Bruce1

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 Your earnings if they are LIFO are withdrawn first.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?

Taken from the 5500-ez instruction: "You do not have to file Form 5500-EZ for the 2023 plan year for a one-participant plan if the total of the plan’s assets and the assets of all other one-participant plans maintained by the employer at the end of the 2023 plan year does not exceed $250,000, unless 2023 is the final plan year of the plan. For more information on final plan years, see Final Return, later." Why would you not start a traditional IRA or Roth IRA? If you aren't exceeding the limits for IRA's?

For an employer who files a Schedule C and has a few W-2 employees. Is the plan deductibility limit for employer contributions (employer's net Schedule C + w-2) * .25? Does anyone have any information on this?

Thank you!

Once an employee has satisfied the initial eligibility computation period what if he goes under the 1,000 hours for the next plan year? Do you have to do a corrective distribution of his deferrals? Or is it, that if an employee was eligible to defer at one time they they will always be eligible to defer? All I see in the plan document is that "An employee is eligible to participate if he satisfies the following requirement during the Eligibility computation period". It says that you must meet the 1,000-hour requirement to be able to defer but it doesn't mention after you've met eligibility requirements you must have 1,000 hours in the plan year to be able to defer. I appreciate anyone's thoughts!