msmith

Thanks to all that posted comments. Your input is appreciated.

Agreed!! Thank you for your informed responses Lou.

This was ERISA attorney's comment:

That is what I thought. However, I have had an ERISA Attorney, from a very large, well-known ERISA Law firm tell us that only the vested account balance as of the Amendment date cannot be cut back.

401(k) Plan - Profit Sharing vesting is 100% immediate and Match is 6-Year Graded. Client wants to amend both PS and Match to a 5-Year Graded Schedule. While the Match vesting will be more liberal, obviously the PS will not. I have read several items and I am still confused as to how a 5-Year Graded Schedule will apply. Can we apply the 5-Year Graded to all future PS contributions and their earnings? Or, will the 5-Year Graded only apply to new participants going forward?

I beleive the Client was provided with bad information. The assets have since transferred - but late deferrals date back from January 2014 to May 2014. Thank you for your responses.

Is there any exclusion to the late deferral deposit rule for Plans that convert to another product - and the new Recordkeeper will not accept contributions until the assets have transferred. I have found nothing to indicate that the Employer is not subjected to the Prohibited Transaction rule - but the Recordkeeper feels otherwise.

I guess I should have been more specific and stated any constructive comments. I have no idea where you are going with your comment QDROphile. This is not a PEO/MEP type situation. Just one Plan with 30 Companies (all within the Controlled Group) and one other Company that had some common ownership in 2012 (not enough to be in the Controlled Group) - but a change to ownership in 2013 that caused this "other" Company to become part of the Controlled Group.

I have a Mulitple Employer 401(k) Plan - calendar year that uses the Prior Year Testing Method. For the Plan Year beginning 01/01/2013, there was a change in the stock ownership; and now the the non-Conrolled Group member is part of the Controlled Group. For Plan Year 2013, I have calculated the weighted average for the ADP and ACP testing, for the two sub-groups. However, I am wondering if this would have the same "transition period" as the 401(b) coverage testing. Any comments would be appreciated.

If a Plan Sponsor has not decided how the late deferrals will be corrected (either VFCP or self correction), should the attachment reflect "contributions not corrected?" I feel that even if the late deferrals/loan payments have been deposited, they have not been "corrected." Any thoughts would be appreciated.

A participant will be retiring later this year and is living back in Japan. He has elected a cash distribution - but the Recordkeeper cannot wire funds to a Japanese bank. As an alternative, the Employer is asking if the retired participant can have his distribution sent to the Employer; and, in turn, the Employer has the ability to wire the funds to him. Is this legal?

Can Employers/Trustees e-sign Plan Documents and Amendments? Is it still necessary for the Plan Sponsor to retain an original signature copy?

Calendar Year Plan During 2012 Plan Year, a Plan overpaid a QDRO Overpayment, plus associates investment gain returned to the Plan during the 2013 Plan Year 1. Should the overpayment be reported as a Prohibited Transaction on the Schedule H? My feeling is "no" - but the CPA Auditor "thinks" it should. 2. Should the overpayment be classified as a receivable on the Schedule H? Many thanks!

The recent DOL FAB (#2013-02) announced their temporary no enforcement action if a Plan Sponsor does not provide the Investment Comparative Chart by August 25, 2013 (assuming a Calendar Year plan). Some of the Recordkept 404(a)-5 disclosures contain other information in addition to the Investment Comparative Chart. Has the disclosure of this information been extended as well?

Yes, I believe that both Plans should have executed merger/transfer documents. Plan B is having difficulty obtaining any documents.

2012 Takeover problem. Plan A amended their Adoption Agreement to have Plan B merge into Plan A in 2009. The Adoption Agreement is executed. However, the Employer also signed as the Plan Trustee - the actual Trustee was Fidelity. Nothing else was done to effecutate the merger. Plan A's 2009 and 2010 5500, Schedule H does not recognize the merger of assets, nor does the 2009 or 2010 Audited Financial Statements. Plan B has not filed a 5500 since 2008. I think this is an invalid merger - as if it did not occur. Any thoughts or comments would be appreciated.

Thanks to everyone for their constructive thoughts.

We know that there are limited amendments that can be made mid-plan year. Any thought on this situation? Safe Harbor, with the "maybe" 3% nonelective contribution. Profit Sharing allocation conditions require last day employment. The Safe Harbor Notice is given 30 days before the beginning of the next plan year stating the Employer "might" contribute the 3% safe harbor. A follow-up notice is given 30 days before the plan year end stating no safe harbor. Question - could the Employer amend the Profit Sharing allocation formula before the end of the plan year?

A U.S. Company, with many foreign divisions (all 100% owned by 1 shareholder), has an employee who is not a U.S citizen but is paid W-2 compensation. No U.S. taxes are withheld. The employee reports the Brazilian taxes that he pays, on a monthly basis, to the U.S. Employer. Is his W-2 compensation considered for Plan purposes?

Thanks to all!!

Amendment timely adopted - but Client did not wait for RMD revisions for short plan year - and the 2013 RMD was processed.

Thank you, Belgarath. I would prefer to take the conservative approach and distribute.

RMD was paid for 2013 (due date 12/31/2013) and calculated based upon the Account Balance of 08/31/2012. Subsequently, the Plan Year changed to a Calendar Year, with a short Plan Year from 09/01/2012 to 12/31/2012. Assuming the account balance had investment gains during the short Plan Year, should the 2013 RMD be recalculated, with an additional amount to be paid by 12/31/2013?

The IRA Rollover was issued in check form. The IRA's Financial Advisor is willing to disgorge the funds and received approval from their Broker/Dealer. Unfortunately, the Alternate Payee is another issue. A letter of correction with both calculations have been sent to the Alternate Payee, Participant and Plan Administrator.

QDRO Alternate Payee was paid too much from ex-Spouse's 401(k) Plan. What if anything can be done to disgorge the funds from her IRA and pay back to the Plan? What about the loss of investment opportunity? Any assistance would be greatly appreciated.