What options, if any, are there for a terminated defined benefit plan where I've got one participant left and she is not returning her distribution forms? On the DC side, we're forcing her to an automatic rollover account (pursuant to a bunch of notices), but I don't think that's an option on the DB side, is it? Her lump sum benefit is $6,000 (of course it is). Thanks.

Not sure where the right place to post this question is, so I figured I would start here.

Have a client that's looking for a new investment platform for their 401k plan. One of the trustees made it very clear that they want the platform to be able to handle an in plan Roth conversion. I'm finding that some platforms can handle this under the old rules where there had to be a distributable event, but are not quite capable of handling the new rules, where there's no distributable event required.

Anyone have any experience an investment platform that is set up to do this right?

The issue is that they have to be able to set up money type that is Roth that still maintains the same distribution restriction as the pre-conversion money type. So for example, if converting traditional 401k money to Roth 401k money, they still need to maintain the age 59 1/2 restriction. Under old rules, all the money was distributable anyway, so it could just be put in a Roth Rollover money type.

I have a defined benefit plan client that is an S Corp that includes only two owners (51%/49%). Can they file a 5500-SF One Participant?

Thanks!

I have a client that deposits their 3% safe harbor on each payroll each year, but there is a true-up at the end of the year. In 2013 (a calendar year plan), there were 2 issues:

1. They over-deposited on the safe harbor by $5,000 for a key employee (Employee #1) because they did not stop at the $255,000 compensation limit.

2. They re-hired an employee (Employee #2) and did not realize she was eligible for the plan again, so they did not deposit any safe harbor money for her.

They also made a profit sharing contribution for 2013, which was deposited in February 2014. The profit sharing contribution for Employee #1 was $7,000, so the client only deposited $2,000, and wants to transfer the $5,000 that went into the safe harbor bucket to the profit sharing bucket.

The custodian is arguing that there should be lost earnings on the profit sharing for all of the other employees since the Employee #1 got $5,000 of his deposited early, and that Employee #2 should receive lost earnings since her contribution was not deposited at the same time.

Both of these were mistakes by the employer, and the final contribution in both instances was made timely. Additionally, the document says that "Unless otherwise provided by contract or law, the Employer may make its contribution to the Plan for a particular Plan Year at such time as the Employer, in its sole discretion, determines."

I don't believe that any lost earnings should be made based on the language in the document, but I can't find any support one way or the other. Does anyone have sort of support one way or the other?

Thanks

This is a calendar year plan. For ADP/ACP testing can a plan use participation wages even though the plan document uses full year wages for everything. I know we can use different types of compensation for non disc but was not sure if this would be an option to use participation veres full year.

I have a client for whom we do limited scope 401k audit. Last year they closed the plan in Oct 2013 and moved to ADP total source (PEO service). They moved all the participants investments to the ADP total source (my client now lease their employees from ADP who performs 401k audits on the plan too).

My question is will i have to present the financials on Liquidation Basis of Accounting? What other disclosures would be required for the audit?

Thanks

Plan elects to use the top paid group to define HCEs. I am starting with 27 employees. I am rounding down to determine that we would count 5 employees in the top paid group.

Comp in descending order from look back year:

EE 1 $600,000 (also a more than 5% owner)

EE 2 $500,000 (also a more than 5% owner)

EE 3 $452,000 (also a more than 5% owner)

EE 4 $400,000 (not an owner)

EE 5 $350,000 (not an owner)

EE 26 $24,700 (more than 5% owner)

Many many HCEs do I have?

We are having a disagreement in our office. I think 6 (emloyees 1 thru 5) plus ee 26 since more than 5% owner. Collegue says 5 , including the lower paid more than 5% owner.

Are we confusing 5 in the top paid group with 5 HCEs?

Thank you!

If a health care provider (physician practice, hospital, etc.) agrees by contract to be a participating provider in a third party administrator's network, is the third party administrator a business associate of the provider thus requiring a business associate agreement between the provider and the TPA?

Can someone point me to the regulations which provides that there is a new five year holding period for each new conversion if the participant is under 59 1/2. However, if the participant is over 59 1/2 the initial conversion date to begin the holding period will be used for each new conversion. Please note that this question is regarding In-Plan Roth Rollovers.

Have some owners/officers that bought company stock in their IRAs years ago and now they want to sell it. Problem is the company is the only willing buyer which would be a PT. Anyone aware of any court cases or anything that might give these guys a way out? I am thinking that they would not be granted an PTE for this.

Or something very much like it...

http://www.plansponsor.com/Court_Tosses_Multiemployer_Plan_Withdrawal_Liability_Challenge.aspx

Have a 5 person professional DB plan where age 50ish principal stands to get a lump sum of about $1.5 million -- the 415 maximum. The principal does not want to spend the money to obtain an IRS Determination Letter.

When we've requested a D-Letter on plan termination for such plans, we attach to the 6088 the benefit calculations.

The D-Letter, thus, not only serves as an insurance policy for the client but also to some extent for the actuary.

If you've been involved in such situations, have you requested the client to execute a hold-harmless agreement since they are acting against your recommendations in not requesting a D-Letter?

all 3 plan participants walked off the job. they will be due a contribution for CY 2014.

the plan provides for immediate payment.

can the sponsor wait until the 2014 contribution is deposited before making full payment at one time?

thank you!

Have a 5 person professional DB plan where age 50ish principal stands to get a lump sum of about $1.5 million -- the 415 maximum. The principal does not want to spend the money to obtain an IRS Determination Letter.

When we've requested a D-Letter on plan termination for such plans, we attach to the 6088 the benefit calculations.

The D-Letter, thus, not only serves as an insurance policy for the client but also to some extent for the actuary.

If you've been involved in such situations, have you requested the client to execute a hold-harmless agreement since they are acting against your recommendations in not requesting a D-Letter?

http://asppa-net.org/News/Browse-Topics/Sales-Marketing/Article/ArticleID/3090

I know, I should have posted in 5500's section but I thought this was "big news" and this forum gets the most traffic.

Hi - Historically, we have delivered documents to our clients in hard copy binders. We want to switch to a digital vault.

1 Has anyone been working with vaults? What is your experiences?

2 Do you know of any service providers whose product is well suited to retirement plan administration?

3 Are using a secure system to send emails? Does that tie in to the vault? If not, can you recommend vendor?

Thank you very much.

Dave

Employer X and Employer Y are a controlled group. Employer Y is 100% owned by Employer X.

Plan A and Plan B are sponsored by Employer X. Plan A covers one division of employees and Plan B covers another division of employees.

Plan C is sponsored by Employer Y.

All three plans are currently able to pass coverage on their own and as such are tested separately.

Currently, Employer X wants to merge Plan B with Plan C. Plan year end is September 30, 2014.

What are the pros/cons of merging Plan B into Plan C on 9/30 versus 10/1?

Much remarked on in our news is that the idea of an employer paying for its employee's individual health insurance is over.

But what if there is no group health insurance available for the employer to buy?

Under the New Jersey Small Employer Health Benefits Program, an employer cannot get a group contract unless it has at least one "real" employee. For that purpose, an employee "excludes a sole proprietor, a partner in a partnership[,] and a 2 percent S corporation shareholder[,] as well as immediate family members of such individuals."

If all of a corporation's employees are its shareholders and their children, must the business forego the tax advantages of employer-paid health insurance?

Or is there a way for the corporation to pay the premiums for each worker's individual health insurance, without tripping on the several prohibitions and penalties we've been reading about?

A participant recently noticed that no 401k deductions had been taken out of his paycheck since June 2013. He had elected to have 3% taken out. After checking with the payroll company, it was discovered that the payroll rep had accidently stopped his deductions.

Accordingly, calculations are being done to correct the missed deferrals for 2013. The question that was raised was does the employer have to make up the deferrals that weren't done during 2014 even though the participant could still contribute enough to make up his 3% pay for 2014.

The plan has a safe harbor match. Any replies wll be much appreciated. I am just getting back into administration after being out of work for over a year!

John owns 1% of company A  and 99% is owned by Family Holding Company.  Same ownership for company B. The Holding company is a Revocable Trust owned by John.

As a Grantor trust isn't John deemed to own 100% of both A and B and a controlled group exists?

Thanks