A participant mistakenly made 1 additional loan repayment on her participant loan to her directed account.

We will have the plan distribute the extra payment to her along with applicable account earnings for the period the additional payment remained in her account.

Does anyone see a problem with this?

Thanks

Has anyone had this happen:

Form 5500 EZ efile confirmation says:

Date Type of Activity

10/15/14 Transmitted to FD (I have a submission number)

10/16/14 Accepted by FD on 10/16/14

If so, was the filing consdered late?

(Calendar year plan on extension.)

Thank you.

So I know that a surviving spouse of a qualified plan can rollover an eligible rollover distribution to the spouse's IRA, and the account will be subject to the surviving spouse's RMD rules. However, doesn't this mean that if the spouse is older than the decedent, the rollover will cause RMDs to occur earlier than they need to (that is, at the spouse's, and not the decedent's RBD)?

Is there any way for the surviving spouse's IRA to be treated as an inherited IRA and remain subject to the decedent's RBD? Thanks...

the employer maintains a 401(k) with a permitted disparity profit sharing allocation. For the 2013 Plan Year a Profit Sharing Contribution was made, however, the recordkeeper used the wrong compensation. This resulted in some participants receiving to much of an allocation, while others did not receive enough.

The platform has recommended pulling the excess dollar amount from each participant and allocating it to the participants who received the incorrect amount. Then using the DOL calculator, calculate the "lost" income to make the participant whole.

Does this correction process seem ok. To me, the entire transaction should be reversed and the shares purchased for the incorrect deposit pulled from EVERYONE's account. If the cashed raised due to the sale of the shares is less than the actual contribution, then the employer would need to contribute the difference. Then the correct amount is allocated to all participants. If the sale of the shares was greater than the contribution amount, the excess is allocated pro rata to all participants.

Then the employer would use the DOL calculator to determine the lost income from the date the deposit was originally made to the date the correction was made.

Thoughts

This is probably a silly question, but please indulge me.

How is a termination of employment distinguished from a retirement (or an early retirement)? Is it purely a matter of when the termination occurs ... i.e., if the termination occurs before both the Normal Retirement Date and the Early Termination Date, it is a termination of employment, if it occurs on or after the Early Retirement Date, but before the Normal Retirement Date, it's an early retirement, and if it occurs on or after the Normal Retirement Date, it's a normal retirement? Surely the distinction is not made based on whether the participant intends to stop working (and move to Florida), right?

Now, a second question: Assuming that Early Retirement under the plan is age 55, if a participant terminates employment at age 50, will his termination ripen into an early retirement in 5 years, once he attains age 55 (assuming that he hadn't received a distribution of his vested benefit), or ripen into a normal retirement in 15 years once he hits his Normal Retirement Date?

Thanks in advance for your help and input.

Publicly traded employer sells a subsidiary to a non public entity. Public company owns 60% of the non-public entity (the buyer), so the empoyees of the subsidary do not have a "separation from service" from the seller under Section 409A. When they separate from serivce from the buyer, they will also be considered to be separating from service from the public company as well. Six month delay for specified employees? Or because they NOW work for a non public entity, no six-month delay requires? [This falls in the "grey area" where they don't have a separation from service from the original employer (under the 50% controlled group test applicable to separation from service), but also are no longer "employed" by the original employer either (under the 80% test of who is the service recipient).]

Ain't 409A just a hoot?

I keep hearing various practitioners taking the position that you can't accelerate the payment of a short term deferral because it raises 409A issues. I know that it seems extraordinarily logical that if it is a short-term deferral, 409A does not apply, so there is no prohibition on accelerating payment. But this keeps coming up -- can anybody tell me what part of the regulations would lead you to think this is a problem?

Here are the facts:

1. Plan Year: 7/1/2013-6/30/2014

2. Participant is still actively employed and turned age 70 1/2 in March of 2014

3. Participant was a greater than 5% owner until June of 2013 and is no longer an owner

Question: Is the participant still considered a 5% owner for RMD purposes and must receive a 2014 RMD?

Thanks!

Is there anything that prohibits (or allows) different levels of match %s for different classifications of employees?

Our plan document doesn't seem to allow this, but I'm not sure if it's because it's not allowed, or because our doc just doesn't permit it.

Thank you!

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.