Lori H

If a terminating plan uses forfeitures to pay expenses then to reduce the employer contribution, but if the sponsor has already paid plan expenses and there is no contribution, the forfeitures are allocated as if there was correct?

Calendar year ESOP freezes in May. Generally all earnings and service eligibility end as of the date of the resolution to freeze, correct?

HCE owner, still employed getting his first RMD. Want to ensure correct classification of his RMD as in service or normal dist. Thanks

Small employer sponsors MPP is considering a 401(k). They have to freeze or terminate the MPP I believe and give the participants normal distribution options under the plan as well as 204(h) notices, full vesting,etc yes?

Prior ESOP was individually designed but will use Pre-approved document instead for next restatement. Where does the IRS state that a sponsor can now use a Prototype and delay the restatement of their document? Also, is there a list of regulatory amendments required for ESOPS the past 5 years?

What if the SIMPLE IRA was rolled over to the 401(k)? Would that be considered "receiving an allocation of contributions"?

That is what I am thinking too. The SIMPLE IRA FIX IT GUIDE on the IRS website says "You can't contribute to a SIMPLE IRA plan for any calendar year in which an employee either: 1) receives an allocation of contributions in a DC plan, such as a 401(k)" receives being the operative word. Well if they have a 401(k) participated in the SIMPLE IRA but did not in the 401(k), I am of the opinion a VCP is not necessary.

Could they contribute to the 401(k)?

I understand VCP is the correct course of action, what if they did not contribute to the 401(k)? Does this change anything?

Disqualified.....if you do not do VCP?

Small 401 was established in 2015. owners have not deferred into it but were funding their SIMPLE IRA. Can those contributions be reversed or should the SIMPLE file a VCP? I know IRC 408(p)(2)(D) states an employer cannot maintain a SIMPLE IRA and another qualified plan in same calendar year.

i recognize that a 401(k) must be considered a source of ongoing contributions so this plan could not technically be frozen, but how could the plan be amended to allow for loans to be repaid following termination using a "coupon" or other personal form of payment? Based on feedback from the parent company, it appears that accepting or merging loans into the new plan is not uncomplicated, they just don't believe they will be ready to do it within the next 12 months.

Me too. I am curious as well.

The new plan has a loan provision, they just don't want to transfer over the loans. Not sure why, but this has been the case when other plan sponsors have moved assets to their plan. they allowed everything but the loans and their plan was amended to allow personal payments, the term coupon was mentioned. How would that work with the sponsors plan that is being merged? Do they keep filing 5500's until the loans are paid back just showing a loan balance as the only plan asset progressively getting smaller until the last loan is paid back which has a maturity date in 2020.

Plan A is currently not frozen, but it appears as if it will be frozen come second quarter when they become employees of Company B. I suspect if Plan A is frozen they can continue to make loan payments via payroll deduction or personal payment, if Plan A is amended to allow for it, since they are not technically "contributions"?

Not sure if a plan sponsor is planning on terminating it's plan or merging it's plan, but the company has been bought. If they merge plans can they do so without merging the outstanding loan balances?

Company A just became a wholly owned subsidiary Company B. Comp A's plan has a loan provision. B's does not want A's outstanding loans in their plan. The actual date that A's employees become B's employees won't occur until around the start of the 2nd quarter 2016. Can A's plan be amended to allow for the loans to be repaid by personal payment, not via payroll deduction, so that it will not be a taxable event?

The plan sponsor would be subject to the penalty if the participants elected to with hold and none occurred. Not sure if SH notice was issued or SPD. I do know sponsor received and executed the document.

They did enrollments this month, with deferrals to commence next payroll I believe. Maybe 10 participants tops.

New plan executed their plan document effective with a 6/1/15 date, but did not start withholding until October, which also violates the 3 month requirement I believe. What is the proper procedure? Amend the effective date? Thanks

employee met eligibility and entered the plan. terminated in 2006. rehired 2015. enters the plan upon rehire date, correct?

a participant took a small loan for a period of 18 months. weekly payments are $20. However, the participant has been working very little due to various health issues. Her checks are spotty and have been minimal. Can the plan sponsor take out multiple payments on a single payroll to make up for weeks when she did not earn a check?

Husband/wife 401(k) exceeded $250000 in dec 2013. According to Section 4 of the pilot program, they are eligible for relief. They did not file a 2013 Form 5500-EZ timely. Can someone confirm this. If you are not subject to Title 1 of ERISA, which you are not until your assets are over $250,000, but once you have reached that threshold you are subject to Title 1 of ERISA but you are not eligible for the program. Where am I confused?

i understand, but the ADP for the NHCE group would be different in 2014 and 2015. Am I correct in my statement that a preliminary NHCE ADP would be calculated for YTD 2015 or Could the sponsor use the 2014 PY NHCE ADP or would the 2015 corrective QNEC be calculated after the close of the 2015 plan year when the final NHCE ADP is known? Also, in another scenario, an employee became eligible and the sponsor did not allow them the opportunity to participate. Down the road they realize the exclusion and offer the participant to enter the plan. The excluded participant elects not to participate. The sponsor is still required to make the QNEC for the missed deferral opportunity, correct? I'm thinking that the sponsor waits until the end of the 2015 plan year to determine the nhce adp and calculate the partial plan year QNEC along with yield then.

deferral only 401(k) did not allow a rehired former participant to make an election to rejoin the plan. (Plan sponsor believed the rehire needed to meet eligibility again). Rehire is an NHCE. Rehire date was March 2014. Does the QNEC and applicable earnings need to be 50% of the NHCE's ADP for the whole 2014 plan year? What about current 2015 calendar plan year? The rehire has made a new deferral election for this plan year and is now in the plan effective this month. Would a separate NHCE ADP need to be calculated for ytd 2015? thanks