msmith

It is my understanding that a term of more than 5 years would not apply to a construction loan.

I completely agree with Larry's opinion. However, I hope this is addressed by future guidance.

I read that as well - but am questioning whether or not it will apply to loans not yet made.

Are new Plan loans permissible if the participant has been furloughed/laid off; and the Loan Agreement states that Payroll Deduction of the Loan Payment is required? How is everyone handling this? I

Hi Larry - I believe you have referenced the ERISApedia Webcast that Darrin and Ilene hosted. The comment they made regarding terminating plans is on Slide 7. Also, FIS/Relius has posted a message on their Document website about a required amendment.

I have a non-Safe Harbor 401(k) Plan that will be terminating by 04/01/2020. According to the ERISApedia webcast, an Amendment is required for terminating plans ("presumably" - their word). I have not seen any Amendment language for this. Anyone else?

Yes - we had problems in Google Chrome. Client also had issues. We finally gave up and sent via mail.

A Plan Sponsor's Payroll Company processed a participant's deferral change in July 2018. For some unknown reason they stopped the deferral as of July 2019. There reason is it was an "anniversary election" - wait....what!!! So now it is December 2019; and the participant has not had deferrals withheld from pay since July 2019. I have instructed the Plan Sponsor about the correction method to use. However, if the participant can still defer the maximum for 2019 from the final 2019 bonus paycheck, is the QNEC still necessary?

Is the Recordkeeper (if there is one) willing to go back to day 1 and adjust the loan interest; and then have the overage pay down the principal?

I am in agreement with Larry. No responses for Year End Data, etc., I would send a "no responsibility" letter terminating my services.

With the high turnover, was there a partial Plan termination issue? If so, some of those forfeitures should transfer back to the impacted participants, as they might be fully vested.

This is an actual RMD for a terminated participant that attained age 70 1/2 after her termination date.

This Plan permits installment payments (weekly, monthly, semi-annual or annual) for those subject to the RMD. The RMD has been set up by the Recordkeeper as "recurring" annually.

401(k) Plan - A terminated participant was added to Form 8955-SSA in 2016. In 2018, they started receiving their RMD's. The Instructions to the Form, for Code D, states "Use this code for a participant previously reported under the plan number shown who is no longer entitled to those deferred vested benefits. This includes a participant who has begun receiving benefits......" Do we interpret the above quotation to include former participants that have started to receive their RMD's? Not sure if it matters, but this Plan does not permit annuity forms of payment.

We have used Line 4 (Form 5500-SF) for the current filing and have never received a follow-up letter from the IRS.

Thanks to all for your responses. I like the idea of ERISApedia because Derrin Watson updated Who's the Employer during the year - rather than waiting for the next addition. I am not sure if EOB does updates during the year (I suspect not). I dislike the extra steps you have to go through (logging in to ASPPA/ARA) to get to the online version.

Not sure if I should be asking this here, but..... Does anyone have experience with the pros and cons of the ERISA Outline Book (online versions) vs. ERISApedia Research Tool?

I had the same issue - but could find no further research on this. We decided that the EACA Notice was the driving factor and that a mid-year addition of the auto-escalation could not be done. Maybe for new participants - but we are taking the conservative approach.

A 401(k) Safe Harbor Non-Elective, with New Comparability PS has different eligibility for the 401(k)/Safe Harbor portion and the PS portion. If someone enters the Plan mid- Plan Year for PS purposes, do I use full year compensation or PS Participation Date compensation for (a)(4) testing purposes?

Thank you, Tom. That was my opinion, as well - but always appreciate a second opinion.

There were no other Employer contributions for the 2017 Plan Year. The Plan was top-heavy for 2017. Do they have a loss of the top-heavy "exemption" for an untimely deposit? We intend to have them correct under VCP.

Thank you, Tom. It is prior year and I did go back and change the NHCE's ADR's.

I should add that the document is silent in this regard, except for stating that 414(s) compensation must be applied uniformly to all participants for the plan year.

A plan excludes bonuses in the definition of compensation. If the plan can pass 414(s) testing, I know I can include the bonuses to calculate the ADP's. My question is, can this change from plan year to plan year (i.e. one year include bonuses in ADP testing, the next year exclude bonuses in ADP testing)?

A 401(k) Plan permits rollovers for participants only. A recordkeeper permitted an employee to roll over funds before he met the Plan's eligibility requirements. They did not check with TPA. We found out about the rollover because the employee tried to obtain a loan from the Plan - which was denied. When we requested that the Recordkeeper disgorge the funds, they never acted on the request. Because the Plan has a 3 month waiting period, the employee is now eligible. If the funds stay in the Plan (with Trustee direction), should we do an Amendment to permit this employee early participation for rollover purposes? If not, what are the ramifications. This is an audited Plan.