a former employee's beneficiary?

Has anyone seen this in practice?

While we always wish to accommodate legitimate client wishes, this proposed amendment request borders, if not leaps over, into "non reliance" territory!?

All of a sudden, we could be (?) accepting de-facto "participants" by virtue that their inward rollover money could be (?) in the plan, regardless if they never worked for the Plan Sponsor.

Thank you for your thoughts and comments!

a former employee's beneficiary?

Has anyone seen this in practice?

While we always wish to accommodate legitimate client wishes, this amendment request borders, if not leaps over, into non-reliance territory!?

All of a sudden we could be (?) accepting de-facto "participants" by virtue that their inward rollover money could be (?) in the plan, regardless if they never worked for the Plan sponsor.

Thank you for your thoughts and comments!

Taxpayer has two separate lines of business, filing a Schedule C and a Schedule F.

The Schedule F has a SIMPLE IRA. That business incurred a loss in 2014.

The Schedule C reported income in 2014 that is greater than the Schedule F loss.

Question: Can the taxpayer make a deductible SIMPLE IRA contribution to the Schedule F business, even though it has a loss, because the taxpayer has positive net SE income?

I have a client that needs to have their SARSEP document restated for PPA 2006. They are currently on an individually designed plan because they are ineligible to use model Form 5305A due to sponsoring another retirement plan. Also, Vanguard (the IRA custodian) doesn't have a pre-approved prototype document. If I restate the plan as an individually designed plan, can it be (or necessary) to submit to the IRS for a determination letter? I noticed on Form 5300 that SARSEP is not listed as a plan type.

A client's prior TPA amended out profit sharing provisions from a safe harbor matching 401(k) plan, as she thought allowing for profit sharing would create a top heavy minimum requirement (even if there were no allocations of profit sharing or forfeitures). The plan doesn't allow for any additional matching contributions.

The client had deposited $30K throughout 2014 toward profit sharing (in addition to the SH match).

The plan document provides that contributions may be returned to the employer within 1 year due to "mistake of fact," but some of the deposits are now over one year ago.

Does anyone have any suggestions for a reasonable way of dealing with this? What about the following?

• Place the contributions into a suspense account and take a 2014 corporate deduction, then amend the plan for 2015 to allow (understanding the potential issue with mid-year amendments for safe harbor plans) and allocate them in 2015 (including them in 2015 415 limits)
• Return contributions made in the last year as a "mistake of fact," an return the prior ones as prohibited transactions (paying excise tax)?

Thanks.

Calendar year 401k plan with basic safe harbor match - 4 participants - 2 out of the 4 are owners

Client was using a payroll provider but due to financial issues took the payroll in house in September 2014. The client stopped making the 401k contributions and safe harbor match in September.

I prepared the ADP/ACP test for 2014 and both tests fail. Refunds are needed to for both owners. Also prepared the top heavy test with a determination date of 12/31/13 and the plan is top heavy for 2014

Client doesn't have the money to fund the top heavy minimum and wants to termiante the 401k plan. What are the ramifications for the client refusal in making the top heavy mimimum?

Question about my test. New owners in 2014

2013 owners did not have comp in excess of the HCE level (prior year comp)

My thinking is that just my 2 new owners are in my HCE group?

One trustee of a ps plan died. The spouse, who is the other trustee, wishes to move the plan assets to another investment group. Brokerage (the back office) says they have to segregate the deceased's assets into a new account. We say it is none of their business, if trustee wants to move the whole trust, he/she has the right. There are other participants in this pooled, balance forward plan.

Plan allows one trustee to act for both (not that there is a "both" anymore)

Ever heard of this? see any reason/grounds they would have for forcing this instead of moving the assets as directed?

I have a Cash Balance Plan year of 1/1 - 12/31. Am I able to amend the plan this month adjusting the crediting rate to the market rate of return prospectively (for March thru Dec.)?

I am reviewing a DRO and the plan name is slightly incorrect.

The name of the plan is ABC, Inc. 401(k) Profit Sharing Plan

It is listed in the order as ABC, Inc. Profit Sharing Plan

The plan was once known as PSP, but we added a 401(k) feature for 2013 and changed the name.

This doesn't seem material, as it is quite obvious to which plan the order refers--the participant has no other retirement plans.

The EOB says that when a name or address is misstated, the plan administrator should "supplement the order rather than reject it..."

How do you supplement an order? Does it go back tot he judge? Just noted in the file? Do I write something to everyone such as: the name of the plan in the order should be xxxxxx.

Your thought are appreciated.

Is the 401k plan name the same as the trust name? If different, why? Would they need different EINs?

I have a Cash Balance plan (not covered by PBGC) that is terminated an currently underfunded.

1. There is an emeployee that used to be an HCE, but is no longer an HCE - can we reduce this employee's benefit (pro rata) based on account balance?

2. Do we need to have the owners sign waivers to reduce their benefit?

3. Are we allowed to just reduce all participants benefits pro-rata?

Hi,

I have a DB plan where the form of benefit is a QJSA. The soon to be former spouse does not want the QDRO benefit and just wants the money to go to their children. Can they do this since its a QJSA?

I'm a bit confused on the difference between "In Plan Rollover to Roth" and "In Plan Conversion/Transfer to Roth"

Anyone have a quick cheat sheet or link that explains the difference between the two and whether you would want to add one, the other or both to a plan when adding ROTH contributions to an existing 401(k)?

I have a situation where a couple of employees terminated 2-3 days prior to their actual entry date. The plan defines compensation to include post-severance compensation. These employees' final paycheck was paid after what would have been their entry date. Since the pay date fell after their entry date, the client withheld 401(k) on the final paychecks from these employees either because the employee made an affirmative election, or they did not opt out of their auto enroll. Was the client wrong for doing this? (i.e., would these be considered ineligible deferrals?).

I am one of two HCE's in a 50 person company (the other HCE is our owner). I work in business development and have made a lot of money over the last several years. However, our owner, and his outside financial advisor (who he defers to on matters like this) simply will not Safe Harbor our 401K plan. The problem is that most non HCE's don't contribute. For the last four years, we have failed the ADP test and I've gotten considerable refunds at the end of the year (both from what I have contributed and what my employer's matching contribution).

I was just told by my owner's financial advisor that since we failed the ADP test again this year, I will be capped at contributing $10,000 this year (instead of the max of $18,000) and the employer match will be capped at $9,000.

My owner's refusal to safe harbor my plan is annoying and I'm at the point where I am considering working for an employer where I won't have this issue. I do very well there (I've made between $300-$400K over the past few years) and wouldn't make as much elsewhere, so wanted to get outside advice on what else I should do here? I max out both my individual IRA and my wife's IRA ($5,500 each year) and I also contribute healthily to taxable mutual fund and stock accounts (and also to a muni bond fund as well).

It wasn't so long ago that interest rates meant interest was being paid.

I was told an EA conference speaker mentioned that when applying the 31% deduction limit for a combo plan, that you can only use the participant's compensation if they are receiving an employer contribution in either plan. For example, I have a plan that is not Top-Heavy and they are not giving the HCEs an employer contribution in either plan but they are able to contribute 401(k). He is saying I would not be able to include their compensation when calculating the deduction limits. I wanted to use the 6% limit on the profit sharing contribution. The HCEs are not excluded they are just in their own class and get 0%. Would I not be able to use their compensation in calculating the maximum deductible contribution?

Plan sponsor matched on HCE's full comp for 2014 and probably prior years. Resulted in excess of $4536 in 2014. Should this have occurred in prior plan years would SCP be allowed? There are really only family members in the plan. Would corporate tax returns need to be amended?

Thanks

Excuse me...not 401(a)17 but 408(p)(2). Does comp limit apply to SIMPLE IRA match or just Non-elective?

Does anyone have experience in regards to filing under the DFVCP due to a late top-hat filing. In a DOL FAQ (http://www.dol.gov/ebsa/faqs/faq_DFVC.html) it states that the 5500 can be filed either electronically or on paper. However, later on in Q18 it states that "the Form 5500 prepared for DFVCP purposes should not be filed with EFAST2." How do you submit it electronically, if you cannot use EFAST2? Thank you for your assistance.