We have thousands of participants invested in TIAA contracts. They are starting to receive checks from TIAA as a result of the settlement in Bauer-Ramazani v TIAA-CREF. We were not aware that this had been settled and the participant questions are taking us by surprise.

TIAA clients, were you aware of the settlement? In cases where asset transfers were made from one account to another in the same 403(b) plan, or rolled over into an IRA, who is the check payable to? The participant or the plan? How are the amounts being calculated--based on the actual damages incurred by the participant or some arbitrary amount? Are there any financial reporting implications for plan financials or the 5500?

Maybe I should have been bugging my relationship manager for status updates but I am annoyed that I am being told about this by my Faculty and not by TIAA.

401(k) Plan - Profit Sharing vesting is 100% immediate and Match is 6-Year Graded. Client wants to amend both PS and Match to a 5-Year Graded Schedule. While the Match vesting will be more liberal, obviously the PS will not.

I have read several items and I am still confused as to how a 5-Year Graded
Schedule will apply. Can we apply the 5-Year Graded to all future PS contributions and their earnings? Or, will the 5-Year Graded only apply to new participants going forward?

An employer makes a contribution for participants that were incorrectly excluded from a profit sharing plan for several years under self-correction. The total contribution for the current year and the make up for prior years in which the employees were improperly excluded exceeds the 25% deduction limit for the current year. The deduction for the current year is within the 25% limit. Can the employer deduct the amounts above the 25% limit as a Section 162 business expense. If so, does that reduce a Schedule C?

Intuitively I think not but can't put my hands on a cite.

Thanks

What is the penalty for not (timely or at all) obtaining an HPID?

We're looking at a potential takeover in which HCEs have been allowed to defer but none of the eligible NHCEs were offered the opportunity to defer. As a result, the NHCE's ADP is 0%

Appendix A Section .05(2) of Rev Proc 2013-12 calls for a contribution equal to the "missed deferral opportunity"; defined as 50% of the actual deferral percentage.

The employer can argue that the ADP is 0%, and therefore 50% of 0% is 0. However, in this case, the employer created the 0% ADP. It seems he should not be allowed to benefit from the wholesale exclusion

What is a reliable correction under these facts? Should we assume there is a minimum 3% ADP?

Your feedback is much appreciated.

Has anyone with a large plan ever had an auditor ask for the cost basis of all the mutual funds? We are going through this with a new auditor this year and have never been asked this before. Does this make sense to anyone?

I have always been under the impression that in an exempt leveraged ESOP where the proceeds were used to purchase the stock from the owners, in order to avoid the prohibited transaction rules there must be a release from encumbrance EACH plan year based upon the loan repayment schedule. The repayment schedule must be at least as rapid as either the principal only or the principal plus interest method, as per 54.4975-7(b)(8).

Is there any legitimate circumstance whereby such a leveraged ESOP can NOT release shares for a given plan year? (Not talking about plan termination or bankruptcy/insolvency situations either, just "normal" ongoing plans.)

For a final filing for the year where assets are distributed when the Plan was terminated in the Prior plan year --

how is question 11a - Is this a DB plan subject to minimum funding? I believe the answer is NO since the plan was terminated in the prior plan year and no SB is prepared.

how is question 11b answered? BLANK or $0?

I think the answers are NO and BLANK but would like to confirm before I file and DOL kicks it out.

Wondering what you would do. Have two clients in similar yet different situations:

1. Client had 1 late 401(k) Deferral deposit for 2013. Just discovered it now. Did now extend the 5330 as we didn't know we needed to do one. Would you file a 5330 for 2013 or wait and file in 2014?

2. Client didn't fund Safe Harbor for 2012. Takeover Plan, we did not know until recently. Client has funded it now. Did not extend the 5330. Do we do a 5330 for 2013 or wait and file in 2014?

Plan allows for 3 loans.

Employee has a balance of $15,000.00

All 3 loans are exhausted and total $7,500.00

Can participant take a Hardship of the remaining $7,500.00?

Is the 50% loan security only needed at the time of the loan?

Never came across this.

I've heard the warnings ad nauseum regarding mid-year amendments to safe harbor 401(k) plans and have heard the IRS reps talk about it at ASPPA.

Just wondering what the professionals are doing out there with respect to amending safe harbor plans at this time. The safe harbor notice I use (Sungard) refers the participant to the SPD with regard to "other employer contributions". It doesn't state how profit-sharing contributions are allocated nor what the allocation requirements are.

If I proceed with a PPA restatement of a plan now, with a 1/1/2014 effective date and the ONLY feature of the plan that I change is the profit-sharing contribution allocation methodology, meaning the safe harbor notice will look just like it did when it was distributed in November, 2013, am I pushing the envelope too far?

Is anyone out there doing this? In other words, are you restating for PPA with a 1/1/2014 date if nothing changes in the safe harbor notice?

Thanks.

Does anyone know about any court decision that found an actuary was a plan fiduciary, or at least that a complaint sufficiently alleged that an actuary was a plan fiduciary?

If a Plan allows a person to defer immediately upon date of hire, can that Plan apply an age 21 and 1 Year of Service on the Safe Harbor Matching. Basically, do deferrals and the Safe Harbor Match need to use the same standard for Plan entry?

I just started working with a new proposal system and one of the fields to enter in is "Employer's Combined Marginal Tax Rate".

Could someone help me figure out what this means?

Could it be the average of the owners individual tax bracket and the companies tax bracket?

Any help is greatly appreciated.

ALEX

We are TPA for a safe harbor nonelective plan that is terminating. The practice was sold (asset sale) on January 6, and all the employees terminated, but the corporation was kept alive and continued to generate income, which resulted in the owner making a full 401k contribution.

I believe i am correct in stating that to terminate the plan, the 3% safe harbor contribution must be made AND the plan must be subject to ADP testing. The testing would not go well, as there were no deferrals taken from the 6 days of employee pay. It would seem to me that the best thing to do would be to make a QNEC, since the 6 days of compensation won't be much. Right now, I'm thinking that we need 4% of pay to pass testing.

The question is whether we can apply the 3% safe harbor contribution toward testing, such that the employer would only need to fund an additional 1%. i would think so, but want to make sure before we give it the thumbs up.

Any assistance during this very busy time is most appreciated!

Dog

Can a plan file the form 5500- SF if they hold a Partnership as one of their assets for the 5 key employees? It is valued annually.

We receive revenue sharing from mutual fund company that we use to offset against our TPA fees to the plan sponsor. We have not yet been in a position where our fees are less than our revenue sharing for the year, but that will likely change for a few clients soon. Is it acceptable for us as the TPA to take whatever excess in revenue sharing exists at year end and write a check back to the plan sponsor? We prefer not to simply keep a "credit" on our books for any excess. Are there any other acceptable ways to handle this?

Can't believe I'm dealing with Plan Design right now the week before the 15th BUT can someone please help me.

I have a new 403(b) for 2015 and the advisor has said let's use auto enrollment. Well, I asked which kind. They said not the one that auto increases.

To be honest, in 24 years, I've never had one of these type plans. Can someone please tell me the differences and why one vs the other.

I do know that the original auto enrollment or negative election is simply a percentage goes in unless they say otherwise. However, you cannot withdraw after the fact correct? Also, what is the postives of this vs

ACA -

vs

EACA -

vs

QACA - I know this comes with a safe harbor requirement, can be withdrawn, has a vesting schedule.

Thank You,

Employer terminated 401(k) Plan and he rolled his account balance to his DB Plan in March 2014. At the time of the roller the participant had not attained the age of 70 1/2 ( turned 70 1/2 in Sept 2014).

Participant's first RMD from the DB plan is 4/1/2015, however, he has elected to take first payment in 2014 to avoid two payments in 2015.

since the 401(k) was rolled before he attained 70 1/2 I am trying to determine when does the rollover get included in calculating the RMD. My thought is the rollover get included when calculating the 2015 RDM.

Thoughts