Has anyone ever seen an analysis done for just how detriminental ADP refunds are to an HCE's savings IF the refunds are invested after tax in a regular brokerage account?  I wonder if there is even analysis that suggests if you pay all the withholding out of other assets and invest the proceeds.

I'm asking because I have been lately telling people that if you invest the refund instead of spending it, you are probably not so terribly worse off. Would love to have some economic analysis to back me up on this.

I am of course not suggesting that investing after-tax is better, only that the disadvantage is not drastic (but who knows, maybe it is?).  Would love to see the numbers!

generally when we create a wraparound plan doc merging H&W benefits that filed their 5500's separately, we file the original plans for the full year as a Final with zero participants in the same year the new plan starts.

example:

501, 502, 503 - 12/31/16 filed with count of 150 each

510 - new plan effective 1/1/17.

501, 502, 503 - 12/31/17 filed as final with zero count

510 - 12/31/17 includes all Sched A's

is this generally what's done?

corollary question: one of the plans being merged is a 6/30 plan. It is now March and we know the next filing will be a final with zero count. Can we file that 5500 (6/30/16) prior to the period actually ending?

I have a client with DB & DC (3% SH 401k) Plans that are aggregated for coverage and non-discrimination testing.

If I have 2 years for eligibility for the DB and PS Parts, an employee who is 401k & SH eligible gets a 3% of pay SH contribution that also covers TH 3%.

Is that employee raised to the minimum Gateway?

I hope that is enough information to respond if someone has time.  I would have thought this would be discussed but cannot find anything via the Search.

Thank you

If a participant goes from a non-excluded class to an excluded class, is he still eligible for the contributions under the plan?  Specifically, the plan excludes employees who "normally work fewer than 20 hours per week", and a full-time employee is going to a part-time position that would be excluded.  Is he still eligible to receive benefits?  Or is he now in an excluded class and not eligible for the plan?

A plan needs 11g to pass testing (401a26, 401a4, whatever). The regulation clearly states that providing additional accruals to terminated nonvested participants through 11g is not permitted. But you can do this if you vest those terminated nonvested participants as part of the 11g amendment. Is giving them 20% vesting OK? Less OK? Whatever vesting percentage is given, must it apply to the entire accrued benefit or just the additional accrual being granted under the amendment? Is there anything that specifically addresses this?

Can a non-profit have a non-qualified plan other than a 457(f) or 457(b)?

So how do you deal with this? According to Sal, these guaranteed payments, under some circumstances, ARE taken into account in computing net earnings from self-employment. Most calculations I've ever seen just use the K-1 Line 14 amount, minus 179, unreimbursed partnership expenses, oil & gas depletion.

Because these amounts are "taken into account" - does that mean the CPA has factored them in already, if applicable, when arriving at the Line 14 number?

These are often pretty large amounts.

Plan year runs from July 1, 2015 - June 30, 2016. Plan has a profit sharing allocation of 5% to all participants, no allocation conditions.

Participant earns $30,000 from July 1, 2015 - December 31, 2015. 

Participant earns $1,000 from January 1, 2016 - June 30, 2016. Participant terminated employment January 30, 2016.

Profit sharing allocation is $1,550 (5% of 31,000). Participant makes no deferrals. The profit sharing allocation is deposited in September 2016.

How does the 415 limit work in fiscal plan years? TPA is processing a 415 failure of $550 and I am trying to understand how this works in conjunction with a pro-rata profit sharing formula.

Thank you

Our plan documents have the last day of the plan year written in.

We have a plan that ends Feb 28.

What do we do in leap years?  The doc says Feb. 28, not "last day of February."

Do the regs address this?

Where can I find a write-up on when a SH contribution is missed, when are we required to do the ADP test?  Is it in the EOB?

I have a plan where, for whatever reason, the ER did not deposit a SH for two people.  They did it for the other dozen or so participants.  Do I have to do an ADP test for 2014 and 2015?  And still have the ER make the SH contribution.

What if it was for an entire population for a year?  What if it's just a true-up that was missed for the plan/a few participants?

I don't think I've ever sat down and read an clear, concise procedure for

Solo 401(K) Plan, 2 separate businesses and both have adopted the plan   Spouse is on payroll in one business and is the only employee.  The other business has no employees.  In past years, we have utilized the Schedule C income from both businesses for purposes of calculating the employer contribution for the owner.  So this year, Business A has a loss of 30K and Business B has a profit of 50K.  My guess is that we need to net the 2 businesses for income of 20K as the earned income for the owner since both companies have adopted the plan.  Can anyone confirm this? The plan sponsor business with the spouse as the employee is the business showing the loss.  

Company X maintains a defined benefit plan with a traditional formula based on final average compensation.  Participant A has completed 32 years of service with X and is within months of reaching age 65, the plan's normal retirement age.  Can A file a disclaimer with the Company X plan administrator and therefore give up his/her right to receive benefits under the Plan?  Is the disclaimer rule available only to beneficiaries and not to participants?  Why or why not?         

a one participant start up DB plan that will contain life insurance....advisor is asking for a trust ein. I don't think it's necessary.  Is it?

Employer is a restaurant with several locations.  They will  be making some major fund changes to the plan.

Mailing fund change notices is a big issue, so the client wants to post the notice on their new intranet system. The intranet will be used to post company news and for training.

 All employees will have access to the intranet while at work.

The way I read the electronic delivery rule, the  participant must have access to the information through a work site computer kiosk, even if not at their desk, 

Will posting to the intranet satisfy the electronic distribution rules?

I have two plans that are a controlled group.    Both plans have deferral and match.   If they pass 410b testing, can I test the two plans separately for ADP/ACP testing?     Thank you, panic mode time here........

Forgive what may be an elementary question. A participant in a 457(f) plan had a substantial risk of forfeiture lapse. Normally, this plan is a vest-and-pay plan to conform to the 409A short term deferral rule, so any amounts subject to SROF in year 1 are paid out no later than 3/15 of year 2. The sole participant in the plan had a substantial risk of forfeiture lapse in Y1 but the amount was not paid out at all due to administrative error.

My understanding is the amount that should have been paid in Y1 (or no later than 3/15/Y2) would have the following treatment:

1. Entity issues a revised W-2 for 2015 showing the late payment amount
2. Participant files revised 1040 showing same and pays:
   1. Interest on late payment
   2. Underpayment rate plus 1% (per Prop. Treas. Reg. 1.409A-4(d)
   3. Excise tax of 20% (per Prop. Treas. Reg. 1.409A-4(c))

Does this all seem right? Am I missing anything? 

Sec. 403(c)(2)(C) of ERISA permits the return of a contribution made by an employer if the contribution was made on the condition that it was deductible.

If a business owner makes a contribution in 2016 based on what he thought his income would be and then the income is less making the contribution non-deductible, can the contribution be returned without any reversion tax?

Can an individual age 50 have a 457(b) deposit of $24,000 in that plan as well as in a 403(b) plan?

Thanks

Working on an s-corp where the two owners deferred $25K in 2016.  They are both over age 50, so they'll get $1K (+ earnings) refunded by 4/15/17.  Fine.

This plan also has an integrated profit sharing that they like to max out.  I know that these excess deferrals would count in the ADP Test (if the plan wasn't a safe harbor 3%), but could they affect the profit sharing?  Do they count towards their individual 415 limits?

Thanks.

How do we correct the situation where the plan sent out QDIA notices, but people were not defaulted to the QDIA. Instead, people were defaulted to a fixed fund.

What do we have to do to correct this?  Thanks!!