Plan A had late 401(k) contributions and reported the late contributions on Form 5500. Before Form 5330 could be filed, Plan A merged into Plan B. For Form 5500 and Form 5330 purposes, are the late contributions now reported on the Form 5500 for Plan B, and the Form 5330 filed by Plan B to report the correction?

The company in question acquired another company that sponsors a 401(k) plan with a 3% nonelective contribution. The Safe Harbor plan is not being terminated, but rather merged into the existing 401(k) plan. Participants are eligible to participate as of 4/1/14, but the assets have not merged yet.

Do we have to wait until the end of the plan year (2014 calendar year) before merging 401(k) assets?

If not, can we suspend the Safe Harbor contributions mid-year? Are we responsible for paying out 1/1 through 3/31 or the first two quarters of the year? Is there a notice requirement to the participants announcing that the contribution is being suspended?

Thank you for your help!

May a traditional IRA be used for the stated purpose?

Client has an individially designed plan (happens to be an ESOP) that was prepared by Sungard/Corbel in response to a checklist we submitted. The plan provides that in order to receive an allocation for a given year, a participant must be "actively employed on the last day of the year." I can't imagine that someone who is away from work and on long-term disability could be "actively" employed on the last day of the year.

Am I missing something here?

Active grandmother with original teeth seeking a dedicated flosser to share rare steaks, corn on the cob and caramel candy.

Plan Sponsor recvd EBSA ltr to file VFCP for late 401k as reported on 2011 5500. When I looked at 5500, delinquent amount reported includes only 401k, not loan pymts which were paid simultaneously. Considering correction approaches:

option 1: file vfcp based on reported amount of 401k

option 2: amend 5500 to add delinquent loan pymt amts and incorporate that into vfcp

thoughts much appreciated .

Company A sponsors the Company A 401k Plan. Through common ownership (but not enough for a controlled group) Company B adopts the Plan and it is now a Multiple Employer Plan. There is an unsigned joinder agreement we inherited from a prior provider.

Company A want to move to a PEO. They want to leave the Plan in place for Company B to take over as the Sponsor. So a new Sponsor Name, EIN and Plan Name must be done via amendment. If I really wanted to be clean, I could create a whole new set of plan documents. Company B doesn’t want to terminate the plan (and create a distributable event) as they want all assets to remain in the plan.

They want this change effective 4/1/14.

What amendments did you think should be done to facilitate this change? What changes should be done on the 2014 5500? If I do new documents, what nuances can you think of? Any other advice? Thanks.

Suppose a corporation has a profit sharing plan and a fiscal year that ends on 12/31/13. If the employer sends a check by mail on 3/15/14 for a 2013 contribution (2013 corporate return is not extended), is the contribution considered deposited in time to be taken as a deduction for 2013?

A 401(k) Safe Harbor Plan has a Basic Safe Harbor Match to be calculated each payroll period and the plan compensation to be considered is wages, tips and other compensation on Form W-2 including salary deferrals. The employer contributes the match to the plan on a quarterly basis. At year end the employer uses each participant's W-2 Box 5 annual compensation to compute the safe harbor match amount for the plan year then he contributes the final quarter safe harbor match based on the W-2 box 5 compensation for the year. Is there anything in this scenario that would be in conflict with the plan's match and/or compensation specifications?

A participant erroneously received a check in 2013, which had 401k withholding. The check was canceled, but the 401k contribution and match was submitted to the plan. Therefore the participant now has an extra contribution for 401k deferral and match in their account. Is it best to just move this money to the forfeiture account rather than send it back to the plan?

That is a fact and not an opinion.

http://www.relius.net/News/TechnicalUpdates.aspx?ID=1020

Employer contributes profit sharing contributions during a plan year into a holding account earning a return until the contributions are allocated at year end. If the plan allocates earnings on pre-funded employer contributions as employer contributions instead of ratably across assets, is the allocation an annual addition subject to 415?

I am doing a 2013 valuation for a one-man DB plan. As expected, my valuation system is producing a funding target used for the maximum that is larger than the MAP-21 funding target. However, it is calculating a target normal cost for the the maximum that is LOWER than the MAP-21 target normal cost. How is this possible, if the all of the MAP-21 segment rates are higher than the segment rates used for maximum purposes?

Any thoughts would be appreciated!

I have read the regs and several posts on this board, but I seem to be just confusing myself more, so, at the risk of asking a stupid question, I thought I'd ask a stupid question:

If an employer has 2 401(k) plans and there is no overlap of employees between the plans, can they automatically test each plan separately, or does each plan need to pass 410(b) coverage testing on its own (considering all employees of the employer in the test) in order to test each plan on its own?

I would think that each plan needs to pass 410(b) on its own, but these posts make me think otherwise:

http://benefitslink.com/boards/index.php?/topic/55126-brain-cramp-controlled-group-mandatory-aggregation/?hl=disaggregate#entry240106

http://benefitslink.com/boards/index.php?/topic/54601-adpcoverage-testing-for-control-group/?hl=disaggregate

This seems like a dumb question, but I can't seem to locate the answer clearly anywhere. The buyer purchases a company (Asset Puchase) and subsequently adopts the sellers 401(k) plan. The buyer has a PS plan, but no 401(k). Do the transition rules apply for the 401(k) (i.e. can it proceed with covering only the "new" (seller's) employees for the rest of the plan year? And, then bring in the buyer's "old" employees at the end of the transition period?

Dumb question but if you charge more for smokers and offer a smoking cessation program as an alternative for tobacco users, is the requirement to participate in the smoking cessation program an annual thing for those individuals that do not quit or do you merely have to participate one time such that the following year you get the benefit of the lower rates even if you continue to smoke?

If the later, can you change up or introduce a new smoking cessation program and require individuals to take the new program to reduce the rates?

Any general suggestions as to how one might increase the percentage of non-smokers if increased rates and the smoking cessation program has not worked well?

Two different problems:

1) If you have a newer browser (I know it's a problem right now in IE 11), you might not be able to copy/paste in a message board reply.

The solution is: click in the reply window, then click on the tool icon that looks like a grey light switch, it's the very first one. This will toggle between text and html mode. If you now go up to a post you want to quote, it will now appear in the reply window. Or you can now paste into your reply. You can toggle back to html mode if you want to use the other tools like underline or bold.

2) If you just posted a reply, you might not be able to edit it immediately.

The solution is: I didn't think until just now to first try the tip above (toggle between text and html mode). Otherwise, click "View New Content" in the upper right, find and go to the message thread you just posted in, and now you can edit your reply.

My plan is a LLP and one of the partners has Self Employment Earnings of 151,010.00 before any deductions. he owns 1,20% of the company. When determining if he is a key employee, do I use his self employment earnings which are over 150,000 and would be considered Key or his earned income compensation, which is below the 150,000, which would make him non-key. Not sure if he should be receiving a top heavy minimum contribution.

Forgive me for lots of unnecessary information. I don't pretend to be experienced with these topics. But I need help and I am desperate. I'll try to simplify:

Thirty years of marriage - I am 46

We have 3 daughters - two are twins in college.

I discovered affair and filed for divorce 01/13.

Divorce was final 09/13 along with QDRO.

The QDRO states I will receive 100%. This may seem overly generous, but please know that my ex had an issue with job loyalty. He never worked at a company for more than a couple of years. This last employer was the longest at almost 7 years, and I would receive the earnings (?) of that fund for those years. This is where it gets complicated and tragic for us. Just after receiving spousal support payments in Oct and Nov .. My ex contracted the H1N1 virus at age 47 and after a month long coma - died Jan 19, 2014.

We discovered his life insurance had lapsed. We have only the QDRO. i do not know the value of this account. I have received no communication from his employer (PA). It's a small company, well aware of his death. I emailed the person who prepared the order, who then emailed the PA.. who says she is "waiting for calculations". She hasn't even asked me for a death certificate. Meanwhile, we have only the income I make as a teacher aide ($17k), we are at risk of losing our home of 15 years. I found a statement showing a balance a year ago of $93k. Can anyone please tell me what the time frame is to receive these funds? It was never my intention to do anything with this money other than to roll into an IRA for my own retirement. Now I have no choice but to hopefully pay for house. I have a copy of the "profit sharing plan" which is pooled by the employees. The company is owned by the PA. I can't ask my divorce attorney any questions, I can't even pay him for the divorce now with no income to speak of. He did tell me that the QDRO was complete and out of their hands. How long can the PA sit on the funds? Any direction or advice is greatly appreciated.

Not for Profit Plan

Plan is distribuitng 457 deferal account. Actual deferrals from pay were already taxed for FICA/FUTA when made/

Are the earnings on the deferrals subject to FICA/FUTA or are they somehow exempted?

Thanks