company left MEP with asset transfer in January 2014.

Question are:

1. Company files a *first* 5500 for 2014 and

2. Company shows the asset transfer as "Transfer to (from) the plan"?

thanks for any help on this.

Imagine an employer wants a safe-harbor plan's relief from the ADP test, but seeks to design the plan so that some employees will choose not to make elective contributions. To do so, the plan precludes participant loans, precludes hardship distributions, and does not provide any distribution until a participant's death or latest commencement date permitted under ERISA 206(a). (The employer's owner would not be troubled by these restrictions because she does not anticipate a need to use her plan account until her age 70.)

Assuming the plan, the employer, and the administrator meet other safe-harbor conditions, including all notice requirements, does anything about the restrictive plan provisions cause the plan to lose safe-harbor relief?

What are the practical considerations (e.g., promting audit) of Auditor issuing qualified opinion and checking qualified box, 3a2, on Schedule H?

During a plan audit, the auditors discovered that deferrals were not withheld for an employee who had completed a deferral election form. The plan was terminated, all participants paid out and final 5500 completed before this was discovered. The plan terminated because they were bought out by another company who sponsors a 403(b) plan. Should they self-correct by depositing the QNEC plus earnings from the terminated 401(k) plan into the current 403(b) plan?

How do you report a 12/30/14 loan repayment that was deposited on 1/2/15? I always thought you do not show loan repayments as a Receivable on the schedule H. This plan does use accrual accounting for employee and employer contributions.

We are the new TPA for an 80-life plan that requires cross testing. As the switch is happening in the middle of an admin cycle, we are to prepare the tax return and val showing contributions that were calculated by the old TPA and have already been deposited and allocated into self-directed accounts (we have the breakdown by participant). The problem is, the old TPA will not provide a copy of their cross testing analysis, saying that the client never receives this and it's not part of the admin work that is being paid for. The client also said that the testing has never been provided in past years and always just gets the tax return and the account valuation, and that there is nothing in writing that defines what the TPA must produce in such a situation.

I described this situation to a fellow TPA who also said that her firm doesn't provide the cross testing analysis. This is a first for us, so we're curious as to whether this is the norm. Would most firms use the numbers generated by the old TPA and just caveat that they're not responsible for their validity if an audit occurs (since it would be difficult to key into the exact numbers by doing the calcs from scratch)?

Question: Can an employer reimburse an employee's Part C (Medicare Advantage) premiums under the rule in IRS Notice 2015-17 or otherwise?

In IRS Notice 2015-17, the IRS allows an employer to reimburse an employee's Medicare Part B and D premiums under certain circumstances (i.e., the employer offers another group health plan, the actually enrolls in Medicare Part A and B/D instead, and the reimbursement is limited to reimbursement of Part B/D and Medigap premiums).

By its terms, 2015-17 is limited to Part B/D, not Part C. Is there any guidance about reimbursing Part C premiums pre-tax? Is it clear that 2015-17 does, or does NOT, apply to Part C premiums? Any help would be much appreciated.

Two companies are not related in ownership such that a controlled group exists. One company sponsors a SH 401k plan and the other wants to adopt the plan now (June). Permissable for a SH plan?

Employee A elects to contribute $1,000 for 2014. If the employer misses the deferral and corrects it by making a 25% QNEC or $250 in 2015, does the QNEC get included for deduction limit purposes? IF so, is it included for 2014 deduction limit or 2015? Is it included for annual additions limit? What if the employer wanted to make the employee whole by making a $1,000 QNEC?

These are violoation correction QNECs not QNEC to pass ADP so I was wondering if the rules were different.

Thanks

Say we have a DB/DC combo (non-PBGC).

Plan comp is $1,000,000.

DC allocations are $100,000 (have exceeded 6% of comp). As a result, the DB plan will be limited to a contribution of $210,000 (31% of $1,000,000 minus $100k).

However, 25% of comp = $250k. And the DB minimum required contribution is $230k. Since the DB MRC does not exceed 25% of comp, the deductible limit still stands at $210,000.

2014 is the deduction year we're looking at. Say the plan contributed $200k during 2014 for the DB plan. And in January 2015, $50k was contributed.

As stated above, the max deduction for the DB for 2014 is $210k. So they can deduct the $200k contributed in 2014 and $10k of the January 2015 contribution as well. The remaining $40k will be deducted from 2015 taxes. But this won't meet the 2014 MRC.

So here's what I'm wondering...

For plan purposes, can they apply the full $250k in contributions for the 2014 plan year, so that the minimum required contribution is met? In this case, the SB would show $250k contributed for 2014, but the maximum deductible for the year was only $210k. But as long as they don't deduct more than $210k for 2014, all should be good, right? This seems like an obvious, yes it's okay - but I just want to make sure I'm not missing something here. Thanks!

Catch-up eligible HCE terminates employment in 2015 after making $18,000 of 401k deferrals.

We believe employee has taken another job and is making 401k contributions to the new employer's plan.

When we run 2015 ADP test can we reduce the corrective refund by the catch-up amount?

Calendar year CB plan is terminating 8/31/15. The plan has been tested as a CB/DC combination arrangement. The DC plan is not terminating. 2015 pay credits will be based on comp from 1/1 - 8/31. The DC contributions will be based on full calendar year comp. What is my testing comp if I continue to use the annual accrual method? I think I have would have to test the partial year CB pay credit on a full year pay in this case, but I would like to hear what others have to say. Thanks.

I am curious is anyone has had this question.

Would you consider a 5 Wheeler a primary residence under the Safe Harbor Withdrawal guidelines?

The vendor is stating it would be a primary residence.

I always thought a primary home had to have a physical address.

Thanks!

Anyone have any experience with the Form 926 reporting for a qualified plan's investment in an offshore hedge fund? A client's legal team is certain that a Form 926 should be filed for such investment, but since the plan does not file a tax return is uncertain of the mechanics of filing it.

If an employer reemploys an employee even though she has been on a military leave of absence for > 5 years, does that mean the employer has to provide the employee with credit under its pension plan (participation, vesting, benefit accrual)?

It doesn't seem right that the employer that is more generous than it has to be in reemploying the employee then has to provide service credit for all those years in the pension plan (about 7 years in this case and the employee only worked at the employer for 5 years).

Thanks in advance.

I have a scenario where I have a safe harbor match of 100% of 4% and for 2012-2014 they didn't have a cap on the match at the annual compensation limit, so some received thousands more in match because their gross income was over $250,000.

How do I get participants to return funds if they have already taken distributions? Are there any correction methods for this?

My FAVORITE topic...

Plan uses 3% nonelective. They have a match that does not meet the ACP Safe Harbor (at least I don't think it does) because they cap the match at $5,000 per year. I don't think it meets the ACP because it is at least possible that an HCE could have all of his/her deferrals match, while an NHCE (perhaps one whose compensation increases substantially from the prior year) does not have 100% of their contributions matched.

But regardless, they want o increase the cap from $5,000 to $6,000. That means that some HCE's and some NHCE's will get more match, but probably will disproportionately benefit HCE's, because the full $6,000 match only inures to those making more than $120,000. Of course, if one looks at it from a different perspective, it is truly the HCE's who have been discriminated against all along.

Anyway, permissible or not too permissible?

I know for IRAs, you are only permitted to take distribnution and re-contibute the money within 60 days in order to avoid the taxes once within a 12 month period.

Are there similar rules for 401k? I know i can take a distribution and re-contribute the funds within 60 days, but is there a limit to 1 per year? If so, and you have a 401k and IRA, can you take a distribuiton from each and re-contribute within the same 12 month period?

Also, I know you are permitted to take a distribution from a 401k and roll it into an IRA to avoid taxes, can the same be done with an IRA? Can you take a distrbution, then roll it into the 401k within 60 days to avoid taxes? If this is allowed, then couldn't you take as many distirbuitons from an IRA in any year as long as you roll it into the 401k within 60 days?

Thanks

I know that they haven't been active for awhile, but why were the Q&A Columns cut back? They included some good info on a number of relevant topics.

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