Can someone please confirm that the 415 limit is per unrelated plan?

If someone participated in a plan for the first part of the year and maxed out their contributions at 23,000 (in 2024) and then went to another job with a 401k plan that permitted after tax contributions - with the new plan, would the participant be able to contribute a total of $69,000.  Do I have this correct?

Can anyone point me to a US Treasury Reg or IRS document that spells out that the 415 limit is per plan and not by participant?

Thanks in advance.

Company F sponsors a 401k PS plan and wants to join a MEP.  Can they terminate their current plan and roll the money into the MEP as a rollover contribution (I don't think they can take it out due to successor plan rules)?

Of course, they want to do this immediately... and both plans are SHNEC.  I figure as long as they give each person 3% of total comp for 2024 (probably all into the MEP), that's what counts.

Any other pitfalls?

Thanks.

Please Help, can’t find where the plan was in 1997 or balances or a statement or anything to be able to have that subtracted from a Quadro any advice? I have checked with the plan administrator. They don’t seem to know anything I checked with Fidelity before they rolled it over to an Ira. It was under one company name, but I can see that the company changed their names several different times in different various ways I looked up the 5500 form, please help 

Participant has passed and spouse passed some years ago.  We believe 3 adult children are beneficiaries.  Question - I imagine the beneficiaries will need to waive the annuity as the default distribution option just as the participant would if he had lived and elected to roll to an IRA?

Thank you

I must lead a charmed life; it has been a long time since I've had a 401k plan not refund within 2.5 months (that I can recall; I'm also getting older).  Now I've got one, and I was positive that the earnings on the refund were included in the amount reported on the 5330... but that's not what the instructions seem to say.  It says the tax is on the excess contributions and are the amounts "actually paid" over what was allowed... and doesn't mention earnings.

Am I just mis-remembering this rule?  Is it really just the base amount of the refund that gets taxed?  If the earnings are included, is there a cite for that?  Thanks.

Does anyone know of a good summary of what specific MANDATORY SECURE/2.0 provisions specifically do apply to a Governmental 501(c)(3) non-ERISA 403(b Plan? A small list, I know, but it would be handy to have.

Thanks.

Greetings:

Here is an interesting question: Say a fully-vested DB Plan Participant leaves (either voluntarily or involuntarily) the company providing said DB Plan. After several years, said employee returns to employment with the same company which is still offering the same DB Plan. Does the Plan Administrator need to have the employee/participant  "reaffirm", in writing, the designated beneficiary for said benefit in the event of death of the participant? Thanks to all who reply in advance!

Hello All:

GENERAL QUESTION not based on a specific example. In General Terms, for DB Plan Administrators who are granted "discretionary authority" by their  Plan Documents, how much can they allow "exceptions" to written rules in the Plan's documents or Instruments before they face potential liability( i.e. potential litigation)  for abuse of discretionary authority? THANKS IN ADVANCE!

As we know, the correction rules for nonqualified plans differ depending on whether the affected employee is an insider or not. If an employee was an insider in the past as defined by IRS Notice 2008-113 by virtue of his status as an officer while he was employed, is he still considered an insider for these correction rules after termination of employment? Thank you. 

Are there any land mines on the discrimination or other 125 plan road for an employer that maintains two IRC Section 125 plans for the benefit of its workforce? Must the two plans be aggregated for discrimination testing?

Hello - I'm running into a question with a plan audit that I am looking for assistance with. Any guidance would be greatly appreciated. Thank you.

Facts:

There are multiple defined contribution retirement plans sponsored by the same plan sponsor within one contract at John Hancock Life Insurance Company (a group annuity contract). The investments are pooled.

Question:

Should plans configured this way have a master trust agreement and follow the master trust reporting requirements for Form 5500's? If the answer is no, is there any guidance or rule that explains this?

Hi

Facts:

Company ABC owned over 80% (but not 100%) by Joe and sponsors DB plan (started 2021)

Company XYZ was owned by Joe 60% but sold in 2020 (i.e. not in existence when the plan has started)

In each case, the remaining ownerships were unrelated.

Joe has 125k average salary since 2021 paid from Company ABC that is used for DB plan purposes.

Going back to years 2015/2016/2017 (*prior to plan inception), Joe had 150k salary each from Company ABC and Company XYZ i.e. 300k in total/per year.

To determine Joe's 415 lump sum for 2024, what is Joe's salary?

Assuming that you can use the 300k average (obviously limiting to 401(a)(17)), can you point to a code section to back this up or a starting point?

Thank you

A municipality wants to set up a DC plan under which retiring employees can defer their accumulated PTO bank when they retire.  The municipality has been told (not by me) that it can set up a 401(a) defined contribution plan for this purpose.  The leave bank will be the only source of contributions to the plan (no amounts other than the PTO bank contributed by the municipality or the employees).  Employees won't be required to contribute their leave bank, they will also have the option to receive a payout at retirement in a (taxable) lump sum.

I can't fit this situation under any of the PLR's, and am concerned this this is really an impermissible "cash or deferred election."  Any thoughts?  Has anyone seen this type of set-up before?  What if I drafted the plan so that employees were required to defer their leave bank at retirement (i.e., try to turn the leave bank into a "mandatory contribution")

I am aware that these amounts can be deferred under a 457(b) plan - but some employees have leave banks that are much larger than the annual limit under 457(b).

Traditional money purchase pension plan covers collectively bargained employees. A group would like to allow a back door CODA by allowing participants to make negative elections. For example, the default contribution rate may be $10 per hour worked, but an employee has an annual options to elect to defer only $5 per hour and take the rest as wages. 

I'm sure I've seen IRS guidance stating a "negative election" of this type is an impermissible CODA, but cannot find it now. Any help or direction would be appreciated. 

Hi

Asking for a friend.

Existing 401k plan with SH and PS.

PS allocation requirement is: Either employed on the last day or accrue 500 hours of service.

Plan sponsor wants to exclude bonuses for 2024 for all purposes.

Can it be done now or has to be tested for participant who fall on either allocation requirement?

Thanks

looking for ERISA attoney specializing in public sector reference, Oregon.  You can DM if you prefer.  TIA.

Thanks for the help in advance!

Has anyone run into a situation where the SSA is sending out wildly incorrect account values to retired participants receiving the "Potential Private Retirement Benefit Information" letter?

I currently have two participants who have reached out to me and sent copies of the aforementioned letter which shows their account values as their recorded account value on the 8955-SSA with two additional zeroes added onto the reported figure.  For example, one individual was reported on the 8955 as having an account value of $10,201 but the letter he received shows a reported account value of $1,020,100?

I understand that this is a "may" letter, but that seems wildly inaccurate and for it to have happened to two participants is a little disconcerting.

Thanks again!

Hi, we're dealing with a likely VCP situation in a 403(b) plan, where the plan was a) administered with a one-year wait, and b) wasn't properly drafted to exclude part-timers. We have no experience with VCP filings, and were hoping to see if there's a gold-standard guidebook out there on doing them, or perhaps some online resource where we can see other/sample filings.

I think it doesn't strictly need to be 403(b) related, if there's a good resource for 401(k) that would probably help. 

Thanks!

Employee was hired 8/22/2022 and terminated 1/31/2023 and worked over 1000 hours in that period. Employee was rehired 8/15/2024. The document states the following eligibility:

Each Eligible Employee shall become a Participant eligible to make Elective Deferrals on the first day of the calendar month coincident with or next following the date he attains age 21 and he completes 6 consecutive month(s) of service; provided that he is an Eligible Employee on such date. If the service requirement is not met in the first consecutive period of months, each successive period shall begin immediately after the preceding period and shall end on or before the first Eligibility Computation Period after which time the Plan will revert to 1,000 Hours of Service in an Eligibility Computation Period. The service requirement under this Subsection shall be deemed met no later than the end of an Eligibility Computation Period during which the Employee completes 1,000 Hours of Service; provided that the individual is an Eligible Employee on the applicable entry date. Service taken into account for purposes of this Section shall be determined under the terms and conditions as is specified for determining a Year of Eligibility Service. 

The Eligibility Computation Period is the first 12 months from commencement of employment to the anniversary of commencement of employment. Then it switches to the plan year of January 1 to December 31.

Since the employee did not work 6 consecutive months but did work 1000 hours in his first period of employment, would the employee be eligible upon rehire? Am I determining this correctly?

 I was told that 'husbands' annuity  $650,000 was bought. for him by the company therefore it was 'his'. I found an letter written by my attorney stating that he, 'husband' bought the annuity, and my attorney knew it was a lie, awarding him an asset, purchased during the automatic orders, with marital funds.

The statute od limitations against my lawyer has expired, but I was denied a motion to open the judgement, and am in the CT Court of appeal--pro se.

Any information about collusion between opposing counsel, automatic orders would be appreciated.

Thank you!

Gaslit