Individual intended to invest money held in an IRA into a private fund.

Custodian sent check to private fund.

Individual always intended for IRA to hold the investment.

Custodian mistakenly believed the check was intended to be a distribution from the IRA (and that the individual, personally, would be the investor in the fund, and not the IRA).

Individual would like simply unwind the transaction and put the money back into the IRA (fund is willing to return the money).

Is returning the money into the IRA allowed? Assume it can be shown that custodian was at fault for not following individual's directions.

Thank you in advance.

And it raised a question for me on 403b's. 414h seems to indicate that mandatory employee contributions can only be pre-tax for governmental agencies that sponsor these pick up plans and meet a whole slew of requirements.

So, now I look at the TIAA 403b document and it allows for mandatory employee contributions. Yet the plans are sponsored by 501c3's. Are these supposed to be after-tax? Is there another exception out there for 403b plans?

Hi. I have a question regarding responsibility for adding dependent coverage. Here is the scenario. It is fuzzy at best, but this is what I understand happened:

Employer hired employee that was pregnant. Employee enrolled in employer's health plan. Employee had baby. Employer continued paying Employee's health insurance premiums (even Employee's portion). Eventually, Employee notified Employer that she is not returning to work. One year later, Employee receives invoices from the hospital related to the care of her baby (as there was no dependent coverage elected). Employee blames Employer for not informing her of the need to add her baby as a dependent.

The part I don't understand is when a mother has a baby, at what point do the hospital charges relate to the mother (and get covered by employee-only coverage) versus when do certain hospital charges get attributed to the child (and get covered under dependent coverage).

What responsibilities does Employer have to inform Employee of rights related to dependent coverage? Employee never formally notified Employer of Employee's desire to add a dependent; but all parties knew that Employee was on the company health plan, and was about to have a baby.

Hello Everyone!

We have a new comparability plan with 1 YOS and monthly entry for 401(k) and SHNEC(3%) and 2 YOS and monthly entry for the PS. The plan is also top heavy. We separated out all the otherwise excludible employees and are left with non-excludible employees. Can I get someone’s opinion on the correct compensation to use for each of the 2 example employees below for these test calculations?

Gateway
GND 401(a)(4)
ABPT 410(b)

Participant A: eligible for 401(k) and SHNEC only 7/1. Annual comp is $20k, mid-year comp is $10k. They will need to get a THM of 3% on full year compensation. I'm fairly certain that this is $10k compensation used for all 3 tests.

Participant B: eligible for 401(k) and SHNEC for the full year. Eligible for the PS 7/1. Annual comp is $20k, mid-year comp is $10k. The THM will be satisfied from the 3% SHNEC allocation.

Thank!

OK, so if I missed that stupid 120 day window, what do I do? Plan is effective 1/1/2013, calendar year plan. Can I just file the 2013 5500 and then file the top-hat filing?

Our client has 10/1 - 09/30 fiscal year. Their insurance policies renew 10/1, but they want to operate the FSA on a calendar year. Can we write the plan so that the coverage period for pre-tax health insurance will be 10/1 - 09/30 but the coverage period for the FSA will be the calendar year?

I'm frankly a little confused on this. Per IRS Notice 2013-54, it appears to be the $2,500 salary reduction cap plus 500 (for the rollover, I presume.)

My question is: does this limit include employer contributions or not? And if not, then is there any limit on employer contributions and or benefit payouts?

Assume two participants: one key and one non-key. The non-key however is an HCE so ADP testing is not an issue.

The plan went top-heavy for 2014 and the key employee wants to terminate the plan effective 4/30/14

No safe-harbor provision and the key employee has already made $5,000 in 401(k) deferrals on a salary of $50,000 for 2014.

Questions:

1) Assuming the non-key employee will still be employed as of 4/30/14 is a top-heavy minimum of 3% of their 1/1/14 - 4/30/14 salary due to them?

2) If so, to avoid paying any top-heavy minimum is there any way the key employee can take back his $5,000 401(k) deferral for 2014?

I have a question

1) I have an IRA what I rolled over from an old 1990 employeers 401k and haven't touch it since.

2) I contribute the max to my employeer matching 401k plan for CY 2013 and 2014

3) My wife no longer works but we have an IRA for her also

4) I've opened a seperate IRA (makes for two in my name)

QUESTION:

I know the max I can contribute to any one IRA per CY is $5,500.

The question is, since I have a total of three IRA (2 mine) (1 spouse), can I contrbute

$5,000 to each of my IRA in the same CY???

* $5,500 to my IRA #1 for CY 2014

* $5,500 to my IRA #2 for CY 2014

Of course, I know that I can contribute $5,500 to the spouses IRA for 2014.

Thanks,

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