QDRO was presented to the Plan Sponsor. This was valid QDRO and was submitted to the platform to segregate the account for the alternate payee. The alternate payee then took a distribution and rolled the funds to an IRA.

The participant is stating there is a law that the ex's attorney needs proof of how he (alternate payee) took the monies and present this to the court and to the participant's attorney.

I have never heard of such a requirement. Once the QDRO is issued by the court, no proof of payment must be provided to the court.

Am I missing something here? The alternate payee could print the transaction information from website if necessary, but the plan has no right to release this info do they???

I have a plan that missed a group of employee's deferrals. They have now deposit the missed deferrals - the principal amount. Is there a deadline to deposit the earnings? I know that earnings must be calculated and contributed on the late deposit, but don't earnings continue to accrue on earnings until the final payment is made?

Thanks!

Anyone see a qualification problem with the following in a profit sharing plan document?

Plan has two tiers of employer profit sharing contributions. The Company can declare a contribution under one of the two, separate contributions under both, or none. The annual Board resolution or other written declaration will be very specific as to what is being declared.

1. Contribution allocated uniformly to all participants based on their compensation.

2. Contribution allocated in a uniform flat dollar amount for each participant.

Plan sponsor decided (without service provider knowledge) to contribute the 3% safe harbor throughout the plan year. Safe harbor is based on full year's compensation, including wages prior to date of entry.

For new entrants, the plan sponsor contributions made during the year were based only on wages paid after date of entry.

After the plan year-end, the service provider calculates the full SH amount due. Plan sponsor contributes the remaining amount due well before the safe harbor contribution deadline (before the end of the plan year following the SH year).

The plan sponsor feels that they short-changed the new entrants, so they want to contribute an amount to make up for "missed earnings" on their safe harbor contributions that were made after the end of the plan year.

Since no contribution is actually late, is there any justification for a "corrective contribution" to be made to the plan as described?

Two Companies are part of a Controlled Group, but they maintain separate Plans, and the plans will be combined for testing, is it necessary for the plans to be "mirrors" of each other?

If they are not mirrors of each other, do they still need to be combined for testing because they are part of a Control Group?

If the Plans are able to pass testing without being combined, do I still need to combine because they are part of a Control Group?

Any help and guidance is greatly appreciated.

ALEX

For those of you misguided individuals who are fans of other teams, I just want to say that in spite of the 2014 debacle, our enthusiasm and loyalty remain intact.

Can a Sole Proprietor make a contribution to a defined benefit equal to his entire Schedule C before deduction of s/e taxes and pension contribution? He will end up with a final Net Schedule C of $0

PArtnership filed partnership returns on 9/15/2014. We are doing 2013 profit sharing today for just the owners (employees already received a 2013 PS of 7%), which is before the 415 grace period ends on 10/15. We are then going to do profit sharing again for 2014 and deduct them both in 2014 (and be cognizant of the 25% deduction limit).

Anything I am missing?

At the end of 2012, a plan participant with a $50,000 loan had outstanding principal of $34,702 and all loan payments had been made as required. In 2013, no loan payments were made. At the time of the default (June 2013) her outstanding principal was $29,927. This amount, plus interest, resulted in a deemed distribution of $31,228 which was reported as taxable income on her 2013 1099-R. Assuming I did the interest calculation correctly, was the deemed distribution based on her June 2013 outstanding principal the correct amount?

She does not plan on making further loan payments. I understand that the loan should still be part of the plan assets. What amount should be used? Should it be the $34,701 at the end of 2012 (paid up amount), or the $29,112.87 that remained as the principal outstanding after the deemed distribution date of June 2013?

Any help would be appreciated.

A client presently sponsors a non-qualified deferred compensation plan at the level of one of its subsidiaries. Plan is designed to be 409A-compliant. No rabbi trust or other funding vehicle is used, but cash and liabilities are kept on the books of the sub. Company would like to move the assets and liabilities for the plan to the parent company level for business purposes that are unrelated to the plan. Any issues under 409A or pre-409A income tax doctrines (i.e., constructive receipt or economic benefit)?

My thinking and analysis is that there is no issue here. 409A's restrictions on funding are not implicated here. Also, no issue is presented under constructive receipt or economic benefit doctrine because the plan benefits are still subject to the claims of the parent company's creditors, and while the benefits may be slightly more or less secure depending on financial position of parent, there is still a substantial limitation on the right and it is subject to the claims of creditors of the parent company. I'm not aware of IRS guidance that directly addresses this issue.

Individual lends money to company that invests in distressed properties.

Individual's IRA also lends money to same company.

Company issues a note and gives mortgage to each individuals and individual's IRA.

Company is independent third party - not owned by individual or his family.

Neither investment was conditional on the other (i.e. Company would have accepted only IRA investment without individuals' investment and vice versa)

Did a prohibited transaction occur?

To me it has the look of one, but I am having a hard time fitting it within IRC 4975 and ERISA 406.

Any thoughts?

Is a Form 5310-A (or any other special filing) necessary for the division of a master trust into separate trusts for the constituent plans?

Is it ok to exclude someone whose employment with the employer is "temporary" without including the fail-safe statutory eligibility? (we're not talking about a temp agency here or employee leasing).

so plan has immediate eligibility, but these employees are expected to work for just a 3 year special project and then be done. So they would meet statutory eligibility but by contract their employment is just 3 years.

I know this has been discussed here before as to whether or not this is considered a service based exclusion in violation of 410(a). If anyone has the link handy, I would appreciate it. I couldn't find it...

Can someone tell me how to set up an excel spreadsheet that will calculate the following employer 401k match for each employee.

50% of the first 2%

25% of the next 2%

Couldn't allowing an employee to change his cafeteria plan election mid-year due to a reduction in hours or for the purpose of going to the Marketplace potentially expose the large employer to the "b" penalty?

Imagine an employee whose hours are reduced to the point that the employer coverage is now unaffordable so he'll qualify for subsidies?

Or the employee who enrolled in unaffordable employer coverage and now discovers Marketplace subsidies?

Would it be too "creative" to only allow mid-year opt outs if the employee agrees to not apply for subsidies?

Plan changes service providers (bundled) on July 1, 2011. Plan was originally effective 1/1/2005. The plan documents were all up to date on July 1, 2011. New service provider restates the plan into their document. Effective date of the restatement was July 1, 2011. None of the plan provisions changed in the restatement.

Question: The plan sponsor signs the restated document on July 15, 2011. Is that a a problem? I am being told it is and told to file under VCP as a doc failure.

What if there was a change to the plan provisions (i.e. not a safe harbor plan and they add eligibility requirements)? Would a signature date two weeks later cause a problem?

thank you

Is it possible for a Trustee or Custodian to pay household expenses directly to the billers and code it as a taxable distribution to the IRA owner?

Once an employee who participates in a NDC plan becomes vested in his/her benefit( no longer subject to substantial forfeiture) is the employer required to set aside funds to pay the employee his/her benefit in the form of a lump sum or installments? Are these funds then considered funded & therefore protected from the employer's creditors?

A plan allows only 1 loan outstanding at a time per participant and the minimum loan amount is $1,000. The plan allows refinances. A participant has $400 outstanding on their loan. If the participant wants to refinance their loan, but, the additional proceeds available due to their small account balance is only $700. Is this refinance permissible? I am not sure whether the 1,000 minimum amount should appy to only the additional proceeds amount ($700) or if it applies to what would be the new outstanding amount ($1,100 which is $400 + $700). Any help would be appreciated. Thank you.

We have a large plan for which we received TPA fees in excess of $5,000 in, but all money came from plan sponsor (corporate checking account), not the plan.

Does plan have to file a Schedule C for 2013 to report fees paid to us?