Participant's last day of employment is ON 12/31/2016.  He worked ALL DAY 12/31/2016.   He is 74.

When is his first RMD due?

Discuss!

Is there a deadline for a nonprofit to make an employer contribution?

Specifically, if a calendar year plan files their 5500 prior to July 31st but they also have an extension (5558 was filed timely), when is the deadline for the SAR?  Everything I've read says two months after the filing deadline including extension.  Does that give the plan sponsor until December 15th to distribute the SAR?  Many of my clients include the SAR in the annual filings even if they have filed before July 31st.  Thanks!

Can someone give me more details about calculating refunds for a takeover plan when the prior provider will not provide earnings information for HCE subject to refund?  I know there is a provision that the refunds can be calculated on the time the assets were deposited to the new recordkeeper and projected to an annual rate.  I'm just having trouble finding the source.  Thank you.

Just curious as to how people generally handle this in real life. Suppose you have Corporation A, which sponsors a plan. Plan passes all testing just fine, and employer doesn't want any changes whatsoever.

Owner is also 100% owner of Corporation B. No employees other than the owner. No Plan, and doesn't want to adopt Plan of Corporation A as a participating employer. Assume document properly reflects existence of CG, but related employer (Corp B) doesn't adopt the Plan of Corp A  as a participating employer.

Although you technically have to consider compensation for the owner from Corporation B for 415 comp, nondiscrimination testing, etc. - would you bother to ask for it, particularly if the employer doesn't really want to give it? Since it could only HELP passing testing, which already passes, would you ignore?

Assumption:  All participants except HCE's terminated employment 2/28/17.    (Company Bought out - new company took employees and business, but not plan or corporation)

Existing Corp will continue until 12/31 as owner finalizes everything.

Owner wants to make PS contribution for the year.

Owner already put in $24,000 deferral - So cannot terminate plan as of 2/28 due to 415 limits.

Assuming the NHCE's compensation is $110,000 for 2 month year they worked.  5% (SH and GW) is $5,500

Owner anticipates Compensation to be around $50,000 for him.

If we continue the plan until 9/30.

415 Limit would be 54,000 x 9/12=$40,500

HCE max  ER contribution would be $40,500-$18,000 =$22,500

Maximum Contribution limit = .25 * (110,000 +50000) = $40,000

$5,500 +$22,500 =$28,000.

If we can pass Average Benefits Test - is there anything else I am missing?

I want to try to terminate the plan before 12/31 so that participants can get paid out before year end.

Plan has a discretionary matching contribution.  The Plan Sponsor is wanting to eliminate the matching contribution for the rest of year.

Notification required to participants should include (not limited to just these)

• Date the matching contribution will cease
• How to change future deferral elections with form
• Explanation of how match through March 15th will be determined (payroll v payroll)

Question - the Plan Sponsor is under the impression that they are required to provided a 30 day notice.  While I believe may be in their best interest I do not believe a 30 day notice is required.

Any thoughts would be greatly appreciated.

Our salesperson sold a 401k plan to company that should never have happened. This company should've never been sold a 401k plan. Participation is poor. The ADP/ACP failed. The TH 3% contribution is over $90k and they will need an accountant's report.

Is there any way we can terminate this plan as if it never happened?

Plan fails coverage, with no fail-safe language.  In my document I see the protocol for letting people in when there IS fail-safe.  But how do you correct it if there is no such language?  Do I need an 11-g amendment?

Is anyone aware of any 401-k plans that are offering QLACs. If so can you share the following

1.       Size of plan in participants and dollars

2.       How many QLACs have been purchased and total sales amount

3.       Which insurer.  

Thanks.

What happens to the existing loans when a plan changes loan provisions? Let's consider these scenarios:

1) There were 2 loans allowed in the past, but now the plan is amended to allow only 1 loan. Can participants who had 2 loans outstanding prior to the amendment still maintain both loans?

2) What if a participant with 2 loans wants to refinance them? Can he do that even though the plan only allows for 1 loan now?

3) What if the participant had loans outstanding and the plan was amended to not allow any loans. What happens to the existing loans? Can the participants still refinance?

Thanks in advance.

On occasion we take over TPA services from another TPA firm in the area.  The prior firm does not cooperate with the transition and in some cases, the plan cannot locate any prior year reports that provides crucial information related to plan assets, census and receivables.  Is there any formal organization where the plan can file complaints? 

Non-governmental entity created a 457(b) plan 5 years ago, but did not ever tell some employees who were eligible for it that they were in fact eligible.  There are no employer contributions, only elective deferrals.  Is there anything to correct?  If so, what would the correction be?  I am not sure about following 401k correction procedures for missed deferrals.

Basically a few higher up employees could have made elective deferrals, but werent aware that they could.

I'm a little new to 401k, and my company has encountered a situation in that a certain group of employees have decided to unionize. Currently, every employee in the company has the same 401k structure (elective deferral, company match, safe harbor, profit sharing). Should the unionization go through, leadership will likely not want to give them any more than they have to. If they are to be under a different structure (say the company doesn't want to give them safe harbor and profit sharing), can this be done and would it require a separate plan or just a change to the plan document?

Thanks

Ee is a new hire in 2016 and thus an NHCE in 2016.  Allowed into the Plan early.  Today we want to amend the Plan retroactively to allow him in.  The problem is he made $130,000 in 2016.

He would have entered 1/1/17 absent the EPCRS amendment, so the amendment would only affect the period of time that he was an NHCE.

What do you think? Can we use EPCRS SCP for the retro amendment to make him eligible in 2016?

Can SIMPLE IRA be merged into a 401(k) mid-year. I know the SIMPLE IRA cannot be terminated mid-year, but can it be merged mid-year into a 401(k) plan. If not, would it be required to wait until the end of the year, then terminate the SIMPLE IRA and rollover the assets into the 401(k) plan.

Thanks in advance.

One of several participants in a 401(k) plan is age 50+ and has compensation of $28,000.  He is an HCE and defers $24,000.  The company will be making a profit sharing contribution - will he be able to be allocated $10,000 as a PS contribution ($28,000 comp + $6,000 catch up - $24,000 deferral), or will he be limited to only a $4,000 contribution due to the 100% of comp 415 limitation?  

We have a plan that failed ADP (deferrals only).  The HCE is due a corrective distribution as it stands of $7376.78 plus earnings.  They are also Top=heavy and the amount due for TH is $23,300.05.

The QNEC required to pass the ADP is $27101.19

IF they want to put in the $27101.19 - as long as it is vested 100% - can this count for both TH and meeting ADP test and avoid the corrective distribution? 

Would LOVE feedback!!!!

All deferral elections are made online through payroll company software. The payroll company claims it is not possible to have different deferral limits based on date of birth, and therefore requires separate elections for deferrals and catch up contributions. 

Participant elected to defer 7% of pay. That would have yielded a total contribution of $18,740.03, but for the payroll company requirement that catch up be elected separately. (It is not yet known if the participant intended to make a catch up contribution.)

Does this require a correction because less than 7% of pay was withheld? Or is it permissible to require a separate online election for catch up contributions?

Governmental DB plan is changing from 9/30 to 12/31 FYE. What are financial statement requirements with respect to the period 10/1/x0-12/31/x1? Are they required to complete financial statements for the FYE 9/30 and create a short FY ending 12/31 or can they have a 15 month FY?