Are there changes in status that would permit participants to switch from a PPO option to a HDHP option midyear? I can think of arguments why that might make sense but not sure that they necessarily fit the consistency requirement.

Is anyone familiar with a self-directed cash balance plan? Are they even possible? I saw some old posts where this was discussed but nobody was familiar with the specifics.

We have a group of physicians that would like to have a self-directed cash balance plan. Each physician would have their own brokerage account.

Thanks.

Defined benefit plan subject to ERISA. Is there guidance out there, or has anyone ever dealt with, the proper amount of investment diversification for a defined benefit plan?

For example, a $13MM fund. Is there anything out there that says how many different investment types the Plan should have? Or is it left to the discretion of the Trustees?

Thanks.

One of my colleagues recently passed away, unfortunately, so I'm picking up some of the work. I'm not as familiar with DB Plans, so I just wanted to check if the Plan Documents needed to be restated by April 30, 2016 like DC Plans?

This is for both single-employer Defined Benefit Plans and Cash Balance Plans.

Thanks in advance!

Client receives CP-403 in November, where is your 2013 5500? We respond, no filing required, 2014 was the first year of the plan.

Client receives CP-406, where is your 2013 5500, this is your final notice. We respond as above.

Will the IRS inform us of the status of our response? If not, is there some way to find out.

Thanks for your help.

What, if anything, do companies tell their employees about the profitability of the company as it relates to discretionary profit sharing contributions? New client wants to know what to tell her employees each year.

Thanks,

21 years old this week!

you have had to put up with my dry humor for many of them, guess you can officially have a drink now....

all kidding aside

I can never say thanks enough for those who have shared their knowledge, inspired me to learn more and kept me updates on the latest pension insight and news.

Many, many thanks to those I consider as good friends though I haven't seen or met them, those I know by name only (and those extra little side comments that sometimes appear)

It truly does make a difference to me.

(plus I even received a free coffee mug a few years ago!)

When a retirement plan's trust (not the employer) pays the plan's service provider - such as an actuary, a certified public accountant, or a lawyer, does the plan's trustee or administrator issue a Form 1099-MISC to tax-report the amount paid to each service provider?

401(k) only plan, no match or nonelective contributions excludes all HCE's from plan, but without a formal provision in the plan document. One recent NHCE who became HCE stopped participating on change in status. Plan sponsor prefers not to write this into the plan. What if an HCE insists to participate?

Plan has regular match forfeitures that occurred after the safe harbor match was implemented, due to non-vested terminated participants taking their distributions. Document allows us to pay expenses from forfeitures however the contract is written such that we don't bill the client directly. I'm left with a few grand in forfeitures to allocate to roughly 18 people. Plan is top heavy and the key defers. The only other option currently in the plan allows me to reallocate with employer contribution or on a salary ratio basis. Client wants to amend the plan at the end of the year, for future years, to use any new forfeiture to offset an additional employer match. (Plan document doesn't currently allow for match in addition to the safe harbor match). The client also wants to 100% vest this new match source. Can forfeitures be used in this manner? I thought I read that forfeitures that originated from non-vested accounts could not be allocated as a money type that would be 100% vested (the reason we can't use them to offset safe harbor match)? Or am I reading too much into that position? Thanks.

I've gotten different opinions/responses on this, so figured I'd see if anyone here knows for sure. Plan started January 1, 2014, do they need a restated document by April 30 or does their original document suffice?

Thanks in advance!

An employer maintains a retirement plan that allows non-highly-compensated employees to make elective contributions. These contributions are by affirmative election. The employer is unwilling to provide any automatic-contribution arrangement. The plan provides no nonelective or matching contribution.

Although the plan has no difficulty with any coverage or non-discrimination test, the employer’s human-resources people want to “do something” to urge more employees to choose retirement savings. But whatever is to be done must involve no work time of the HR people, and must not ask the employer to spend any money.

The plan’s trust has a plan-expenses reserve that resulted from mutual funds paying shareholder-servicing, 12b-1, and revenue-sharing fees in amounts greater than the recordkeeper’s fees.

The HR chief would like to use this trust subaccount to add a credit, perhaps $48, to the plan account of a participant who persuades his or her coworker to make elective contributions.

The plan and its trust each includes a provision, following Internal Revenue Code § 401(a)(2), that the plan’s assets must not be “used for, or diverted to, purposes other than for the exclusive benefit of [the employer’s] employees or their beneficiaries[.]”

What are the arguments for and against using the plan-expenses reserve to provide the proposed credit?

Is a publicly traded partnership considered Eligible Plan Assets for 5500 purposes?

If a plan provides for actuarial increases after 70.5 and also provides for continued accruals but does not provide a "better of" calculation, can PA make administrative decision to do "better of" calculation for benefits?

Does anyone do their general testing using the accrued-to-date method? We have a client whose prior TPA did their calculations that way and I can't make heads or tails of it.

I understand the general premise, but Relius cannot do the calculation so it would have to all be done by hand. (Or, rather, spreadsheet)

Questions: for average compensation: are you taking the average compensation over the measuring period? Last 3? High 3?

Does the measuring period have a minimum length? 2, 3 years maybe?

Is this a popular method to use? This is the first time I've come acrosst this since reading about it for an ASPPA test like 10 years ago.

must have been a lot of complaints from certain higher-ups.


https://www.irs.gov/pub/irs-drop/a-16-16.pdf

the announcement describes things this way:

Following publication of the Proposed Regulations, the Treasury Department and the IRS have given additional consideration to the potential effects of the provisions that would modify §§ 1.401(a)(4)-2© and 1.401(a)(4)-3© on the adoption and continued maintenance of qualified retirement plans with a variety of designs and have concluded that further consideration will be needed with respect to issues relating to those provisions. Accordingly, the Treasury Department and the IRS will withdraw the provisions of the Proposed Regulations that would modify §§ 1.401(a)(4)-2© and 1.401(a)(4)-3©.

......

so I guess something is coming eventually, but we don't know what.

Participant filed for bankruptcy in 2015. Now he wants to take a loan from the 401(k) Plan.

Any reason preventing him from taking the loan?

Since a loan is not a taxable event, am I correct in thinking the loan amount is not subject to creditors?

Does the fact he filed bankrupt impact his ability to take a loan???

An employee recently went under the Medex 3 plan and is no longer eligible for the company's HRA plan. She had 2 dependents when she was under the regular

Are those 2 dependents still eligible to be in the HRA and under the company's regular health plan?

Thank you.

Does anyone know how to comply with the Hacienda Act? None of the recordkeepers I work with will send withholding tax directly to Puerto Rico.

Can a current regular 401k plan " convert" mid year to a SH plan? If so, do they go back and match the deferrals prior to the date the SH provision is effective? If not, then would there be testing for part of the year? I have looked this up many ions ago and I think they can amend if there are at least 3 months left in the year, but the specifics elude me..... and it is tax season in my world right now..... c'mon April 19....