Premiums for health insurance plan based on what "salary band" an employee is in.  If an employee gets a raise mid-year such that he jumps up to another salary band (which raises his premium), is this a change in status under Section 125 allowing a change to the employee's election for the remainder of the year?

Imagine how quickly people will act the next time sweeping regulatory changes are proposed.  I feel bad that a lot of MAJOR corporate decisions were made based on this rule. You had companies simply withdrawing from this industry and selling whole divisions in anticipation.  So they're going to be penalized for getting ahead of the curve. 

https://www.insurancenewsnet.com/innarticle/1154689

I am starting to question myself on whether this is a controlled group due to stock attribution.  I don't think it is and would appreciate some input from others...

Two companies.  The ownership for Company A is 100% Joe.  The ownership for Company B is 25% direct ownership Joe, 25% direct ownership Jane (spouse of Joe), 50% direct ownership Tom (father of Jane).  Since Jane and Tom are not employees of Company A (and have nothing to do with Company A), they would not be considered an owner of Company A (since there is no direct ownership, income, voting rights, etc.), correct?  So then it comes down to just Joe's determination.  Since Joe owns 100% of Company A and 25% of Company B, and taking into account that even with Jane's 25% direct ownership, that would mean that due to stock attribution, they own 50% of company B, correct?  Tom is also employed by Company B.  His direct ownership is 50%.  So when it comes down to identical ownership, it is right at 50%, correct?  But my understanding is that they have to have MORE THAN 50% direct ownership to be considered.   Do you agree that this would not be a controlled group?  

Thank you in advance, for your responses.

I've seen anecdotes where if the excise tax on late deferrals is low (either gross amount is $100 and $15 tax or the tax amount is less than$100, I forget), then you can just add the excise tax to the earnings and not file a 5330.

Is that true?  Or is this just an urban legend?

Hello,  we have just completed a project whereby we caught up a 403(b) plan for Form 5500 filings.   Client did not know they had to file.  We ended up filing 10 Form 5500's. 

Is the client expected to hand out 10 SAR's for these very outdated plan years?

Can someone give me a good write-up on how to do this?  I can't find anything elaborate but I've heard this is agood technique. At the end of the day, is it as simple replacing NRA in a formula with the SSRA?  So for example, if someone is 70, testing age is 70, but otherwise, use SSRA?

A participant terminated in 2012; she had a defaulted loan at that time.  from looking back at records, no 1099R was done for the loan.  She got a cash distribution in 2016.   Could a 1099R be done for 2016 and include both the cash distribution and defaulted loan?

Or should a 1099R be done for 2012 & 2016? 

If just 2016, can the total of cash and loan be on one 1099R

Thanks

In a profit sharing plan excluding union employees, there are some employees who are covered by a collective bargaining agreement, yet they also work for the employer and are paid by the employer (outside the union).  Employee has worked enough union and non-union hours to meet eligibility for the employer's (non-union) plan.  In a plan year, do his union hours count toward the allocation conditions for a profit sharing contribution (made by the employer), and also for vesting. 

If he were to leave the union, it's my understanding his union hours count towards eligibility and vesting, making him immediately eligible for a profit sharing contribution.  My question relates to a year where he is paid both by the union and by the employer.

We have a plan document that excludes a class of employees (hygienists) that are not "excludable" with fail safe language.  Plan also has last day/Y of S requirement as allocation conditions.  Needed to add back the employees that don't meet the allocation conditions but ratio test is still not satisfied.  My inclination is to add back some hygienists to pass ratio test.  However, it seems that ABT is still an option without having to add back the hygienists.  Not entirely comfortable given that doc has the fail safe language.   

Wife and I would like to get access to our retirement account to pay off debt at this time. 

Fidelity has stated that the only way to do so would be a court order.  QDRO.  Is there anything that an attorney can do,  as I have one and just needed to know what we would like to file and how.

It's a state retirement fund through a university.  It was a ASRS fund but got switched to Fidelity.

Thanks and I'm not familiar with any of this stuff at all.

DB plan's normal retirement age is 65. It allows an early retirement, but only if a member has attained age 55 and has 10 years of benefit service.

The employer is looking to freeze all benefits as of 6/30/17. They will continue to credit service in regards to vesting, but are they allowed to freeze benefit service as of this date for the purpose of early retirement eligibility?

For instance - assume a member is age 57 and has 9 years of benefit service as of 6/30/17. He/she could have been planning on retiring at age 60 - but will no longer be able to retire early if benefit service is frozen.

Is the plan sponsor allowed to do this or would this violate a protected benefit rule?

http://ntsa-net.org/Industry-Intel/MarketBeat/The-Birth-of-the-First-Ever-IRS-Pre-Approved-403-b-Plan-Documents

a 66 year old owner of a C-corp recently took SS benefits. He is being advised by his CPA that he should cease taking income from the company due to the cost of FICA.  His wife is employed at the company and she inquired as to whether he could defer on 1099-M income from rent he receives.  They have a SIMPLE 401(k) and he has never deferred the full amount. I suggested maybe a minimal income close to the amount he would like to defer which is generally $100 a check. 

I represent an employer that contributes to a multiemployer pension fund.  The fund wants to utilize Revenue Procedure 2010-52 and submit an application to the IRS for a 10-year amortization extension.  In connection with that application, the fund is asking my client to send directly to the IRS certain financial information about the employer.  My client is concerned about maintaining confidentiality of its financial information (it is closely held) and wonders whether it should decline to provide the information so that the fund enters critical status where the trustees have some better options for addressing the funding shortfall.  Does anyone have any thoughts on this?  Thanks.  . 

We are using the prior year testing method.  We have an employee that was a NHCE in 2015.  He became and owner in 2016, thus an HCE.  For purposes of the ADP test, are his deferrals included in both groups? i.e. his 2015 deferrals as part of the NHCE group and his 2016 deferrals as part of the HCE group?

Thanks.

Imagine a 501(c)(3) charitable organization asks for your advice about whether it should establish its retirement plan as a 403(b) plan or a 401(k) plan.

Here are some hypothetical facts about this charity:

It has about 43 employees, all in one place.

There is no highly-compensated employee, and the charity anticipates there never will be one.

The highest-paid employee has gross compensation below $100,000.  The charity intends to keep her compensation below this mark that calls for reporting details in Form 990.

The plan would allow voluntary salary-reduction contributions, and might provide some matching contributions.

The charity's governing body believes none of the employees desires any investment beyond mutual fund shares.

For this situation, would you suggest a 403(b) plan or a 401(k) plan?  Why?

Which factors - whether about the different Internal Revenue Code provisions, or about differences in investments and services available - should a smart decision-maker consider?

There is a controlled group with 5 plans in it.

Plan A and Plan B need to be permissively aggregated in order to pass 410b coverage testing.

As a result, when performing the ADP/ACP test, we combined Plan A and Plan B.

Plan A and Plan B have different matching formulas and as a result we need to perform a BRF Test.

When performing BRF Test, is the denominator based on the entire controlled group or just the combined Plan A and Plan B?

Distribution department incorrectly processes a rollover as a lump sum. Participant has balance of $8,000. $5,000 went to the rollover company and is being coded as a G on the form 1099. The remaining $3,000 was sent to the IRS as tax withholding. Participant received zero dollars. That 1099 is being coded as a 1.

What options does the participant have regarding the $3,000 tax withholding? Can they contact the IRS to explain the situation? Or is their only option to file their taxes and receive most of the $3,000 back as a refund? I am assuming that with the latter route the participant would need reimbursed the 10% penalty (any way to avoid that?) and any part of the $3,000 she doesn't get back.

How many years do records of membership in a HDHP plan be retained (for purpose of proving HSA eligibility in a given year)?

For final payroll of the year, owner increased 401(k) and maximized catchup capabilities - deposit was made.

Payroll company would not in turn honor that deposit because the plan sponsor was not configured in their system to allow for catchup. They proceeded with they payroll they wanted.

We are at a stalemate. Payroll company telling owner to withdraw that amount but we are saying no.

Think it would be fine to submit to tax preparer actual contributions which do not match the W-2?

(not looking for commentaries on payroll companies, just trying to describe situation)