We recently took over as investment advisor on a 403(b) plan with TIAA-CREF. The client is telling us that, although the plan is bundled, TIAA-CREF will not prepare the 5500. They have provided schedules indicating all of the information that needs to go on the form, but will not prepare the actual form.

Is that typical of TIAA-CREF -- or is the client misunderstanding something?

Hi, I am relatively new to this site and if I am asking the wrong question in the wrong place, I hope someone will say so!  I thought I posted this question yesterday and it seems to have disappeared.

If a client's 2016 corporate tax return is on extension from March 15th of 2017 to September 15th of 2017, normally speaking, the client would have until September 14th of 2017 to make the final 2016 contribution deposits such as match, profit sharing and Safe Harbor.  Now, with Hurricane Irma relief, the client's corporate return does not have to be filed until January 31st, 2018.  Does that mean that the client now has up until January 30, 2018 to make his final 2016 contribution deposits?  Thanks in advance for any advice!

I have several clients in the IRMA affected area. The IRS release grants relief wrt to the otherwise applicable mrc timing (i.e. 8.5 months after the close of the plan year) to 1/31/2018 and likewise for the 9/30/2017 AFTAP certification. I assume though, that the discounting of contributions to the relevant valuation date would still be from the date the contribution is made (i.e.  ,9/15/17-1/31/2018) is not a interest discounting free zone). Anyone disagree?

Hello All -

I was hoping to get some insights from this group on daily benefit's reading.  Specifically, I'm looking for the best sites to go to ensure I am getting the most up to date information on any benefit changes (mainly DB, DC, but also touch on health and welfare plans and exec. comp.).  I then dig deeper depending on the information provided.  On a daily basis, I am only reviewing the news links on this page and the IRS and DOL news pages.  Are there others you could recommend...other recommended blog sites, etc.?  Thank you for your time!

Plan failed the ACP Test for the 2015 Plan Year and corrective distributions were made before 03/15/2016. The Plan also failed the ACP Test for the 2016 Plan Year and corrective distributions were made before 03/15/2017. For both Plan Years, the Prior Year Testing Method was used.

While reconciling the Match contribution for 2016, it was discovered that 1 Match deposit was actually for the 2015 Plan Year. I have re-run the 2015 ACP Test and 1 HCE needs more distributed and the other HCE had too much distributed. The revised 2015 test also changed my NHCE Prior Year percentage - used for the 2016 Test.

The final corrective results, over the 2 Plan Years, show that 1 HCE's net result is that he had too much distributed. The other HCE did not require a correction for 2016 - but did not have enough corrected for the 2015 revised Test.

Is EPCRS the only remedy available? The total "net" correction still due is less than $25.00. 

1.  If a plan sponsor makes a QNEC to make up for missed deferrals that is equal to 100% of missed deferral opportunity instead of 50%, is that ok?

2.  If a plan sponsor makes QNECs of 50% missed deferrals to correct one type of error (incorrect definition of compensation) and QNECs of 100% missed deferrals to correct a different error (failure to correctly implement election due to incorrect application of deferral limits), is that ok?

Plan sponsor made corrections to 401k plan in Dec 2016 to correct for incorrect definition of compensation. Some employees received 50% QNECs to make up for missed deferrals, others received distributions of excess amounts.

In March 2017 sponsor realized the Dec distributions resulted in several highly paid participants deferring an amount less than the statutory limit when they would have deferred the statutory limit if the errors had not ocurred. i.e. Person A elected to contribute 10% of pay. His contributions were stopped in July when he hit $18,000. In Dec, correction was made for inclusion of ineligible comp in those deferrals and he received a distribution of $1,500. No adjustment was made for his contributions being "turned off" in July due to limit, thus his total contributions for 2016 were $16,500.  However, if his election had been implemented correctly he would have continued deferring until he hit $18,000. Sponsor made a QNEC of $1,500 in March 2017 to correct.

The question is whether there is a issue with the 100% QNEC made in March (small number of more highly paid) being inconsistent with the 50% QNECs for most participants, and if so, what should be done?

Those who have remarked on some investigators’ unsupported assertions about which methods and how much effort a plan’s administrator ought to use in searching for a missing or unresponsive participant might want to read this American Benefits Council letter.

https://www.americanbenefitscouncil.org/pub/?id=d68a50ca-908c-9e37-d53d-3111689f91ff

https://www.irs.gov/pub/irs-drop/n-17-60.pdf

  new hire entered safe harbor 403(b) 8/1/17 and filled out the salary redirection form in August for 6%. He failed to enroll in the plan online and plan sponsor inadvertently filed his form without setting him up (it was an oversight on sponsors part but they were waiting on him to enroll before they added his contribution amount into ADP). He’s now requesting that they take the extra two months out of his next check and would like the enhanced SH match (100% up to 6%). 

I am of the opinion the sponsor has to make a QNEC of 25% of what his deferral would have been along with SH match and any earnings under SCP.    Is this the proper correction?

How do you count hours for a leased employee who works for 4 different employers that are not related?  One provider employer is the employer of the employees and 3 other recipient employers lease the employees.  There is a contract that states that the provider employer employs the staff and the 3 other recipient employers pay 1/4 of the employees salaries and benefits.  When determining whether the 3 recipient employers have leased employees, do you count all of the hours worked for the 4 entities (they are unrelated)?  Or are the employees credited with 1/4 of their hours for each employer?

I see that the proposed regs, that were withdrawn, somewhat addressed these questions, but since those weren't enacted, and Notice 84-11 does not address these questions, how do we handle these leased employees?

If October 13 falls on Friday the 13th, you have good luck and your deadline is extended until Monday the 16th.

Now there is a comforting thought!

Hello,

Our plan has a DB, 401(a) and multiple 457(b) plans and was originally one plan sponsor.  When the plans were first created they were all under the plan Sponsor's tax id.  Over time the DB plan moved to it's own tax id.  The 401(a) and 457(b) are still under the original plan sponsors tax ID.  The plan is now a multiple employer plan.  My first thought is that the 401(a) and 457(b) should be under the same tax id number as the DB plan.  I have also heard arguments that that should all have individual tax's ID's. 

Thoughts?  Any supporting links you could send me to?  TIA.

Kelly

There was a question that I was replying to, and it apparently disappeared, or at least I can't find it again quickly. It was asking about the definition of "dependent" and questioning whether it had changed after 2004. So here's the response I made, or tried to make,  in case anyone is interested.

The final regs did modify it. Section 1.401(k)-1(d)(3)(iii)(B) makes some modifications. Hopefully I got the reference right...but it changes the definition of dependents to ..."(as defined in section 152, and, for taxable years beginning on or after January 1, 2005, without regard to section 152(b)(1), (b)(2) and (d)(1)(B)." That's for tuition, etc - I think the other applicable changes refer just to 152(d)(1)(B). Anyway, I'm sure you will want to look it up.

Hello. I have a participant who is 76.  She is retiring 11/30/17.   She wants to roll her money to an IRA, and then before 4/1/18, take the RMD from her IRA.  Our procedure is to process the RMD first,  and then the distribution.  Can anyone point to IRS information that says she can go ahead and roll over her money without taking the RMD and then take it from her rollover?  Her financial advisor is pushing us to do it this way.

Thanks in advance!

I haven't seen any number for some of Schedule R - Part I - Line 3 that I have reviewed.

Is there any reason why pension practitioners don't enter the number on this line 3?

Below is the excerpt from Schedule R- Form 5500 Instructions           

Part I – Distributions

Line 3. Enter the number of living or deceased participants whose benefits under the plan were distributed during the plan year in the form of a single sum distribution. For this purpose, a distribution of a participant's benefits will not fail to be a single-sum distribution merely because, after the date of the distribution, the plan makes a supplemental distribution as a result of earnings or other adjustments made after the date of the single-sum distribution. Also include any participants whose benefits were distributed in the form of a direct rollover to the trustee or custodian of a qualified plan or individual retirement account.

Is the cost of conversion from one investment platform/recordkeeper to another considered a settlor expense?  I think not, but want to confirm since it is a Trustee discretionary decision to move the plan's assets.

Hi folks,  looks like a client of mine paid all but $5 of their 2016 MRC before the 9/15/17 date.  Not sure how to proceed.  Is it worth filing the Form 5330, or can they make up the payment in the next day or so without filing?  Thanks

Plan Doc says profit sharing forfeitures are to be used to pay expenses, or reduce employer contributions. Plan Sponsor declared $0 profit sharing contribution for last year, but there remains a balance after payment of fees.

Makes me uncomfortable but can that balance remain sitting in the forfeiture account until a contribution is declared? Perhaps a contribution for that amount should be declared for 12/31 of last year equal to the forf account balance at that date? With no actual deposit occuring, would there be any affect on Plan Sponsor's non-retirement plan accounting?

Wondering if there might be a way to get a ROBS 401(k) from an existing Individual 401(k) that also has a loan attached.  TP doesn't have the cashflow to pay off the loan now, so doesn't want to risk termination of that aspect.

If anyone is familiar and drafts documents for this, please let me know thoughts and prices.

Deductions were made from my paycheck 2xmonth to repay a 401K Loan, however, my employer did not send the payments to Fidelity regularly and my loan went into default. I only found out about this because I called Fidelity today and to top it all off my employment was terminated today as well. I notified my employer and have not heard back. What is my recourse?