Any good write-ups on using rate banding when allocating a profit sharing.

I'm kinda hazy on the topic. One of my plans magically passes testing when I check that little box in Relius. Otherwise it fails.

Just wondering what, if any, experience anyone has had with this question. Probably dependent upon the old facts and circumstances, but have you encountered any particular pros or cons to either keeping the plans separate or having the ESOP/401(k) combined?

The employer currently has a safe harbor plan ( and will be safe harbor for 2014). In addtion the plan offers participant loans.

The loans are getting out of control, but not to the point where the Plan Sponsor wants to remove them.

the Plan Sponsor is considering limiting one loan outstanding at a time. Does this change in the loan policy need to be implemented before 1/1/2014, or can this procedure be changed durnig the 2014 plan year. We are not amended the plan to add or remove a feature, only modifying the current loan procedures.

thanks

I will be filing an amended 2011 return for a large plan filer in respect to an incorrect participant count. Must all schedules and audit report accompany the amended form OR just the Form 5500?

Owner does not contribute his his wife's salary deferral contributions until February 15, 2013 for his 2012 payroll withheld deductions. He did contribute all his employee's 2012 salary deferral contributions timely.

Is a Form 5330 necessary? Do I have to report late deferrals for owners on the Form 5500? Client does not want to contribute lost earnings for himself or his wife.

Employer wants to make nonelective contributions on behalf of a certain group of employees to a profit sharing plan created solely for the purpose of receiving such contributions. Employer has determined that it would like to define eligible employees as those with 2 years of service (with immediate vesting) as of the effective date of the profit sharing plan, and the profit sharing plan will be closed to new entrants after the effective date of the plan. (Basically, although there is no intention to do so, the employer could achieve the same result by putting all the eligible individuals on an exhibit to the plan and defining eligible employees as those individuals listed on the exhibit.) There are HCEs and NHCEs in the group of employees, but the plan is expected to pass nondiscrimination and 410(b) coverage testing. Does this plan design cause problems under Code section 410(a) or otherwise? Could this design cause the plan to fail to be a "bona fide plan for the exclusive benefit of employees in general"?

Widow, age 51, is rolling over her deceased husband's (age 53) lump sum settlement from his Qualified Plan to an IRA. Will her IRA distributions prior to age 59 1/2 be exempt from the 10 percent penalty tax? How should the IRA be titled?

Are non-ERISA 403(b) plans (e.g., governmental 403(b) plans) required to have QDRO policies? I believe they do because the 403(b) regs say "under section 414(p)," which I take to incorporate all of the 414(p) requirements.

Assume state law is silent on the issue.

The latest CPI-U value was supposed to be released this morning, and that would determine the limits for the new year.

I guess since the government is shut down, nothing has been released, so everyone gets to wait.

One of our clients had issues with the auditor finishing their report and didn't file yesterday. What is the best option....can they file today and just cross their fingers? Or, will they have to file through the DFVC program?

I am filing 7 late 5500 EZ forms for a client back to the mid 00's. There is no DFVC for these so we are intend to file late and beg for mercy. Since we are filing these en masse this month (10/2013), should these be sent to Ogden, UT with a letter of reasonable cause, or should they be filed online at DOL website?

Would it make sense to file these online on a 5500-SF, indicating an 1 participant plan?

Thanks

The IRS asks for plan documentation when reviewing an application for a favorable determination letter and we don't have it. Section 5.09(3) of the Rev. Proc. 2013-12 says that we are "under investigation" and thus, ineligible for VCP.

Are we just screwed or do any of you have any suggestions of how to correct these issues without going into Audit CAP?

Husband and Wife are divorced in 2009. They have a QDRO at that time that assigns Wife $7,000 of Husband's account. At the time of the divorce, Husband only had $10,000 in his account, so after Wife gets the $7,000, he's left with only $3,000 in his account. The issue is closed.

But, in the divorce decree, Husband is supposed to sell the marital house and give 1/2 the proceeds to Wife. He sells the house for $40,000 but doesn't give her any of the money. Wife files a contempt action and the Court rules that Husband is in contempt.

Since 2009, Husband has worked a ton of hours and his account balance has exploded. Wife files a new QDRO assigning Wife $20,000 of Husband's account. Keep in mind that just about all of that money was earned AFTER the marriage ended.

1) Is this permissible if Husband agrees to it?

2) Is this permissible if Husband does not agree to it?

Thanks.

Perhaps this inquiry is premature but due to the partial shutdown of the government (at least that is what I assume is causing this) the IRS hasn't yet updated its usual sites with the September 2013 30-year TSR rate and the September 2013 Minimum Present Value Segment Rates under IRC 417(e)(3)(D). Given the provisions in our plan (look back and stability periods), we could wait a while for the Minimum PV Segment rates but the September 30-year TSR is used for actuarial reduction in one of our plans for any benefit commencing November 1.

We can "get to" the monthly 30-year TSR by adding up the daily rates and dividing by the number of days for which it was published...this producing a 3.79% rate...but, of course, that isn't "official".

Are there other authoritative sources for this info? I checked and didn't see any IRS Notice covering the info for this period. Any other thoughts...other than hope for an earlier versus later end to the partial government shutdown?

This is the URL of the site from whence we usually get the 30-year TSR http://www.irs.gov/Retirement-Plans/Weighted-Average-Interest-Rate-Table and this is the URL of the site from whence we usually get the Minimum Present Value Segment Rates http://www.irs.gov/Retirement-Plans/Minimum-Present-Value-Segment-Rates

Thanks for any and all thoughts on this evolving dilemma.

Is anyone aware how many TPA's/recordkeepers are prepared to administer/recordkeep the new in-plan Roth transfer provision under IRC 402A©(4)(E) as permitted by the American Taxpayer Relief Act of 2012?

Given the fact that the IRS has not yet issued guidance on the new transfer provision, it may be prudent for plan sponsors to wait until such guidance is issued. However, some participants are anxious to convert amounts to Roth in 2013 to avoid higher tax rates in future years.

My company provides a variety of ee benefits (Medical, Dental, Life, LTD, STD, etc.). I am wondering if I need to include the benefits provided by Allstate Benefits? I thought I read it wasn't necessary if they were voluntary benefits. This particular policy provides Cancer (and other specified diseases), Critical Care and Recovery, Short-term disability and Term Life.

Both my agent and the company seem completely baffled by my request for information for 5500 reporting purposes so I thought maybe it wouldn't be necessary.

TIA.

We have a company with a 401(k) plan that was acquired by another firm mid year that only maintained a Profit Sharing plan. Right after the acquisition, the purchasing company immediately made payroll changes stopping deferrals and loan payments. They originally were going to shut down the plan, but now have decided they will keep the plan. They have just resumed payroll repayment of loans to prevent participants from defaulting, and will be resumming deferrals probably. What kind of documentation should we get for the 401(k) plan?

I cannot think of anything besides putting some notes in the file. Did they violated something by stopping deferral and loan payments for a period?

Anyone ever experience this?

Does anybody know if the IRS FIRE system for submitting the 8955-SSA information is down due to the government shut down? If "yes", will there be an automatic extension on filing the IRS Form 8955-SSA that should have been filed on October 15th?

Thanks!

A participant has terminated employment in August 2013, however, is still receiving severance pay through the end of 2013. The participant has an outstanding loan and loan repayments are being deducted from the severance pay. Plan allows for partial withdrawals and wants to just take a portion of their account as a cash withdrawal (not rollover), but, does not want loan to be offset and taxed at the time the partial withdrawal is taken. Loan is in good standing. Loan policy states the following: "An outstanding loan balance must be fully and immediately repaid upon death or termination of employment. However, if a Participant continues to receive severance pay from which loan repayments are made as payroll withholding, then solely for puposes of this Section (...which is the loan section...), a Participant will not be deemed to have a termination of employment until the first day after his last payment of such severance pay."

As a note, the plan specifies that if the loan is not repaid by the end of the quarter following the quarter in which the participant terminates, the outstanding balance will be treated as a taxable distribution fromt eh plan.

Can the participant take this partial withdrawal without having the loan offset and taxed at the same time? The participant wants the loan to be taxed in 2014 after the severance pay stops and the payroll deduction of the loan repayments also stops.

Can the participant "choose" which investments they want to take in the partial distribution (i.e. leave the loan asset and withdraw only from the mutual fund investments)?

Thank you for any input you may have.