If the participant dies (has no spouse, kids, and the document states that the distribution to the participant's trust is the default distribution in such a case), which distribution code should be used in such a case? Code "4"? Does the mandatory federal (and state, if applicable) tax withholding apply?

I need explanation on the following;

If the calculation period is changed to plan year then you could prefund those contributions. If they did this then they would have to make sure those prefunded contributions matched up with that plan year match, essentially a true up match.

We have a subsidary that is holding some units of another company. We want to allow an executive of the parent to "purchase" those units with his nonqualified deferred compensation balance. When he retires, we plan to just have our sub give him the units.

If the NQDC obligation is satisfied this way, how does taxation work?

We would like the parent to still issue a W-2 and take a deduction upon payment. Is this an issue since the units are being provided to the executive through the subsidiary?

Unfortunately, we can't transfer the units to the parent and provide them to the executive through the parent because, in this case, the parent is prohibited from owing these particular units.

Plans going through a conversion to a new recordkeeper need to receive the 404(a)(5) within 30 days not more than 90 days prior to the effective date of the transition or date the first assets to be received?

That didn't change with the updated rules, did it?

Thanks!!

I haven't yet started looking into this, but wondered if anyone had any off-the-cuff opinions.

One business acquires another - buys their stock. two separate plans involved, two different plan years. Once the 410(b)(6)© transaction period ends, they want to know if they can continue to run the plans separately. Other than the usual testing issues for coverage/nondiscrimination, they also have separate safe harbor formulas - one is the SH match, and one is the SH nonelective. Neither plan excludes HC's.

Again, without having delved into this, I don't see how this would work as is by maintaining separate plans. Any general thoughts?

Posted this in other sections. Wasn't sure which to put in! A doc has joined a gastroenterology practice. the plan doc allows for investments in real estate. More specifically the do wants to invest in the shares of the endoscopy center part of the gastroenterology practice. This leads to a couple questions.

- Since the plan is a small plan (SF), does the 5500 require an appraisal?

- If yes can the appraisal be done by the accountant?

- If an appraisal is needed, is it every year?

- If the practice does not have a formal appraisal done every year would a CPA or managing partner letter work?

Posted in other forums here as I wasn't sure where to put it. Sorry. A doc has joined a gastroenterology practice. the plan doc allows for investments in real estate. More specifically the do wants to invest in the shares of the endoscopy center part of the gastroenterology practice. This leads to a couple questions.

- Since the plan is a small plan (SF), does the 5500 require an appraisal?

- If yes can the appraisal be done by the accountant?

- If an appraisal is needed, is it every year?

- If the practice does not have a formal appraisal done every year would a CPA or managing partner letter work?

Posted in two other forums here. Wasn't sure best place to put it. Sorry. A doc has joined a gastroenterology practice. the plan doc allows for investments in real estate. More specifically the do wants to invest in the shares of the endoscopy center part of the gastroenterology practice. This leads to a couple questions.

- Since the plan is a small plan (SF), does the 5500 require an appraisal?

- If yes can the appraisal be done by the accountant?

- If an appraisal is needed, is it every year?

- If the practice does not have a formal appraisal done every year would a CPA or managing partner letter work?

I'm with a TPA firm. I know at least one of our clients had to submit the restated plan document we prepared providing for prevailing wage contributions to the agencies awarding the contract. Our other prevailing wage clients are new and haven't previously done plan contributions, so may not be familiar with the process with the agencies. I'm trying to get a feel for what they should expect.

Is it typical that each agency reviews the plan document before a contractor is allowed to pay fringe benefits as pensions contributions? If so, would something like excluding HCEs (e.g. children of owners) present a problem?

Related to this issue -- if an agency hasn't reviewed the document or isn't aware that HCEs are excluded under its terms, and then an HCE doesn't receive a prevailing wage contribution under the terms of the plan, is it possible an agency might take issue with that (if they don't understand that it's common due to nondiscrimination issues, or they simply require uniformity)?

Thanks.

Preparing a submission for a loan problem that proposes to acrue int and reamortize the balance.

How/When do you implement it?

Do you just assume they will approve and start making the new payments?

Employer A has a 401(k) Plan that Employer B adopted as a Participating Employer (controlled group). In January 2013, ownership of ER B changed and there was no longer a controlled group. (Two of the owners retained some ownership but not enough to keep it as a CG.) This, of course, was not communicated to us until now. The name and EIN of ER B remained the same. ER B had five eligible employees during 2013 and 2014. Only one was an HCE and he made deferrals along with one NHCE. All nondiscrimination testing was passed combining both ERs for those two years. For 2015, only one employee of ER B, the HCE, made deferrals. Therefore, having to test separately, would not allow the ADP test to pass. Plan uses current year testing.

Questions:

1. Referencing "Who's the Employer", it appears that the plan may be eligible for the grace period (allowing the plan to operate the same), which would have ended December 31, 2014. Is that correct? Then, as of January 1, 2015, the plan then becomes a multiple employer plan and testing would be done separately?

2. If the participation agreement is terminated as of the current date, are the participants of ER B eligible to get a distribution of their accounts? If so, I would assume the HCE of ER B would not be eligible to get a distribution since the ADP test would fail and corrective distribution would be required. Would the test be performed at the end of the plan year or at the end of the termination of the agreement?

Thanks in advance for any advice on this situation.

I know there have been quite a few discussions in this forum about the extent to which mid-year amendments can be made to safe harbor plans and "maybe safe harbor" plans, but my question has to do with the end result if the IRS were to view any such amendment as outside the scope of what's considered "acceptable."

Is the effect merely loss of the safe harbor, or could it also affect the plan's qualification?

I'm dealing with a maybe safe harbor plan that will not be using the safe harbor in 2015, so if adopting a particular amendment results in a worst case scenario, what exactly is that worst case scenario?

Loss of ability to be a safe harbor plan in 2015? (And in this circumstance, where it's a maybe safe harbor that wouldn't be utilized, should I care on any level?)

Plan disqualification? (In which case I obviously do care!)

Anything else?

Thanks!

Hi, all. I am new to the forum, and am hoping someone can help with a question. In advance, I apologize if this issue has already been addressed elsewhere. I didn't see it. So here's my question:

I am a part owner of small business. A friend, who owns a separate small business, has told me that (i) his company eliminated its group health plan, (ii) his company now provides each employee a pay increase of $400 per month, and (iii) employees buy their own health insurance on the private market. Importantly, he also informed me that his employees set up FSAs, into which they deposit pre-tax dollars, and that employees simply reimburse themselves from the FSA, on a pre-tax basis, for their healthcare premiums.

Is this permitted? If it is, I think my business wants to move in this direction, as it would likely be a win-win for both the company (as employer) and the employees.

Any help would be GREATLY appreciated. Thank you.

Is there a calculator/spreadsheet available that I can use to calculate the self employment tax and employer contribution for a partnership? I tried the IRS website and couldn't find anything, also tried searching online and came up with nothing. Thought maybe someone on here would know where to find one. thanks.

We provided fee disclosure for a Plan transferring to a new service provider. The Plan offers Target Date funds - although to date no one has selected. We did not include all the Target Date funds in the initial fee disclosure. I know we need to provide disclosure but wonder if this is subject to the 30 day notice requirement? I am wondering if this would qualify as a "special situation" in the DOL guidance?

401k/Profit sharing plan that does not have Annuity as normal form of benefit. A participant that terminates in a prior year (for example 2009) and was properly reported on an SSA receives a partial distribution in 2014. Is that partial payment considered as having "begun receiving benefits" for purposes of reporting them in 2014 as code D?

Plan document excludes anyone who "does not regularly work 20 hours per week."

Now, in a separate note, "Hours of Service" is defined as 195 hours per month if you work at least 1 hour in that month (or whatever the equivalency is).

I believe that the 20 hours per week exclusion does NOT pull in the Hours of Service definition because it does not use the term Hours of Service.

Has this question ever been addressed? I'm using the Hours of Service definition everywhere that it DOES apply. It does not seem to apply to the 20 hours per week exclusion though.

(actually, I never would have drafted the plan this way - I got a question about this from a friend of mine).

We are in the process of preparing PPA restatements for our clients. What should the effective date of the PPA restatement be?

Large plan filer files the 2013 Form 5500 on October 15, 2014 without the audit. Filing is "filing error" but still considered a filing. The auditor now has the 2013 audit ready (many problems which I won't discuss). The auditor is recommending they file an amended return under DFVCP?

Can you file under DFVCP if you have already filed a return (even though the return is incomplete)? They have not received any correspondence from the DOL so that part is not eliminating them yet.

I don't believe they can, but cannot find an answer on the DOL website.

Thank you

Employee was hired after soft freeze date and another employee was hired before the soft freeze, but transferred to another location-not covered by this plan. Employer is saying that both of these members should continue to accrue a benefit in this plan because their contract stated that their pension should continue.