Is it acceptable, for the "manually signed Form 5500" attachment, to have the plan sponsor's electronic signature? Thanks!

How do non-Roth after-tax contributions to a DC plan affect the DB/DC combo limit rules in 404(a)(7) ?

I've read 1.125-3 and it does not speak to the fact if a participant chooses to catch up missed contributions, gets reimbursed their full election, and just tells their employer "not coming back". Does the reimbursements become taxable to the now ex-employee, or does the employer ask for the reimbursement to be returned?

I have a client with a 3/31 YE profit sharing plan. The plan sponsor has been a C-Corp, also with a 3/31 YE. In 2013 the owners created a new S-Corp with a 12/31 YE and this new S-Corp is the plan sponsor for the profit sharing plan. I know that, for the 1/1/13-12/31/13 tax year, the S-Corp cannot deduct any contributions as the 4/1/13 - 3/31/14 plan year had not ended so the contribution they accrue for PYE 3/31/14 will be deducted on 2014 corporate tax return. Here is my question: when must that contribution be made? My initial thought was that it is based on the plan sponsor's tax return due date (so 9/15/15 with extension). However, we would accrue on the plan's books a $100k receivable as of 3/31/14 and then accrue the next year's receivable of $100k as of 3/31/15 before the original accrual is paid off on 9/15/15. Will we just be carrying two years' worth of accruals until the plan terminates?

When calculatiing the maximum benefit a participant can recieve when a Cash Balance plan has an offset feature, is the maximum benefit (the 415 limit say $2.6 Million) before or after the offset?

If the Offsetting profit sharing plan for example has $2 million. Is the lump sum beneif only $600k or is it still $2.6 million, which would make the full benefit $4.6 Million?

Thanks

Basic 401(k) plan with a 3% Safe Harbor Nonelective contribution.

Adoption Agreement defines Total and Plan compensation the same: "W-2 Wages, including Elective Deferrals, pre-tax contributions to a Code §125 cafeteria plan or a Code §457 plan, and qualified transportation fringes under Code §132(f)(4). "

Basic Plan Document further defines W-2 Wages as:

"Wages within the meaning of Code $3401(a) and all other payments of compensation to an employee by the Employer (int he course of the Employer's trade or business) for which the Employer is required to furnish the Employee a written statement under Code §6041(d), 6051(a)(3), and 6052, determined without regard to any rules under Code §3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed. " (emphasis mine).

This plan does not name any exclusions to compensation.

The employer, per the Affordable Care Act, now is required to and does report in box 12 of the W-2, the full amount of the cost of the employer sponsored health care. They report as it as a single sum using code DD. The portion that the employee pays pre-tax and the portion the employer pays are not split.

Example Numbers

Pre-tax Deferrals $5,000

Other wages taxes $65,000

Health Insurance Costs $15,000 - I do not know what portion is ER and what portion is EE.

Lets say $6,000 is EE and $9,000 is ER.

What compensation does the employer pay the 3% Safe Harbor on?

Prior to the ACA I would have calculated the 3% on $5,000 + $65,000 + $6,000.

But now I wonder if the ER portion of the health cost has to be included. I hope not, but I can't see a way around it under the terms of the document.

Thoughts?

If you amend eligibility on a calendar year plan, is it effective the date the document is signed, or can it be effective the date that a corporate resolution is signed? Reason I'm asking, we are a TPA and have a investment broker that we believe back dates certain documents. Spoke with broker on June 2 about possible amendment to plan eligibility with no amendment date given and we prepared amended and restated document with July 1 amended date. Now all of the sudden a corporate resolution is showing up, dated 5/28 with a June 1 amendment date. Currently the plan has immediate eligibility with 100% vesting and no accrual requirements to receive employer contribution. The amendment made a certain class of employees (retail class) employed after June 1 have a 6 month wait and a 3-year cliff vesting schedule. Unfortunately, we do not have a relationship with the plan sponsor. What would you do if you believe a broker is back dating documents?

Hi,

I am working on late 5500s for a client ( 100 plus covered) with a self insured health plan and insured LTD plan. My question has to do with what schedules are required for the health plan. We received Schedule A information from the claims Administrator for the Health Plan, but since there is no insurance carrier, I am thinking no Schedule A is necessary. The broker received commissions in excess of $5K do those get reported on Schedule C? In my reading of the instructions many times, it looks as if no schedule H or G is required.

I appreciate any help as I keep rereading the instructions and end up more and more confused....

Thanks,

I know little or nothing about 409A plans, so I apologize if my question is too basic. We have been asked by a plan sponsor if a terminated employee's income from their 409A plan can be included in compensation for their 401(k) plan. The payments are only available after termination of employment and will continue for 5 years.

The 401(k) plan's definition of compensation is W-2 wages, which would include distributions from a non qualified plan. But the payments only being available after termination of employment makes me think they can't be included in 415 compensation. And with no 415 comp, there could be no deferrals.

What is the rule on this?

Hi,

A 457(b) governmental plan allows participants to elect their normal retirement age for the special pre-retirement catch-up. Can a participant retire this year (age 60) and begin taking their unreduced DB benefit and turn in their 457(b) special catch-up papwerwork declaring their 457(b) normal retirement age as 63 so they can make the catch-up contribution this tax year?

The 457(b) regulations refer to declaring a normal retirement age and not a normal retirement date. At first blush it appears that the taxpayer could do this but I have heard that IRS auditors saying that taxpayers can't do this. The taxpayer would need to turn in their 457(b) special catch-up form declaring their normal retirement age before telling the DB plan or employer that they are going to retire in the same tax year.

Has anyone had any experience with this? Also, if the IRS says the taxpayer can't do this does anyone have any IRS published guidance showing they can't.

Thanks.

Hi,

Does anybody feel that if a plan does not employ any NHCE's in a particular year, that the restrictions under -401(a)(4)-5 don't apply regarding payouts to HCE's? Has IRS ever opined on this issue that you know of?

Thanks in advance for any guidance.

Sam Winikor

I renewed online a couple months ago. Payment cleared, but I've never received anything indicating I'm renewed. Anyone know whether there's typically a response of some kind from the IRS? Thanks.

A participant is trying to get a hardship because (he claims) ever since Hurricane Irene three years ago, his basement floods when it rains heavily, and he finally wants to get it fixed.

1. Is there some kind of statute on how long you can make a claim on a casualty event? Hurricane Irene was in 2011.

2. Presuming that #1 is not an issue, is the plan sponsor OK with accepting the participant's claim that it was caused by Hurricane Irene? I'm not saying that they should have to hire some kind of foundation inspection, but...

Thanks.

Defined benefit plan provides for a life annuity with 10 years certain which is selected by the retiree. Retiree dies after 8 years. Remaining amount (2 years worth of payments) is paid in a lump sum to nonspouse beneficiary (as permitted by the plan). Is such amount rolloverable and is 20 percent withholding required on the distribution?

In most plans, do you have rule of Parity for both Eligibility and vesting?

In the appendix of the Corbel document, I can exclude either or both.

401(k) plan has discretionary match, calculation = ever pay-period, but currently there is NO Match.

Is it too late (for calendar 2014) to change the match calc to a plan year calc? If they were making a match, the answer would be "duh, of course it's not because everyone can only get more." But what if they are not making a match? One could argue that when allocating a fixed sum every pay-period (through a giant excel spreadsheet that looks at every pay-date) vs an annual calculation, some people will get more and some less.

What do people think? Or would the switch only really be permissible if the match is hard-coded into the document (i.e., in that scenario no one can get less)?

I just learned that a plan I administer (sponsored by company A) has been receiving salary deferral contributions from an unrelated employer (company B) for the last two years. The two companies share a payroll under company A's name but are otherwise unrelated. I guess you could say company A is acting as a leasing agency for company B.

They are not a controlled or affiliated service group. There is no participation agreement and the Company A's plan document is not set up for multiple employers.

Does anyone think allowing an unrelated employer to participate in a plan an issue that can be resolved through VCP?

Can a Charter School have its own 401(k) plan? or should it have something else?

Would it depend on the state they are in?

Cross-testing allows you to restructure the plan into 2 or more component plans.

The key words I am interested in are "or more."

Can you split the plan into 3 component plans?

A plan consists of 4 HCEs, ages 64, 55, 43 & 29.

It also consists on 16 NHCEs of various ages.

Can we test based on HCE1 & HCE2 in one compnent, HCE 3 in a 2nd, and HCE 4 in a 3rd?

Also, does it matter how you divvy up the NHCEs into the different component plans?

Thank you!