Since the 15th fell on a Saturday, can Monday the 17th be used as the deadline for issuing refunds?

Thanks!

Employer sponsors both 401(k0 and 403(b) plans

Employee derred more than $23,000 in 2013. W2 showed two separate defrred amounts that added up to $23,700

401(k) is a fiscal year plan (why it wasn't picked up earlier)

What is the correction? Any choices which plan?

Quick post to see if people agree with my viewpoint here:

1) The plan sponsor wishes to replace 3 funds in the 401k plan because a new share class with lower expenses is available

2) The plan has 6000 total participants but only 550 have balances

3) 404a5 requires that the 6000 participants receive the 30 day notice indicating the change

4) Once the change occurs no follow up with a fully updated 404a5 disclosure is required (outside of when the 12 month period ends from when we last sent a full disclosure to all 6000 people)

So - to minimize the cost of providing all these notices and disclosures would we want to time the fund change and 30 day notice to when the 12 month period is up to resend the full 404a5 disclosures (which will actually not reference the change in the 30 day notice because it hasn't happened yet). We are also tying to when we send the Summary Annual Report which goes to the same audience. 3 Birds, 1 Stone - Right?

The quandary, you have a fund that should be replaced for a better fund immediately, but the cost of providing the 30 day notice is prohibitive on a plan with many more total participants than participants with balances. Seems like taking the risk of not sending the 30 day notice to all 6000, outweighs waiting to make the change.

I think it clearly does not apply in the following situation, but I thought I'd solicit opinions in case I'm being overly conservative.

LLC A is owned by 3 people - 1/3 each. LLC B is formed, owned 100% by LLC A. So there's a controlled group, or common control group depending upon tax structure. Doesn't matter for purposes of this question.

I believe the transition period does not apply - it isn't any sort of a merger or acquisition under either the code or regs. as far as I'm concerned.

Any other thoughts?

February is the second month in a row that the 417(e) segment rates have gone down. Can anyone suggest 1) a cause for this recent trend, 2) if the trend is expected to continue, and 3) where they might be in May 2014?

Hi, all:

We have a plan that spun off from a MEP and 2013 is their first year to file. My colleague asked me if there is any data she needs to obtain from the MEP that could affect our 2013 work for it. I could not answer her with certainty, so I thought I'd cast a net out for input. Do we need Top Heavy data from the MEP or no? Any other think-outside-the-box-holy-cow-I-wish-I-knew-that things to keep in mind?

It appears the current adoption agreement that was drafted retained the MEP's efective date and lists the current restatement date and Plan No. 001 One more tid-bit of info, it seems they made no new contributions to the plan for 2013.

Advanced thanks for anyone's input!

The employer had a Simple IRA Plan that was terminated.. The participants want to roll the funds into their new 401(k) Plan.

Normally a participant is prevented from rolling the funds to the an IRA or Qualified Plan, unless the participant was in the simple plan for 2 years.

Does the termination of the plan negate the 2 year period, allowing the participant with less than 2 years to roll to a traditional IRA or Qualified Plan?

If not, what happens to the accounts for the participants with less than 2 years? Do they remain under the Simple IRA even though the plan is terminated?

Thanks

We took over a client that has a profit sharing and cash balance plan. The owner wanted to take an in-service withdrawal from the p/s plan, but there was not enough cash in the account, so he transferred securities to the cash balance plan (which as substantial cash) and had the value of the securities transferred back to the profit sharing plan in cash. He then took his in-service. My thoughts are that this is a prohibited transaction in that he did the transaction only to allow him to take the in-service without having to liquidate the securities. Thoughts?

A one-man plan has always had an AFTAP over 100%. However, the 2013 AFTAP wasn't certified and, shortly thereafter, the plan was terminated and the one-man received a lump sum distribution. Was that lump sum in violation of 436, since the AFTAP was deemed to be less than 60%, or is a plan termination different?

Thanks!

Do I need a PTIN to draw up a 5330 for a client?

I am not specifically paid to produce it. It is part of our general administration services for the plan.

I know I don't need one for 5500's, but 5330's involve actual taxes and IRS revenue, so I'm a little hesitant.

Is there a web-site from The Hartford or Travlers, etc. that I can provide clients where they can fill out a short form on line and get a fidelity bond? It seems to me if it was that easy it would be easier on me instead of telling them to call their agent, getting them involved etc. I'm sure the agents would love me for it.

If an employer already has a EACA, at 3%, but wants to change it to 4%, is there any problem doing this mid-year with appropriate notice? I know you can't "implement" a EACA mid-year unless it is just for newly eligible employees. Would modifying the EACA percentage mid-year be considered as establishing a new EACA, impermissibly?

I think it is ok, but wondered if anyone has other thoughts?

Is this scenario feasible?

Plan company owner has all union employees and is also paying union dues on his salary.(to get in the union health plan?)

Can that owner employee receives his compensation in two parts:

(a) compensation subject to union dues and

(b) compensation not subject to union dues

and be eligible to maintain a separate plan for himself alone using that part of his compensation not subject to union dues?

A small plan has a loan policy that restricts new loans no sooner than one month after the prior loan was repaid. A participant paid off the loan via payroll deduction as of the end of Feb, but it did not post to the trust until 3/19. Could the new loan be issued around the first of April or would it be a month from the date the last payment actually posted?

thanks.

The maximum accrual in a year is 1/10 of the 415 dollar limit.

For a person well below the 17,500/mo 415 dollar limit, are they limited to 1/10 x 17,500 or 1/10 x 100% of their pay?

Employee has loan. He is injured at work and is out on a leave of absence. He is receiving workers compensation. Plan allows loan repayments to be suspended during unpaid leave of absences. I'm thinking plan sponsor can suspend payments. Workers comp, doesn;t count as wages for other plan purposes; I don't see why it couldn;t be disregarded for puproses of laon repayments either.

Am I missing something?

Thank you in advance for any guidance.

I am a new Relius user and am unsure about a warning I receive when running the ADP test. I'm using the prior year testing method, and shifting. The warning says:

Warning: The prior year NHCE percentages stored in Plan Specifications differ from the values computed using the prior year data. Shift corrections will be processed on the data computed using the previous plan year. Test(s) affected are:

Year to date ADP, Year to date ACP

Does this mean that there is something wrong in the database and when Relius re-calulates the NHCE rates based on the prior plan year data, the group average does not agree to the rates rolled forward in the plan specs when the new plan year is created OR does it mean that the calculated percentages are different because Relius has shifted contributions resulting in new NHCE rates and there really isn't anything to worry about?

May a Traditional IRA be used for the stated purpose?

Can a Traditional IRA be used for the stated purpose?

Vanguard is insisting that they will code the 1099R for an excess 2012 contribution of $17,000 as both an excess contribution subject to the 6% penalty, taxable, and code 1, early distribution subject to the 10% penalty. I think this is wrong, and that it is only subject to the 6% excess contribution excise tax.

The client has amended her 2012 tax return to remove the excess SEP contribution, will pay taxes on the amended return, and paid the 6% excise tax. So she will be taxed on that $17,000 again in 2014 PLUS pay a 10% penalty?