austin3515

Agreed on the loan offset. Thanks!

Participant is employed by Company A which sells it assets it to Company B. So Person A is going to default on his loan because Comapny A does not allow rollovers of participant loans from its plan. BUT, person A is eligible for Coimpany B's Plan and rolls over their account to Company B's Plan. Company B also allows loans. Can person A take a loan from Companyu B and use the proceeds to roll over to a rollover IRA, thereby eliminating the "default"?

GW's participant fee disclosure form for sponsors is asking if there is a DEsignated Investment MAnager under 3(38) of ERISA. I cant find the definiition anywhere. Anyone have it? It sounds like this is probably not the same thing as a "broker" who probably is requied to get the client to sign off on any changes. Am I more or less on the right track?

You're sayikgn ERISA requires a signed extension for the SSA's? There goes my hope that this will be fixed by 7/31...

Don't get me started on the positively ridiculous nature of this frankly stupid requirement.

I'm asking about our 6/30 year-ends, extensions due 1/31.

Are people filing their SSA extensions whether or not one is due? Of course the issue is that we probably don't know if one is due because if we did there is a good chance we would have filed by that date.

Give some thought to the loan paperwork itself. The promissory note might need to be changed. At this point it is a contract between the part and the old plan. They might need to sign a new payroll authorization form to allow the new company to take the payments from their check. Great point, I'll have the participant sign a payroll authorization form. Come to think of it, I think that the old plan trustee would need to somehow formally assign the note to the new plan, no?

Anyone have a sample amendment? OR could it very simply say "the plan will accept rollovers of particpant loans in plans sponsored by entities acquired by Parent Co"? And then I assume the participant would perhaps make a notation on their distribution form with Small Co that they are rolling over their loan balance to Parent Co plan along with the rest of their balance?

Parent Co buys the assets of Small Co. Small Co has a 401k plan which it will terminate. Paren Co allows loans anjd would like to let the two or three people with loans to roll their loans into the new plan. Do I need a plan amendment to allow this? What sort of paperwoirk is required from the participant to make such an election?

One thing I thought of was to allow people to voluntarily elect to transfer their "nonelective" balances over to the new plan. But I wanted to restrict the option exclusively to in-service distributions that are rollovers to the 403b plan. So I don't want to open the plan up to any in-service distributions, just this specific purpose. The benefit of this is that people with juyst the nonelective will now fall of my audit counts. That works, right?

Am I correct that there is no way to do a nonelective transfer between a 401k and a 403b? Trying to swoithc a 401k client over to a 403b and wanted to know if it was possible to do nonelective transfers from one plan to the other. NOTE: We would not be terminating the 401(k) plan - the union employees would be remaining in the 401k Plan.

We reported everyone for a very simple reason. In 5 or 10 years, we will not have to keep track of who we reported and who we did not. We have much more limited engagements on these 403b's than we do for 401k's, so we dont have everyone's termination dates listed neatly in our Relius Summary of Accounts, the way we would in our 401k plans. For a lot of these plans, all we are engaged to do is a 5500 and an SSA.

Does everyone agree that I should use a 2010 form with the short 2011 plan year entered to file the SSA data? i.e., similar to the treatment of the 5500 reporting?

"The question is whether it's worth the trouble." Yes Yes Yes Yes Yes!!!!!!! Very much so in this instance.

Yes, Basic SHM, and participation is extremely low AND there are a LOT of non-key HCE's.

How many years would you remain a calendar year plan before switching back?

12/31 plan is very top-heavy. Can I change Plan Year-End to 3/1/12 - 2/28/13 (short plan year from 1/1/12 to 2/28/12), or is that just plain crazy?

GP's are less than the loss, but it never hurts to ask! And no, there was no W-2 income. He left the company altogether.

I was saying 402g, but I was sorely mistaken ... Nothing at all to do with 402g. This is the approach I'm taking. No comp = not eligible to make any contributions. Ineligible contriubtions returned to plan sponsor, plan sponsor makes this former partner whole outside of plan. I couldnt do a distriubtion w/ a taxable 1099 code because the participant never took a deduction on it in the first place, so payment directly to the participant from the plan had to come off the list. I've got a short list of options and this just seemed like the best one.

No other employer contriubtions will be made - it's 401k only. Also the money needs to get back to the individual.

Partner has a negative k-1, earned income figure for 2011, but has already funded their 401k. How does this work in the absence of a w-2? Just do the refund by 4/15/12? But then the 1099 will say "taxable in the prior year" but there won't be a w-2 showing a deduction for the corresponding amount?

This is perfect, thank you!

Anyone have a form they are willing to share to let someone elect Roth conversions?

This article from McKay Hochman seems to suggest that an FAB takes the p[osition that delinquent employER contriubtions would constitute a PT. I had always that this outcome was limited to multi-employer plans. If a company is on the brink of bankruptcy and cannot fund the safe harebor it committed to, is this a PT? Assume the owner is not taking a paycheck, or is taking "living expenses" only. http://www.mhco.com/Library/Articles/2011/...rib_111811.html