CPA came to me with a client that terminated his plan 3 years ago, all participants have taken distribution except the owner. The owner was told that he could not take distribution until the Safe Harbor was made from 3 years ago. The Plan is a Safe Harbor maybe and sent paperwork to TPA and never provided notices to participants.

Should and can this go through VCP? We can roll the money out and finalize the termination but the client will need to wait 1 year before opening another plan. Does he have the option to keep the plan open if he filed under VCP and not terminate?

Do non-Roth non-deductible after-tax contributions to a 401(k) plan have to be made through salary reduction, or can the contribution be made by the employee from external funds or from already taxed money paid and taxed earlier in the year?

As a recordkeeper, our new client wants to use a specific custodian A - who offers a specific money manager portfolio but who cannot hold American Funds (which they want to offer). We are contemplating an arrangement where the American Funds would be held at Custodian B but still traded on our Platform (which would allow for our website to show complete balances). The issue we have is with fund transfers from A to B - they will take over a week and be very expensive (close to $100 for time and check writing fees).

The issues would be similar if the second custodian was not on our RK platform with the added problem of participants having (possibly) two systems to monitor for their 401k balance.

Assume transmittals are not a problem as the broker is willing to separate that out per custodian.

Is there any prohibition from having an Administrative Policy that prevents transfers between these two custodians except for X times per year (if at all) and attaching those high fees and delayed timing?

Thx.

We have a Deferred Compensation Plan that we need to make payments from. Can we have the plan funds be transferred to the Company and make the payments through payroll?

If not how do we calculate and deposit withholding and fica/medicare taxes?

Here is a link to a summary of the Multiemployer Pension Reform Act of 2014 that Dexter Hofing LLC has prepared. This summary focuses primarily on the changes of interest to contributing employers.

http://dexhof.com/DexterHofingMPRA2014.pdf

DexterHofingMPRA2014.pdf

Employer contributes to SEP IRA (employer contributions only) for employees. Employer also sponsors a 403(b) plan (employee contributions only). Do you have to add the two together so you don't exceed the maximum annual contribution limit (the lesser of 25% of compensation or $52,000 for 2014) or are they separate for purposes of the maximum contribution limit? Where in the IRC do I find the authority for this?

Employer contributes to SEP IRA (employer contributions only) for employees. Employer also sponsors a 403(b) plan (employee contributions only). Do you have to add the two together so you don't exceed the maximum annual contribution limit (the lesser of 25% of compensation or $52,000 for 2014) or are they separate for purposes of the maximum contribution limit? Where in the IRC do I find the authority for this?

Took over a plan that now includes union employees as of 1/1/15. I have little experience with this as only several of the employees will be subject to a collective bargaining agreement.

How exactly do I handle these folks and do I need two plan documents as it appears I do from what I am reading. The agreement states these folks must have a safe harbor plan basically and that the company will also contribute an amount of their pay to the union plan. I am a bit lost. Can someone offer me direction as far as documents and admin.

Thank you.

One of my plan sponsor's has informed me that they accepted an invalid rollover of funds. We have informed them that, based on IRS Notice 2014-9,the funds need to be refunded to the participant (with any applicalbe earngings). The question that is now coming up is what code should be used on the Form 1099R. The Notice does not detail what code should be used.

1) Does anyone know what code should be used on the Form 1099R?

2) Since it is an invlaid rollover, my assumption would be that 10% should be withheld. Does anyone agree?

Any help would be greatly appreciated.

The LLC is being taxed as a partnership. The majority owner's son is also an employee. Is the son allowed to participate in the cafeteria plan?

From what I have read the LLC would need to be taxed as a C-Corp in order for owners to participate. Since this one is being taxed as a partnership the owner cannot participate. But do the code 318 owner attribution rules apply in this case and disallow the son from participating? Or would the son be allowed to participate and just be counted as a key employee?

I'm curious about what other TPAs are doing about the recent hype about after-tax contributions. We have received so many phone calls in the past month asking us to amend client's plans to add after tax contributions because of notice 2014-54.

We do not want to add them to our plans for many reasons but the main being the ACP testing and of course top heavy problems.

Is there anyone that is adding after tax contributions to their plan? If so, what are you doing to remedy issues with ACP testing and top heavy issue.

I understand this can work for owner only plans but we are getting requests from small plans where the HCEs and Owners want to put in the after tax contributions and take an in-service to roll it in to a Roth IRA!

Corporation maintains a 401(k) Plan.

The Plan Sponsor called and stated they were going to terminate the 401(k) Plan..

They set up an LLC and this new company would sponsor a plan.

Plan Sponsor is fixed on terminating the plan and setting up a new plan. Not sure why they will not have the LLC adotp the plan, but that is not an option.

Terminating the plan and then starting up a new plan under the LLC just seems "fishy" and screams something is wrong with this picture.

Are there any issues here???

Beyond a little monetary relief, the proposed settlement with Nationwide would include a little extra disclosure.

Would this disclosure do anything to help your clients?

Can I amend the PS source plan entry dates today if the plan has a last day rule? Plan has entry dates retro to 1/1 in year eligibility was met and we want to make it 1/1 and 7/1 following. So some people who would have been eligible will not be.

I say this is ok because they have not accrued a benefit yet due to last day rule.

[i am aware that I need to watch out for any retirees, etc, if allocation conditions are waived].

for the SF they have added lines

5d(1) active begin of year

5d(2) active end of year

5e term < 100% vested

Active Participant Information. Filers are now required to provide the total number of active

participants at the beginning of the plan year and at the end of the plan year on both forms.

•Terminated Participant Vesting Information. Form 5500-SF filers now must provide the number of

participants that terminated employment during the plan year with accrued benefits that were not fully

vested.

for MEPs you will have to attach a schedule listing each company in the MEP as well as % of contribution.

(well, for Relius I was able to create a Crystal report to generate that attachment)

Consider 2 small LLC employers. They both have common ownership, but the majority owners are retiring due to emergency on Dec 31, and a younger minority owner is starting a new LLC that will take over both companies on Jan 1. The previous 2 LLCs/companies will no longer exist on Jan 1. Both original companies have safe harbor 401(k) plans in place. No participant notices have been sent yet and the plan year ends on Dec 31. Can they terminate both 401(k) plans on Dec 31 this year, finalize 2014 testing and SH matching, and then give the employees the ability to roll into the new plan once it is up and operational around March 1? Assume the new 401(k) will also be a safe harbor plan. Any gotchas when doing this? Any better solutions?

I realize the timing here is bad, but I I can't control that, due to the emergency situation with the owners and the fact that the termination of the companies is already in motion.

This may have been covered previously. If so, sorry.

How would you handle the following situation.

An employee changes their deferral election from a high percent to a low percent.(e.g. 10% to 3%)

For some reason the employer fails to update the payroll system and the participant never complains. None of the regulatory limits are breached (no ADP, 415, 402(g) etc. failures)

This situation endures for several years, Mistake of Fact wouldn't apply.

Assuming there really is an operational failure, what action if any, would you take given the IRS guidance that assets should remain in the plan?

Can a small business have one SEP for the owner at, say 20%, and another SEP for the employees, at say 10%? Either way, yes or no, can anyone provide a link to a document from an authoritative source? (I can just see myself in an IRS audit - "Well someone on the internet told me...")

Thanks in advance

Where does it state in black and white that a plan only has to provide an annual valuation to participants with pooled accounts and distributions can occur based on that valuation even if the market has increased considerably since the plan year end?

Thanks

I have a client that would like to restrict the availability to loans for one of two reasons:

1. Purchase of a home
2. College tuition

Has anyone had a client restrict loans to this degree? Is it allowed?

Thanks in advance for your help!