Someone in my office seems to think April 15 is an important date for ADP refunds of Roth deferrals, ut they can't put their finger on it.

Leafing through (though not perusing) the EOB, I just see that Roth ADP refunds just go on a separate 1099-R from regular deferrals as the basis is not taxed. I do not see any reference to April 15 anywhere for ADP refunds of any sort.

Googling "ADP Roth Refund April 15" gave me this nugget:

http://www.ars401k.com/Roth401k.pdf

On slide 8, referring to ADP refunds, it says:

Roth 401(k) contributions would not be
includable in income, though earnings on
the contributions would be includable in
income (if refunded by April 15).

Is that right? All the other links lead to discussions on 402(g) excess deferrals, not ADP refunds.

As always, your thoughts are appreciated.

Employer sponsors a 403(b) plan that was treated as subject to ERISA discontinues all contributions prior to 1/1/09. The plan solely maintains individual annuity accounts in which the employer has no authority. It is my understanding that the assets of the individual contracts are not treated as plan assets for form 5500 reporting purposes. Does this mean that the employer does not need to continue to file a form 5500, or does it file a 5500 but indicate that the plan has no assets? It does not appear that the plan can be terminated as the employer has no authority over the individual contracts. If you think there is a way to formally terminate it let me know.

Can Employers/Trustees e-sign Plan Documents and Amendments? Is it still necessary for the Plan Sponsor to retain an original signature copy?

I met with a charter school that has had a 403b plan for about 10 years. They've always made matching contributions; and they've always considered themselves to be an ERISA plan. Their document is completed as such, and they've always filed 5500s as such.

But as a public school, I believe they should be Non-ERISA. They stated that they recently reached this same conclusion themselves, and they mentioned it to their current provider. The provider told them that since they had filed as an ERISA plan for more than five years, they cannot reverse course now and be a Non-ERISA plan.

I can't find any rule about five years. Are they stuck as an ERISA plan? Or is there some action they need to take to become a Non-ERISA plan?

Owner of Plan Sponsor (he was trustee and plan administrator) died suddenly on 06/01/13. His sole heir seems to be his son - no spouse and no other children. The son and his attorney have had ongoing contact with us and has provided death certificate and some pages from his father's trust, as well as attorney letter saying he now manages his father's company. Company has closed doors and plan is terminating. Plan is a 401(k).

We are having trouble distributing funds to participants. Monies are with AXA Advisors. They have already allowed son to roll over his father's money into an IRA - a large amount. But they will not distribute to any other participants because they will not accept son's signature as plan administrator. They have provided us with a list of what they need to appoint the son as plan administrator, and the son's response to this was: "I don't have time for all of that, I'm sorry."

I can call his attorney - which I have already done once - but of course that costs him and so I must be careful about that.

Any suggestions on how to proceed.

according to the govt web site

http://www.socialsecurity.gov/OACT/COLA/cbbdet.html

the taxable wage base will be 117,000 in 2014

if my spreadsheet still works, the covered comp will be as indicated on the enclosed spreadsheet.

...............................

based on the CPI-U that was released today the increases (should) be (based on the regulations)

260,000 for compensation

52,000 for 415 limit

210,000 for the DB limit

170,000 for key employee

covered comp at 117000.xls

Good Morning

I have an employer that would like to add an allocaiton condition to his profit sharing contribution of 1,500 hours of service. I beleive he cannot exceed 1,000 hours but I am having trouble proving this to him.

In the LRMs I can show where a non-Standardized prototype document is limited to 1,000 hours but he is looking at customizing a volume submitter.

I think it is a 401(a)(4) issue and I have also looked in ERISA 204 and regulations for ERISA 200 and have not found anything conclusive.

Any help would be greatly appreciated.

Thanks

A plan needs to fund a missed deferral opportunity and earnings - can the forfeiture account be used for this?

I think the answer is no but I want to ask in case I am missing something. A company with 20 employees is setting up a 401(k) Plan.

The 2 owners of this company also own a real estate holding llc. They would like to include the holding company in the plan so they can count the comp from both companies. I think they cannot because it is passive income. Am I missing anything?

Suppose you have a calendar year 401(k) plan sponsored by a Corporation. Also an LLC adopted the plan as a participating employer.

Ellen, the 100% shareholder of the corporation also has a 45% interest in the LLC. Her compensation was as follows:

1. Corporation W-2 = $100,000

2. LLC K-1 self employment income (adjusted for contribs 1/2 SE tax etc) = -$90,000

Question: Must the $100,000 be aggregated with -$90,000 for contribution allocation purposes? Or does the the corporation fund its contribution based on $100,000 of salary and the LLC fund its contribution based on $0?

Thanks a million.

I've been in business now for a couple years after branching off on my own after 20 years. I am really in need of a block of business at once to make my venture a true success and to be able to maintain my employees. As most know new plans just don't come in quickly enough. I'm not necessarily looking to borrow funds for a purchase but more so looking for the selling firm to finance a portion. That said does anyone have any ideas or know of an individual who may fit this.

If any of you are doing these submissions, I have to give the IRS credit for this document. Very very well done. Step by Step instructions, written in English (no kidding!).

http://www.irs.gov/pub/irs-tege/vcp_submission_kit_403b.pdf

Would you folks consider being a real estate agent a service industry? My first reaction is "no"...

But then I say to myself "is capital a material income producing factor?" Is the house consider capital? If the realtor charged an hourly fee I'd say it was service. Why should that make a difference?

Company acquires another company and establishes a qualified replacement plan under Code Section 4980. Owner of the acquired company has provision in will that provides upon his/her death, all of his/her stock in the company is to be held for his/her spouse’s lifetime, and then after the spouse’s death the shares go to the company’s qualified defined benefit plan. Are there any prohibitions on a qualified defined benefit plan receiving a bequest of stock?

Must all ERISA 403b plans allow for J&S? Or only if invested in annuities?

Ever seen both items 9 and 10 filled out on the same 5500 and if so, any guidance on being allowed to do that? I know there is next to no guidance in the formal instructions.

Apparently insurer uses one methodology on Health and Dental and the other on Vision, and thereby has no separate records of claims paid on Vision.

We are a non CSP TPA firm.

Are we subject to the 408(b ) and 404(a)(5) DOL regs?

We have been told "no".

A plan is designed with the intention of satisfying the SH Match through the basic 100%/3% + 50%/2% formula. Plan defines compensation for purposes of elective deferrals AND THE MATCH to exclude bonuses. Treas. Reg. Section 1.401(k)-3©(6)(iv) clearly says that the SH rules do not prevent you from making bonuses ineligible for elective deferrals, but then it goes on to say that each NHCE must be permitted to make elective contributions in an amount that is at least sufficient to receive the maximum amount of matching contributions. What does that mean? In the plan I've described, do you still have to test for non-discrimination under 414(s)? What if you fail?

Earlier this year, the sole-participant of a DB plan was paid out his 415 lump sum limit of about $2.3M at age 64.5. At the time, he already had 10 years of service and participation. His limit was based upon his average comp of $200,000, which was slightly lower than the $205,000 dollar limit. He is asking if there is any way for him to accrue an additional benefit. At first, I thought that he could do so by earning enough in 2013 - 2015 that his average comp would increase to $250,000. My thinking was that, since the dollar limit will probably increase above $205,000 (and, additionally, it is actuarially increased after age 65), his 2016 dollar limit would probably be above $250,000. However, it looks like, once he generates a new higher 415 limit by 2016, it will be completely offset by his 2013 payout of $2.3M actuarially increased to 2016. Am I thinking about this correctly?

Any help would be appreciated!

company A and company B are members of a controlled group. Both have their own 401(k) plan. one is safe harbor. one is not. Smith is an HCE on the payroll of each company. he only makes salary deferrals in one plan but, could defer in both.

in doing 410b testing for one of the plans you typically use a numerator of that plan's benefitting hce employees and divide by the total number of hce employees of the entire controlled group. But, would you count that hce as an employee one time or two times in determining the denominator?

we cant do permissive aggregation because one plan is s/h and one is not. However, I know that for the adp testing you have mandatory aggregation of HCE's for adp and acp testing.

Is there some sort of mandatory aggregation of HCE's for 410b testing purposes? And, is the HCE counted as one employee or two employees of the controlled group?

I would appreciate any citations if possible.

Thank you!