I have a 401k plan with no 412 money in it. The plan was originally set up (by a prior service provider) with annuity options as the normal form: 50% QJSA and 100% QPSA. The client would like to amend the plan to remove the 100% QPSA spousal death benefit and replace it with a 50% QPSA spousal benefit (I think they want to be able to name a trust for half the death benefit without needing to get spousal consent).

Can I amend this plan? Do I have any protected (spousal) benefit issues? Can I amend out of all annuity options, then later go back and add annuities including the 50% QPSA? Or is this a bad idea all around, and why?

Looking at a 403(b) TDA plan, it meets all the requirements of being a non-ERISA plan. However, when reading the adoption agreement, they have selected to allow employer contributions and they have selected that they intend to operate the Plan in compliance with ERISA Section 404( c ).

The employer has never contributed to the plan and has no intentions to do so.

Does the fact that the employer selected these items in the adoption agreement create a Title 1 ERISA plan by default, or can the Plan rely on the way it has been functioning (i.e. as a non-ERISA plan)?

Trying to determine the filing requirement.

Thanks!

A small 403b wants to terminate. It's custodian of the contracts (Mutual of America) is saying they can not terminate the plan until the end of the plan year. I don't believe this to be the case. The sponsor is trying to avoid having assets after the close of the plan year and wrap things up before 12/31

Hello Guys,

I have another question. I am doing an ADP test for a year end 09/30/2014.

The only problem is the Owner has died. Now thats not the issue. The issue is he died 01/27/2014 and he only takes comp once a year at year end. The ownership was transferred to his niece shortly after his death which made her a higly. She defers 10% and the populous defers 5.27%.

Am i allowed to use him in the test even though he has zero comp? He technically was an owner in the plan year?

Please advise

Is it necessary for a sole proprietor to have a TIN to put in place a 401-k plan. My thought is yes because it must appear on the 5500 but just wanted to check and see if anyone had any input?

Good morning

I am working with a client on amending their 125 plan to allow for the mid-year change due to enrollment in an exchange. He is under the impression that this is something that can only be done for one plan year (e.g., for 2103 or 2014 but not both). I cannot find anything in the guidance that limits it. Anybody else heard of this limitation?

The company is an LLC taxed as a partnership. The plan has a 100% of 4% Safe Harbor match.

There are two owners participating in the plan. They both contribute to the 401(k) plan during the year out of a monthly draw, but we don't know what their actual compensation will be until after the end of the year (I realize this could be risky in the case of a loss for the year, but that is another question and it hasn't been an issue so far). During the year, their deferrals are in excess of 4% of the draw, so their match is limited. Historically, we calculate the match for the owners once their K-1s are done after the end of the year.

All the other participants get their match with each payroll and the preference is not do a "true up" for them at year end.

I am now doing the PPA restatement and have been pondering the "true-up" option.

I would like rationalize that the year end match calculation for the owners is something different from a "true-up", but my gut tells me that it is NOT (added from initial posting) and we should be doing the true-up for everyone.

Thoughts?

Church sponsoring a 403(b) plan. Thye want to exlcude part-time employees expecting to work less than 30 hours per week form safe harbor contributions. Can that be done in a non-ERISA plan? I know that the universal availability requirement prevents thta for deferrals, but I'm not sure about safe harbor match.

Thanks in advance for any guidance.

I've been researching this topic, but I'm having trouble finding conclusive answers.

I have a financial advisor asking about using REITs for DB investments. The REITs would just make up a part of the assets - say 10% or something.

These particular REITs are illiquid for the first 12-18 months. During this time, their stated value does not change. Then, after 12-18 months, they become liquid, and their value changes at that point. This is how the FA described the REITs that they invest in to me.

It seems like REITs (at least publicly traded ones) should be fine as far as DB assets go. But what's sticking out to me here as a red flag is the illiquid part. For these REITs that he is describing to me, I'm trying to verify that a) they're not prohibited, and b) they would not require an annual audit.

Anyone have any experience with these type of REITs the FA has described to me?

Thanks!

Hello,

We are a small S-corp that has paid 100% of all employee premiums up until this point. We are now looking to have the employees contribute a small portion and have it be pre-tax for them.

Our insurance is just your standard higher-deductible PPO plan.

What paperwork is needed? Is this something we can do on our own, or do we need to hire a firm to administer this?

I'm hoping that I can just create a corporate resolution to adopt a POP and have each employee sign a deduction authorization.

Thanks in advance for any advice you can give!

Under Obamacare, employer insurance premiums no longer as simple as Single, Married or Family, but rather are based upon Number of children, their ages, age of the employee and age of spouse, and the sex of all. Can an employer who charges an employee a percentage contribution also charge differently to employees based upon sex and age?

A top heavy PS plan uses several rate groups determined by levels of comp. The plan defines comp as only that paid while a participant, and since there are dual entry dates, some new participants must use 6-month comp for testing. If the 3% TH allocation based on a full year's comp for one such participant equals 5.5% of his 6-month comp, would everyone else in that individual's rate group have to then also receive 5.5% of their comp instead of the 5% gateway allocation? The document doesn't seem to address this possibility.

If a participant terminates his employment on December 26th, but has 10 unused vacation days that he gets paid for, is his termination date 12/26/14 or 1/5/2015?

What are your opinions on having a trust vs. not having a trust? Is there more tax advantages to having a trust, is it better for a fiduciary to have a trust?

A retired taxpayer has both a 403B and an IRA. For several years she has been combining the values of the two accounts for the purposes of the RMD and distributing from the IRA only. The law states that RMDs must come from each of the accounts. But, in reality the tax effect is the same as if she had followed the law. Any advice on how to approach this situation with the IRS to confess and ask for forgiveness? The potential tax liability (50%) is about $127,000 not including penalties and interest. Thank you.

A retired taxpayer has both a 403B and an IRA. For several years she has been combining the values of the two accounts for the purposes of the RMD and distributing from the IRA only. The law states that RMDs must come from each of the accounts. But, in reality the tax effect is the same as if she had followed the law. Any advice on how to approach this situation with the IRS to confess and ask for forgiveness? The potential tax liability (50%) is about $127,000 not including penalties and interest. Thank you.

A retired taxpayer has both a 403B and an IRA. For several years she has been combining the values of the two accounts for the purposes of the RMD and distributing from the IRA only. The law states that RMDs must come from each of the accounts. But, in reality the tax effect is the same as if she had followed the law. Any advice on how to approach this situation with the IRS to confess and ask for forgiveness? The potential tax liability (50%) is about $127,000 not including penalties and interest. Thank you.

Is there any consensus or opinions out there on whether Hatfa liabilities can be used on a restricted HCE distribution calc ? (110% funded after proposed distribution).

Have to be employed on the last day of the plan year.

I can't find anything in 416 that states the deceased gets TH.

It is rumored our company’s ESOP is under investigation by the Employee Benefits Security Administration (part of the Department of Labor/DOL) for possible ERISA violations.

Once the DOL’s investigation has concluded:

- How can I find out the findings of the investigation?

- Is my company required to let me know of the DOL’s findings?

- Is this information publicly available?

Thank you,

Brett