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MQS0413

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  1. Hi there, Does anyone know if SECURE 2.0 withdrawals are considered protected benefits? I find conflicting information. Some recordkeepers are enforcing it as protected benefits but I'm yet to see official guidance. I'm wondering how others are handling and/or interpreting this?
  2. I know I'm years late to this discussion, but I'm re-reading the first part here of the original post and have a question.... shouldn't the employer always provide a census that includes all employees who received payment that year, whether they were eligible or not? The testing, which is handled by the recordkeeper or TPA, should then field out those who were ineligible? Is that correct?
  3. Hi there, Are non-erisa church plans allowed to have adopting employers? If so, are there any rules around why they may or may not be able to? I have a client who is a non-erisa church plan who acquired a new entity. They have 100% ownership of said entity, however, the new entity will be maintaining its own EIN. Can those employees participate in my clients existing non-erisa church 403b? Thanks,
  4. This issue came up with a client of mine. Per the IRS guidance: Fixing the mistake To fix the mistake of not following an employee’s election to designate the contribution as a Roth contribution you must transfer the deferrals, adjusted for earnings, from the pre-tax account to the Roth account. There are two options on how to report this transfer: The employer issues a corrected Form W-2 and Marcie must file an amended Form 1040 for the year of the failure (2013). The employer includes the amount transferred from the pre-tax to the Roth account in Marcie’s compensation in the year it’s transferred (2014). If the employer elects, it may compensate Marcie for the additional amount she owes in income tax in 2014. This must be included in Marcie’s 2014 income. The client opted for #2 and is now running into an issue... their payroll company is saying they aren't able to transfer the amount without having SS and medicare be taxed again. Has anyone else run into this?
  5. I wish this was answered because I am wondering the same!
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