Is it just me, or is this one heck of a labyrinth to figure this out?  I've got a participant who was overpaid by about $1,000 in an individual account (i.e. on a platform) 401(k) plan (erroneous deposit combined with immediate distribution - every TPA's nightmare).

I started with Appendix B, Section 2.05 "Correction of Other Overpayment Failures".  That says that for a DC plan, I go to Appendix B, Section 2.04(2)(a)(iii).  Flipping back a few pages, I find that section is headed "Return of Overpayment Correction Method" and is generally talking about a 415(c) refund, but it directs me to Section 6.06(3).

6.06(3) is "Correction of Overpayment (defined benefit plans)" - !?!?  That's a little odd, since 6.06(4) is the same section for defined contribution & 403(b) plans.  I'm sure the IRS wouldn't make a typo, though, so I'll stick with 6.06(3).  This kicks me back to Appendix B, Section 2.04(1), keeping in mind that I might want to consider Section 4.05 (correction via plan amendment - no, I don't want that), and also keeping in mind that I don't violate Section 6.02 (general correction rules, like don't favor HCEs, etc.).

Appendix B, Section 2.04(1) talks about "Failures Relating to a 415(b) Excess".  Again, we're back to 415 violations, and the examples are all DB-esque.

This is the worst "Choose Your Own Adventure" book ever.

Can anyone help me make sense of this?  Or point me to something that makes the steps to correct this clearer?  Thanks!

Is it permissible to have one plan document for a 403(b) plan, but different provisions at different vendors? For example, can Roth contributions be added only at Fidelity and not TIAA or Valic, if it's written into a custom plan document?

lets say the plan was a one person profit sharing. the sponsor was the sole participants medical PA.  the participant died in 2014. the plan provides that the plan terminates upon dissolution of the plan sponsor. i believe the corp might have been dissolved in 2013.   the plan was never formerly terminated or paid out.  Would the plan need a PPA restatement?  

Assume the only 403(b) failure an employer seeks IRS relief on is the employer's failure to adopt a written plan.

If an employer adopts a written plan and files a VCP submission and pays the $500 (for 20 or fewer participants), is there anything the IRS will require ?

My federal employer excludes overtime when calculating the amount that's deducted from my pay for 401-K plan contributions. They use my base salary. Is that correct? I thought it should be calculated on gross wages.

We have a 401(k) plan that provides for matching contributions made on a per-payroll period basis (50% match on up to 6% of eligible comp), with HCEs subject to an $3,000 annual limit on the match.  We have certain HCEs who front-load their deferrals so that they don't get the benefit of the entire $3,000 match for the year. Our TPA suggested that we implement a true-up provision for the HCEs.  It seems like there would be a discrimination issue if we allowed a match to be allocated on a plan year basis only for HCEs. Any thoughts? 

Tripped across this.

I'm a bit fascinated by stats.

Miguel Cabrera had hit 2598 last night and I was looking up to see where that was on the all time list.

with 2605 was someone name Rabbit Maranville.

well, with a name like that I had to look it up.

played in the 10's and 20's.

Played the most number of seasons as anyone until Pete Rose.

but the story about him...

Maranville appeared in all 156 games during the miracle season of 1914, driving in 78 runs out of the cleanup spot even though he batted only .246. He came up with many big hits during the Braves' pennant drive, but none was more important than the game-winning home run he belted in the tenth inning on August 6--even though he was suffering from a severe hangover from drinking too much champagne at a dinner party the night before. "In the clubhouse while I was undressing Stallings came over to me and said, 'You go back to choking up; you are no home-run hitter,'" Rabbit remembered. "Truthfully, I never did see the ball I hit, and years later Babe Adams, who was the pitcher that day, asked me if it was a curve or a fastball I hit over the fence. I told him I never saw it and he said, 'I know darn well you never did.'"

Are there any tax withholding requirements when it comes to Federal criminal garnishment distributions from a plan?

Participant terminated, but was rehired.  He received his distribution after he was rehired as the client didn't realize he shouldn't get paid.  He got paid in two parts.  A rollover and a cash distribution.

The exact dollar amount was returned from the plan he rolled into.  (not any earnings).  Not sure how they are handling it as far as 1099R. 

He got paid cash (Roth)- he paid 100% of the cash back, including the withholding on the earnings.

So I think we still have to do 1099R for him, so that he can get his withholding back.  But should we adjust that to show the distribution just being the withholding as the money is back into the plan?    Also show as nontaxable distribution?

Thanks

A defined benefit plan retiree was receiving monthly payments on a life annuity. The checks issued since January 2016 remain uncashed. The plan sponsor has now determined that the participant died in December of 2016. I think it is not a problem to stop payment on the checks issued after December 2016, but what do they do about the uncashed checks from before the date of death?

I have a client who is rescinding their 5 year amortization base extension.  After rescinding, can you re-elect the 5 year amortization extension?  I can't find anything that says you can or you can't.  Thanks.

If a person is employed by 2 seperate entities offering 403(b) plans (she has no ownership/control in either, nos is an HCE) and has negotiated nonelective employer contributions with both, is the 54,000 annual additions limit seperate for each plan or is it a combined limit?  

Quick question on SPD fulfillment to plan participants. I've had trouble finding specifics on timing of when these need to be provided to existing participants. I have seen the 'every 5 years' timeframe, as well as after a substantial plan modification. My question is, what is substantial? I have a plan that restated their document for PPA recently. Nothing major was updated in the plan when it was restated, so is a new SPD mailing required? The SPD is currently available via the TPA's website when participants access their individual accounts. 

Thanks!

We all know that 10% is required. Can anyone point to a cite which states whether it is based on BOY or EOY assets? Thanks.

A dentist had his dentist son working for him for two years as a 1099 independent contractor.  He had a retirement plan and the all of his employees were covered.  The son now wants to start his own plan and wants to have dad's employees wait until they satisfy the service requirement for him before entering his plan, however he wants to count the service as an independent contractor in order to participate in the plan.  It would seem that if he counts his service that he would have to count the service for dad's employees under either family attribution or possibly ASG.  Any thoughts on whether what he is trying to do is possible?

Does ERISA permit new plan loans to terminated participants who have remaining account balances?  Can you provide the code section if ERISA addresses this topic.

Hello everyone. I took a loan in Feb 2015 for $24000 (with interests $32,738.92) for my marriage and home expenses. I get $83.28 deducted from my paycheck bi-weekly. I will extinguish my loan in Feb 2030. Are there any types of option that would allow me to make partial payments so I can close this loan sooner? I have left $21,225.45 to left to pay off and I hate the idea that I can't make partial payments, especially when I know that the interest for this loan is $8,738.92 . If there are no options, I though about going to my bank (Global Credit Union) and ask for a loan for the amount required and try to see if I can eventually payback the new loan with bi-weekly or monthly deductions from my account or paycheck, and be able to make partial payments along the time frame. If this is possible, would this be a good a idea? I apologize for my way of expressing myself. I hope I made this case easy and simple to understand. Thank you

News to me:  Florida collects a "stamp tax" on 401(k) loans?  How do you apply this?  Is there a 1099 involved?  Or other tax form? 

Is the amount reduce from the loan proceeds, or taken on top of the loan, like a fee?

How is it remitted to the state?  Form and check?  Online?

Your thought are valuable and appreciated.

We started up an Open MEP recently and question the best way to collect fee's on it.

Before it was a MEP, the fee's had been paid out of plan assets. We had a base fee and then a per participant fee. A total fee was calculated and then taken based on account balance.

Not that it is split, we are now not 100% sure if there are certain fee structures that can't be used. Let's say we have the following company fee structure.

For simplicity, a $25 per participant fee.

20 people in company A and 80 in company B. - Total fee is then $2,500.

However, Company A has 50% of the assets and Company B has 50% of the assets.

Now it's created a situation where even though Company B has created $2,000 of the fee's, it only has to pay for 1,250 of it.

Does anyone have past experience with this or know if there is some sort of regulation on how we can charge the fee's then for this case? The company would not want to start paying the fee's - they like to have as much paid by the plan as possible.

Employer allows broker to promote "voluntary" insurance products (AFLAC type junk) to employees and accommodates payment of premiums via payroll deduction (no employer contribution).

Are these "employee welfare benefit plans" subject to ERISA and requiring filing of 5500s if large enough?

Does it matter whether the premiums are being deducted pre-tax pursuant to a cafeteria plan or after-tax?

Thanks