Under the terms of the plan document the Plan Administrator is the Named Fiduciary.

The Named Fiduciary wants to establish a Retirement Committee ( made up of management and employees) to have the responsibility for monitoring the investments and plan operations. This would include the hiring and firing of the 3(38) Investment Manager, Recordkeeper and TPA.

Can the Named Fiduciary, delegate this responsibility to the Retirement Committee and they and only they are responsible for their decisions and actions?

My question pertains to the ability to amend a profit sharing formula if the plan has the last day rule requirement.

Suppose the last day rule requirement is in place.

I understand that you can amend the allocation method prior to the last day of the plan year.

However, can you amend the method to New Comparability?

I thought that the allocation groups have to be stated in the adoption agreement prior to the beginning of a plan year.

Please correct me if I am wrong!

Thank you

Brand new plan with effective date of 1/1/2013, elective deferral and safe harbor matching contributions effective 1/1/2014. Employer planned to make a profit sharing contribution for the 2013, however, they decided to give the employees a choice of a bonus or profit sharing contribution to their 401(k) profit sharing plan. No surprise that the employees chose the bonus.

Unfortunately, they did not inform our office (the TPA) of this decision until after we filed the Form 5558 for the 2013 plan year.

My question is this:

Since we have already filed the 2013 Form 5558, should we file the 2013 Form 5500-SF even though the plan didn't have any money in 2013? Some of my colleagues mentioned filing the Form 5500-SF with a $0 beginning and ending balance.

There's no problem with providing a different rate of contribution for full-time vs. part-time employees, correct? So full-time ee's get 5% and part-time get 3%.

Thanks!

I have a new plan (new to us) that we have just gone through a conversion from Met Life to Nationwide. The plan apparently has some loans. There were two loans as of 12/31/13, yet three more loans were taken out from MetLife just prior to the black out period.

The plan sponsor has stated that the loans were collateral loans made between the participant and MetLife and that the ER was not involved or aware that they were being granted. The participants paid the loans back to Met Life on a quarterly basis. The loan application that was provided to us (the TPA) by MetLife has the amount initially borrowed and length of loan, but not amort sch, no interest rate and no end date. Nationwide has been asking for this data so that the loans can be set up on their site so that they can be tracked.

Have I mentioned that their plan document states loans are to be repayed via payroll, etc.

I have pretty much had it with these people (toss in the broker) and I don't know what else to do about this fiasco. Anyone have a similiar situation in the past? It's like trying to put the puzzle together when you are missing a few pieces....

If a plan is terminated and its assets rolled into a new plan; how is the 8955-SSA information previously reported suppose to be handled? Does it need to be filed with deletions for all the previously reported participants and added to the reporting for the new plan?

Have a PT where the plan paid fees to a party-in-interest/disqualified person.

Fees are going to be restored to the plan.

TPA preparing the 5330s is saying the amount involved is the lost earnings on the fees (as if they were a loan to the DP) while I contend the amounts involved are the gross fees paid.

Am I wrong?

Thanks

So, if I've been sponsoring a church plan and upon review determine that I'm not eligible for church plan status am I able to use EPCRS to fix it retroactively? I assume I would also need past 5500s and plan audits? If anyone has experience with this, and in particular, with how the IRS responded to someone applying to correct under EPCRS, please share. Thanks!

I have a plan sponsor that wants to amend their plan document (2015) to provide a reduced elective deferral maximum for certain HCEs. For example, the plan covers employees in Division A and Division B. The plan sponsor wants to limit the maximum elective deferral percentage to 5% for HCEs in Division, while leaving a 25% limit for HCEs in Division A. (All NHCEs are limited to 50%.) Does anyone see any issue with this? I see none at this time since it is limiting HCEs and not affecting NHCEs.

Thoughts?

We just got a new plan and a participant (HCE) took a $35,000 loan back in late 2009, the loan note and amortization schedule is interest only payments until final principal and interest payment (so the loan is already bad from the beginning). However, the Plan document he provided didn't allow for loans back in 2009 (he is looking for any amendments but cant recall).

If the Plan didn't allow for loans, how is this corrected? Is this considered an 'overpayment' but since it was back in 2009 can it be paid back (as an overpayment)?

Thanks.

Individual participant contracts are excluded to avoid the audit requirement. But now they are going over regardless. The client of course no longer wants to go to the trouble and expense of segregating out the pre-1/1/09 contracts and the auditor would prefer not exclude them because all of the trust reporting includes them.

How are people handling this? Two options come to mind, Transfers Into Plan and Rollovers (I guess it is called "Other additions, including rollovers").

Plan A is merging in to Plan B. Plan A allows for the direct rollover of loan notes to qualified plans that agree to accept them. Plan B does not. Would this right to directly roll over a loan note be a 411(d)(6) protected benefit? The regulations provide that a plan may be amended to eliminate or change a provision for loans, but does that exception extend to this type of provision that might also be characterized as an in-kind distribution provision? Has anyone dealt with this before? Any thoughts would be appreciated.

I have a 401k plan that excludes union. there is a participant who entered the plan (and accrued a balance) but recently joined the union. As a result he is no longer allowed to contribute 401k. Can the participant still take a loan? I don't see anything in the loan program that indicates union or any excluded participant cannot. My thought was that since he is still considered a participant, he would be allowed.

Does the IRS still publish statistics on the number of plans they disqualify every year?

In the modern era of SCP, VCP and Audit Cap I would have to guess that the number is very low (and probably in only the most egregious and publicity worthy situations) but I need to persuade a bankrupcty judge that it's not an every day occurrence.

Thanks

A plan had a missed deferral opportunity - which they corrected with the 50%,etc. There is a lost earnings amount of approx. $50. Is it ok if they plan takes is from the forfeiture account? I think not but I am seeing conflicting info. Their document states forfeitures can be used to offset plan expenses and reduce employer contributions. Thoughts?

Defined contribution plan subject to spousal consent. When the Plan sends out the required QJSA notice, is the Plan required to give specifics on the benefit amount for optional forms of benefit?

For example, the Plan offers a Qualified Joint and 50% Survivor Annuity, a Qualified Life and 75% Survivor Annuity, and a Life Annuity. They are all actuarially equivalent.

Pursuant to 26 CFR 1.417(a)(3)-1, it seems that the Plan is required, in its notice to a participant, the specific benefit amounts available under each benefit option.

Is that your reading, too? Thank you.

I am new and not a benefits professional. I'm just kind of stuck and need some guidance.

I am retiring and I have 2 distinctly seperate pension plans however they are under the same union. One is in California one is in Ohio. CA pension people have distributed my pension without a QDRO (they mailed my exwife for her to establish a claim against my pension). OH wants a QDRO. I am having a service prepare one.

I am not in contact with my ex wife. The divorce was granted in 06/1990 and the mop up was a few months later. The last entries on the court registry are concerning joinders for pension.

I am not in contact with my exwife and have not been for many years. The QDRO preparation people want me to supply her address and Social Security number. Am I required to do this?

It would seem to me that the pension people would have her SS# simply because she was a part of all my union trust funds for a period of time.

Thanks in advance

Can a participant name a debtor as a beneficiary (assume spousal consent is not a problem)? Or is that effectively using the plan as collateral?

Employer (Schedule C) made timely PS contributions by 4/15/14 for

3 active employees. Employer did not make PS contribution for

employee that separated from employment in December 2013.

Upon further review, Employer determined a contribution should have

been made for separated employee and made 2013 contribution in

July 2014. Employer filed 2013 1040 by April 15, 2014 without

extension being filed.

What are the ramifications regarding the deductibility of late contribution?

Can anyone please clarify this for me. For a 457(b) plan - non governmental - are distributions reported an a w-2 or 1099.

I always thought it was a w-2. The record keeper is saying a 1099.

Thanks!