The ADP test is run using the excludable disaggregation method.  The software I use categorized two re-hired employees as otherwise excludable.  Both were 100% vested participants prior to their first termination and entered the plan on their re-hire dates (4/20/16 and 7/13/16). Is the software classifying them correctly?  This plan does not use the rule of parity.

Hi:

 Wondering if any firms will take Participant's 20% Mandatory withholding amount and electronically transmit the payment in excess of $2,500 to the IRS.

Thanks

DPSRich

A small plan's administrator files Form 5500 (not 5500-SF) and, although it does not engage a CPA to audit the plan's financial statements, prepares financial statements and wants to submit them as a part of the Form 5500 report.

How, mechanically, does a filer do this?

99% of my plans are on the Relius volume submitter document, so I am used to having flexibility in testing assumptions. However, I have one plan on a prototype document that actually reflects the cross-testing assumptions of 8-1/2% pre and post and the 1984 unisex table. Am I stuck with using those assumptions or if I fail using them, can I use other assumptions to show I pass?

I just read an article in Institutional Investor, the December 2016 - January 2017 issue, on page 27 regarding the California Public Employees' Retirement Fund entitled "Jerry Brown's Battle".  The fund is $300 billion.   The question was whether the discount rate should be moved from 7.5% to 6.5% immediately or over a 20 year period.

I am not an actuary but, for plans like these, what would happen to the plan if the rate magically increased from 7.5% to 10%?   Generally would the effect of increasing the discount rate 250 BP for DB pension plans have a low, moderate or high impact to the calculations?  How sensitive are plans to discount rate changes?   If moving the rate downward 1% immediately or over 20 years is a huge debate....

I would appreciate thoughts and feedback on this.  

Regards,

Brad

Yes no maybe?

SH Match is 100% of first 4%.  Discretionary match (no ACP SH) is zero on first four and dollar for dollar on the next 96% (i.e. client wants to match dollar for dollar). Assume top-heavy not an issue.  Do we need to test the 2nd match for BRF because the rate of match increases as deferrals increase OR can we "aggregate" the match formulas and say that everyone gets the same match formula?

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.