Do the Loan Policy need to be updated and signed with each restatement of the Plan.

Client came to us with a new GUST document and provided a signed Loan Policy effective 1/1/2007. Document was restated timely for EGTRRA but client did not receive a new loan policy. Is this okay?

A company wants to start a 401(k) plan now, for the usual reasons.

They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash.

But they each have between $100 and $200 in employer match? How is the match money handled?

A company wants to start a 401(k) plan now, for the usual reasons.

They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash.

But they each have between $100 and $200 in employer match? How is the match money handled?

This is a new one for me.

Companies A & B and companies A & C are controlled groups (B&C and A&B&C are not controlled). Company A is the General Partner of company D only 1 % ownership but looks to be clearly a management group for company D. D has no employees. Company D owns 100% of company E and 55% of company F.

Currently they have a multiple employer plan. A,B,C operate a single plan. D and E are adopters of that plan. They share the 5500 but test seperately.

What they want...is to have all the companies under a single plan. I don't know of any rule that lets you tie togeather companies with a combination of controlled and affiliated groups. As I see it D and E are adopters of the ABC plan and should have seperate 5500's and seperate testing. With AB&C do they have to do two sets of tests as well? One for A&B and one for B&C?

I'd appreciate any input.

Plan year end is June 30. Profit Sharing Plan only.

Client writes to us, the TPA, to begin termination paperwork for the plan.

Client wanted termination date to be June 30, 2013. We received the letter July 17, 2013.

Can we terminate effective 6/30/13 and have an adoption date later or does the effective date of the termination need to occur after the adoption date?

Please advise

First question: If more than one unrelated employer, each with its own 401(k) plan and trust, pool their trust assets for investment purposes in a single account at a financial institution, is this okay? This doesn't appear to fall under the requirements for MTIAs because the plans are not maintained by related employers.

Second question: If one employer with more than one 401(k) plan and trust pools the assets of all of its trusts for investment purposes in a single account at a financial institution, MUST this be treated as an MTIA (assuming all other MTIA requirements are met)? Or are trusts sponsored by a single employer that are pooled in for investment purposes in an account that is not an MTIA permissible?

Soon to be divorced small plan participant (HCE) had a QDRO drawn up where he was to issue a check to his soon to be ex for $43K. Now her attorney is not agreeing to the terms as the atty is reasoning that the ex will have to pay tax on the QDRO and the atty wants their fee to be paid as well from the distribution.

The participant is now considering taking a loan from the plan to pay off his ex and repay the loan over 5 years. I explained he would be essentially taxed twice in doing so. His account is in money market right now, so he is essentially earning very little to none, so missing earnings on the loan amount would not be an issue, however he would not be able to defer the max like he has been doing.

Would a loan even be an option in this instance? The plan would be amended to allow for loans.

Is it permissible to hold an annuity in a defined benefit plan, if the annuity has an income rider ?

One of my X-test groups is "Owners."

Situation 1:

Jim owns 100% of the company. Is Mrs. Jim in the "Owners" group, too?

Situation 2:

Jim owns 4% of company. Rest is owned by passive investors. Is Mrs. Jim in the "Owners" group, too?

Company A will be acquired by Company B over the next couple of months. In lieu of termination Company A's 401(k) the plan will be merged into Company B's 401(k) Plan.

The Trustess of Company B want to know if after the merger, do the Trustees of Company B have complete liablity for Company A's Plan. For example, if there it was discoverd, there was an operational error in a prior plan year, are the Trustees of Company B held accountalbe, or does this fall back to the prior Trustees.

Are they any other issues the Trustees need to address prior to merging the plans??

Is there any situation where someone could "lose" their prior break in service vesting after being gone for so long? For example (3 year cliff vesting and 5 year BIS):

DOH: 06/01/1998

DOT: 07/01/2003

Rehired: 03/01/2013

This person would be 100% vested when termed, is gone for almost 10 years. Would this person be 100% vested at rehire since they were 100% vested at term or does the clock start over since they were gone for longer than 5 years?

How can I be alerted to IRS rulings, notices, rev procs, etc. when they come out? Does the IRS newswire have these?

Facts:

- Father A owns 25% in company A

- A Trust in the name of Father A owns 25% in Company B

- Three other partners each own 25% in company A and each has a Trust in their name which also own 25% each in company B.

- Company A and B are part of a controlled group and in the same plan.

Question is in regards to Father A's adult Son (Son A) who would like to contribute in the plan. The son will work for and be paid from Company B.

I believe, for controlled group purposes (section 1563?) anyways, Father A is attributed ownership of Company B since he is the beneficiary of the Trust. The adult son would not be attributed any ownership because: A) He is over 21 and B) his father does not own more than 50% of either company.

However for HCE purposes (section 318) would the same rules apply? Or would the Son be attributed ownership from the father who was attributed ownership from the trust.

My initial feeling was the he would be an HCE/Key for ADP,Coverage,Top Heavy, etc. Almost sounded like double attribution and after going back and forth between the two rules I wanted to make sure I wasn't mixing them up.

A prospect wants us to terminate their Plan in 2014. They are on a pre-approved Plan for the 6 year cycle. They are up-to-date on all required amendments. Would they need to restate in the upcoming 2014 cycle? I have heard they do not have to restate, but the conservative approach is to do it.

Has anyone seen guidance yet from the IRS with respect to fully insured plans and Section 105(h) testing? As of right now, I believe we are still in a holding pattern on that but don't want to count on it. We are paying the Cobra premiums for certain executives and this will be a no-no once our plan has to pass non-discrimination testing.

A Church with a 401(k) Plans to convert it to a 403(b) plan if that is even possible. What is the proper way of going from 401(k) to 403(b)?

Terminating the 401(k) and implementing a new 403(b)?

I've got a situation where a divorcing employee has ~$200k in 401k benefits. $40k of that is a loan to the employee, the other $160k is invested in mutual funds.

Employee is going to receive all the equity in their home. So, QDRO awards ex-spouse all $160k mutual funds part of the 401k benefits.

This leaves the employee with a loan of $40k and benefits of $40k. Does that render the loan improper under 72p since it exceeds 1/2 of the vested benefits (and exceeds $10k)?

A large plan has a few participants that received a safe harbor match and were not eligible. For example a match was issued starting with the Jan 2012 payroll. The error was discovered past the one year Mistake of Fact rules under 403©(2)(A). So how should the error be corrected?

Hi,

When a mid-year testing of the Dep Care FSA Plan demonstrated that the Plan was failing the 55% average benefits test, we stopped the contributions of the highly comped to the Plan. The non-highly comped contributions continued, of course. A new employee want to join the Plan. Her total comp for the remainder of 2013 will put her under the IRS highly comped threshold. However, in 2014, she will easily be considered highly comped. Is it ok to allow her into the Plan based on her 2013 projected earnings?

Two years ago we changed the name of our company, and I just received a QDRO that sites a date in 2009 (prior to our name change) as the split date on this QDRO. It also references the old name of this plan. My immediate assumption is that this QDRO will have to be redrafted, but would like to ask other's opinions. Our Plan documents clearly spell out the name change without our 2011 plan amendment.

Thoughts?