Participant makes voluntary deferred compensation contributions to a 409A Plan. His gross wages are $100,000 (just to keep it simple) and he contributes voluntarily $5,000.

Is his 3% Nonelective Contribution based on $100,000 or $95,000?

Note that "deferrals to a NQDC Plan" is NOT an add-back listed the way other pre-tax deferrals are.

I am pretty sure it is $95,000 but can't understand why that doesn't get more press. I've had it crop up as an issue more than once.

Does the $5,000 small lump sum cashout threshold apply only to the value of employer provided benefit? How does employee contribution money play into the $5,000 cashout threshold? Thank you.

another Karaoke

perhaps no one heard of this group


D Beatles

unfortunately they didn't copyright things and this song was stolen by another group that arguably stole their band name as well (it is so similar) and when asked if it was somewhat dishonest they simply said "Let it Be"

Unlike a certain unnamed pension website master who was so impressed he changed his name so his initials matched this group's name. I am impressed!






My 4-0-1(k) it is in trouble
And I just turned age 50
How can I save up quickly?
A D-B.

And in my hour of darkness
The solution’s right in front of me
Yes there’s an easy answer
A D-B.

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

And when the broken hearted people
Living in the world agree
Yes there will be an answer
A D-B.

For though the company defaulted
Still there is P-B-G-C oh
Yes there will be an answer
A D-B

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.
A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

Pause (instrumental)

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

And when the night is cloudy
There is still a benefit for me
Yes there will be an answer
A D-B.

I’ll wake up to the sound of money
Monthly checks are mailed to me
Yes there’s an easy answer
An-nu-i-ty!!!!

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

A D-B, a D-B, a D-B, a D-B
A great big tax deduction
A D-B.

letitbe.mid

I've worked on the TPA side (or PBGC field benefit administration) in Defined Benefits for over a decade, but I've been out of day-to-day administration for the past few years. I'm now on the client side working to help improve procedures with our TPA, clean up records, and various de-risking projects.

With the DOL now cracking down on plans that do not do enough to find missing participants, we are in the process of working with our TPA to improve some of the processes they use to administer our pension plan.

What are your best practices for finding missing participants (or finding out if they are deceased)? What resources do you use? Do you have different amounts of work you do based on the age and status of the participant? For example, young (not near NRD) term vested participant / term vested nearing NRD / term vested nearing 70.5. How often do you try to find missing participants? Do you review them all at the same time, or on a schedule based on when they became “missing”? Do you do more if the person is in payment status and their payment is suspended due to uncashed checks?

What are your best practices for processing a death notification? Do you accept notification of death from financial institutions (for example, a direct deposit is returned with a notice that the account holder is deceased)? What other notifications do you accept? Do you utilize the internet and search obituaries? What free versus paid resources do you use (free being defined as only taking someone’s time)? What do you do for participants that you think are deceased but are not on the Social Security Death Index and you may not have received a notification?

If you are at a TPA, are there things that your company does not do and sends to the client to do instead?

Are there checklists you use for either process that you would be willing to share?

Just trying to get clarification for a few of our employees that are Medicare Primary. Does anyone know if both Medicare and the secondary will be providing 1095-Bs or will it just come from Medicare?

For various reasons, a client wants to do a one-time diversification in it's ESOP where the company buys stock from participants up to a certain limit.

We know this can be done, but we don't know a couple details.

First, can we do it so only vested shares are redeemed? If so, how would we allocate who gets to redeem what? Is it based only on their vested account or is it based on their entire account balance?

Second, can we do age-weighted allocation, so older participants can diversify more than younger participants? If so, what are the traps? Is this a discrimination issue?

Third, can we do diversification in the three typical ways (1) distribution, (2) cash in the ESOP, (3) cash to another qualified plan?

If anyone knows of any guidance I can use to help find answers to these questions, please let me know! Thank you in advance!

Facts: 401(k) non-safe harbor plan with allocation conditions of 1,000 hours and last day w/waiver of those conditions for Death, Disability and Retirement. Plan Year is 10/01.

Question: Can I remove the waiver of the service and last day requirement for Retirement mid-year?

I'm thinking no, because even if an employee hasn't retired yet and does in the future; he/she would have already earned the benefit.

I'm I over thinking this?

Thank you,

Spodie

If you have a takeover plan, that has many previously terminated, deferred vested participants, but you have no idea that they were ever properly reported on the form 8955-SSA, what is your philosophy on reporting them?

Assume they were reported correctly and not report until they get paid out with code D?

Report them with Code B just to make sure they're in the system?

Something else?

Thanks!
Dennis

Suppose you have an 100% leverage esop in which the same number of shares are released and allocated each year; there are no forfeitures available and there are no shares available for purchase.

If USERRA doesn't apply until the employee returns from leave, would it appropriate to allocate the shares on the imputed compensation and placed into a suspense account? The employee would then be credited with the shares upon return. Or do you have multiple years of imputed compensation in the year of rehire?

I have found a few old threads on this topic but want to clarify the termination of a SIMPLE IRA.

Company A maintains a SIMPLE IRA. Company B acquires Company A in a stock purchase effective February 1, 2016. Company B maintains a 401k plan.

Question: Can the SIMPLE IRA be terminated mid-year? Based on what I have read I don't believe it can be terminated until December 31, 2016. Does anyone disagree? Is there anything that I may be missing that would allow us to terminate it?

Thank you

Does Notice 2016.16 imply that adding loan provision to a safe harbor plan mid year is an allowable mid year change, since it is NOT specifically listed as prohibited change?

There have been many cases brought against employers/plan committees, etc. (i.e., "in-house" parties rather than outside service providers) based on so-called high cost funds in the plan's line-up. Does anyone know if any of those cases involved plans where there was a brokerage window or similar "open architecture" structure? In other words, while X number of funds were available in the plan's primary line-up, participants could invest in hundreds/thousands of other funds and individual securities through the brokerage facility.

Company A sponsors plan, with Companies B, C, and D adopting employers as a controlled group. Calendar year plan. 3% Safe Harbor allocation.

On Oct. 1, 2015, Company B is sold. One participant leaves Company B and starts working for Company C. She made $75,000 for B and $25,000 for C.

The sponsor wants to know if Company C can pick up the entirety of the Safe Harbor for the participant. Or must the cost be proportionately shared between B & C?

Wonder if I am missing anything.....Document as always allowed a match. They want to put in a match for 2015. The document has prior ACP testing. I think these 2 things together mean the HCE's would get nothing. The NHCE's can receive a match though.

over the years I've ended up with a number of these. I think maybe 14 or 15, saved here and there on the computer. what a disorganized mess I have.

Here is one of the Beatle's songs. 'They' did a song for both 401k plans and another for DB plans so I'll have to find the files for that version as well

The Beatles - Yesterday



Yesterday, sixty-five it seemed so far away
Now it’s come today, it’s here to stay
I wish I had a 4-0-1 k

Suddenly, I’ve not half the cash I used to see
The bill collectors shadow me
Retirement came suddenly

My sa-vings are so low, I don’t know just where I’ll stay
I did something wrong, should have saved and put away

4-0-1(k)s, oh it’s such an easy way to save
now I need a place to hide away
and it’s too late for a 4-0-1 k

My sa-vings are so low, I don’t know just where I’ll stay
I did something wrong, should have saved and put away

4-0-1(k)s, oh it’s such an easy way to save
now I need a place to hide away
and it’s too late for a 4-0-1 k


Mm mm mm mm mm mm mm

good yesterdy.mid

I have a government client which offers all employees health insurance at retirement until they are eligible for Medicare. All employees have to have 10 years of service, with the exception of the CEO which only has a 3 year service requirement. The client subsidizes 100% of the cost for management employees and zero for all other employees.

Currently the retirees are included in the active employee plan, active employee's number 60. The active employee's group will pass the discrimination testing, all benefits and subsidies are the same for active employee's, but will not pass with the retirees being added to the testing.

If the client "carves" out the retirees and develops a separate plan for retirees only are they still subject to discrimination testing?

Thank you for your assistance.

Edie

We have just taken over a 401(K0 plan from a payroll provider.

Eligibility 3 months, entry semi-annual.

Would terminated participants who work less than 500 hours be included in ADP/ACP tests?

Sunrise Sunset (from Fiddler on the Roof)

Originally this was going to be for EGTRRA and the Sunset provisions, but EGTRRA changes were made permanent, so it 'devolved' into the following expressing my feelings about the work load and all the other headaches at this time of year.

Thanks to Dave "Good job Walt" Baker for making it possible to attach MID files. I'll have to post the other ones I created as time goes on.

This job it seems to be so harried

Why has my bushy hair turned gray?

I don't remember growing older

I work all day!

My balance used to be a beauty.

When did it shrink to be so small?

I work for little pay

And thats not all!

Sunrise, sunset

Sunrise, sunset

Swiftly flow the days

A-D-P failures and loan defaults

Ive never even seen a raise

Sunrise, sunset

Sunrise, sunset

Swiftly fly the years

One plan is following another

Laden with too much work and tears

What words of wisdom can I give them?

How can I help to ease their way?

Now they must learn about their failures

Day by day!

The IRS they want an audit.

And I know who theyll blame its me!

Is there an excise tax

in store for me?

Sunrise, sunset

Sunrise, sunset

Swiftly flow the days

A-D-P failures and loan defaults

Ive never even seen a raise

Sunrise, sunset

Sunrise, sunset

Swiftly fly the years

One plan is following another

Laden with too much work and tears

sunrisesunset.mid

We have one plan that has an allocation condition for profit sharing contributions of 1,000 hours. However, the plan started towards the end of the year (in existence for last 4 months of the year) and everybody worked on 700 hours or so. Are the allocation hours prorated (to 333 hours in this case)? The plan document provides no guidance on this issue.

Thanks.