Spouse of owner participants in Defined Contribution Plan A. Spouse dies. The owner rolls the funds from his wife's account to his account in Plan A. Do these funds constitute a related rollover or not for owner?

An employer has an EIN ending in 6. Its ESOP has a determination letter dated April 2014. So far, no one offers a useful prototype or volume-submitter document to restate the plan on.

If concerning an individually-designed plan an Internal Revenue Code change makes a tax-qualification amendment necessary (and Congress's Act doesn't provide a special remedial-amendment period), when must the plan's sponsor complete the amendment?

According to the regulations' ordinary remedial-amendment period without an extension or other administrative grace?

Hi,

I have a client who is a sole proprietor who set up a 401k plan a few years ago. We took over the plan last year.

Apparently back in early 2015, her accountant told her that she could not participate in the 401k plan as a sole proprietor. Her financial adviser then set up a SEP for her only. Now her new accountant told her that this is wrong and she needs to put that contribution into the 401k plan and get rid of the SEP.

My question is that can we move her money from the SEP to the 401k and count the $18,000 contribution as if it was made to the 401k for 2015?

She wants to get the $18000 contribution that she made to the SEP into the 401k plan so she can get the SH match.

When a company changes its name, can it also change the name of its retirement Plan? I didn't realize that the answer is apparantly "no", but when filing a 5500 showing a new company name and plan name, it keeps getting kicked out of the EFAST system because of the plan name change. Is this correct, can't change a plan name?

Suppose you were approached by a prospective client shortly before the April 30th deadline to prepare a PPA restatement. Further suppose you discover that an EGTRRA restatement does not exist. Would you:

1) Quickly prepare the PPA document and have it signed timely. Then subsequently prepare the EGTRRA document and submit as a nonamender.

2) Not worry about the PPA deadline, prepare both documents and submit as a nonamender.

3) Have a different suggestion.

Your opinions are appreciated.

Can anyone point me to the IRS or DOL guidance on this subject? I saw something a few years ago, but can't remember where or even exactly when.

Small profit sharing plan is trustee directed, picks a high risk asset that over the course of several years tanks, and becomes worthless.

Trustee (is owner of plan sponsor) wants to make the plan whole for the losses.

I think in 2008 or 2009 a colleague showed me a bulletin or something that had the above facts as a similar example and gave restoration of the losses by the plan sponsor as a permissible correction. I don't know how old the guidance was, I think it was from way before 2008 or 2009, but I think that's when I remember seeing it.

Anyone know what I'm talking about?

Are there other threads on Benefits Link that have clues?

I have a question for top heavy determination. I have a plan in which an owner gave up ownership as of 12/31/14. So when using the 12/31/14 balances to determine the 2015 top heavy, he is still being included. Is this correct?

A DB plan is undergoing an IRS audit for which the sponsor has assigned her longtime CPA to be the POA. We administer the plan and are working closely with the POA and have provided all of the items initially requested by the auditor. The auditor has since requested additional copies of prior year paperwork and although there's still ample time to provide this additional info, a DOL rep has contacted the POA to inform her that they will be requesting in writing copies of various plan items. The DOL rep also said that they will be calling to interview the sponsor, the TPA, and anyone else involved with the plan, and said that a conference call will not be acceptable - every conversation has to be a 1 on 1. I suppose anyone who is contacted should ask that any info requests be made in writing rather than answering questions on the phone. Has anyone ever had this type of experience?

Since it's been quite a while since our last DOL audit, we're wondering whether this is how the DOL now conducts inquiries or whether they're overstepping their bounds. It's hard not to think this is overkill since the IRS hasn't yet finished its audit and the DOL is taking such a broad approach - is there anything that can be done to limit their scope, or at least establish a POA situation where they contact only one person? If the IRS has found a problem would they involve the DOL before sending out correspondence announcing their conclusion? All help is greatly appreciated.

Trying to find some concrete specifications on this - if a plan has three trustees and only one has signed the PPA document by April 30, 2016, is the plan considered executed? Or do all three have to sign before the document is considered compliant?

Question: Can a plan "back-sweep" and automatically enroll participants at 3% if the participant is contributing at 2% and still qualify as an EACA?

Proposed Answer: No. Treas. Reg. 1-414(w)-1(e)(2) defines an ACA as "an arrangement that provides for a cash or deferred election and which specifies that, in the absence of a covered employee's affirmative election, a default election applies under which the employee is treated as having elected to have default elective contributions made on his or her behalf under the plan." Because the participant has made an affirmative election, automatically enrolling him will result in the arrangement not being an EACA.

What are your thoughts?

This may sound stupid, but when exactly does a distribution occur?

This is an ADP refund question. If the process to pay out a refund was started on 3/14/16, ie the shares were sold and converted to cash, but the trust account doesn't reflect that the money actually left until 3/16/16, is it beyond the 2 1/2 months?

Our recordkeeping software will show the distribution on 3/14/16 even though the money didn't leave the trust account until 3/16/16.

I know the safest answer is 3/16/16 is the distribution date but technically, did we make the 3/15/16 deadline?

Thanks.

How do you calculate the EBAR for someone who is nearing or has reached NRA?

Our testing system (DATAIR) for some reason assumes that once the participant reaches NRA (let's say the participant is 67 years old), that his retirement is always 2 years from that point (so in this case, it would be at 69 years old). It uses these numbers for the calculation of EBAR.

So, what happens is that once is someone above 65, his EBAR actually starts increasing (as opposed to decreasing when a participant normally becomes older, assuming everything else is equal).

For some reason, that does not seem right to me. Logically, once the participant reached NRA, he should continue to have 0 years until retirement and the calculation of EBAR should be based on the cross-testing factor table in which the years until retirement should be 0. So basically, it would make sense to me that if the participant receives the same Profit Sharing contribution as a percentage of his compensation year after year, his EBAR should be the same for any age after NRA (65 years of age in our case).

Our documents provide no guidance on this issue.

Could someone with experience with EBARs provide some guidance on this issue?

Thank you for your time.

A Section 125 plan is designed to reimburse a participant up to $400 of qualified dental services.

A participant is asking whether they can purchase an individual dental insurance policy, and be reimbursed the $400 that the employer offers towards the cost of the policy.

I think the answer is no, but I am not sure. Any replies would be appreciated.

Thanks.

A public university has a NQDC plan subject to 457(f). The annual benefit is never subject to a substantial risk of forfeiture so that amount is always reported as W-2 wages in box 1. However, the annual benefit is paid out to the employee only upon retirement, so it is not subject to income tax withholding while the employee is still employed. Because of this, the plan provides for annual distributions to help the employee pay the income tax bill on April 15.

My question is whether the annual tax distributions are subject to income tax withholding reported in boxes 2 and 17. Seems like they should be since they are a plan distribution.

Thanks,

Ken

Client has two 403(b) adoption agreements - a TDA for the employee contribution (Plan 002), and what they call their DC plan for the employer match (Plan 001). Recordkeeper is TIAA. Client filed two 5500s in 2009, and then TIAA "linked" the account balances in 2010 and the employer started filing a single 5500 using the Plan 001 designation. No formal plan merger was completed, and no final 5500 was filed for Plan 002. They take the position that both plans are subject to ERISA.

The employer changed auditors, and the new auditor is recommending a clean-up. Option 1: Take the position that the plans merged in 2010 when the accounts were linked (even though no formal corporate action was taken to merge the documents, and they continue to have two Adoption Agreements and two SPDs). Explore filing a delinquent final 5500 through DFVCP. Prepare a single plan and SPD going forward. Option 2: Take the position that they currently have two plans, and two 5500s should have been filed. Use DFVCP to file the missing 5500s for Plan 002, and amend the exiting 5500s to remove references to the assets from Plan 002. Then perhaps merge the plans formally and move forward with a single 5500.

I understand from a plan adviser contact that this issue is pretty common with TIAA plans following the finalization of the 403(b) regs, so I would love to hear if anyone has encountered it before. Thanks much!

a 401(k) Plan is terminating at the end of this month. One non-owner employee is beyond age 70.5 but still employed. Assuming he remains employed at least until 1/1/2017, does the plan termination trigger a 2016 RMD?

I'm not finding anything that says it does and I realize that a 2016 RMD would be triggered if he retires in 2016.

Loan taken out in July of 2015. No payments were ever made.

Is it deemed and taxable 12-31-15 or 1-1-16?

SOP 99-3 allows for the aggregation of account investments of a self-directed brokerage account into a single line item on Form 5500 Schedule H reporting purposes. However, FASB ASC 820 appears to require a supplemental schedule listing each plan investment as supporting detail. Is this true? Is the supporting detail required for Schedule H?

Hello. A participant took a hardship in 2014 and the deferrals were suspended. Who's responsibility is it to restart deferrals after the hardship? Its not stated in any procedures the plan sponsor keeps. In this case, the plan did not restart after 6 months.

Are there any special considerations in reporting the impact of stock dividends on form 5500 schedule h??