We have a 0% MPP where the 2 owners were the only eligible employees and filing 5500-EZ. Few employees would become eligible in 2016. Can the plan be amended to only cover the 2 owners and exclude everyone else. I don't think it is a cutback and I don't think there is a coverage issue but I am looking for others' opinion. Also must such an amendment be prospective or can it be retroactive? Thanks!

Employer maintains a Simple IRA for 2015.

Effective 3/1/2015 the employer will be acquired by Company B. Company B maintains a 401(k) Plan.

Employer has not "ownership" in Company B.

Can Company B terminated the Simple IRA effective 3/1/2015 and begin participating in Company B's 401(k) Plan?

if so, the contributions made to the Simple IRA are counted towards the 402(g) limit, correct.

Thanks

Hello!

I have taken a 5-week leave of absence in mid-2014. After I returned, the payment on the remained of my 401k loan was adjusted so I figured the loan was re-amortized. Sometime in October, the loan was paid off. However, in November I received a check from the provider for $308. Thinking I have overpaid, I cashed the check without looking too closely at the paperwork.

Well, it turns out, my loan went into default in the amount of $308 (the check that they sent me). Sure, the repercussions aren't dire (taxes + 10% on the defaulted amount will be about $130) but I'm still a bit upset because it's MY $130 and THEIR fault (or at least deep in my heart, I feel it's their fault ).

Is there anything I can do to rectify this? Can I paid that $308 back before April 15, 2015 and not pay taxes on it?

Also, since the existing loan shows in default state, I'm barred from taking out another until I pay it off in which case I'd be paying taxes on this money twice. Yikes!

Any input appreciated!

tomasz.

medium size 401(k)(preapproved document..no fdl) had two operational errors in 2014:

1.)allowed one person(nhce) to defer before eligible...appears that the rev proc

allows an amendment to bring the person in for the applicable time period..would

it be reasonable to also return the deferral with earnings and 1099R the person.in this case is the person in the 2014 adp test or not and would the 1099r be 2014 or 2015?

2.)active nhce rolled over his deferral account(self directed brokerage account).. . what would be a reasonable attempt to get this money back into the plan ..give the ee 60 days and then issue a 1099r for a taxable premature distribution if not returned? Seems to me there has to be some penalty to the employee ..i.e., cannot just..notify the ee and then do nothing if no response..

any comments are appreciated...

Terminated participant takes direct rollover distribution from 401(k) plan to IRA in year in which she attains age 70-1/2. Amount rolled over is net after RMD from plan, which is distributed to her in cash. Does she then have to take an RMD from the IRA for the year in which she took the RMD from the plan?

Have a client who terminated the company 401(k) Plan and all assets were distributed by September of 2013. From pressure from his employees, he would like to now start a 401(k) plan back up again. Is there a time limitation as to how long he has to wait until he can start a 401(k) again?

Employer misclassified certain employees for FLSA purposes. So now back wages are being paid for overtime that was never paid during 2012-2015. It is not DOL or court-ordered back pay. Employer found the error on internal audit. Now it is correcting it itself.

I have several questions:

1. For the payments that are made now (2015), should deferrals be withheld? And match be processed? The plan defines comp as W-2.

2. Is EPCRS correction triggered for the prior years? After all, the employees were not paid the proper amounts. This means that the employees missed a deferral opportunity and missed a match on the missed deferrals. Or is the payment of the wages (and liquidated damages) in 2015 enough that correction of prior years isn't needed?

Thanks.

It's simply lovely the level of security to use the IRS Fire submission system. Had Homeland Security been as vigilant, 911 would have been averted.

Hey guys -- How about one user name, password, and if it must be pin number for FIRE, EFAST2, PBGC, ad nauseum. After all, we're generally (except for IFIRE) filing public information.

Sounds like a ridiculous question, but would the values of 5 and 10 (i.e., the end points of the range) be included? So if the plan says:

"For the calendar quarters ending between 1/1/2015 and 12/31/2015 the employer will contribute 15% of pay, and subsequently the employer will contribute 5% of pay." Does the calendar quarter ending ON 12/31/2015 fall between 1/1/2015 and 12/31/2015?

As you can see it could make a big difference. Should I be writing "ending on or between" or is that over-kill.

I googled for about 10 minutes to try and find something on point about this but to no avail. The Dictionary.com definition was not too helpful.

2. intermediate to, in time, quantity, or degree:
"between twelve and one o'clock; between 50 and 60 apples; between pink and red."

We have a client whose plan allows for a discretionary pay period match; and an additional discretionary match at year-end for participants who are still employed at the time of allocation.

No formula mentioned in document, match can be uniform % of pay or a flat $ amount.

We just discovered that the employer decided on 12/24/14 to give a special match to 4 nonHCEs because he wanted to give them a "bonus". The plan document does not allow for a profit sharing contribution - only deferrals and match. Other employees got a match as well (as a uniform %), but these 4 individuals just got random dollar amounts deposited into their match accounts.

While this seems like it might not be permissible, I can't quite determine what rule has been violated? If we take the position that plan has allowed different rates of match, so it is subject to BRF testing, that is a nonissue because these 4 people are nonHCEs. And it helps the ACP test. So I can't see any testing problems with this.

Is this a plan document issue?

Thanks!

Client's 401(k) Plan limits the deferral limit of HCEs to the amount which equals current 402g deferral limit divided by current compensation limit. That number for 2014 would be 6.73% (17,500/260,000).

HCE contributes 10.6%. Plan does not fail the ADP Test but HCE exceeded the

plan imposed limit. What is the deadline for the return of excess? March 15th or April 15th?

The Plan was amended to the sponsor being a company owned (100%) by the eldest son of the owner of the previous sponsor. The previous owner is now an employee but not an owner..Previously his daughters who are also employees were included as Key Employees in the Top Heavy testing. Is Key status still attributed to the sisters for Top Heavy?

My HSA started in June. I am under 55 so the total I can contribute is 6550 for a calendar year for my family. We are likely going to change our insurance come April of this year so I'm just trying to figure out how much I can add to our HSA to max it out.

Since it is split between years does that I mean it's 3275 (6550/2) per 6 month period with the 2nd period being prorated? Or do I prorate the entire amount and since my period started mid-year I can add that total amount anytime across both years as long as I'm still in my plan cycle?

And where the hell can I read up on it to find out?

Thanks!

I have a document which specifically references the definition of compensation in the Definitions. Unfortunately, this definition of compensation excludes commission and bonuses. Two questions -- do I have to perform 414(s) testing and then use that (hopefully passing) compensation for my ACP test? and, do I have a document problem since the definition of compensation is so rigid?

Is a 401(k) plan permitted to only true-up employer matching contributions for plan participants who have hit the 402(g) limit for contributions ? Is there any statutory cite to support that this is possible?

According to the IRS website, it is my understanding that beginning with the 2014 Form 8955-SSA, the forms have to be filed electronically. It also says that you need to use software to create the proper format. In the past for the hard copy I submitted, the information was in the same format (page 2 and beyond) as appears in the 8955-SSA form on the IRS website. Do I still need to use the software?

I worked for Southern Railway system from june 1976 until April 1979 and paid union dues and contributed to the pension plan. I believe that I may have money owed to me but Southern Railway system no longer exists. How can I get information on this?

Company give a $250/month allowance to its employees. If employees benefit premiums come to $300 per month, there is a $50 deduction from their wages. If their benefits come out to $50 a month, they get $200 "bonused" to them as income.

1) I am pretty comfortable that the cash bonus is a taxable fringe benefit (although I know not everyone will agree, perhaps).

2) I am much less comfortable with the following question: If the employee spends the $250 per month, is the $250 considered wages for purposes of 415 comp OR is it employer paid medical benefits which would NOT be comp.?

Client had DOL audit and is filing a VFCP with the DOL. Do they also have to file SCP with IRS for the same issue (late remittances)?

We run all our DB valuations as of the beginning of the plan year. Asumming plan year is calendar, with 01/01 and 07/01 entries and 1,000 hrs required for accrual:

Q1 - should a mid-year entrant (07/01) with over 1,000 hours receive an accrual for the year?

Q2 - if not, should that mid-year entrant be included in the testing with 0% benefit?