I just returned from vacation to discover that a plan for which I am the TPA and document provider persuaded an attorney to draft a plan termination resolution effective upon signing (last week). No advance notice was provided to the employees. The termination was required by the company purchasing the stock of the plan sponsor, who failed to act do anything until the day before the closing.

What are the possible repercussions of failing to provide appropriate notice of terminating the safe harbor contribution? I don't know if the employees are still being paid by the plan sponsor, or are now being paid by the new company.

The plan calls for a 3% non-elective safe harbor contribution based on full year compensation (even for mid year entrants). The recordkeeper was directed not to accept any additional contributions as of last week, although additional contributions will be required for any 2016 new entrants. Our relationship with the recordkeeper is such that I expect to be able to fix this.

Since the deal has apparently already gone through, what happens if the new owner refuses to fund the required contributions?

I have a client who is a technical school with different campuses all in one plan. Each campus processes it own payroll and has its own EIN #. They file a consolidated Tax Return with all EIN #'s listed.

Should they have each signed a participating employer adoption page when the PPA document was executed?

Since they didn't, what options do we have for correcting? Will we have to file under VCP?

Extremely small plan sponsor (maybe a dozen participants) - with the owner going through a divorce.

The TPA received a subpoena demanding copies of all information about the owner as an individual, as well as all information regarding the business, on paper no less.

No mention of the retirement plan whatsoever.

Of course all the TPA records on that plan relate to the owner and the business, how could they not?

Overly broad, no?

Thoughts?

Looking for any suggestions on how this fact pattern is typically handled:

Tax-exempt entity has an annual incentive plan set up in much the same way as, for example, a public company. There are target financial and qualitative goals then threshold, target, and maximum bonuses. The measurement period is the calendar year.

Payouts are made by March 15 of the following year to avoid 409A. Employees must be employed on the date of payment to receive the bonus, so the vesting date for typical active employees is the date of payment. Income and FICA taxes are due and withheld from the payment. No 457(f)-specific problems as the vesting and payment years are the same.

However, employees who die, become disabled, or retire (with typical criteria, e.g., 65 with 10 years of service) during the plan year are awarded a pro-rated bonus paid at the same time as the normal payout date. Their otherwise-applicable performance criteria must be met, but they don't have to continue working. The financial performance is determined as of December 31 of each year (but "officially" approved after the close of the year). I don't think this would maintain a SROF until the administrator or committee officially approved the financial results. It sounds like everything is vested (if it ever will be) as of December 31 each year.

So do the dead, disabled, and retired employees owe taxes during the plan year in which they die, becomes disabled, or retire?

Company, for a Welfare Plan with a PYE of 12-31-2014, filed the 5500 with 2 Schedule A's, with a policy date of 3-1-13 to 2-28-14.

Company merged during 2015, but still must file a (final?) 2015 Form 5500 with Schedule A's for the policy date of 3-1-14 to 2-28-15.

But what about the Schedule A period 3-1-15 to 12-31-15 (all Welfare benefits were terminated 12-31-15, and the Schedule A's have been obtained for this time period)?

Question is can a Final Form 5500 for 2015 be prepared using the 2-28-15 policy date Schedule A's? Or is there another filing in there somewhere??

Employee A has money in a company 401k plan. Employee A is severely injured in a car accident. Husband of Employee A has power of attorney. Can husband request a hardship distribution from the company 401k plan to pay medical bills using his power of attorney?

Code section 414(k) provides for a combination DB/DC plan. However, I'm trying to figure out whether the DC portion can allow for discretionary contributions.

What we're basically trying to do here is to have the contributions to the DC portion go up or down depending on what contributions to the DB portion are required. While I may be able to figure out a formula under which that would happen that does not involve employer discretion, it would be a lot easier just to allow for discretionary contributions. However, while 414(k) talks about a combined DB/DC plan, it does not explicitly provide for a combined pension/profit-sharing plan. (A combined DB/DC could be a DB/money purchase plan, which would still be entirely a pension plan.)

For technical reasons, we don't want to have two separate plans. However, it seems to me that if the structure would be allowed in the case of separate plans, it doesn't make much sense to disallow it if the plans are combined.

However, I'm particularly concerned because 414(x), which provides for combined DB/401(k) plans, is limited to small employers. I'm wondering whether the negative implication is that other employers can't have combined DB/profit-sharing plans.

Has anyone seen any guidance, or had any experience, with this?

401(k) plan with 150 participants at the beginning of 2015 (80 were eligible but had no balances). In August of 2015 the plan adopted a resolution to terminate the plan but the company is staying in business. As of 12/31/15 there were still around 60 employees employed by the company (had not terminated employment) that still had balances due from the 401(k) plan.

My understanding is the employees with no balance are no longer participants since the plan terminated. The count would only be 60 and the plan would not need to be audited in 2016.

Per 5500 instructions, Active participants (i.e., any individuals who are currently in employment covered by the plan AND who are earning or retaining credited service under the plan). Since no balance are not earning or retaining credited service.

Ex wife wide just filed for qdro from 1992 divorce. Divorce orders states 3/17 of respondents retirement. Attorney was suppose to follow up to court 30 days later. Attorney never followed up, now attorney is retired and of no help. Judge says she has no idea how court decided on 3/17 share. It was my I understanding the 3/17 fraction was a lump sum of benefit tobbe paid monthly as of 1992. I had defined benefit retirement plan with united Airlines that went bankrupt now under PBGC. The judge wants to take 3/17 of my entire monthly payment. I would appreciate answers how to handle thsee issues. I'm in pay status since December 2011 and the judge wants back payments. It wasn't my fault ex wife didn't keep up with qdro and get it filed before I remarried and retired. Help please. Thank you.

An employer asked me: "Is it legal" for an employer to require, as a condition of employment, that its employee have health coverage (somehow, not necessarily under the employer's plan)?

The employer pays most, but not all, of the premium for an employee enrolled under its group health insurance contract.

The employer told me a health insurance salesperson suggested the idea as a way to get a sufficient percentage of employees to meet an insurer's underwriting requirement.

The workforce is low-paid and does not fear the play-or-pay excise tax. Several employees refuse to do anything about getting health coverage.

Beyond employee-benefits issues, what kinds of employment-law problems might result from refusing to continue an employee if he does not furnish proof of health coverage?

A DB Plan is terminating. Are the actives offered annuity forms if their lump sums don't exceed $5,000, or are they treated like terminated participants, who just get the lump sum option?

Thanks for any responses!

Sponsor has terminated DB plan in 2015, participants will be paid out in 2016, and is considering starting a CB plan in 2016.

I know that the DB benefits need to be considered for 415, and I am aware of the predecessor plan rules for vesting.

The decision to terminate the DB plan was made before any thought was given to adding the CB plan, but it works to side-step doing a CB conversion. Are there any problems with doing this?

What 5500 form does a one man plan file if more than 5% of the assets are in real estate (non eligible assets)

In past years I filed a 5500 due to real estate (less than 100 employees) but the Dr. is retiring - all employees are terminated and paid out. He is still working on minimal basis - still maintains the plan with real estate.

instructions indicate Cannot file an SF - due to real estate and 5500 says do not file a 5500 for a one man plan

Should I switch to an EZ - I cannot find in the instructions a problem with real estate and filing an EZ

Just concerned that a switch from a 5500 last year to an EZ this year will raise flags?

I have a SH plan that terminated in 2015. All assets are paid out. All participants received their 3%. The 100% owner did not. What would be the ramification if he did not give himself the SH?

There is a company in name only now. All company assets were sold.

DB plan started 1-1-13. Based on information from client, named Company X as plan trustee. Plan document and SPD identify Company X as plan trustee (but Company X did not sign the plan document or any other document accepting position as trustee). Now plan sponsor wants to "remove" trustee and appoint himself as new trustee. Company X says it did not know it was the trustee and never meant to be the trustee, just investment provider. Any ideas on the best way to fix this?

One of my plans currently requires 1,000 hours of service in a plan year (calendar) to receive a year of vesting credit. Client is considering changing to elapsed time. The current six-year schedule will remain. Do I have this right, regarding a mid-year change?

• Credit that was already granted for years prior to 2016 will remain unchanged -- based on counting hours, not elapsed time.
  
• Anyone who has any hours of service at the time of the change this year will receive a year of vesting credit if they complete 1,000 hour in 2016 -- regardless of whether they reach that number of hours before or after the change.
  
• Anyone who reaches his 2016 anniversary date after the change will receive a year of vesting credit.
  
• Potentially, then, a participant could receive two years of vesting credit during 2016: One for completing 1,000 during the year, and another for reaching his anniversary date by the end of the year -- assuming the anniversary date is later in the year than the effective date of the change.

Or do I have this all wrong?

Thanks for your help!

On my first attempt to e-file and 8955-SSA, I received an email saying the filing was bad. I use Relius Government forms. Does anyone have any suggestions on where I should look for problems?

I am getting ready for vacation and the brain is elsewhere.

Client has a non-complicated profit sharing plan that the attorney put on an individually designed plan document. It is coming up on the end of the 5 year cycle to restate.

It doesn't need to be on a IDP and want to save this client money. Can we just do the restatement onto a pre-approved document now?

When calculating a QNEC for missed deferrals, is the corresponding match also considered QNEC or is it categorized as employer match.

May a 457(b) FICA Alternative Plan (that provides for mandatory employee deferrals of 7.5% of compensation) provide that such deferrals can be made on a Roth basis instead of a pre-tax basis?