Is this new - mortgage companies are now requiring plan documents to help secure a residential mortgage loan that has nothing to do with the 401(k) plan itself?

Initially tpa just provided the section on distributions because they wanted to know the availability of funds but they have come back to request the document in full.

We provide recordkeeping services to 2 companies that are related, but not in a control group. They each recognize service with the other company for purposes of vesting and eligibility in their respective plans.

If an Employee leaves Company A to go to work for Company B, and his 7 years of service with Company A is recognized by Company B, when will he be able to enter Company B's plan? It seems like he should be able to enter immediately on his employment at B, but I can't find anything in the document that would substantiate that. Does he have to wait until the next semi-annual entry date? The plan allows quarterly deferral changes, not sure if that makes a difference? Thanks!

Am I crazy today (mostly because it is filing deadline day )

don't the limits for the next year (2017) usually come out some time in October?

Mr Poje?!?!?

One of the selling points I've seen with 3(16) Plan Administration services, is that the 3(16) PA will sign and file the 5500, leaving the employer largely uninvolved.

In the past, if the PA and the Sponsor were the same, then the 5500 only needed to be signed in the PA spot. If they were different, then two signatures were needed.

Is that still the case in the age of e-filing? I couldn't find anything in the instructions.

If only on is needed, great! However, if both are needed if PA and Sponsor are different, does the 3(16) administrator still need to get the sponsors signature?

Company started in May 2016. Owner is only employee until September.

Is it ok to design plan excluding employee?

I seem to remember something (that I can't find) about applying most liberal eligibility requirements in first year for the/a coverage test. And since the only NHCE would be excluded I would have a problem.

Any basis in fact or did I dream that one up?

Thanks

Is it even possible that I terminate my 457b plan while still working (I am only 52 yrs old and want to keep working at my current job) and collect the money that i have already contributed to my account and just pay the normal 10% penalty (plus taxes) that I would incur as if i was to terminate a regular 401 type of plan and put my money somewhere else? Not really pleased with having my money in the 457b. Thanks!

A small plan form 5500 (exempt from audit) was filed with DOL for a newly established plan.

But later a client internal auditor found out there were misreporting on the employee/participant payroll data.

As a result, the participant count for this new plan found to be more than 100.

Can this error simply be corrected by amending & filing a large plan form 5500 with audit report?

I would like to hear the opinion of anyone who had the similar issue.

Hi all,

Total newbie here wondering why Turbo Tax is limiting my contributions for myself.

I am self-employed with a safe harbor qualified plan in place for myself and employees; not a SEP or SIMPLE plan. I thought I should be able to contribute at least the maximum $18,000 salary deferral plus the $6,000 catch-up amount (yes, I'm old). But Turbo Tax runs some calculations on a worksheet that decrease the amount somewhat.

I checked the IRS Pub 560. It refers to a "Deduction Worksheet for Self-Employed" and states it is "only supposed to be used for self-employed". Do I fit that definition? I'm afraid I'm lost.

Any suggestions would be appreciated.

What is everyone's position about doing this? Pretty commonly accepted process. See the attached link from an ASPPA article:
https://www.asppa.org/News/Article/ArticleID/5554

The audit will be done soon, just not by Monday.

It appears that extra vacation time can be purchased on a pre-tax basis via a cafeteria plan (subject to rules about use of non-elective vacation days first, no rollover of unused purchased days, etc).

However, can vacation be purchased on a pre-tax basis outside of a cafeteria plan? If it can be, what's the point of doing so inside a cafeteria plan?

I tried to read as much as I can on this forum about what to do when the audit report is not available to attach.

Some practitioner, mentioned about attaching a pdf file with a statement stating 'audit report is not available at the time of filing'. Later, they will go back and amend the filing. I even heard someone saying you are allowed to do so but needs to amend the plan within 45 days and attache the audit report.

I also know that on Form 5500 Schedule H there is an option that states

"d The opinion of an independent qualified public accountant is not attached because:

(2) It will be attached to the next Form 5500 pursuant to 29 CFR 2520.104-50"

Can I use this option If Audit report is not ready for initial plan year?

What are the things I need to know about using this option.

I would appreciate if anyone share me their opinions.

If Audit report is not ready for initial plan year, can I use the option

On Form 5500 Schedule H there is an option that states

"d The opinion of an independent qualified public accountant is not attached because:

(2) It will be attached to the next Form 5500 pursuant to 29 CFR 2520.104-50"

Takeover plan. Plan effective 12/1/1956. However, the 5500's have always listed the effective date as 5/1/1956. Should this be corrected going forward? Will correcting this cause the IRS to request that all of the past 5500's be amended?

Thanks for any responses!

A plan's administrator is pulling together its disclosure under 29 C.F.R. 2550.404a-5. Looking toward the plan year that begins with January 2017, the administrator will send a set of plan communications (some of which meet a 30 days' notice condition) by November 2016, and include in that set a 404a-5 disclosure.

In that disclosure, must the investment alternatives' past-performance information be for the 1-, 5-, and 10-calendar-year periods ended December 31, 2015?

Or may the past-performance information be for the 1-, 5-, and 10-year periods ended September 30, 2016?

What's the deadline for making a profit sharing plan contribution for a calendar year plan for a nonprofit org? Is it the same as for profits?

Company A (surviving plan) acquires Company B and the plans will be merged effective 1/1/2017. For the company match, Company A (surviving plan) has a 1-5 year graded vesting schedule and Company B has a 4 year graded schedule.

Can Company B increase the existing matching vesting schedule to 100% vesting for existing participants and then be on the same vesting schedule as Company B for any new matching contributions effective 1/1/2017?

Or does the merged plan need to keep the Company B employees who were eligible before 1/1/2017 on the more favorable 4 year graded vesting schedule?

Got a government entity that wants to start a 401(a) plan that matches contributions to their existing 457 plan. They want to do a match formula of 0% for the first 4% and then match 100% of the next 4%. Are there any issues there?

Can you amend the plan retroactively, say for 6 weeks, to add a new trustee and remove the old one? Small SH 401(k) had a change in ownership and new trustee took over fiduciary responsibilities technically before the sale of the business was finalized. The retroactive amendment would be back dated to the date of the sale of the business.

It was recently discovered on a plan that we recently took over administration (not our error, so please don't judge), the Owner/Participant took out a loan in 2009 and has never made a payment. In addition, the loan was never reported as a "deemed distribution".

Now that the maximum repayment period (5 years) has expired, per EPCRS, Section 6.07, the sponsor is not eligible for correction methods under Section 6.07 (3) Defaulted Loans and therefore the loan is to be considered a deemed distribution in the year of the failure and the employer is responsible for the withholding.

What if the employer and the participant are one in the same? Does the employer still pay the withholding (the company assets vs the participant)?

Would it be an option for apply under VCP and ask for relief anyway?

In addition since the issue is to an owner/participant there is of course a prohibited transaction too. Can one apply for relief under the DOL's VFCP for the excise tax under 7975(a) if one cannot apply for relief under VCP?

Any experience or advice on this issue would be greatly appreciated.

Thank you!

12/31/15 PYE: Test was run and corrected by 3/15

We discovered an error which resulted in rerunning the test. Unfortunately, the test failed an additional $462 in ROEs is necessary. It is approximately, $51 per HCE.

Is there a de minimis amount that would permit the plan not to make an additional correction?

Does anyone know of a good resource that gives detailed statistical data regarding participation in 401(k) plans - perhaps participation in micro market 401k plans vs. large market plans or 401k participation by industry - i.e. x% of participants on average in manufacturing make 401k contributions while y% of participants on average in medical make 401k contributions...

it seems like these statistics s/b somewhere, but i'm just not unearthing them... i've checked our Bureau of Labor Statistics, DOL, PSCA (which has some but not quite the detail i was looking for)

Any suggestions would be appreciated... trying to see how participation rates in the plans our firm manages stack up again national averages - but comparable ones.... not so generic that it's not really an apples to apples comparison

Thank you!