Hi

Sorry if this was discussed before. Not a 401k person.

I want to make sure I understand this correctly.

Client is 75 years old. Because not between ages 60-63, cannot have enhanced catch up, correct?

A National TPA firm, which has a lot of turnover, is handling a Combo Plan for a Law Firm handling criminal law.  The Law Firm thought they were going to implement a Cash Balance Plan in 2021 (yes, 2021) and apparently the message didn't get across, but they signed paperwork to start it.  

TPA firm is talking to them about penalties and have sent them an email on this.  The plan has never been funded.

Can they just pretend that it never happened?  They don't want it opened. What are their options?  

I previously worked for a TPA firm and we set up a Safe Harbor 401(k) Plan for a 20 person construction company in November 2022 to start on 1/1/23.  They never sent out notices about the Plan being started and no contributions ever came in.  We checked with them and they decided they didn't want to do it, so we just allowed them to get out of it as though the Plan never existed.

Can the Law Firm treat this the same way?  Apparently, the TPA has set up a meeting and bringing their ERISA Attorney in.

Hard to find some definite details on this concern and really only have 2 plans that are profit sharing only. 

Plan Sponsor has a Profit Sharing only plan for 20+ years.

Now wants to add a 401k with a Safe Harbor design feature.

1.) Does the start of the 401k safe harbor have to be the 1st of the plan year?  or can it be anypoint in the year to start the 401k?

2.) Is it mandatory when adding a 401k that that it have an automatic enrollment  since it is not a "New Plan" 

Thank you in advance.

Hello all,

Due to an administrative mix-up a client did not file Forms 1095-C for 2023, but their insurer did file 1095-Bs. Client has not received a 5699. Do we just go ahead and file the delinquent 1095-Cs? What to do with the 1095-Bs? Any grace given there?

Thanks!

What amendments, if any, in the current remedial amendment period are needed before terminating a plan?

          I have a client with a 401(k) Plan. A prior plan participant is removing their account balance and is taking the money directly. They will receive 80% of their vested balance with the remaining 20% being transferred to the IRS electronically through the EFTPS program. What is the latest date that the plan can transmit the 20% to the IRS? I would assume that the plan has until the date the plan's annual filings, plus extensions, are filed. I just want to make sure of this.

Of recently enacted early-out distributions limited to an amount (for example, $1,000, $5,000, $10,000, or $22,000), am I right in recalling that an eligible distribution to a victim of domestic abuse is inflation-adjusted (to $10,300) for 2025 but others are not yet adjusted?

And is there any early-out distribution limited by a Code-specified amount but with no inflation adjustment?
 

A 401k plan has a year of service requirement to enter the plan.  However, employees can roll money into the plan before they hit that year of service.

Can an individual who does that, rolls money into the plan before their YOS, take a loan from that rollover?  

I would think they could not since they are "participant" loans and the individual is not a participant yet.    Or is s/he?

Thank you

My apologies I know this information is floating around somewhere, I just haven't been able to easily locate it. 

Does anyone know the fee for a VCP pre-submission conference?

Is the IRS doing them? I know it is only as time and resources permit. 

On the IRS website I couldn't see the information about fees specifically for a pre-submission conference, just the regular VCP submission fees, which I'm familiar with. Or are they $0 since the intention is that there will be a VCP immediately forthcoming with the regular full VCP fee? 

Thank you all!

A 401k plan sponsor was changing investments and recordkeepers and overlooked distributing the blackout notice.  The plan is now out of the blackout period.  Is there a correction vehicle in EPCRS for this?  Is self-correction an option?

At least one of the participants lost significant $$$ due to not knowing about the blackout as well as the mapping of his investments from old to new not aligning the way he wanted.  If the Plan Sponsor makes the individual(s) whole and documents everything from start to finish, would that be a sufficient fix?  

Do you think this is something that would be covered by the plan sponsor's E&O policy?

Thank you

Hello,

I'm currently working in PEP plan. My company A and another participating Employer Company is B. In the mid of the plan year (i.e., 12/31) employee transfer from company B to Company A on 6/20/2023.

In the company B for the period of 01/01/2023 to 06/20/2023, he had $90,000 and in company A, he earned $ 100,000 for the period of 06/21/2023 to 12/31/2023.

To determine HCE for 2024 plan year, which compensation  I have to take to determine HCE? Total compensation ($190,000) or company A compensation?

Hi

Question for 401k gurus out there.

Not a 401k person.

Existing plan with 401k/SH/PS provisions.

Called the "no name disclosed" payroll/RK company on behalf of a prospective client that I am designing a CB plan. Let's call them ZZZ

Asked ZZZ to amend the plan's SH provision from basic safe harbor to 3% non-elective effective 1/1/2025.

I was told by ZZZ that there is a 45 day rule prior to year end to change the SH, is this true?

If true, can you please provide a cite?

As a signed note, ZZZ told me that the same 45 day rule may apply to amend the PS provisions as the plan has SH in it (PS has last day rule) which I said, I do not think so.

Am I missing something here?

Thanks

Under SECURE, sole-prop can adopt a 401k plan after year end and prior to 4/15 (as far as I know, no extension in filing allowed)

How about changing deferrals for an existing plan? Do they need to be done by 12/31 or can be done by 4/15 following?

Thanks

Multi-employer, government-sponsored (technically non-EIRSA) cafeteria plan that provides pre-Medicare retiree coverage.  Question concerning a recent pre-65 retiree who has a NMSO in effect for dependent coverage.  Retiree wants to drop coverage in favor of HRA-only waiver because other coverage is available through spouse.

I believe we are still considered an "employer" for purposes of the NMSO and cannot allow the retiree to drop coverage without an amendment to the NMSO, but have been unable to find guidance on this question anywhere.  Anybody else dealt with such a situation?

Record keeping platform sends approval notification to the TPA for review an approval.  Does anyone attempt to confirm that it is truly the participant who is initiating the distribution request?  If so, what do you do?  A TPA review/confirmation certainly opens the TPA to some liability.

I'd like to get some specific control ideas from the group.  We've never had a fraud incident in 30 years but just a few days ago, someone tried.

Thank you! 

So the new participant count methodology for purposes of the audit waiver is participants with a balance at the beginning of the year, with an exception for new plans which use participants with a balance at the end of the year.

I'm looking at a 5500 for a PEP with the following facts:

• Plan was effective 9/1/22
• Plan filed a first return for the PY ending 12/31/22.
• Plan had 9 Participants with a balance at 1/1/23
• A new employer became an adopter of the PEP 1/1/23
• The new employer ends up with 160 participants with a balance at 12/31/23

This seems pretty straightforward to me.  Its not a new plan and there were only 9 participants with a balance as at the beginning of the year, no audit is required for 2023.  With 160+ participants with a balance as of 1/1/24, the plan will need an audit in 2024.

I'm getting disagreeing opinions on the audit requirement for 2023.  The argument is that because the new adopting employer ended had 160 participants with a balance as of 12/31/23, they also count towards the beginning participants with a balance count, which then is over the audit threshold. 

Anyone disagree with me that the plan does NOT need an audit for 2023?  The fact that its a PEP shouldn't change things here since its one plan and one 5500...

Thanks!

Hi

Looking at a take over. Interest crediting period is determined on a pro rata basis upon termination.

If I want to amend it to zero i.e. no adjustment until year, is this 411d6 issue?

Thanks

Hello All,

We currently cover 100% of the insurance premiums for our group health plan for individuals and families. We would like to reimburse the out-of-pocket cost of the group medical insurance premium cost, for an employee and their family, if they should choose to stay or move to the spouse’s employer’s group medical insurance program.

We would make the reimbursements on a post-tax basis. Our thought is that this would not create a plan under current regulations.

Are there an ACA issues with reimbursing employees in this manner?

Thanks

1/1/2023 to 12/31/2023 ADP test failed. HCE is due an ADP refund of $3,000. The HCE in question took a full in-service distribution in June of 2024. He rolled it over to an IRA. He continued to defer into the 401(k) plan, and has deferred approximately $5,000 from June of 2024 to current date.

When correcting the failed ADP test for plan year 2023, is it permissible to refund the $3,000 based on his current account balance (of the $5k deferred in 2024)? Or does the rollover to the IRA need to designate that $3k was ineligible to be rolled over? 

I have never seen this before.  It show posted and suppressed.  I cannot reverse it.  I cannot un-suppress it.  Has anyone else seen this?  Does anyone have a resolution? Do I need to contact Relius directly?