I understand the SIMPLE must be the only plan of the employer for the year. But not sure what that means.

I have a potential new client who has a SIMPLE for 2014. Can he establish a 401k in 2014 making no contributions for 2014 but accept rollovers?

He wants to take advantage of the increased investment flexibility with no custodian.

Thanks!

A 50% owner of a company earned a benefit under the company's DB plan. Now she has started her own company of which she is the 100% owner and she would like to start a new DB plan.

My reading of IRC Section 415(g) is that her benefits from both plans must be aggregated for 415 purposes. Is this correct? Thanks!

Client contacts us today and says "I bought two more companies at the beginning of the year." He also told the employees they would be eligible to join the client's plan on next available entry date.

The plan is a safe harbor plan. The new companies are wholly-owned by client, so a controlled group exists. Can we add partcipating employer agreements to current safe harbor plan? Can we make them effective as of the date of purchase?

I have a client who would like to have his 401(k) plan be an offset to a new DB Plan. The DB plan he would like to have would be a 412(e)(3) plan. If this is the final design, would the 401(k) Plan be required to offer insurance as an investment of the trust (or as an insured death benefit) as the DB Plan has life insurance as a part of the funding under 412(e)(3)?

I have a solo 401(k) plan. owner/participant(US citizen) wants to take about 5% of plan assets and invest in a foreign (UK) corp with three other foreign(not US citizens) owners. THis corp would then become 100% owner in a domestic(US) LLC.

ALthough I am not totally clear on the PT issue, I am thinking this is ok; but, I do not know about the UBIT issue. Would he be considered an active investor in this LLC??

Plan sponsor had an address change in 2013. Plan document was not amended. Since we can't amend a S/H 401(k) Plan mid-year, we will probably just wait until the restatement to change the address in the document (adoption agreement).

How should the notice to participants be handled? The address is in the SPD, so technically, an SMM would be required. Can an SMM be prepared without a plan amendment? Or is it even an issue at this point?

Husband owns 100% of Dentist Office A.

Wife owns 100% of Dentist Office B

Minor child age 18 (under 21)

Adult child age 25 (over 21)

The husband and wife have no association with each other's businesses. They are not attributed each other's ownership. Same for the adult child. However the minor child is attributed ownership of both companies making them a controlled group.

Question: Once the minor child turns 21 will they cease to be a controlled group (assuming all other factors remain same)? My thoughts would be yes but wanted to double check.

We have an Unsigned DRO that was presented to make sure the plan name was correct before it was submitted to the judge for signature. The Alternate Payee died before it was signed by the judge. 401(k) Plan. Divorce was final in May 12th. They were in the process of submitting to the court, not sure if it is at the court waiting for signature. Any thoughts?

Pat

After 5 yrs.my ex wife has filed for a qdro.My final judgement papers read as follows.Respondents Pension/Retirement,stock and 401k plan thru his employment with his job,worth approx 10,000.00 shall be equally divided between parties. the parties shall make the division through a Qdro and shall cooperate with the signing of all forms needed to complete this agreement.I refused to sign the Qudro because it has 50% 0f my retirement 50% of my 401k but it states in the final judgement half of 10,000,00 dollars now she has sopenaed me back to court

. So who is rite here Me The Particpant or Her the Alternate Payee. I have given her all of the info. that was needed to complete this thru my job they Froze my account and divided the pension.Also she sent a blank copy of final judgement with no judges signiture on it and no seal they asked her for a signed copy and she has not sent it to them.Do i consult a attn.? I need direction court date is the middle of next month .

After 5 yrs.my ex wire has filed for a qudro.My final judgement papers read as follows.Respondents Pension/Retirement,stock and 401k plan thru his employment with his job,worth approx 10,000.00shallbe equally divided between parties. the parties shallmake the division through a Qudro and shall cooperate with the signing of all forms needed to complete this agreement.I refused to sign the Qudro because it has 50% 0f my retirement 50% of my 401k but it states in the final judgement half of 10,000,00 dollarsnow she has supenaed me back to court

. So who is rite here Me the me The Particpant or Her the Alternate Payee. I have given her all of the info. that was needed to complete thisthru my job they Froze my account and devided the pension.Also she sent a blank copy with no judges signiture on it and no seal they asked her for a signed copy and she has not sent it to them.

Plan provides for a 100% of the 1st 5% contributed match into the "Matching Retirement Plan". Deferrals up to 5% and the 5% match go to the Matching Retirement Plan. Deferrals above and beyond 5% go to the TDA Plan (i.e., the "supplemental plan").

Eligibility for everything is immediate.

We're trying to determine whether or not those contributing less than 5% are eligible for the TDA Plan. My opinion is that (and piggy backing off of the DOL's definition of a participant) that anyone eligible to defer more than 5% is a participant. But perhaps there is room to argue that only those actually contributing more than 5% are eligible for the TDA because that plan is only for those contributing more than 5%.

We're trying to determine whether or not the TDA plan has an audit requirement (for the past several years ).

A sole proprietor does business from 1/1/2007 to 12/31/2010. He then forms a corporation on 1/1/11 and also hires an employee on that date.

On 1/1/2013 the corporation adopts a SEP that requires 3 years to be eligible. Can the business owner be eligible for the SEP by counting years with his sole proprietorship?

Thanks.

Is anyone aware of an affirmative duty by an IRA trustee/custodian to investigate prohibited transactions it believes may exist? I ask in the context of self-directed IRA trustee who specializes in exotic assets.

Plan moves from RK A to Best TPA. In connection therewith the plan documents are "required" (if the word is used loosely) to be restated in order to maintain reliance on a favorable opinion letter. Can this expense be paid by the Plan?

I say "yes". Just wanted to see if others agree.

i have a situation were husband and wife were in the same plan. wife quits and the marriage is dissolved. the settlement agreement by the judge basically split their combined interest in the plan 50/50. attorney for the alternate payee(wife) writes qdro to say that alternate payee will get one half of partiicpant's plan interest. I do not think this is correct because she still gets her interest as a participant; hence for her to get 50% of his interest as an alternate payee she would end up with 75%

of their combined interest..In other words giving her something as a alternae payee does cannot cancel what she has as a participant ??

If a participant terminates and the plan allows for terminated participants

to continue their loan repayments, does it matter if the participant takes the balance of their account at a point in time before the loan has been entirely repaid?

company A is purchasing Company B effective 6/1/2014

Company B's 401(k) Plan is to merge into Company A's 401(k) - however Company A sponsors a Safe Harbor Plan and Company B does not

The merger will take place effective 1/1/2015

Question is what do with the deferrals from 6/1 - 12/31/2014 - Company A wants to live the plan as is until the end of 12/31/2014 and then merge the plans 1/1/2015. This will make the transition much easier for all.

1. Is it ok that effective 6/1/2014 the plan is amended to reflect Company A as the sponsor with their EIN and not jeopardize an of the transition rules?

2. Company A wants to amend the plan and state effective 1/1/2014 all participants in the Company B's plan are 100% vested. When the plans are merged there are a number of participants who terminated prior to 1/1/2014 that are partially vested. Any problem with using their non vested portion to offset fees once the forfeiture is triggered. Or do these employees also vest 100% as a result of the amendment.

Thanks

Just ran into a situation where a multiemployer welfare fund is assessing w/l against an employer who is leaving the plan and putting the participants into its own plan. The fund is saying that the employer is bound by the terms of the trust agreement for the fund - which the employer didn't sign or "join" in any way - that establishes a regime for imposing w/l on withdrawing employers who had agreed in their cbas to contribute to the fund. Is there any case law on this?

Assuming you aren't a TPA for any non-U.S. retirement plans, there shouldn't be any concern for a "regular" non-investment institution TPA about FATCA compliance, right?

In regards to a participant obtaining a loan for the purchase of a home, is an email or letter from the participant stating that the loan will be used for a home loan enough documentation. I do not see any IRS language that defines what the documentation has to be. Thanks.