There used to be an article on BenefitsLink about Who Is The Employer.  It seemed like I could easily find it when I needed it. 

I am not finding it.  Is it still out there?  If so, does anyone have the link? 

Thanks

We have a Cash Balance Plan that has been adopted since 2020.  For 2024 they have elected to amend the guaranteed interest rate up to 6%.

My question is how does this impact 2020-2023.  When we are accruing balances going forward, are those years still credited at 5% annually and all new years credited at 6% annually?  Or should those years have accrued interest at 5%, but going forward they too get an interest rate of 6%?

Basically, does the 6% only impact new contributions or does it impact all contributions moving forward?

I hope that makes sense!

We have a client who failed their ADP test and will be making a refund to the owner of the company. He is over age 73 and will need to take an RMD for 2025. Can the refund be treated as his RMD since it is a taxable distribution?

An IRA account holder (who was over the age of 73 and already started taking RMDs) passed away in 2024. A spouse rolled over the assets into an Inherited IRA, but did not take an RMD in 2024.

Is the RMD Penalty waived based on Notice 2024-35 or does that notice not apply to Spousal beneficiaries?

Thank you.

I'm working with a company that buys and sells companies across various industries. It owns 80%+ of each portfolio company, so they’re all part of a controlled group. Right now, each portfolio company maintains its own benefit plans. So far, they’re passing non-discrimination testing (on a plan-by-plan basis), but the company is looking for a better long-term solution. Any ideas on how to structure these benefit plans across the portfolio companies in a way that avoids triggering single-employer treatment? QSLOBs seem like the best solution, but imperfect as QSLOBs will not always align with the corporate structure. 

An employer (church) has two employees. One employee participates in a 403(b)(9) non-electing church plan, the other employee is contributing to a SIMPLE IRA.

Is this okay?

I was under the impression an employer cannot have both of these in operation at the same time.

The 401k Plan Sponsor wants to change when participants can make deferral changes from monthly to annually.  The plan document allows for it.  Are there any consequences if they make that change?

Why would a company offer safe harbor for nonunion employees and not union employees?

I'm new to 401K's and was hoping to get some confirmation or correction on a plan design.

I understand that the 3% SH nonelective contribution must be immediately 100% vested. My question is, if the plan also has a QACA does that remove the 100% immediate vesting requirement and change it to a 2 year cliff requirement?

Thank you for any guidance.

I am horrible at searching the message boards.  Is there a number at which point taxes do not need to be withheld from a distributtion? 

Reason... Bob was paid out but the financial advisor didn't wait for everything to settle and now there is $150+/- still in the investment account.  I am happy to generate a 1099-R if it is acceptable to liquidate the account and send it all... no withholding. Is that ok?   Is there a magic amount when taxes are not required to be taken?  Just be sure it is reported via a 1099-R?

Thanks  

I have a client who is the owner of a business - who also provides consulting service as a separate company to said business.  He is owner of both businesses.

Business number 1 is set up as a Safe Harbor Non-Elective plan with 10 employees.

The client wants to contribute his max deferral (comp $350k) of $23,500.00 plus receive his 3% NE SH of $ 10,500.00.  So for business 1 - he would have contributed (or received from the company a total of $34,000.00.

In business 2 - the client is the only employee - he wants to set up an After Tax contribution in the amount of $36,000.00 so he can max his total contributions at $70,000.00 for the year.

He also earns a separate $350k in this business.

So...After Tax contributions are tested in the ACP test of business 2 - but since the plans do not have to be aggregated for ACP Testing - what is to stop him from doing this?  It seems like he could just skip providing any Employer Contributions to business 1 (outside of the SH NE 3%) without failing any testing.

What am I failing to see?

Thanks!

Owner and one employee have 3+ years of service.  Owners spouse is hired 1/1/2025 and there are no other employees.  If I disaggregate for testing, the Otherwise Excludable portion of the test passes by default so I can give the spouse whatever percentage of pay I want.  The owner's comp is $250K.  I can give the spouse say $85% of their $50,000 or so and as long as my total contributions are wthin the max deductible, I should be good.

This is seems to good to be true but it seems to me that it will work. Anyone think I am wrong here?

Client has a 401 (k) Plan with 3% Safe Harbor.  Owners are not going to contribute to 401 (k) in 2025, till the Plan Terminates. Both Highly Compensated and Non Highly Compensated will continue to defer.

Is an amendment required?  Material Modification?

Have a good weekend.  Thank you.

DPSRICH

Have a 45 Participant Plan terminated effective March 2024. 6 of the Participants could not be located. Plan Sponsor sent the funds to Inspira, formerly Millenium Trust. Accountant says that each of the 6 Participants mus receive a 1099-R, even though technically they have not received the money. I agree that the money is out of the Plan, BUT is Inspira responsible for the 1099-R when the money is paid to the Participants.

Any help[ is greatly appreciated.

DPSRich.

We have a plan amending  to add the profit sharing/nonelective contribution account as eligible for in plan Roth Rollovers.  This will apply to both distributable and non-distributable amounts.  The plan only permits a participant to withdraw this money in service if they have reached the plans NRA, which is 65 plus 5 years of participation.  This in service withdrawal provision should be carried over for any profit sharing amount that is covered to a Roth Rollover.  I am being told that for amendment purposes, we can only have age 65 and not the 5 year requirement as the inservice withdrawal provision.  I am not seeing this restriction in the plan document.  Is this a regulatory restriction on in plan Roth Rollovers?  Any insight is greatly appreciated.

I don't know where else to post this.

We were introduced to an accountant in March of 2024, who was looking for a new TPA.  She has clients that needed annual reviews and 5500s, Schedule SBs, etc.

We quoted the numbers and typically wait until the clients' tax return are due before preparing our work.

Well, October 1st comes and this woman demanded that since she gave me new clients, I had to do her clients' work first.

I was paid in advance by 3 of these clients, and quoted contributions and prepared Form 5500 for all of these

The accountant pulled all this new business on the grounds that I wasn't fast enough; the clients that paid in advance demanded their money back.  

Now she is asking for the valuation reports and Schedule SBs for the others, that I had not billed, so they obviously didn't pay.

I consider any work I do as my work product, until I release it, which will then become the clients' once I am paid for my services.  I was not paid, I believe I am under no obligation to release anything, especially the Schedule SB, for which I pay my actuary for signing.

Any opinions?

If there are plan assets reverted to the employer in 13a on the Form 5500-SF, where should those be in the financial information (7-8)?  I am thinking they would go in 8d (Benefits Paid) but I could not find any guidance for this.

I have a client with a former employee who worked a half day in 2024 as a substitute.  The employee was eligible and they have a safe harbor non-elective provision.  The 3% contribution would be ~$15.  My understanding is the letter of the law so to speak requires the $15 deposit.  I have an ethical issue asking the client to make this deposit when the force out distribution will generate a fee from the record keeper (or us the TPA) that exceeds the balance of the account.

Me:  Client you need to make this deposit.

Also Me:  Thanks that is my money now as a fee.

Is there a standard practice for how to handle these types of situations?

Business owner only contributes 5% of pay.  If I do an 80% match on the first 6% of pay (plan uses Rigid Discretionary, so 6% is hard-coded), the owner gets a match of 4% of pay (80% of the 5% he contributes). There are a couple of participants who contributed 6% of pay or more.  Am I prohibitted from using a match of 80% of the first 6% OR a, I simply required to impose a cap on the NHCE's of 4%?

I can't believe I've never seen this scenario before!

It is a Solo 401(k) plan. Both the husband and wife have contributed in the past, but in the past year, just the husband. The balance got over $250K so now they need a 5500-EZ. For the purposes of the form, Part II, Questions 5, what is the number of participants and active participants?