Participant is 75, but is no longer working and is taking RMD's. Spouse is 65, and is still working. Both are participants in the same 401k plan. Participant dies, spouse is the sole beneficiary. Neither is an owner.

I know if the spouse were to rollover his account into an IRA (spousal rollover) and treat it as her own IRA, she could stop the RMD's until she turns 70 1/2.

After 2001, a spouse could also rollover benefits into an eligible retirement plan (and, presumably, also treat his account as her own and stop RMDs).

Since she is in the same plan as her deceased spouse, can she elect a "rollover" of his account into her existing account, treat it as her own and STOP RMDs until she turns age 70 1/2 (or retires)?

In a Law Firm, document is written that each participant is in their own group

The plan has always been run grouping the participants into groups and then allocating the same percentage to each group. Group one is equity partners, group two is non-equity partners earning over 260,000, group 3 is non-equity partners earning less than 260,000. Group 4 is all other employees. The first two groups receive the max, the second two groups, the minimum to pass testing.

The plan is changing in that the non-equity partners are getting younger and do not want to contribute a large contribution to the plan. They receive their income on a K-1. From what I've read, the equity and non-equity partners can decide individually on what percentage they put in the plan. Has there been any problems with this in an audit? Non-equity partners that are not considered HCEs still must receive the minimum to pass gateway, correct? (this is a Safe Harbor Plan and uses top paid group).

If they would switch their payroll in that the non-equity partners would receive a W-2 instead of the K-1, would that change anything?

Any helpful hints on running a new comp plan for partnerships would be appreciated.

Thank you.

We have a plan that limits employee deferrals to 20% of annual compensation. The AA also says they may defer 100% of their bonuses, regardless of the above limits (which is in reference to the sponsor electing to use the IRS limit or to limit deferrals to a specified $/%. The BPD doesn't really clarify anything.

I would be under the impression that the 20% limit would supercede the bonus election (for example, someone defers 20% all year and then gets a bonus...could they then defer 100% of it which would put them over 20% of plan compensation?)

I couldn't find any references on EOB or elsewhere.

Thanks!

Co. A purchases Co. B. in asset purchase. Both Co. A and Co. B have retirement plans.

The intent was to merge the plans, but Co. A didn't formally adopt the plan at the purchase date. Co. A did prepare a resolution to merge the plan about 30 days after the pruchase. Co. B continued to accept contributions beyond the asset purchase date.

Co. B's advisors are telling them that since the plan wasn't adopted simultneous with the buy/sell transaction that the plan terminated & can't be merged.

Although ideally the plan should have been adopted at the transaction date my concern is that since contributions were accepted after the transaction date if Co. B's plan is allowed to terminate and distributions are made. we have successor plan issue if Co. B's former employee's are allowed to particiapte in Co. A's plan.

We do not administer any plans with life insurance. However, we may be getting a single participant DB plan with $1M of whole life.

If the participant's projected benefit is $14,500 the $1M should be well within the incidental limit of 100 times the monthly benefit. However, in reading the document it appears both the PV of the QPSA and the insurance proceeds together cannot exceed $14,500 x 100 = $1,450,000.

The document indicates that rollover assets can be used to purchase life insurance with no incidental limit. If this participant rolled over $500k from an IRA to the DB plan, would it count toward his limit? For example, would the limit now be $1,450,000 + $500,000 = $1,950,000.

Thanks.

Looking for a plan document provider who has developed an automatic-enrollment health plan document and forms package, thanks

My company is looking into a new system for our COBRA administration. I was wondering what administrators were using out there.

A company has both a 401(k) Plan and a 403(b) Plan.

The 401(k) Plan excludes employees by Job Title, such as Director of Finance, and CFO, and CEO from making elective deferrals into the 401(k) Plan.

However they are eligible for the Profit Sharing Contribution.

These employees instead make their deferrals into the 403(b) plan, which excludes any one who is eligible to make deferrals into the 401(k) Plan.

Basically, if the excluded employees were to make maximum deferrals into the 401(k) Plan, it would fail the ADP test. Therefore, they instead are excluded from the 401(k) by Job Title and make the maximum deferral into the 403(b).

The 401(k) Plan is being audited and the Auditor told the client that they need to stop excluding these employees by titles and that group of employees can chose not to make elective deferrals into the Plan, but he said it appears that the client is trying to avoid failing the ADP test.

Does anyone agree that the Plan needs to stop excluding these employees by Job Title?

Any guidance is greatly appreciated.

Alex.

Got this from a plan participant:

Attached are all the filled out forms - needed for my dismemberment.

Recently, the Employee Benefits Security Administration and the Internal Revenue Service released guidance that makes it feasible to use an annuity as an aspect of a target-year investment fund.

Has any investment manager announced a product?

My client received a notice and demand for withdrawal liability. The notice states that the employer can either pay off the assessment in a lump sum payment (made within 10 days of receipt of the Fund's notice) or commence making interim payments in January of 2015. My client wants to negotiate a lump sum payment. My concern is that if a lump sum is not paid within the 10 day period specified by the Fund, is the employer harmed by having to negotiate a lump sum payment with some interest accruing? My thinking is that interest does not start accruing until the first interim payment is due in January of 2015 so that the employer should have until that time to negotiate and pay a discounted lump sum amount. I understand that Section 4219©(4) allows an employer to pay off the liability without penalty, but with accrued interest, if any. Any thoughts on why the Fund states that the lump sum must be paid in 10 days? Thanks.

We are running a 414s test. The client excludes certain items from their definition of compensation for allocation purposes. Is it possible for the "allocation" compensation to be greater than "gross" compensation.

In one case, the participant is an Ex-PAT so their gross compensation is 0, but they still have allocation compensation and receive an allocation.

In another case, the NQ plan contributions are impacting the definition.

Any thoughts?

Just a quick question... I remember reading something about this, but don't remember the source. Can you take a loan out from the rollover source (rollover contribution is made prior to becoming a participant) before meeting the eligibility reqirements? So let's say the company requires you to be employed for 1 year before becoming eligible, can you do a rollover contribution and take a loan from that source, before completing the 1 year of service?

Can a one person LLC create a solo 401k plan if the LLC has one part-time employee working less than 1000 hours/year and who is not the owner and not related to owner? If so, what is the process and what things one should look out for?

Can a one person LLC create a solo 401k plan if the LLC has one employee working less than 1000 hours/year and who is not the owner and not related to owner? If so, what is the process and what things one should look out for?

Thanks,

Disgruntled employee reports employer to DOL for late deposit of what employee thinks are 401k deferrals but are actually SIMPLE IRA deferrals.

DOL is seeking explanations, if we prove to them it's a SIMPLE IRA do they lose jurisdiction and go away?

26 CFR 1.417(a)(3)-1 lays out the rules for explaining a QJSA. Does anyone have a sample explanation they use for a defined contribution plan?

Is it enough to just get a sample quote off an insurance company and then tell the Participant to call the Fund Office for something more precise?

For reference, the differing benefits are all actuarially equivalent.

It seems like such an amazing amount of information to give to a Participant that it loses all meaning.

Thanks.

What happens if a company only has 2 employees (both Highly Compensated). and the Cash Balance plan covers both employees, however employee "A" is at the 415 max? Are there coverage issues since the in the current year only employee "B" is receiving a benefit? Is employee "A" still considered to the benefiting even though he is not getting an allocation?

If Company ABC has a CB plan, terminates the plan, then starts a new plan, I know the 415 Limit is based on combination of the plans but what about years of participation as it relates to 415? For example, if emplyee "A" had 3 years of participation in the first plan, does he start with 3 years in the new plan or does it start all over? My assumption is the past service counts (since the limit is based on the 2 plan) but I want to make sure.

Co. A purchases Co. B mid-year. Both Co. A & Co. B have retirement plans. Co. B's plan is being merged into Co. A's plan at 01/01/15.

Just found out that Co. B has life insurance in the plan. Co. A doesn't offer life insurance and really doesn't want to fool with the policies. Can the Co. B participants who have policies be forced to surrender the policies into the plan?

I'm retired. After retiring, I earned income that the IRS says must be treated as self employment income. I completed Schedule SE and determined my max contribution every year, always less than $1,000. I deposited the money into an old IRA. When I passed age 701/2 I kept depositing the annual SEP contribution, but I did start my RMDs for the IRA. The IRA Holder recently notified me of the excess contributions for 2010, 2011, 2012, and 2013. I have pulled out the contributions plus their associated earnings. What IRS form do I now use to report this action and pay the penalties. Do I submit a 1040X for each year? Are the associated earnings reported on that 1040X or in my 1040 for 2014? How do I use the Form 5329, since the penalties repeat each year until the excess contributions are withdrawn?