Company A was a partnership (2 partners, Employee A and Employee B in 2014) which sponsors a SEP. Midway through 2014 the partnership dissolves. Employee B has started a new company, Company B, (100% ownership) after the dissolution of Company A.

Can Company B adopt a 401(k) Plan for 2014? If so, does the contribution made under Company A's SEP have any effect on what Employee B can receive under the new 401k plan?

Employer is comprised of two entities (A and B) in same controlled group. Both are contributing employers. Only entity A will be sold in a 4204 asset sale. When calculating the bond, should it be based on entire controlled group contributions to the plan or only the entity being sold?

It seems that since employer throughout Title IV includes 414 controlled group members, the entire controlled group contributions should be included.

Any guidance/thoughts on this would be welcome.

Thank you.

A nonqualified plan allows participants to elect to receive payment (1) at termination, or (2) at the later of termination or a specified date.

If (2) is elected, and the participant later wants to change the specified date, what is your view as to the date payment may be made under the subsequent deferral rules of 409A? Five years after the later of termination or the originally-specified date? Or the later of termination or 5 years after the specified date?

Would your answer change if the participant wanted to change the form of payment rather than simply change the specified date, given that a change to the form of payment would affect both what is payable at termination and what is payable at the specified date, regardless of which occurs last? Thoughts?

I have a plan that has defined imposed limits on elective deferrals. There are HCEs that went over the limit (and already used their catchup).

Question - would the amount over the plan imposed limit be included in the ADP test for the HCEs? For NHCEs it definitely would not be but for HCEs, it's unclear. I could only find reference to amounts over the 401(a)(30) limit being included in the test for HCEs.

Thanks!

DB illiterate here - so be kind!

If a fully-funded DB plan is terminating and uses a group annuity contract as a terminal funding vehicle, does the distribution of those assets into said vehicle then allow for plan termination? In other words, do those assets being held in the GA still constitute plan assets, thus a continuation of the plan? Who would be responsible for instigating payouts as participants separate from service - the (former) plan administrator? The GA vendor? The participant?

Any cites you may have on this would be appreciated!

Does anyone know who would need to file the 5500-SUP? Ascensus had something in today's BL email. Is it only for special circumstances? Why would it not be incorporated into the existing 5500?

http://www.irs.gov/pub/irs-dft/f5500sup--dft.pdf

Doctor client with 3 employees - fiscal year 5/1/13 to 4/30/14

In past had to file a 5500 instead of SF as multiple assets in real estate

The plan is terminated, employees paid out during the year. The doctors account balance has not been paid out in full so.... Beginning of year 4 participants and end of year 1 participant, doctor only.

Can I file an EZ (apparently cannot file 5500 with 1 participant, and cannot file SF due to assets in market value not readily available (ie real eastate)?

I have a profit sharing plan that terminated and paid a participant a lump sum, without allowing him to elect to roll over his account to an IRA. This would seem to be a very common issue, where a plan loses its tax qualified status and the participant's benefits are no longer tax deferred, but taxed immediately. Obviously the whole point of society spending trillions of dollars on qualified retirement plans is to defer taxes on the income. When that benefit is lost, the participant suffers substantial damages.

My question is: Is there any authority as to how the claim for damages would be calculated? Since the amount of damages is not fixed because the benefits will still be subject to tax at some later time, what variables and estimates are used to calculate the monetary damages resulting from immediate taxation of benefits, rather than deferral? Can someone provide an authority of this issue?

I have a corporation with a qualified profit sharing plan. The corporation is being liquidate by the sole shareholder, who will there after engage in business as a sole proprietor.

The corporate profit sharing plan's only asset is a deceased participant's benefit account of approximately $500,000, that is being paid out to his three beneficiaries (one of which is the sole shareholder) over the next 10 years.

My question is: Can the sole proprietor sponsor and adopt the corporate plan and continue it as a qualified plan and continue to pay out the account to the beneficiaries?

http://benefitslink.com/pr/detail.php?id=49237#.VE6HrU10yUk

Attaboy Dave!

And that picture is very recent.

My understanding has been that the plan termination resolution and plan termination amendment must be signed before (or same day of) the NOIT is distributed (60-90 days prior to plan's termination date).

Someone had mentioned to me the other day they thought that as long as the NOIT was distributed timely that the resolution and amendment could be signed all the way up until the plan's termination date.

I called the PBGC to ask them this and they said it was the first time they had ever been asked this question, but their opinion was it made sense for the resolution and amendment to be signed before (or day of) the NOIT was distributed.

Any thoughts or has anyone seen the various deadlines spelled out somewhere official? The standard termination instructions don't seem to specify.

Are executor fees counted as earned income treatable as compensation for pension/profit sharing contribution purposes?

New plan for me and the father of one of the owners was born in 1940. Since the son's ownership is attributed to father, I am assuming he needs an RMD for 2014 (calendar year plan). I just got back from Hawaii, so my brain isn't firing on work mode yet...

We are a TPA and have been asked by one of our Plans to gather information/ideas on the possibility of the Plan charging a "terminated participant fee". Basically this would just be a fee to a participant's account for being terminated in the plan with an account balance.

Does anyone out there have this? If so how did you determine the number? Any other comments would be helpful.

Anybody know the limitation imposed on after-tax (Non Roth) contributions to a defined contributions plan other than the ACP test and 415 limits. I know there used to be a 6% limit, but I can't find that anywhere.

Just saw this and wondering if anyone else has anything more on it:

http://www.irs.gov/pub/irs-dft/f5500sup--dft.pdf

The corbel VS 401k document includes an option to subject individuals who have made affirmative elections to auto increases. Let's say a participant affirmatively elects 0% of pay, or checks a box saying they choose not to participate (effectively the same thing). Does anyone have a problem with subjecting that participant to the auto increases applicable to employees who have made an affirmative election?

Because both of the Plans are audited I wanted to make sure that even though I am merging as of 1/1/2015 the client will not need to engage the CPA for a 2015 audit for the one day. I do not want to merge as of 12/31/2014 because one is SH and the other is not and that just seems to complicated. Note that we are currently within a 410b6c grace period.

I know I have heard that there has been informal guidance on this supporting using 2014 as the final 5500 for the non-surviving plan despite the 1/1/15 effective date. Can anyone point me in the right direction?

Client has ERA of 50 at which you become 100% vested. Why I do not know. Now the client wants to remove the Early Retirement Provision. Can this be done or is it a cutback?

We currently have a client that is inquiring whether her prior TPA should have filed form 5500 for their disability welfare benefit plan if more than 100 participants were enrolled.

The disability plan premiums were paid 100% by the employer.

The disability plan was not under a cafeteria plan arrangement.

This could go back as far as 2003 to about 2011.

Would a filing have been required if the employee did not pay for any part of that premium?

I would appreciate your guidance with this.

Thank You,