If distributions are subject to NRA and/or FATCA withholding, do we add these amounts to distributions as we would for other withheld amounts and report on line 2.e.1.a?

It has been stated many times that employer matching formulas must cap the match at the annual compensation limit ($265,000 for 2016). However, I cannot find any guidance as to whether a formula for a discretionary employer profit sharing contribution can consider compensation in excess of that limit.

Our plan documents do not address this issue either way.

I apologize if this question has been asked and answered previously, but I could not find it in my search. Thanks for any help that you can provide!

The administrative expenses of the employer's cash balance plan were paid in 2016 by the profit sharing plan. Does this create any PT issues or any other problems? The receivable is being repaid.

I have a plan that needed to make up missed deferrals for participants. It fell in the field of 25% of the missed deferrals. Does this now need to be adjusted on the w2s for the year and included as elective deferrals?

My initial thought is no, since the EE would then get the tax benefit of the ER money. Never had this case before. Suggestions?

We have a few executives that want to max out their 401(k)'s as early as possible in 2017. This basically means they will be deferring 100% of their first 2 or 3 paychecks.

The problem is, under our system 401(k) contributions are deducted first, and then we deduct for other things, such as health plan premiums. So once we take 100% of their paychecks to cover their 401(k) contribution, there is nothing left to fund the other deductions.

Is there an easy way around this?

In December of 2015, the CEO of a plan sponsor told employees in a conference call that for 2016 the company would begin matching on a monthly basis and discontinue matching on an annual basis. The CEO also communicated what the match formula would be for the year.

As part of this change the plan doc was amended to allocate matching on a payroll by payroll basis. The plan doc has the match as discretionary. The plan doc also states that all employer contributions must be deposited by the IRS tax deadline plus extensions.

For the first 3 months of 2016 the match was allocated per payroll but remitted to recordkeeper monthly. But then the company began submitting employer contributions 2-3 months after the payrolls for which they were allocated. It seems remitting ER contributions 2-3 months after the payrolls may not violate the timing requirement established by the plan doc. However, could the CEO's verbal communication of a "monthly match" supersede the plan doc and obligate them to remit ER match monthly?

Thanks for any thoughts.

Companies Identical
A B C ownership

Owner 1 100% 51% 51% 51%

Owner 2 0% 25% 25% 0%

Owner 3 0% 24% 24% 0%

100% 100% 100% 51%

Please help me figure out if there is any controlled group relationship whether it is Brother-Sister or Parent-Subsidiary

Companies Identical
A B C ownership

Owner 1 100% 51% 51% 51%

Owner 2 0% 25% 25% 0%

Owner 3 0% 24% 24% 0%

100% 100% 100% 51%

Please help me figure out if there is any controlled group relationship whether it is Brother-Sister or Parent-Subsidiary

We have a takeover client with an existing 401k Plan. The plan sponsor cannot locate the original document. The plan was first effective in 1997 so (I believe) that the original document would have been a TRA 86 version. We want to draft a replacement document and submit it to VCP. However, we use Relius and their software will only produce docs going back to the GUST restatement cycle (2001 to 2003). Does anyone know of a provider that can issue a TRA 86 document in a VS or prototype format?

The PBGC Form 500 instructions indicate that the Form 500 must be filed on or before the 180th day after the proposed termination date.

Is the Form 500 permitted to be filed prior to the proposed termination date (assuming that the Notice of Intent to Terminate is issued timely between 60 and 90 days prior to the proposed plan termination date)? Likewise, is the IRS Form 5310 permitted to be filed prior to the proposed plan termination date?

I've always worked on Form 5500's w/ the Schedule I and Schedule H. The 5500-EZ seems so basic that I'm worried I'm overthinking things so I have a question:

Would Fee's and Distributions for a Profit Sharing plan be reported on Line 7b of the Form 5500-EZ?

According to the IRS instructions Line 7b "Liabilities include but are not limited to benefit claims payable, operating payables, acquisition indebtedness, and other liabilities. Do not include the value of future distributions that will be made to participants."

Thank you to anyone who might help enlighten me.

https://www.irs.gov/pub/irs-tege/directive.pdf

Does anyone think this "Carol Gold" memo about abuses involving short-term employees would apply to the owner's spouse working a "few days" solely to have her included in the ADP test as a zero?

I'm trying to find a reason why it is wrong because it just doesn't feel right. They would be the only two HCE's so it effectively doubles what the HCE can contribute.

Is a partner that has separated from service (in September 2016) eligible to receive a profit sharing contribution if there is a last day allocation requirement?

A participant wants their employer to terminate them, so they can take a distribution from the plan, and then have the employer rehire them. They could take a loan, but the participant doesn't want to have a loan payment. They do not meet hardship needs either. So, is this legal? It sure doesn't seem right. Any thoughts?

thanks

If an employee provides 2 weeks' notice to his/her employer of a voluntary termination of employment and the employer chooses to immediately terminate the employee but pay the employee in lieu of requiring the performance of services during the 2-week notice period, is the 2 weeks of pay "regular pay" from which 401(k) plan deferrals can be made?

A participant loan program specifies that a participant loan "is due and payable on termination of the plan." If the plan terminates on December 31, must the loan be paid off before that date, or does the participant have a certain number of days to make the payment after being notified, even if it extends the repayment date beyond the plan termination date?

A fiduciary may use e-mail as the initial means of delivering a communication to a participant who can “effectively access documents furnished in electronic form at any location where the participant is reasonably expected to perform his or her duties as an employee” if “access to the employer’s … electronic information system is an integral part of those duties[.]” 29 C.F.R. § 2520.104b-1©.

But what does it mean to say that using e-mail or some other software is “integral” to an employee’s work? If a person’s work involves physical activities but his or her employer requires him or her to check e-mail every two hours to get instructions, is that enough? Is the answer the same or different if the employee is required to check e-mail only once for a whole eight-hours shift?

If a worker is required to read e-mail but is not expected to write any response, is electronic communication "integral" to his or her work?

Happy holidays or extended weekend or whatever you celebrate. Enjoy!

Is there are permanency issue with starting a plan 1/1/2016 with a 10%/year accrual and then freezing the plan effective 1/1/2017?

Thanks for any responses!

I have a new 401(k) plan going in for a client, and we are now getting word that the platform won't have the accounts ready until after the first payroll date, but likely by the second one two weeks later.

So the plan document and all the SPDs and the enrollment meetings said that deferrals are effective 1/1/17. There are dozens of people poised to defer with the first payroll in 2017. What are workable options?

> I have heard anecdotally that the IRS is actually reasonable in this scenario and will not penalize a plan for missing the first payroll's worth of deferrals. The participants should of course be told in advance that this will happen, but then they can start up with the second payroll with no additional fuss.

> The plan document could be amended to allow deferrals starting with the second payroll period. Again, the participants should be told that this is happening.

> Take the deferrals from the paychecks and deposit them into a plan checking account that is then transferred into to 'real' plan accounts when they are ready. This is my favorite method, though I'm not eager to see how this unfolds with 50 or 60 participants deferring. The participants are told that their first deferrals will be in a 'holding account' for a short while until the real accounts are ready.

> Take the deferrals from the paychecks and hold on to them in the company accounts. This eliminates the extra steps in the last one, but at the cost of lost earnings that have to be calculated.

Any options I didn't cover? Any thoughts on these? Any pitfalls to avoid? Thanks.