Is it permissible to amend an EACA plan mid year to add discretionary match and profit sharing contributions? How about to change entry date and Normal Retirement age?

Need some help (or a good reference) for a summary of the rules for Qualified Joint and Survivor provisions? I have a 401(k) plan that includes J&S for distributions only and want to be sure we are ok with the process.

I think in a nutshell: Participant must understand (such as on a distribution form, and with maybe an explanation notice, along with the 402(f) notice) that they may select an annuity as a form of payment. This information would apply to all participants both single and married participants. If married, the participant's spouse would need to consent to an election for a payment OTHER THAN an annuity. Does the explanation/notice (in advance of the pariticipant's payment election) HAVE TO provide details (any or specifics for the individual participant) about the annuity payment?

Is there something needed that addresses 'most valuable benefit'? and someone noted concerns about QPSA (different or same needed- I'm not sure)?

I understand that a plan consisting solely of deferrals and safe harbor contributions will get a free pass on Top Heavy testing. If this true even if:

1) safe harbor contributions are NOT made to HCE's, and

2) some of the HCE's are non-key (meaning there are non-key EE's who can never get an employer contribution in the plan)

This lovely pre-PPA Rev. Proc. outlined funding method changes that were granted automatic approval. In particular, a plan that was using an average asset valuation method could change to fair market value providde the average method had been used for the preceding 4 plan years. I'm unable to determine that 2000-42 was revoked or superseded or on the other hand locate any guidance that it does indeed continue to apply..

Any thoughts on this subject would be appreciated because a client could (at least he believes) benefit from changing to FMV but only if the IRS approval process can be avoided.

Good morning, everyone -

So I'm reading up on the fee disclosure requirements and the use of electronic media and I am Dazed and Confused. I'm reading that for the Investment related information (the chart, etc.) that the DOL Safe Harbor IS available. Meaning:

-If email is an integral part of your job; OR

-You opt in to electronic delivery; then

You can receive the disclosures electronically. Otherwise, you need to receive paper.

Then there is this ridiculously complex Alternative Method which as far as I can tell is a far less efficient way of obtaining the very same result. So what gives? What is the practical purpose of this Alternative Method? The Alternative Method requires participants to receive paper notices asking them if they want to opt-in and then they must receive a paper annual notice each year, etc.

Until now, I thought the Alternative Method was the only e-delivery method available for the fee disclosures. I did not realize it was in addition to the existing safe harbors. I just cannot figure out what you get for all of your efforts in complying with the Alternative Method...

I'm setting up a new 401(k) plan for a client and applied for an EIN using the IRS's on-line system. When applying, you are asked the type of legal structure that is requesting the number. I checked the box for "Employer Plan." As a result, the EIN I received is in the name of the retirement plan, not the trust. When I sent the EIN letter to the recordkeeper and custodial bank, and they told me they would not accept it because it was not for the plan's trust or in the name plan sponsor. Does it make sense as to why the recordkeeper and bank won't accept the EIN for the plan? Any help would be appreciated.

The plan compensation definition excludes section 125 contributions to a cafeteria plan. It fails 414s testing. It is my understanding that I can allocate the profit sharing contribution on the compensation excluding the section 125 contributions, but I have to test on 415 comp. Is that correct?

when using the 415 comp, the gateway test fails. Do I just give an additional contribution to the participants that are failing based on their 415 comp? About half of the employees received less than 5% of their 415 comp.

thanks for you help.

I know that under the FMLA, participants on unpaid FMLA leave have reinstatement rights immediately upon return to active employment, but what about other "terminations for nonpayment" --

For example, if someone is on non-FMLA unpaid leave or if someone's payroll amount is not sufficient to cover the employee share of the premiums? If that individual is terminated from coverage for nonpayment and later begins paying again...

(1) Does that person have to pay up all arrearages before being reinstated? Or do they just have to pay going forward (and have their coverage canceled retroactively)?

(2) What if that person has a qualified life event during the period he/she is not covered? For example, if that person got married during an unpaid LOA and seeks to be reinstated... would that person be eligible for an election change immediately upon reinstatement?

(3) What if that person is terminated while on unpaid LOA and benefits were terminated for nonpayment... ignoring any other legal issues, would that person be entitled to COBRA if they were not participating on the date of termination?

Does anyone know if the employer's payroll tax liability and 945 tax liability are combined for purposes of the timing of depositing form 945 tax?

Client remits payroll taxes semi weekly.

In looking at the instructions for the 945, it says that if tax liability reported on the prior year's 945 is less than $50,000, the employer is a monthly tax depositer.

Client received a penalty notice for not paying 945 tax timely. Amount of 945 liability in 2012 was 0. 945 Tax for 2013 was $3,000.

Tax liability date was 3/14/13. Tax was remitted on 4/12/13 through EFTPS.

Thank you.

I found out that one of my plans did not fund their 2012 ER (P/S and SHNEC) by 9/15/13. the owner had deposited $5500 out of the corporate account into his and his spouse's 401k brokerage account in August 2012 and in July 2013 they were told this wasn't allowed (not deferrals from salary). he was fine with that and we instructed the broker to move that money out and into the pooled account (plan only allows individual accts for 401k deferrals, trustee directed pooled account for ER $). Earlier this month I requested copies of all the brokerage statements for 2013 and found that this money was never moved. The client did deposit a check last August for the difference still due for the 2012 P/S and SHNEC, but I am short $11,000. The tax return was extended.

Where can I find the cite to correct this? I have told the broker that she needs to move that money asap (she was told to move it 3 times last year) and that Lost Earnings need to be made up on that money. From 9/15/13 for the P/S and 12/31/13 for the SHNEC? Does anyone know where on the DOL or IRS sites I can find info to forward to the broker on the correction? The bottom line is that she didn't do what she was supposed to do.

401(k) plan with entry requirement of 3 months of service. Dual entry dates - January 1 and July 1. Former participant was hired 12/12/96 and terminated 1/1/1999. He would have become 100% vested at that time due to a partial plan termination. I do not have records old enough to determine whether he had an account balance. He was rehired in 2014.

Document language (Sungard VS restated 1/1/2010): Reemployed before five consecutive breaks in service. If any employee becomes a former employee due to severance from employment with the employer and is reemployed by the employer, then the former employee's prior service shall count in the same manner as if severance from employment with the employer had not occurred. If any participant ceases to be a participant due to severance from employment with the employer and is reemployed by the employer, then the participant shall resume participation (in the same manner as if severance from employment with the employer had not occurred) as of the reemployment date.

Does this paragraph apply to him since he has more than 5 break years? Document doesn't spell out what happens for someone with more than 5 breaks. Vesting is not an issue since the current document provides 100% immediate vesting for all. But for eligibility, does he need to satisfy the 3 month service requirement again?

Perhaps I missed a change in the law. Received a letter from a representative of a major "fund house" which says: "If the plan allows for In-service Distributions and the person is over age 59 1/2, we will have to follow the IRS guidelines and process as an In-service Distribution rather then a Hardship; meaning the mandatory 20% federal withholding would apply."

I missed something because I know of no IRS guideline that says there is a maximum age for Hardships, or a guideline that says a post 59 1/2 Distribution must be an In-Service Distributions, not a Hardship. So funeral expenses for a spouse of such person would not be qualified as a Hardship????

Is this right? If it is, please identify where I might find these IRS guidelines.

Single plan with dual eligibility requirements. Full time employees eligible first day on the job. Part time employees must complete one year of service (as per the 2006 Quality Assurance Bulletin). Therefore, 410(a) is satisfied. However, in testing the full time employee group for 410(b) coverage, are the part time employees who have not completed one year of service excludable, or are no employees excludable?

401(k) plan set forth on prototype permitted new participants to enter the plan prior to the plan's entry date, perhaps one to two months early. EPCRS permits the plan to be amended to permit the early inclusion of such employees. Is a determination letter required at the time of the EPCRS filing? And if yes, what is the fee?

Got a call from an advisor who has a participant insisting that if the spouse is the 60% beneficiary than the other 40% can go to someone else. I'm sure it is not true but was wondering if someone reads this and says "oh yeah, they are thinking of governmental 457(b) accounts attributable to pre-1982 accumulations in their after-tax balances" or something equally obscure (my example is fictitious of course).

If anyone knows it is one of you...

I have a participant who has an outstanding loan for the purchase of a primary residence and it extends longer than 5 years...allowed and fine. The

house is now in foreclosure and he wants to refinance the original loan so that his home won't be sold at a sheriff's sale. Can the refinanced loan

extend the length of the original loan which has over 5 years remaining on it or must it be limited to 5 years?

Taft-Hartley defined benefit plan. Per the Trust, there are to be 3 Union Trustees and 3 Employer Trustees. An employer trustee passed away, but the Trust provides for equal votes on both sides, so that hasn't been a problem. However, there are a very small number of employers in this area, so the Plan can't find anyone to fill the 3rd Employer Trustee seat. And, there's now talk that the other 2 Employer Trustees want to retire soon.

So, what happens when you can't find any Employer Trustees? Keep in mind, the employers themselves aren't leaving the Plan. They are still covered by the CBA and will still be making contributions. The problem is that no one wants to be an employer trustee.

If there aren't any Employer Trustees, then there isn't a jointly-administered board, correct?

Your thoughts?

What does "deemed severance of employment mean"? and do we want to allow distributions for it?

What advantages do people see to having 65 for retirement age?

if you have 62 and 5 years, then vesting is almost the same.

If retirement age is 62, then you could force out termed Participants at age 62.

What are you all doing?