Hi. We terminated our DB plan last year. We have been notified by our trustee that there are about 10 participants (that all made affirmative elections as to their account balances) that have not cashed their checks. These checks range from 9 to 12 months in age. The trustee says they need to return these funds to us (the employer/plan sponsor). But the plan trust is closed. We have filed Form 501.

We are trying to track these people down to find out why they haven't cashed their checks. The trustee is saying that even if we find some or all of these people, they (the trustee) cannot re-issue a check. They say that they have to send the funds back to us.

With the plan trust closed, can we (the employer) even take these funds back? If so, how do we hold these funds. We are confident that we can find all of these participants (4 of them are active employees).

Thanks for any guidance.

Concerning the short-term deferral rule, if a performance goal is required to be reviewed by the compensation committee and the compensation committee does not meet until the year following the year in which the performance goal is met, would the date of the committee compensation meeting be considered a SROF? For example - the EE meets the performance goal on 7/15/15, the compensation committee meets on 3/25/16. In order to satisfy the short-term deferral rule, must the payment be made on 3/15/16 or could it be paid on 3/15/17?

the Consumer Price Index was released today

July was 240.647

Aug was 240.853

so unless Sept drops below 238.5

the comp limit will be 270,000

415 limit 54,000

db limit 215,000

key ee 175,000

assuming my spreadsheet is still working and I plugged the numbers correctly

We have a takeover plan. The prior administrator only prepared the Schedule SB, but the plan sponsor prepared the 5500-SF each year. for 2015, we prepared the 5500-SF. The plan sponsor makes one contribution, which is deposited shortly before the extended deadline. In past years, when the plan sponsor completed the form, they listed the prior year's receivable as the contribution, so the contributions on the 5500-SF didn't match the contributions on the Schedule SB. When we prepared the 2015 form, our trust accountant decided that, in order to bring up the 5500-SF to date, he counted the prior year's receivable and the current year's receivable. This way, when we prepare the 2016 form, the contribution on the 5500-SF will match the contribution on the SB. The 2015 form was filed and we explained what we did to the plan sponsor.. My contact at the plan sponsor just sent me an e-mail. She is very upset that we switched the methodology without asking her first. She is concerned that, one day, when she prepares the form, she'll switch back to the old method and list $0 contributions, which will look bad. It sounds to me that she is making a big deal out of nothing. Would you agree?

Any responses would be appreciated!

We are helping a client who is managing a new facility with a separate 401k plan where it was discovered that they have not filed the Form 5500 for a couple of years. We are working on gathering the information to file the forms;however, we are missing some key pieces such as contributions during the years as well as year end balances.

What is an option for filing the Forms while missing holes of data?

We recently took over a large safe harbor 401K in which the employer amended the plan prior to us, to eliminate an hours requirement for entry, effective 1/1/2014.

On May 1st of this year, the client tells me they had sent a "maybe" notice to the participants in November 2014 for 2015 but no-one seems to have a copy.

August 1st we received the W-2s for 2015 as well as census data.

Of course ADP failed.

Question, and I haven't done this in a while. This is why we do Safe Harbor.

The plan allows for Roth contributions.

Can the HCE employee contribution overage be recharacterized as employer contribution to the accounts of the NHCEs to the extent ADP is passed; and if ADP is still not passed, an additional QNEC would be required???

deferral only plan wants to add an auto enrollment feature. Is the pre-PPA option only allowed to be amended prior to the beginning of the plan year?

A 401k PSP has Enhanced Safe Harbor matching with the employer contribution performed "Each Payroll Period". Here and there an employee might miss out on some potential matching if deferrals are large early in the year and are forced to stop before the year ends because of the $18k limit. The match is calculated on compensation per pay period and not over the entire year.

Is there a way to solve this issue so that the employer match is based on annual compensation regardless of the timing of an employee's deferrals throughout the year? Maybe a true-up? This would seem to be more fair to employees who defer irregularly due to a one-time bonus or for some other reason.

If there is a solution, are there any downsides to the employer for making the change to a match based on annual comp vs. each pay period?

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