This may be an odd question, but I'm having issues with finding clear language on timing of amendments.  I typically only deal with situations where the plan is being amended starting at the beginning of the next plan year.  Are there limitations on amending the plan mid-year?  I know that there are, but my understanding is that the permissible amendments must increase benefit to participants (Ex: Introduction of mid-year safe harbor plans).  Otherwise, the change must be made prior to start of the plan year.

The sponsor would like to allow after-tax contributions and change the PS allocation from SS integration to new comparability.  I believe the after-tax could happen mid-year, but not the allocation method change.  Would anyone know where I can find more detailed language on mid-year amendments?

I'm getting push back from an employer who doesn't want to allow an in-service distribution for a participant with an outstanding loan, since the distribution will make it so the loan is more than 50% of the current account balance.

Is there anything in the regs that would allow it?  I know there isn't an issue, I just need something to show the client.

Have a  new take-over client with a PPA pre-approved VS document effective 1/1/21.  The plan sponsor says the prior TPA was very difficult to work with, never available, never responsive, etc., etc.  The plan sponsor also indicates that he never received a Cycle 3 restatement from the prior TPA.  I'm not surprised since I don't know why the TPA would have used a PPA document for the initial adoption back in December 2021.  Anyway, we are to provide a Cycle 3 document to correct.

The IRS guidance for late amenders is to treat the plan as individually designed and adopt an amendment for the missing provisions; then restate onto a Cycle 3 document.  Does anyone know of an amendment template that would pick up the required provisions since PPA to the present?  The document provider I use did publish an amendment for the final Hardship Distribution regulations, as well as CARES/SECURE.  What more would have to be added?

Thanks.

401(k) PSP. Plan is in termination and we are in the process of paying out all accounts. Participant notified us today that he's had a divorce pending for 2 years and they are waiting on judge to approve divorce settlement. Participant indicates that ex will be receiving a portion of his 401(k) and will not sign the rollover consent. 

Plan requires spousal consent for rollover. Any suggestions on how to proceed? I could not find this in the pending topics, perhaps I didn't use the same terminology to search. Thanks in advance. 

A writer has a small corporation where she is the 100% shareholder. She is also a member of the writers guild.

If a defined benefit plan were to be adopted by her corporation, are there adjustments that need to be made to the benefits under the defined benefit plan because she is a member of the guild and they have a defined contribution plan?

Thanks.

My divorce settlement was agreed to in April of 2023.  My attorney had the QDRO prepared and sent off to the QDRO Provider (VOYA).  It has been sitting with VOYA for about 10 months now because, come to find out, my employer and VOYA have not agreed to terms on setting up the administsration of the QDRO. (VOYA took over IRA's etc., last year).  In the meantime, because my ex-husband's attorney won't file the final divorce decree, I continue to pay spousal support.  I have talked to a representative from VOYA as well as my employer and they say a settlement beween them is close.  Close?  It's been 10 months.  Any ideas on what I can do? or do I just have to sit and wait, meanwhile continuing with the spousal support?  We tried to push my ex-husband to have his attorney file the final divorce decree before we get the QDRO finalized, but they won't go for it.

I'm assisting with a DB plan termination.  Perhaps there is a prior discussion thread on this topic, but I’ve been unable to find it.

The termination process will include purchase (by the plan) of a group annuity and lump sum offers to as many participants as possible, and then execute the formal termination.  The best guess is this will result in a 7-digit surplus. 

First, the sponsor has paid expenses (actuary, auditor, attorney, etc.) directly (from the company, not from the trust) for many years.  Prior to executing the formal termination, the sponsor wants to use up some of the surplus by having the trust reimburse the company for as many of these expenses as possible.  So far, we see nothing in the document that will prohibit this.  However, is there any limit to this?  Could the trust reimburse expenses from the prior 5 years?  10 years?  More?  Do you know any prior examples or PLRs that might address this?

Second, our assumption is that any such reimbursement is NOT a reversion.  Is that a reasonable conclusion?

We were asked to prepare Form 5500 for a long-ago frozen 403(b) plan for a small group of nuns.  We filed the 2022 5500 but the 8955 never crossed my mind like it does for all our 401(k) plans.  The nuns ran an organic farm.  It stopped operations long ago and they are all very elderly.  So I supposed they terminated employment and probably would/should have been reported on 8955 some years back.  Not knowing if they have been we could report them now for 2023.

Thoughts?

Thank you

Got an answer to the question below from my partner who does more submissions than I these days. Apparently you type in "determination" instead of Form 5300 on pay.gov. in order to get the 5300 form.

Unbelievable. Every other form, including 5307, you are asked to fill in the number of the form or the Agency. Type in 5300 and you get a blank. Type in the IRS and you get other forms,  like the 5307, but not the 5300. 

___________________________________________

I am going to submit an individually designed 403(b) plan under the new procedure that allows for this. The IRS website says to use pay.gov.

To my surprise, pay.gov only has a 5307 available. 

It seems that the 5300 has not been loaded into pay.gov. but that is a form for qualified plans, too. 

Any ideas? 

I was awarded a transfer of 100k from Fidelity 401k retirement account.  I’ve lost almost everything in domestic abusive marriage.  Divorce was final and QUDRO ordered.  
      But Nothing!  Lawyer says waiting on OC for info.   It’s been months.  I’ve battled cancer.  Moved in with family.  Paid attorney all I have.  Thousands.  And Nothing!  No response from attorney.  
        I created my own acct. with Fidelity to try to do this myself!   I will contact county clerk today.     Please Advise!   Thank you! 
 

AJ 

This is in regards to 2024 being the first year that RMD's are no longer required from Roth Accounts.

As of 12/31/23, owner has no Roth balance in his account.

On 4/1/24, he converts through an in-plan Roth Conversion, 1/2 of his account balance to Roth. 1099-R will be issued.

The question is whether he is still required to take a full RMD based on his 12/31/23 balances/money sources, or if this Roth conversion can cover a portion, if not a half or even all of the actual RMD?

Hi

Did not have to deal with one these in years.

A few situations cannot determine if calculations right/wrong for incidental maximums. Insurance is whole life so would apply 66.66% for 74-307

Plan NRA is 62

Participant was age 35 on 1/1/2021 - effective date of the plan. Total 27 YOP to NRA

Participant got insurance effective 1/1/2023 at age 37. Total 25 YOP to NRA

Participant average compensation is 20k/month - 415 lump sum at NRA 3M (made up)

Benefit formula is 75% of average compensation i.e. projected benefit at NRA is 15k/month - PVAB at NRA based on plan AE assumption 2M (made up)

1. To determine 100X, one should use formula benefit at 15k/month so face amount maximum is 1.5M, correct?

2. To determine ILP theoretical contribution under 74-304, law requires participation years. The LRM language (where document reflects the same) is "using the individual level premium funding method from the age at which participation commenced to NRA".

3. Based on literal reading of the law, for 74-307, I need to calculate starting from age 35 i.e. 27 YOP, correct?

4. For 74-307, the lump sum I have to use is the 2M figure (not the 415 figure), correct?

Thank you

I'm looking for someone who has published the table that has the permitted disparity factors. So the one I have has 3 columns, one each for SS Retirement Ages of 65,66 and 67, and then has all of the NRA ages in each row. Can someone share that?

I've run into something that I need to run by others and confirm whether I'm missing something... 

An employee terminated employment and requested a rollover from the 401(k) plan in a letter to the employer and the employer forwarded the request to Fidelity. The request was for a direct rollover to an IRA. Apparently a check was issued to the employer, who deposited it into a company account and will be issuing a check to the IRA custodian.  Is there a scenario where this is ok? Shouldn't the distribution go from the trust directly to the IRA custodian?  But I feel like I must be missing something if Fidelity issued the check to the employer?  TIA!

Does a Judgement of Absolute Divorce in Maryland outlining Retirement through a QDRO and Alimony ever expire, or is it a Duty once it is ordered in a JAD and never expire?

We have a new plan, effective 1/1/24, with deferrals effective 2/1/24. There were SIGNIFICANT delays with the Custodian and deferrals couldn't actually start until 3/22/24. What is the appropriate way to correct this issue?  

I want to make sure I advise this client correctly. The plan document has NRA as age 55.  A participant is age 56 and is quitting/retiring in 2024.  He has 1.4 million in his account - a good portion of which will go to pay heavy medical bills.  Am I correct in what I interpret code 72T to allow - HE will NOT be subject to any premature withdrawal penalties even though he is not 59 1/2?  Thanks in advance for any comments/sites/ etc to support my position or dispute it.  

We have a governmental employer sponsoring a 401(a) plan that also has a MERP (tax advantaged plan under Code Section 105 (it may also be a VEBA). There are veterans (VA) employed who do not need health insurance from this employer. They would like to opt out of employer contributions to this MERP and have the employer contribute instead to their qualified 401(a) account as an "employer" contribution. What are the mechanics to do this, if possible? we can set up the 401(a) plan with separate employee allocations (and there is no IRS non-discrimination testing issues) but how do we go from MERP contribution to 401(a)?  I have asked for the MERP document, but we do not have it yet. Any thoughts or experience from others would be helpful.

Thanks!

Plan sponsor declared a profit-sharing contribution for 2022 and communicated to participants the exact amount that they would receive. The plan sponsor changed their mind and decided not to remit. Is that permissible once communicated or did the benefit accrue?   

Thanks for nay guidance.

I'm handling an IRS audit (2021) for a client.

1. How many clients keep a copy of the collective bargaining agreement?  I don't know where to tell the client to look.

2.  The non-union are all family,(four brothers and a sister); the plan excludes union employees subject to collective bargaining agreement.   One of the family members quits and receives a distribution, which he rolled over to an IRA.  Apparently no 1099R was issued

3.Despite many attempts to get a copy of the rollover check, the account value as of 12/31/202 was shown on Form 5500-SF for 2021 in order not to be a late filing. Obviously Form 5500 will need amendment.

Question - obviously no 1099-R was prepared or filed; is it even possible to file a 1099R currently for a distriubtion that occurred in a prior year?

Can a 1099-R be filed currently for a previous years' distribution?  The IRS website lists the fines for a late 1099-R-  apparently this one would only be $280, but I'm sure they will add penalties and interest?  The guy rolled over $1.5M to an IRA.

You wouldn't needa 1099R to show a distribution on the 1040, I would think that is the individuals responsibility to show as income and deduct as an expense, but that is his problem.