife and son all participating.  There is one employee who is not yet eligible.  Plan assets total $180k.  Should this plan be filing some version of a 5500 form?  I know the one participant rules can apply for the spouses and assets below $250k, but I did not know with the son as an active participant and an employee who may eventually be eligible if they should be filing an "SF" or not?  I believe that no returns have been filed up to this point.

Thanks in advance for all replies.

NFP ER has a non-ERISA 403(b) plan.  For many reasons, this arrangement is no longer satisfactory and they want to 'start fresh'.  They would like to freeze the current plan (I know I can't terminate it and get it all paid out within 12 months) and install a new ERISA 403(b) plan on a single vendor platform.  The participants can transfer their accounts from old plan to new plan even without a distributable event, right?  The catch is that we'd have to preserve distribution options from the old accounts for participants who are still employed at the time of the transfer.

Am I missing anything?  Thanks.

Does anyone have a good way to explain the terms "service organization" and "regularly associated with an FSO in providing services to third parties" to someone who just doesn't want to believe an ASG exists???

I have a physician client (yea, surprise surprise) who decided to sell his "practice" to an organization who will take all of his employees off of his hands, leaving just the physician in his "practice". I inquired as to whether the organization was a service organization and if the physician and the organization will work together to provide health services to patients and the answer given was "_________ (the organization) does not provide healthcare services, but rather administrative and support services to the doctors".

Well, if the employees that were moved to the organization include nurses who will draw blood, insert IV's, etc., how is that NOT considered providing a healthcare service???

I guess I am looking for the Sesame Street version of explaining an A-Org ASG.

Takeover MP plan allows participants to either self direct in brokerage accounts, or choose the pooled account, no combination thereof. Participants in pooled account receive annual accrued statements only. Should they be receiving quarterly statements with updated balances?

We have a client that really dislikes his current recordkeeper who is also doing the tpa services. He wants to transfer his plan over to a new recordkeeper and retain us as the tpa. A letter was sent by the client  stating that the plan be transferred as soon as possible to the new recordkeeper. The current recordkeeper came back stating that they could not do it until until 1/1/2018.

My question is are there any IRS regulations addressing the time frame that a recordkeeper has to transfer plan assets?

Thank you for any insight into this matter.

We have a client who mistakenly took his RMD from his multiple qualified plans from just one of the plans in 2017.  Naturally the plan with the lowest RMD is the one from which he took the RMD.  It is well past the 60 day rollover period.  Is there anything that he can do to correct this issue so he doesn't have to take out almost double what he was required to take out?

I have a client that has had a MEWA since 2008. They never filed the Form M1. They wanted to know of examples of penalty fees others have faced in similar situations on filing Form M1s late. Any input would be greatly appreciated. The DOL will only state what could happen on the fees. Many thanks for your help.

There is a small publisher ... 2 employees.. both owners...  50/50... Setup a Solo 401(k)

• Employee A invested $100K in startup costs
• Employee B investing sweat equity

Employee B is the graphic designer and owns a separate graphic design business. This business does have rank and file employees.    No plan

Employee B does not earn any compensation from the publisher company.  Employee A does and makes a salary deferral contribution from his publishing compensation. 

Both employees receive a K-1 from the publishing company... no SE income declared on these K-1s

• Is this a control group?
• Does the graphic design company need to be included and allow their EEs to participate? 

Thanks

Does anyone have any data about the number of 401(a) plans that are in existence?  Thanks!