Bruce1

Can we choose which HCEs receive and which don't? Does it have to be an all-or-nothing?

The surviving spouse can assume his 401k as her own and retitle it to her name. That would negate the 10-year rule as that rule doesn't apply to spouses who retitle the 401k/IRA into their name. Is she over the age of 73?

Check the base plan document. Here's what our BPD says "Refunds. If the Plan permits Roth Elective Deferrals, the Participant may elect to have refunds made either from his Pre-tax Elective Deferrals or Roth Elective Deferrals or any combination thereof. Unless a Participant otherwise specifies, a distribution of Excess Elective Deferrals for a year shall be made first from the Participant's pre-tax Elective Deferral account, to the extent such deferrals were made for the year."

I didn't know that. Below is another article that goes over some of the things FPGuy discussed above. https://stwserve.com/new-irs-regulations-on-year-of-death-rmds/

Tom. Our broker/dealer calculates the RMD for each account (including inherited IRAs). I would assume all IRA custodians, provide this service. Yes, that sounds right. Here's what I found online: For most non-spousal beneficiaries who inherit an IRA after 2019, the IRA funds must be distributed to that beneficiary within 10 years after death. So, if an IRA owner dies in October 2024, the beneficiary must clean out the IRA no later than December 31, 2034. https://www.kiplinger.com/taxes/irs-10-year-rule-for-inherited-iras-kiplinger-tax-letter

To satisfy the new secure 2.0 auto-enrollment feature. A QACA arrangement would be considered an eligible automatic contribution arrangement if the QACA contained a provision that would allow an employee to do a permissible withdrawal? Is there anything I'm missing here?

Is it permissible for a Safe Harbor 401k to exclude a class of employees or is this not allowed? If the Safe Harbor 401k is allowed to exclude employees, would the plan have to pass the coverage test?

I'm unfamiliar with the spin-off how does that work?

You're correct that the Roth clock starts over. I received a check for a Roth 401k rollover to an IRA and it stated the date of the first Roth contribution in the 401k. I wasn't sure why it was on there either. I don't see any reason why the receiving custodian would need to receive that information.

NHCE 0% -> HCE limited to 0% NHCE 0-2% -> HCE limited to 2x NHCE 2-8% -> HCE limited to 2+ NHCE 10%+ -> HCE limited to 1.25x

Was there a written election to contribute roth?

Thanks!

My concern was satisfying the SPD requirements. I think it makes more sense to hand out the SPD prior to their entry date. The SPD requirement doesn't seem rational to hand out material after the entry date.

Would it satisfy the SPD notice requirements?

Is it reasonable for an employer to provide an SPD during the enrollment process 10-30 days prior to meeting initial eligibility? Or should the SPD be provided only until after eligibility has been met?

I thought loans had to be a level payment..?? Unless refinancing or replacing.

How does everyone else work with their clients to obtain ERISA bonds? Do you purchase and maintain the ERISA bond for your clients, do you have them reach out to their insurance agent? What's the best practice?

Hi Scott, you can only roll money from one like account to another. For example, an IRA can go to a 401k and vice versa. Your variable life insurance policy isn't an IRA, therefore, it cannot be rolled into a 401k. Also generally withdrawals from annuities and possibly variable life insurance are LIFO, which means last in last out. Your earnings if they are LIFO are withdrawn first. Sometimes withdrawals may be pro-rata. Pro-rata would mean $80,000 basis and $20,000 of earnings. For every $1 withdrawal, you will have $.20 of earnings and $.80 of basis. You would have to call the insurance company to find out. I don't think you can elect to withdraw your basis and leave your earnings, it's just not something you can do. Meet with a licensed advisor or PM me.

Thank you! I'll check into FTWilliam

We are currently using DATAIR for the documents and their pension system for testing. What software systems do you all have personal experience with and recommend?

Just watch the 2-year holding period rule for SIMPLE IRA rollovers/withdrawals. I'm not sure if the 2-year holding period would be waived if that individual passes. The question for you would be why would the surviving spouse not want to roll the money out into her name? Something she needs to consider is access to the money. If she is pre-59-1/2 and rolls that money into her own IRA account, she will pay penalties and taxes for any withdrawals. If she rolls it into an inherited IRA she can take withdrawals pre-59-1/2 without paying a 10% penalty. AND even if she elected to receive the money into an inherited IRA it's not an irrevocable decision. On a later date, she can roll those assets into her own IRA.

Top of page 11 of 5500-SF 2023 instructions: The plan (a) covered fewer than 100 participants at the beginning of the plan year 2023, *or* (b) under 29 CFR 2520.103-1(d) was eligible to and filed as a small plan for plan year 2022 and did not cover more than 120 participants at the beginning of plan year 2023. As long as your plan filed 5500-SF in 2024 you could file a 5500-SF in 2025 if the plan had less than 120 participants.

Thanks all!

Being new to the DC 401k industry, what educational material would you all recommend for me to read and or certifications? Any suggestions would be helpful. I'm going through the QKA material from ASPPA -thanks

The employer limit for the totality of the plan would be: Total employer contribution = .20(Net Schedule C - 1/2 SS taxes) + .25 (Total W-2 Wages) Ex: Maximum employer limit = .20(150,000 - 11,475) + .25(100,000) = $52,705 Is this the correct formula for a self-employed Schedule C filer?