A 401k plan sponsor was changing investments and recordkeepers and overlooked distributing the blackout notice.  The plan is now out of the blackout period.  Is there a correction vehicle in EPCRS for this?  Is self-correction an option?

At least one of the participants lost significant $$$ due to not knowing about the blackout as well as the mapping of his investments from old to new not aligning the way he wanted.  If the Plan Sponsor makes the individual(s) whole and documents everything from start to finish, would that be a sufficient fix?  

Do you think this is something that would be covered by the plan sponsor's E&O policy?

Thank you

Hello,

I'm currently working in PEP plan. My company A and another participating Employer Company is B. In the mid of the plan year (i.e., 12/31) employee transfer from company B to Company A on 6/20/2023.

In the company B for the period of 01/01/2023 to 06/20/2023, he had $90,000 and in company A, he earned $ 100,000 for the period of 06/21/2023 to 12/31/2023.

To determine HCE for 2024 plan year, which compensation  I have to take to determine HCE? Total compensation ($190,000) or company A compensation?

Hi

Question for 401k gurus out there.

Not a 401k person.

Existing plan with 401k/SH/PS provisions.

Called the "no name disclosed" payroll/RK company on behalf of a prospective client that I am designing a CB plan. Let's call them ZZZ

Asked ZZZ to amend the plan's SH provision from basic safe harbor to 3% non-elective effective 1/1/2025.

I was told by ZZZ that there is a 45 day rule prior to year end to change the SH, is this true?

If true, can you please provide a cite?

As a signed note, ZZZ told me that the same 45 day rule may apply to amend the PS provisions as the plan has SH in it (PS has last day rule) which I said, I do not think so.

Am I missing something here?

Thanks

Under SECURE, sole-prop can adopt a 401k plan after year end and prior to 4/15 (as far as I know, no extension in filing allowed)

How about changing deferrals for an existing plan? Do they need to be done by 12/31 or can be done by 4/15 following?

Thanks

Multi-employer, government-sponsored (technically non-EIRSA) cafeteria plan that provides pre-Medicare retiree coverage.  Question concerning a recent pre-65 retiree who has a NMSO in effect for dependent coverage.  Retiree wants to drop coverage in favor of HRA-only waiver because other coverage is available through spouse.

I believe we are still considered an "employer" for purposes of the NMSO and cannot allow the retiree to drop coverage without an amendment to the NMSO, but have been unable to find guidance on this question anywhere.  Anybody else dealt with such a situation?

Record keeping platform sends approval notification to the TPA for review an approval.  Does anyone attempt to confirm that it is truly the participant who is initiating the distribution request?  If so, what do you do?  A TPA review/confirmation certainly opens the TPA to some liability.

I'd like to get some specific control ideas from the group.  We've never had a fraud incident in 30 years but just a few days ago, someone tried.

Thank you! 

So the new participant count methodology for purposes of the audit waiver is participants with a balance at the beginning of the year, with an exception for new plans which use participants with a balance at the end of the year.

I'm looking at a 5500 for a PEP with the following facts:

• Plan was effective 9/1/22
• Plan filed a first return for the PY ending 12/31/22.
• Plan had 9 Participants with a balance at 1/1/23
• A new employer became an adopter of the PEP 1/1/23
• The new employer ends up with 160 participants with a balance at 12/31/23

This seems pretty straightforward to me.  Its not a new plan and there were only 9 participants with a balance as at the beginning of the year, no audit is required for 2023.  With 160+ participants with a balance as of 1/1/24, the plan will need an audit in 2024.

I'm getting disagreeing opinions on the audit requirement for 2023.  The argument is that because the new adopting employer ended had 160 participants with a balance as of 12/31/23, they also count towards the beginning participants with a balance count, which then is over the audit threshold. 

Anyone disagree with me that the plan does NOT need an audit for 2023?  The fact that its a PEP shouldn't change things here since its one plan and one 5500...

Thanks!

Hi

Looking at a take over. Interest crediting period is determined on a pro rata basis upon termination.

If I want to amend it to zero i.e. no adjustment until year, is this 411d6 issue?

Thanks

Hello All,

We currently cover 100% of the insurance premiums for our group health plan for individuals and families. We would like to reimburse the out-of-pocket cost of the group medical insurance premium cost, for an employee and their family, if they should choose to stay or move to the spouse’s employer’s group medical insurance program.

We would make the reimbursements on a post-tax basis. Our thought is that this would not create a plan under current regulations.

Are there an ACA issues with reimbursing employees in this manner?

Thanks

1/1/2023 to 12/31/2023 ADP test failed. HCE is due an ADP refund of $3,000. The HCE in question took a full in-service distribution in June of 2024. He rolled it over to an IRA. He continued to defer into the 401(k) plan, and has deferred approximately $5,000 from June of 2024 to current date.

When correcting the failed ADP test for plan year 2023, is it permissible to refund the $3,000 based on his current account balance (of the $5k deferred in 2024)? Or does the rollover to the IRA need to designate that $3k was ineligible to be rolled over? 

I have never seen this before.  It show posted and suppressed.  I cannot reverse it.  I cannot un-suppress it.  Has anyone else seen this?  Does anyone have a resolution? Do I need to contact Relius directly?  

Does the plan document need to have an amendment that allows for the participant to self-certify the request?  Does the participant need to provide any documentation to the Plan Administrator/Trustee for the hardship reason and the amount required.

The request is being made for the full amount in the participants account

I assume the contribution limit for 2025 is $81,250 for those who are age 60, 61, 62 or 63 as of 12/31/2025?

Example: employer contribution of $46,500, deferral of $23,500, regular catch up of $7500 and super catch up of $3750.

Is that correct?

Tom 

Plan is a MEP that has been in effect since the 90's.  Company that is established in 2023 decides to become a Participating Employer in 2024, and adopts the Plan in Summer of 2024.  Since there is an exemption from the automatic deferrals for a firm that has been in business less than 3 years, I believe that Automatic Enrollment would not apply for 2025 since the business has not been in effect for at least 3 year on 1/1/2025.  Does this exemption then end in 2026 since the firm will then have 3 years of business at that time?  Basically, does the exemption end once the firm has been in business for 3 years?

Owner died last week. 2024 RMD has to be processed to his wife (not his first RMD). Can she request the entire amount, $55,000 plus, be withheld as taxes?  TYIA. 

The Notice says the Plan seeking recoupment notifies the recipient plan and the participant of the overpayment. It states the tax consequences and how the overpayment can be transferred back without the participant incurring taxable income.  What I do not see is authorization for the recipient plan to just transfer the money back without the participant's consent.  Can the recipient plan transfer the funds back solely on the basis of the notice and the Notice?  That is, can this be done without liability to the participant?

A minor (17) qualifies for medical benefits under ACA (just a hair over 30 hours) during open enrollment. Wont turn 18 until April. Can we legally offer them their own benefits even though they are not yet 18? Or, do we have to wait to offer until they turn 18 in April? They work in a state where the # of hours worked is not an issue (they earned the minimum hours all within the labor laws). I worry we will be out of compliance with ACA if we don't offer it during open enrollment since they are flagged but have also never offered benefits directly to a minor before.

I've not seen definitely how the age limitation works.  It is clear that someone who is age 59 on 1/1/2025 and turns 60 in 2025 are are eligible for the additional catch-up.

What about the person who is 63 as of 1/1/2025 and turns 64 before the end of 2025?  Things I read seem to say they must be 60-63 by the end of the year and might not be eligible for the catch-up if they turn 64 by end of year.  So early in 2025, at age 63 they should not defer the extra catch-up since they will turn 64 before end of year.  Payroll systems will handle this correctly in any event. 

Thank you,

Tom

In NC, my friend married a probation officer. They were married about three weeks when the officer committed suicide. The state was not informed of the marriage. The payout was given to a beneficiary and my friend received nothing. How does she combat the problem?

EBSA opens voluntary "Retirement Savings Lost and Found" database for submissions - First submissions should be made as soon as possible before December 29, 2024, and
updated at least annually thereafter.

Links to the Official RFI and Fact Sheet included in a just-issued BenefitsLink Newsletter Bulletin.  (Those links will be updated when the RFI is published in the Federal Register.)