I have two takeover 403(b) plans that have Student Employees listed as an excluded class. It was my understanding that this exclusions would not apply unless the plan was for a school, and that employee was a student of that school.

the prior TPA had been excluded all employees that were currently and regularly attending class. But neither plan is an educational instutiion (or auxillary to one)

Agree or disagree with me that this is incorrect and that all of those employees that otherwise satisfied the eligibility requirements should be in the plan and eligible for all contributions?

Is it good advice for the CEO (and perhaps the organization) to avoid naming the CEO as the Trustee? I am suggesting this to a client based on the logic that hey, if you're named, it's not even up for discussion. It is YOUR fault and yours alone.

On the other hand if there was a directed corporate trustee, now there will be inevitable finger-pointing and a burden of proof to try and figure out who was a fiduciary.

I know people are going to respond and say the "CEO will always be a fiduciary, have good intnernal policies" and blah blah blah. But that's not really what I'm wondering. What I'm wondering is, am I right that the benefits to the individual merely by not being named a trustee meaningful from a personal liability perspective. [again, not asking about fiduciary insurance, etc].

My mother passed away May of 2015. She had a retirement account but apparently named no beneficiary. She is survived by her only two children, My sister and I. However she was also survived by her own brother and two sisters, my aunts and uncle. I am attempting to settle her accounts. I received a packet from fidelity informing me to complete the packet in its entirety and have it, along with a copy of my mother's death certificate with a raised seal mailed back to them.

I have the official death certificate along with a copy to be sent.

My mother has no spouse no partner etc. However, she was once married to my father and divorced when I was young. The packet asks for the date of divorce. My father cannot remember a date or year and doesn't have any files as they have been divorced for over 20 years. What am I to do if I cannot accurately suply fidelity with the information on the divorce?

The packet also asks who has survived my mother, and asks for these people's social security numbers to be listed. For various reasons, her siblings are unwilling to provide me with the social security numbers. My sister is also unwilling. What do I do in this situation?

My sister is the oldest of the two of us.

401k plan provides for 90 day eligibility to enter the deferral portion of the plan. The plan later amends to 1 year of service. The people who came in because they had met 90 days, but never do work 1 year of service, are they no longer allowed to defer?

1) What is a normal turn around time to get a response? I have on outstanding for a year.

2) Is there any phone number I can call to check on the status?

Sponsor of a frozen plan wants to temporarily add 5 years of age to the calculation of retirement benefits for a division.

Is this merely a BRF test or does this need the general 401(a)(4) test?

One person PC, owner wants to set up 401(k) by 9/30.

Question is, does this have to be partially funded at set-up( $1,000 or whatever minimum the brokerage firm needs) and the balance by 12/31?

I would assume he does 't have to make the full contribution at this time.

Can a cash balance plan which is part of a floor offset arrangement get whipsaw relief (statutory hybrid plan)?

Did 403(b) plans have to be amended for PPA? This is a Non-Erisa B Plan. Our last amendment was 2009.

Thanks

Does the 10% additional tax apply to a former employee who takes a 414(w) EACA permissive withdrawal? Or, stated another way, does a participant have to be an active employee to take an EACA permissive withdrawal?

Is there an easy online way to electronically pay the 20% amount withheld on a cash distribution? We have a small client who has brokerage accounts for the people in the plan. This is the first time they will have a cash distribution. The brokerage account will not pay the 20%. The client does not want to open up a bank account for what will likely be a 1 time only transaction. Payroll (correctly) will not accept deposit of the 20% and then transmit it to the IRS.

If the 20% was under $2,500, it is allowable to pay it at year end when filing Form 945. But, the amount is well above that.

I've read on other post that Penchecks could work. But is there an IRS link that could be used to pay the tax online? Even if it costs a few $$$, that might be OK.

Thanks

a large plan is being merged. The auditors opinion states the plan is terminating in a few notes on the audit. It also does mention the plan is terminating due to merger. Would referencing a termination be technically ok from an IRS/DOL standpoint? Also on the Schedule H question 5A ask has a resolution to terminate the plan been adopted... Would the plan sponsor answer this as "no" and then complete 5B with the information that the plan is being merged with?

Thanks

I have a client with a 457(b) FICA Alternative Plan. The employer contributes 13% of compensation to each employee's account and the employee has the option to defer more (up to the applicable limit).

Employees are starting to realize their social security benefits (primary or spousal) are reduced below their expectations.

The employer understands the reduction due to the employer contribution, but is having a hard time understanding the reduction due to the employee's discretionary deferrals.

My understanding is that:

1. the discretionary elective deferrals are not subject to FICA when deferred

2. the reduction in benefits is determined by either WEP or GPO and doesn't really delineate between what the employer contributed and what the employee elects to contribute.

Am I missing something?

I've seen some other threads on this topic but still somewhat confused on this issue. A plan is a safe harbor match plan with no allocation of other employer contributions (including profit sharing). The plan excludes bonus compensation. When the 414(s) test is run it fails (none of the two HCEs have any bonus).

What is the correction, if any?

I was reading a Q&A from an Ft Williams presentation and they mentioned that if you have a safe harbor matching plan and choose to exclude bonuses you do not need to apply the compensation ration testing.

I've got a 403(b) plan that wants to leave the current fund platform, but there is a decent back-end charge that would hit the accounts. The plan sponsor would like to cover the fee, but the fund company will not bill the plan sponsor; they will only debit the accounts.

Is there any legal mechanism for the plan sponsor to 'reimburse' each account for the amount that was taken as fees? This is a plan with no HCEs, so there's not a nondiscrimination problem to worry about...

Can a business owner who is over age 70 1/2 establish either a SEP-IRA or a SIMPLE-IRA and contribute?

It looks like RMDs will be required each year ahead but I'm not certain if contributions are allowable past age 70.5 for the business owner.

Company A has a long term, Trustee Directed PSP on the books. About 300 employees in total.

Company A buys a new business, under new DBA and corporation. Does not want to add the employees from the new Acquisition to the existing PSP. Would prefer to keep them separate. Does not want to offer a plan to the employees of the new business.

Is it possible to keep the existing plan, with no additional new money contributions?? Or would the plan have to compensate the new employees from the new acquisition? Or have to dissolve the existing plan if not willing to add the new employees to the existing plan? Or start a new plan all together for them??

THanks,

T

I have a participant that wants to roll over money from his former employer's ESOP plan into his new employer's 401k plan. The 401k plan does allow for rollovers.

Is this possible? Would he be better off not rolling it over?

Thank you.

deleting post - information provided to me was faulty.

I am starting to second guess myself here. Who does the notice go to on a plan conversion to another carrier? All eligible participants or participants with account balances and terminated with balances?