A little guidance would be really appreciated on this topic on what I THINK I can do with a 401k and after-tax, non-Roth contributions. It is my understanding that:

1) my plan documents have to permit me to make these

2) I am over the age of 50 and, if I wanted to, I could make up to $52,000 in after tax contributions. It is my understanding that the $5,500 "catch-up" has to be done through elective deferral

3) Once in the plan (in a separately designated account), I can invest after tax contributions tax free

4) If I want to I can take out after-tax contributions and gains at any time...even before 59 1/2. without tax or penalty..in effect like a 401k loan but not the loan?

5) When I close down my business, I can do a Roth conversion of the after tax monies and move them into a Roth IRA, tax free

I am trying to understand the down side to this, but it seems like it provides nice options. Thanks to any and all for their comments.

Any actuaries had inquiries from auditors w/r/t SSAE 16?

a plan has quarterly entry.

if a participant enters the plan on say Oct 1. which payroll should they commence deferring? for example if the payroll runs weekly 9/28-10/4 would they enter that pay period or the first full payroll following the entry date 10/5-10/12?

A participant took out a primary residence loans for 15 years in a 401(k) plan. In year 5 the participant took a bona fide leave of absence and after the one-year period was up he made a balloon payment to make up the missed principal and accrued interest, and resumed loan repayments. Now in year 10 he has to take another bona fide leave of absence. Can he suspend loan repayments for another year?

Thanks!!

Large Self Insured Health Plans must obtain HIPD's by November 5th.

Obtaining an HIPD requires an employee to provide personal identifying information for the business to obtain an HIPD.

Clients have asked if there is any way to obtain the HIPD without providing social security number and personal information of employee who requests HIPD for business.

Are there options?

Submitted my 5500-EZ by filing 5500-SF online.

See status - 'Filing_Received'.

Does this mean all is ok and i don't need to do anything else or do I need to check back to make sure that filing was approved?

Thanks,

We have recently taken over a pooled profit sharing plan that has several PT loans - 2 loans to disqualified persons and 1 loan in excess of $50k / 50%. The loans have been corrected recently, and I am now preparing the Forms 5330 for the excise taxes. These PTs were never reported on a Form 5500 nor a Form 5330 previously.

In the EOB, Sal states that if the transaction is reported on the annual return, a 3-year statute commences for purposes of collection of the excise tax. If the transaction is not reported, a 6-year statute commences. (Chapter 14, Sec V, Part B, 5; he also references GCM 39475). One of these PTs goes back to 2001 - am I understanding correctly that I only need to prepare 5330s for 2009 - 2014 and that the PTs from 2001-2008 do not need 5330s?

Thanks!

Looks like there are numerous single er plan 5500's filed without the attachment (by other service providers that is). What do you think are potential repercussions?

Two businesses that are not commonly controlled, affiliated, or otherwise related under Internal Revenue Code section 414(b)-©-(m)-(n)-(o) acted together and applied for group health insurance as though they were one employer.

Have they created a multiple employer welfare arrangement?

We know a qdro award to an AP must be taken into account for the participant's 415(b) limit. Must it also be taken into account in the participant's 415 compensation limit?

Thanks.

Maybe this is so obvious that no one has bothered to write about it. At least I haven't been able to find anything.

Am I correct in my assumption that in an ongoing plan, a missing terminated participant with a Lump Sum value of over $5,000 cannot be "cashed out" to a missing participant IRA?

If the LS is $5,000 or less, it is OK to set up a missing participant IRA.

Other more obvious situations are:

- If a DC plan is terminating, a missing participant IRA is the way to go.

- If a PBGC DB plan is terminating, the benefit goes to the PBGC.

We are testing 2 plans in a control group. One plan has a match. The other plan is deferrals only, no match. Pretty large population - about 1200 people total (after using otherwise excludable rule).

The Ratio Percentage test fails any way we test it. ADP/ACP for the plan with the match both pass. ADP for plan without the match fails and refunds have already been issued. Had the ADP/ACP testing been done on a permissive aggregation basis, the whole testing would have failed and even more refunds would have been necessary.

BRF testing passes. The Average Benefits Percentage test fails.

Now I am somewhat stumped...How do I determine how to correct for the test failure? Is the answer to give a match to the employees of the plan without a match? to give a higher match to the nonHCEs in the plan with a match?

Thanks. any thoughts are appreciated:)

When a parent dies, and is divorced, and the minor child is the beneficiary, is there something we should be requesting to "prove" that the surviving parent should receive the money on their behalf?

Suffice it to say that the deceased's family is "concerned" that perhaps the surving parent will not use the money in the best interests of the child. So we want to make sure we dot i's and cross t's.

I have heard the term Financial Guardian before - is that something we should be requesting even with respect to the parent?

Based on my understanding, when I made an extension payment through EFTPS online system, I automatically got a 6 month extension to file my taxes. (Since I'm expecting a refund anyhow, it does not really matter).

And my understanding is that since I have an extension to file my taxes until today Oct 15, I can file my Form 5500 today without any problems.

Thoughts?

Does anyone know if fidelity bonds with inflation guard have any caveats, exclusions, etc. regarding non-qualifying plan assets?

So a plan has $1,000,000 but has $300,000 of real estate. Will the bond be $300,000 or still just $100,000?

I am afraid that plans using inflation guard might be lulled into a false conclusion that they are all set when in fact they are not.

Probably a less interesting example is a plan with $1,000,000 and $600,000 of real estate. I think that is more clear that the bond covers just $500,000 as most of these bonds indicate a "not to exceed $500,000" parameter.

Anyway I wasn't sure if anyone had already looked into this as it seems to be a potential hole in the bonding requirement for the small plan audit waiver.

Employer has an automatic contribution arrangement (ACA- but not an EACA or a QACA) and wishes to change the default deferral percentage mid-year. Assuming that the employer will provide 30 days notice and option to opt out, is there any concern that the arrangement will fail to meet the ERISA preemption requirements under 514(e) because the annual notice will not have specified the new deferral percentage? In other words, the annual notice will become inaccurate as of the date of the change- is this cured by the 30 day notice, or will the employer have to wait to make the change until the beginning of the plan year?

I've been asked something I've never been asked before ... "can we limit the employer contributions for the HCE's?"

The client is a medical facility that is owned by investors (none of which are employed by the facility). They have two HCE's who want to max their 401(k) deferrals. Rest of the employees don't defer well, so several years ago we adopted safe harbor 401(k) plan with basic match.

They are looking to reduce the amount of the match for the two HCE's for budgetary purposes. My off-the-cuff thought is as follows:

• amend plan for 2015 to exclude HCE's from basic match
• include a discretionary match that only the HCE's are eligible to receive
• automatically satisfy ADP test due to basic match for HNCE's
• need to perform ACP test (which will hopefully pass because the formula for HCE's is not as beneficial as safe harbor basic match --- essentially, I will have to tell them what level of match will satisfy ACP and that will be their discretionary match)

The plan is not top-heavy, so we don't have that issue (as we wouldn't meet top-heavy exemption for safe harbor plans). I won't have 410(b) issues as the two matching contributions are aggregated to run that test.

Am I not thinking of something?

Thanks.

Non-calendar premium-conversion-only cafeteria plan wants to change to calendar year to accomodate employees wanting to go on Medicare during Medicare open enrollment (I realize Notice 2014-55 is a solution for employees wanting to go on Marketplace coverage).

Is creating a short cafeteria plan year routine or are there land mines I need to worry about?

We withheld loan payments from a participant's pay but didn't timely remit them to the plan. Now we are going to get them in the plan, but the loan is paid off. How do we get the loan payments in the plan? How do we classify them?

I had opened 3 Self-Employed 401K plans - Fidelity, T.Rowe price and E-Trade.

I never put any money in E-Trade and they closed account after a couple of years due to inactivity. Do I need to file 5500 for this account now?

I put some money in T. Rowe and after a couple of years, I transferred all funds to Fidelity 401k account. Do I need to file 5500 for this account as well?

At each stage, the total assets were less than 250K combined.

Thanks,