I'm going to be doing this for the first time. Has anyone done this before? Can you tell me anything about the steps involved?

can a QACA match balance be included in a hardship distribution?

Recently, we filed 9 separate 2015 5558s for a client, all at the same time. The confirmations that the client received had the correct EINs, but all of the PNs (plan numbers) were listed as 000. Has anyone seen this recently?. After contacting the IRS, their response was, oh well, at least you got 9 confirmations back, so you should be okay. Just checking to see if this is systematic for 2015 extensions or a one off. Thanks!

Is it ever possible that an employer met all of its ERISA and Internal Revenue Code funding obligations to a single-employer defined-benefit pension plan (including as of the most recent required contribution date), and yet the plan lacks sufficient assets to pay currently due benefits?

If it is possible, what circumstances would cause this?

Fairly typical scenario - employer sponsors a SEP for, say, 2015, then decides to change to a 401(k) for 2016. No problem there.

When calculating top heavy, a SEP is included. My question involves determining when the SEP is "terminated" so that SEP balances no longer have to be included in the top-heavy determination.

According to the IRS website re terminating a SEP:

"To terminate a SEP, notify the SEP-IRA financial institution that you will no longer be contributing and that you want to terminate the contract or agreement. It is a good idea to notify your employees that you have discontinued the plan.

You do not need to give any notice to the IRS that you have terminated the SEP."

This brings up a couple of issues. First, assuming such notice is given, it seems that this would be considered a "plan termination distribution" - even though no actual "distribution" takes place, so you would have the 5-year addback.

Agree/disagree?

If no such notice is given, which I suspect is often the case (the employer simply stops making contributions to the SEP) it may not technically be "terminated" - but it also seems unreasonable to not consider it terminated. It still seems to me that it would be reasonable to use the 5-year addback and just consider it "terminated."

Agree/disagree?

There seems to be a lack of specific guidance here, so it seems like you have to determine what is reasonable and give it your best shot.

I appreciate any and all thoughts.

Greetings:

Employer has never filed any 500 for their component benefit plans (life, health, vision, dental) because they are under 100 participants (nor do they have an assigned plan number). The insurer gave their FSA plan number 501 (which has also never filed a 5500).

Employer now has a wrap plan document. We believe that the Wrap Plan should be plan number 501 (along with all component benefit plans under the wrap). Another vendor believe that the wrap plan document should have a unique number from the component plan documents.

Is there any reason why a wrap plan document should not have the same plan number as the component benefits?

Thank you

Can an employer round top heavy contributions to the nearest dollar amount?

An ERISA attorney is asking our client to deposit contributions of less than a dollar to participants because of rounding.

Facts:

1. Plan year end is 4/30/2017

2.Owner A signed a 242(b) election to delay his RMDs - the 242(b) indicates distributions should commence within 60 days after the last day of the plan year in which he retires

3. Owner A dies in July of 2016 at age 82.

4. Owner has 5 non spousal beneficiaries

Questions:

1. When does the distribution need to occur by? Is it June 30, 2017, as per the 242(b) election (60 days after end of plan year)?

2. How much needs to be distributed? Is there catch-up distribution required? The rules are confusing but it seems like you only need to catch-up the contributions is the 242(b) is revoked or modified - this 242 was never revoked or modified.

3. Since there are 5 beneficiaries of differing ages ranging from 30-50 years old, how is the first distribution calculated? (they plan on spitting the account up after the first distribution).

Individual receiving benefits from plan is the only remaining participant in plan. Plan sponsor is no longer around. Advisor wants to know if plan needs to be restated for PPA. If not, why? If so, how should they go about restating?

Facts:

Participant took a loan on 6/23/2014

Participant terminated on 5/26/2015

No loan payments were made for 2014 and 2015. On 1/3/2015 the recordkeeping deemed the loan in default and issued a 1099R for 2015.

Participant is rehired 3/28/2016.

Does the fact the participant terminated prevent the employer from filing under VCP? Employee is willing to make all missed loan payments and income related to the late payments.

The outstanding loan balance is over $37,000!!

If this can be filed under VCP and the Plan Sponsor get approval, does the participant file an amended 1040 for 2015 removing the taxable loan distribution??

Or is the participant SOL!!!

Any thoughts........

I contacted ASPPA who informed me that the Study guide will not be available until AT LEAST the end of May for the Spring 2016 testing window. Has anyone had success using the prior year's study guide for a particular exam?

Several clients with late deposits on 2015 Forms 5500 have received a letter from DOL inviting them to make a VFCP filing (even offering to provide personal assistance in completing the application).

In the old days we used to tell them we'd corrected the PT and filed the 5330 and they left us alone.

Has anything changed and is DOL now going to initiate an investigation and/or assess the 20% penalty if we don't go thru VFCP?

Defined benefit plan is offering a temporary lump sum window to VT participants. The sponsor's DC plan accepts a direct rollover for an active employee.

1. Can the DC plan be amended to permit a direct rollover from a VT participant, when the DC account for this person is currently zero?

2. Same as (1), but assume the DC account is currently non-zero?

(Of course, proposed action is non-discriminatory and would apply to any such VT, without regard to HCE or NHCE.)

PS only husband/wife only Individually Designed Plan restated effective 7/1/08, signed 12/2009. Had rec'd Determination Letter for prior plan doc but did not submit for that one, so currently no effective DL. EIN ends with '2' but no plan doc restatement by 1/31/13.

Restate plan w/VCP? w/out VCP? just wait for next cycle?

Hi,

Can anyone let me know if the 60 day rollover rule would apply for a distribution to an IRA to a deceased participant? Meaning they took a distribution in cash (no withholding) and now have changed their mind. Thanks.

Plan Sponsor received a notice of a change to the 5500 and a fine for a 5500 filed 9 years ago. Is there maximum amount of time the IRS can go back and change a 5500? I was thinking it was 7 years record retention or 3 years.

I want to setup an individual 401K for my wife at TD Ameritrade. My wife has a single member LLC for her business. She uses her own SSN on all forms including W-9 forms. The TD 401K application forms require you to specify an EIN, employer name, and type of business.

Should we fill out the application as an LLC or a Sole Proprietorship? I know the IRS sees this LLC as a disregarded entity as treats my wife as a sole proprietor. My main question is what type of EIN to obtain and use (Sole Proprietorship vs LLC)? I have read the IRS forms which state the LLC EIN really shouldn't be used except for a few specific cases like excise taxes.

Sole Proprietorship
EIN: Sole Proprietor EIN
Employer Name: Wife's Name
Type of Business: Sole Proprietorship

LLC
EIN: LLC EIN
Employer Name: LLC Name
Type of Business: LLC

Thank you

Please help, I'm not knowledgeable about insurance rules and my employer's benefits department isn't very communicative.

My wife and I were married December 28th. We were both covered by our respective employers. February 9th we decided to put myself and my dependants on her health plan, within the 60 day window allowed by her company. Her company backdated coverage to January 1st. March 10th, I tried to cancel my health insurance, assuming the life event window would run from the day we made the change. My company will not stop payroll deductions because the effective date of the change automatically put me outside of the 30 day window.

My case is in "appeal" and I'm still having $85.00 deducted weekly for insurance that I don't need, can't use, and can't afford.

Is there anything constructive I can do to get my money back? Do I have any legal recourse? Where can I find the specific federal regulations that are supposedly forcing me to carry this burden?

Thanks in advance for your help

ok - Company sold a division that included the majority of the employees/participants. It is a partial termination for the plan due to the number of participants involved. The company will continue to maintain the plan for those remaining.

The owners/Trustees/ PA understand that the participants who are moving to the new company will become 100% vested due to the partial termination. They have no issue with that. However they would like to vest everyone 100% as of the date of the sale, including those staying, and then going forward anyone hired after that would be on the 2/20 vesting schedule.

Is this possible? Does anyone see issues with this? All of those involved are NHCE employees.

The Washington Redskins finally drop offensive name:

Dan Snyder, owner of the NFL Redskins, has announced that the team is dropping the word "Washington" from the team name, and it will henceforth be simply known as "The Redskins.”

It was reported that he finds the word 'Washington' imparts a negative image of poor leadership, mismanagement, corruption, cheating, lying, and graft, and is not a fitting role-model for young fans of the sport.