Lori H

Apparently TIAA is refusing to transfer the SH Match(plus yield) into the appropriate source. Considering the plan allows for hardships, this could be an issue if Match and SH match funds are commingled. Thoughts?

A fiscal year TIAA plan was amended for the last plan year to change their 100% vested employer match to an enhanced Safe Harbor Match. The plan sponsor continued to deposit the SH Match in the match accounts instead of setting up a SH Match account. Should they just approach TIAA to have them move the SH into its own account along with allocable yield?

got a quote with bizinsure, which hiscox directed me to, for $600 annually with $1 mil in coverage.

Looking for minimum coverage for small, non producing TPA. Who do you use?

Two more questions....should excess SH match be moved to a forfeiture holding account or returned to the plan sponsor and would allocable income be included?

I guess that is required if the refund does not occur prior to the 15th month following the close of the plan year, which in this case it does not.

5 participants exceeded 402(g) limit for 2017 plan year ending 12/31. All 5 receive k-1's. Since the distributions occur after 4/15 I believe the excess along with earnings will be taxable in the current plan year AND the prior year. Does this mean 2017 K-1's will have to be amended and if so, how will the additional earnings affect the calculation of the safe harbor match? Not all members earnings exceeded the 401(a)(17) limit. Finally I assume a Form 5330 will have to be completed for the excess deferrals and an excise tax will be owed by the plan sponsor. Anything else I might be missing?

So in short file incomplete and cross your fingers they do not assess before refiling with the audit attached?

Years ago before e filing, we had a large plan that filed right at the extension deadline with a "note" from the CPA stating something to the effect that the audit would be filed once completed. The plan sponsor filed the 5500 with the note and at some point after the extension deadline the audit was filed. Is this still an acceptable procedure?

Thank you for your comments. This is helpful

There are 16 active participants including the owner and his wife. The plan just went top heavy for 2018

Owner and his wife max out on pre tax deferrals. They fund the basic safe harbor match. He exceeds 401(a)(17) and she makes $48K. They are considering amending the plan to add after tax deferrals. He read a Wall Street Journal article and the thought of exceeding the max up to $73k per couple is enticing. They do not put in a profit sharing contribution. Does the after tax contribution negate the benefit?

7 participant 401(k) with standard safe harbor match. Plan is Top Heavy and has a New Comparability profit sharing formula. Is a 3% minimum allocation to Non Key ee's if a Profit Sharing is allocated? Does the safe harbor match not satisfy Top Heavy?

new hire entered safe harbor 403(b) 8/1/17 and filled out the salary redirection form in August for 6%. He failed to enroll in the plan online and plan sponsor inadvertently filed his form without setting him up (it was an oversight on sponsors part but they were waiting on him to enroll before they added his contribution amount into ADP). He’s now requesting that they take the extra two months out of his next check and would like the enhanced SH match (100% up to 6%). I am of the opinion the sponsor has to make a QNEC of 25% of what his deferral would have been along with SH match and any earnings under SCP. Is this the proper correction?

Hmm, this is way before my time. So no 1099 either? If a 1099-r is required, then would that be a code G for Rollover or code 1 for normal distribution over age 59.5? Thanks for the response. Impressive recollection.

A participant in a MPP Plan had a MassMutual annuity contract from the 80's as an asset in a Pension Plan. This year he thought it was rolled over into an IRA at Wells Fargo. We only receive a letter from MM stating the value of the annuity at the date it was to be assigned to his IRA earlier this year. The account doesn't appear to be fbo of the participants IRA and he is afraid that it will be a taxable event. Last week a 3 paragraph letter was issued from MM Tax Dept stating that "the contract is an individual owner former pension trust contract. It is considered qualified since the nontransferable endorsement was not cancelled upon transfer of ownership to the annuitant. The market type on this contract can be changed to an IRA using from number FR1212." By all accounts it does appear that this IS a taxable event since it is not in an IRA and if the 60 day rollover period has elapsed, then how can it be placed into an IRA by way of FR1212?

Kevin, Thanks for responding. Yes the excess SH match was deposited in 2016 and it was determined in the current year that too much was deposited. The excess and allocable income has been determined. If that amount gets moved to a non-forfeiture account, is that considered "prefunding"? We discussed "mistake of fact" as an option and perhaps it is our only option since the plan sponsor funded the PS today in order to fund prior to filing their tax return(tomorrow). They(small medical office) normally wait til the last minute to get everyone involved the info we need.

Small SH 401K, member of an LLC maxed out his deferrals/match and after year end, it was determined that his compensation was below 401(a)17, which resulted in an excess SH match of under $1300. Does this money go back to the plan sponsor or is it forfeited? If it is forfeit/suspense account, how can it be used in the future as I am not sure if you can use that for future safe harbor match contributions. Perhaps Profit Sharing? Plan expenses? Thanks

We have a SH 401(k) that is terminating. One of the owners (more than 5%) is over 70 !/2 and will need to take his 2017 RMD. This participant has an outstanding loan balance. If he decides to default on the loan can the outstanding value of the loan be used to satisfy the RMD? The plan's assets also include some real estate. If this same participant wants to retain ownership could the value of the property be used as part of the RMD? Thank you for your responses

Apparently a business is dropping their SIMPLE IRA due to new legislation? I have not heard of any adverse tax consequences. Can anyone confirm?

One man show starts an LLC this year. Must he have 3 years of compensation in companies he had ownership in to start a DB plan?

thank you kindly for your excellent answers.

A controlled group has maintained a PS plan for several years. They recently opened a location that they want to exclude the few employees from the PS plan. The owners no longer benefit in the PS plan either. They recently established a DB plan where the excluded location is benefiting. The sponsor was advised of controlled group/participating employer issues. Question is...is it permissible to exclude a location(a few employees) in this situation?

Hi, do you include terminated participants who have separated from service for over a year and have an account balance in the min coverage test?

a one participant start up DB plan that will contain life insurance....advisor is asking for a trust ein. I don't think it's necessary. Is it?