Is a 20% mandatory tax withholding required for a non-spousal death distribution? What about state taxes (if applicable for that state)?

A domestic partner situation, man and woman. He has family health insurance coverage since he has children. Can he add his partner to the policy and keep the total premium as a tax fee benefit (his employer pays 100% of the family premium)?

My (limited - I don't work with health insurance) understanding is that a domestic partner’s share of the premium cannot normally be a tax fee benefit and he should have her share of the premium added to his pay to be taxed as regular income. This seems simple if he was going from a single to a 2 person plan - the additional premium would be taxable. But since he already has family coverage, does it matter if his partner comes on the plan and he still receives the insurance as a tax free benefit? On the one hand, it seems like some portion should be taxable, as it would be if there were just the two of them. On the other hand, since it is family coverage, and the premium is currently tax free and will not change, it also seems ridiculous to suddenly consider a portion of it as taxable.

Maybe my fundamental understanding off off base to start with...

Thanks.

Can a participant in a db plan take a partial distribution at the plan's early retirement age and continue to work and accrue a benefir?

I need confirmation on HCE determination and testing. Company was started in 2009, then was purchased by equity firm which caused a plan term (no assets transferred). Company was an adopting employer on the new plan. Company was then sold as a spin off and they are no longer related to equity firm and they created a new plan and no assets were transferred and the participants had the option to roll funds over to the new plan from the prior plan. This company had the same EIN the whole time. Does this make a difference in testing/HCE determination?

Sole proprietor retiring at 62 with an accrued benefit approx $12k a month. Is his lump sum calculated with plan or 417e rates, rather than 415 rates because his benefit is not at the 415 maximum?

Husband has a DB Plan.

Wife has a DB Plan.

Wife cut back unexpectedly and ended up with $88,000 of required contributions in the plan against which she had no income to deduct. Self-employment has ended.

I am trying to think of a scenario where the Husband, also self-employed, can deduct the money against his income (lots of it.)

- putting her on payroll

- considering it a controlled group

- merging the plans

Is there any way this could be done?

Thank you for any thoughts.

A participant's balance is hovering around $1,000. If we request a cash out, it may take the investment company several days to process the distribution. Are we ok if the balance goes back up over $1,000 if we have proof it was under $1,000 when we made the request?

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!