msmith

Thank you, Tom. Most of what I was reading seemed to contradict each other.

New Employer and new 401(k) Plan for 2017. All NHCE's and HCE's are considered otherwise excludable. Testing software shows the ADP of the otherwise excludable NHCE's as "N/A" and the HCE's as 1.50%. The software says the Plan has passed the ADP - but it just does not look right (maybe it's just me). Any comments would be appreciated.

I am in full agreement with Larry. We used the codes based upon the Plan Document, regardless of whether or not a participant is making use of it (including a Match provision not in use).

Applies only to more than 2% Shareholders - correct?

Thanks to all that replied!

I would be curious to know if anyone has receiving notification from their Document Provider, as to when the software will be available, to restate DB and CB Plans. Specifically, VS or Prototype.

Thank you, Lou. I don't know why I suddenly could not remember this

A question on this topic.... If a catch-up eligible participant only defers $8,400.00 for the 2017 Plan Year, could we max his Profit Sharing out to $51,600.00, to reach $60,000.00?

See 2550.404b-1

With record-kept plans (most often, this is the case), we request the highest rate of return from them. We have created spreadsheets to calculate the lost opportunity interest. Time & charges is the cost - and hopefully, a detriment for future late returns. We always inform the Client that they must establish a procedure to make sure that recurring late deposits are halted.

I am a TPA. Can someone point out where it states you can use the DOL Calculator if you are not filing through VFCP? Various webinars we have listened to have stated that if you are not filing an application through VFCP, you must use the earning rate (if higher) and not the DOL Calculator.

We never use the DOL Calculator unless filing through VFCP.

Splitting plans was discussed at the 2000 ASPPA Meeting - during Q and A's. They indicated it "raises issues or avoidance and evasion." We only do it if we have another reason for doing so or if it is a new Plan situation.

EOB indicates that this is "probably" not eligible for the transition rule.

The only way I see this failing coverage, is if there is a classification of employees that are excluded from participating - but would have otherwise satisfied the Plan's eligibility requirements.

We would also include it as 2018 compensation. If the Employer is required to deposit a $5.00 Safe Harbor contribution - so be it. I just wish our software could handle this accurately.

FIS Relius Forfeiture Amendment was available almost 1 year ago.

I agree with ESOP Guy. This is exactly the situation I had. We had the former participant complete the election form requesting a cash distribution. She then reimbursed the Employer for less prison time. There were no contributions involved.

Many thanks to all that replied. Looking forward to Tuesday!

What code is used on Form 1099-R when rolling over pre-tax qualified plan assets to a Roth IRA? I could not locate any reference in the 1099-R Instructions.

Agreed. Thanks to all that replied.

Plan failed the ACP Test for the 2015 Plan Year and corrective distributions were made before 03/15/2016. The Plan also failed the ACP Test for the 2016 Plan Year and corrective distributions were made before 03/15/2017. For both Plan Years, the Prior Year Testing Method was used. While reconciling the Match contribution for 2016, it was discovered that 1 Match deposit was actually for the 2015 Plan Year. I have re-run the 2015 ACP Test and 1 HCE needs more distributed and the other HCE had too much distributed. The revised 2015 test also changed my NHCE Prior Year percentage - used for the 2016 Test. The final corrective results, over the 2 Plan Years, show that 1 HCE's net result is that he had too much distributed. The other HCE did not require a correction for 2016 - but did not have enough corrected for the 2015 revised Test. Is EPCRS the only remedy available? The total "net" correction still due is less than $25.00.

I have an overpayment of an Excess Aggregate contribution (incorrect data given for the 2015 Calendar Plan Year). If the overpayment is $100.00 or less, can I disregard trying to have the funds returned to the Plan? Section 6.02 (5)(c) of Rev. Proc. 2016-51 seems to indicate it can be disregarded.

If the Plan is New Comparability and each participant is in their own group, couldn't you suppress giving them an allocation? I assume they would still fail ratio - but might pass ABT. You might have to increase the allocation to NHCE's - but there would be a savings by not providing the allocation to the Amish participants.

If not filing through VFCP, we never use the DOL Calculator. However, it is reviewed to see if the interest rate is higher than the Plan's rate.