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?

Just curious as to how things are handled in real life, and if theory and reality match.

Suppose you have a 401(k) with PS component. Non safe harbor, new comparability allocation formula. Let's say the plan definition of compensation INCLUDES applicable post-severance compensation. Calendar year plan. Assume for this poll purposes that participant is NOT highly compensated or key.

Participant terminates employment on December 15, 2014. In February of 2015, some post-severance vacation pay is paid. Participant never did any election to cease deferrals. Employer never reports this post-severance comp to TPA or plan auditor, but it naturally shows up on the 2015 census.

1. Do you: (a) treat it as a "missed deferral" and correct under SCP, or (b) handle in some other fashion?

2. With regard to profit sharing contribution, do you (a) (make the contribution under SCP that the participant should have received, and leave it at that, or (b) something else?

3. Now assume the participant was HC - any changes in your answer to #2 above?

Just curious. Don't have this situation, but another related question brought it to mind.

Company X is a corporation organized and operating in the US. It maintains a number of subs in the US and abroad, including one in Chile. P is a US citizen and is working in Chile (having been transferred there by X). X has a self-insured medical plan. Assuming that P will be retained on the Chilean payroll, how can X arrange to cover P under its medical plan?

Client has terminated PC safe harbor 401K because he can not afford the match.

He has matched 3% non-elective through the date of termination, 8/31.

Must he do the 3% non-elective on W-2 for the full 12 months or just for the 9 months through date of plan termination?

I believe only through date of termination.

Trying to understand what rights the ESOP shareholders have under the following scenario.

A company is moving from Situation A to Situation B.

Situation A:

100% ESOP-owned S-Corp holding company

Situation B:

~10% equity ownership of an LLC

~90% ESOP-ownership of LLC

We have a safe harbor enhanced 4% match 401(k) plan. The only two participants are a step-mother and a step-son. The step-mother deferred and received a 4% safe harbor match. The step-son did not defer. The step-son made double in W2 wages compared to the step-mother but both wages are below the integrated level. With that in mind, the step-mother can only get 21% maximum in a profit sharing contribution. Can the step-son also only get 21% or can he receive the entire 25% in a profit sharing contribution? If the plan has a prorata profit sharing then the step son can only get the same proportion in profit sharing as the step-mother?

We've been capping HCE's at 8% to avoid testing failures and refunds. A participant has been deferring 5% all year but now wants to maximize her contribution for the rest of the year. We have quarterly changes so she can increase her deferral to 8% on 10/1, and is over 50 so will also elect catch up contributions as well.

My question is how can we help her have the maximum withholding possible? Is there a way to set up her catch up contribution to take advantage of the full $6,000 between now and year end? Any ideas would be appreciated.

Company X, a US Company, maintains its headquarters and the bulk of its employees in the US. It has a Chilean sub to which a number of US citizen employees have been assigned. What are X's options for covering these employees in the US benefit plans (viz., 401(k) and medical plan)?

I have a 12/31 plan that needs to refund a few hundred dollars to a participant for 401k deferral b/c it was erroneously with held on severance pay in 2015. What is the best way to correct this now in 2016? Just a check to the participant and what is the tax code? Is there any other way? TIA.

During 2015, match was incorrectly calculated for several NHCE employees - they all received too much match money. My question is - if we move this excess to the forfeiture account - what, if any, earnings are required to be calculated and what is an acceptable method to calculate earnings? What if their account had a loss during 2015? Do we HAVE to reduce the amount moved to forfeiture by the loss? I don't think any refunds would be in order since they were not due this match in the first place.

Thoughts? suggestions? Thanks!

What are the disclosure requirements when terminating one person Non-PBGC DB Plan (any checklist)?

Does any of PBGC Standard Termination disclosure requirements including NOIT applies?

Plan sponsor wants to end one welfare plan on 12/31 and merge it with another existing plan on 1/1 (the next day). For 5500 purposes this would mean a terminated plan is ending the plan year with participants. What is the general best practice way to do this? My preference would be to terminate and merge them on 1/1.

Bonus question - can a welfare plan be terminated on 12/31 with the resolution being signed the following calendar year?

A plan is adding Roth deferrals as an option mid-year. Should each participant be required to complete an updated deferral agreement?

Client has a regular health insurance program, more than 100 lives covered. Let's say its BC/BS, fully insured, no trust fund, etc. Monthly premiums paid by Employer and that's that.

Do they need to distribute an SAR or is there some sort of an exemption?

A plan failed the ACP Test for the plan year ending 12/31/2014. There was a ACP refund due to to be given to HCE Randy. The refund amount of 117.18 (110.98 plus 6.20 earnings). The prior admin (we recently took over this plan) "corrected" by sending the 117.18 to the forfeiture account. I am not sure when in 2015 this was done. This amount should have been sent to HCE Randy. What is the correction from here?

Can we simply move the amount out of forfeiture and back into his plan and then process the distribution to the participant? Or, Do we need to do a QNEC or One to One?

Does anyone have a tool that can make an easier calculation of the maximum payment amount for purposes of Audit CAP. We have been asked to prepare a position paper and propose a base amount to enter into negotiations with the IRS over the fee amount.

Does anyone have an app or tool that simplifies the calculation of the maximum payment amount? I would be most appreciative if you could either share a sample or provide me a link to access it.

Over a decade ago, my ex-husband stated in writing as part of our divorce settlement that I was to be awarded a small monthly cash distribution from his retirement account. Payments were to start when he retired. We were married 24 years; he was/is a well-paid trade union worker in Pennsylvania, I was a stay-at-home mom raising our children for most of that time.

He will be retiring soon. I did remarry a different man thirteen years ago.

QUESTION: Am I still entitled to the portion of his retirement account that was in the divorce settlement?

Thanks so much,

Employer offers a group health plan which renews 7/1 each year.

For first half of 2016 employer pays 100% of employee-only coverage, obviously affordable.

Effective 7/1/2016 employer reduces it's contribution to only 50% of self-only premium rendering the offer unaffordable for a significant number of employees.

Does this create a Special Enrollment Period allowing employees to apply for Marketplace coverage and subsidies?

SEP rules and calls to Marketplace indicate NO because the employer is still offering coverage although unaffordable.

SEP rules seem to permit access to Marketplace coverage only if employer terminates plan or completely terminates all employer contributions.

Doesn't seem right, particularly when you realize that if no employee can get a Marketplace subsidy the employer will also sidestep the employer shared responsibility penalty.

Husband owns 100% of CA business. In determining HCE status, is wife HCE solely due to family attribution, or is she also HCE as an owner of the company (due to attribution or community property rules)?

Explanation - plan excludes HCEs who are HCE due to family attribution rules.

Purpose is to exclude kids, not wife. I say this excludes wife, too. My boss thinks not.