Suppose you have a safe harbor 401(k) plan with a safe harbor match. This year the employer wants to also make a profit sharing contribution. Each participant is considered their own group. Also the plan has no hours or last day requirement for a profit sharing allocation.

An employee terminates 9 months into the year. Can he receive a $0 profit sharing allocation or must he get the gateway because he was entitled to the safe harbor match?

Thanks.

Thank you, Dave, for your diligence and for deleting the recent spray of spam, which spam would have been more appropriate yesterday (no foolin').

I have a self employed client with a DB plan and a 401k/PS plan. She usually makes the maximum 401k contribution with catch-up, contributes about most of her net Schedule C (minus 1/2 SE tax) to her DB plan, and 6% of her remaining plan comp to the PS plan. Faced with the reality that she is approaching the DB plan's 415 limit, she is wondering about reducing her DB contribution and opening a SEP and contributing the excess into that. Am I correct that this doesn't make sense, because whatever she could contribute to the SEP, she could have contributed to the PS plan?

Thanks!

Client is using one of the major mutual fund houses 401(k) bundled services. Recently the plan added the loan feature to the plan. The platform amended the document and indicated loans are allowed.

According to the platform, there is no loan policy. The provisions of the loan are set forth in their service agreement with the plan sponsor.

Question:

Doesn't the employer need to make the written loan policy available to the plan participants? Since the policy sets forth the criteria for a loan i.e.. minimum, number of loans outstanding, repayment etc., it would seem to me this information needs to be provided to a participant so they can understand the loan procedure.

Thanks

I will be submitting a 5500 without a Schedule C because there is no information to report. Will EFAST2 reject the filing?

If I aggregate a DB and DC Plan for 401(a)(4) testing, must distribution options be the same for both plans.

For example, the DB Plan provides for QJSA. Must the DC Plan also provide QJSA form of distribution or is lump sum acceptable?

Hoping the general concensus is still that the PS does not (from 2007 post).

I believe this is correct, but?? A Plan says the top heavy minimum goes to all participant employed on the last day. For the sake of simplicity, say there is one key employee that deferred 5% and the Plan is top heavy. The non-keys employed on the last day are all getting a 3% non-elective. The one key does not have to get anything, since they deferred over 5% correct. i.e. Their deferrals are allowed to count towards their 3% top heavy min. I believe the "deferrals are not counted in the top heavy min" rule only applies to non-keys.

What is maintaining a qualified plan? And is that only a plan under 401(a)/(k)? Not a 403(b)?

I thought I had read something in the past that an employer could establish a SEP using the Model 5305 SEP provided no employee was receiving contributions to both plans in the same year.

Company has just learned that they have been filing Sched A for an ASO plan which is funded and paid through general assets of the company. Question is, to what extent should they consider amending past filings to exclude said Sched A or just leave as is and exclude from future forms.

Employer has an auto enrollment at 3%. Safe Harbor Match is 100% up to 5%. Just discovered some participants in 2013 were never auto enrolled.

Do I calculate the missed deferral as 3% of the wages

then the missed deferral opportunity is 50% of the missed deferral this is a QNEC made by the employer

the match is 100% up to 5% of comp - so the match would be calculated based on the missed deferral amount. - This is a QNEC made by the employer

obviously lost income needs to be calculated.

thanks

Hi,

Client has a cross-tested 401k and a SEP.

Do the SEP contributions need to be included in the ABT?

Thanks

I am a corporate benefit manager. My 401(k) provider, a large well known mutual fund company, informed me that the IRS no longer permits participants to re-amortize their 401(k) loan. That's news to me; did I miss something? I through a participant could reamortize their (non-principal residence) 401(k) loan as long as they did not extend beyond 5-years from the loan originanation date. Has anybody heard anything that can shed some light on that subject for me?

S

For plan years after 2012, does the new additional medicare tax reduce a self-employed person's earned income for retirement plan purposes?

Do you think forfeitures (which under the plan can be used to pay plan expenses and reduce future employer contributions) can be used to pay earnings under 2 scenarios - 1. late deferral deposits, 2. missed contributions - i.e. missed match. Can I use forfeitures to fund these earnings?

Thanks!

Plan sponsors filed their taxes based on cash basis deposits. Turns out they owed a somehwta sif=gnifican tmatching contribution to a couple of employees.

Plan sponsor does not want to pay to have the tax return amended and will deduct on the 2014 return. Will they count as annual additions for 2014 now?

Thanks in advance for any guidance.

is the plan legally required to post the dividend and then make a second distribution to the terminated and paid out participant or can they forfeit the dividends received after the participant is no longer part of the plan? i am not aware of any legal authority on the subject.

A SIMPLE-IRA plan covers only owner and spouse (no other EEs). They have been depositing $$$ into the plan for several years. It was just now discovered that their W-2s were not reflecting the contributions they made to the plan.

Is there any problem with the SIMPLE as a result of this? I think any corrections would involve revised W-2's and amended tax filings for all those years, which would presumably result in a nice retoractive refund. But the SIMPLE would not need to be fixed or corrected, is that right?

Thanks - Mike

I am unable to find any guidance on how an in-plan roth transfer is reported to the IRS. Anyone have any thoughts?

Thanks.