mariemonroe

If an employer adopts a NQDC Plan with a built in expiration date int he plan document, does the employer have to wait 36 months after the plan expires to adopt a new plan? Or can it do so immediately upon expiration of the old plan?

Employer sponsors a 401(k) Plan. Certain (now former) employees form their own P.A.s and sign joinder agreements so they can continue to participate in Employer's 401(k) Plan. Former employees want to keep their P.A. payroll deferrals semi monthly but actually deposit the maximum contribution via a single check from the PA before the deferrals occur. Is this a prohibited transaction?

Client sold assets of his business and most employees terminated employment. Client has a valid 242(b) election. Client is considering freezing the 401(k) plan (and maintaining the entity that sponsors the plan) so as not to revoke 242(b) election. I think terminating the plan (on purpose) would cause the 242(b) election to be revoked. I think there was definitely a partial termination but I don't think this causes anything other than vesting of affected participants - I don't think this would revoke the 242(b) election. Does anyone disagree?

Can plan allow distribution event to be "later of" separation from service or a specified date?

What about a simple phantom equity plan for all employees. The phantom stock vests immediately but can only be cashed out upon certain events (such as a liquidity event for the company)? Does that sound like a "pension plan" implicating ERISA or a "deferred compensation" plan implicating 409A?

The client is trying to accomplish the following: The client wants to make an annual contribution to a plan for all employees. The contribution will be allocated amongst employees to in proportion to their compensation. The employees' contributions will grow in accordance with the company's top line growth. Employees can ask for payout whenever they want it. The client's main goal is to offer this type of plan to all employees and not just to the management.

My understanding is that the advantage of qualifying as a top hat plan is that the plan is exempt from certain ERISA requirements. Is it possible to have a NQDC that complies with the ERISA requirements requirements but is not a qualified plan? Has anyone ever seen one?

Plan terminated in mid 2020 but failed to transmit participant contributions with the proper time frame for a couple of pay period in 2018 and 2019. This is disclosed on all 5500s for 2018, 209 and 2020. I am helping to do a VFCP filing but am curious if anyone has ever encountered this. Do you think we have to re-open the plan to deposit the missed earnings or simply mail checks to the participants and issue 1099s?

I had to look up QTA. Receiver is definitely not a QTA. Thanks all.

Plan sponsor is judicially dissolved due to a shareholder dispute and a receiver is appointed to liquidate the company. Receiver terminates the 401(k) Plan and distributes assets to plan participants. Plan audit for final 5500 reveals numerous errors in plan operation that individually are insignificant. The cost to correct the errors would be very significant and would result in participants receiving very small amounts IF receiver choses not to correct plan errors, can receiver be held liable if the plan is audited? What about the former shareholders of the company?

thanks!

Many years ago (2007) I purchased a 409A Basic Plan Document and Adoption Agreement from SunGard. Does anyone know whether there are any other reliable vendors out there for these documents?

Thanks everyone - When you say it is hard to get the reasonable cause waiver do you mean with IRS or DOL? Or both?

Client is filing 2018 and 2019 5500s soon and has what I believe to be a reasonable cause for the late filing. Client received a penalty notice for the 2018 from the IRS but not from the DOL. I have prepared a reasonable cause statement response to the IRS but am unclear what needs to be done with regards to the DOL. Do we file DFVCP and pay the penalty or can we get any penalty waiver pursuant to a reasonable cause statement? If the latter, where do we send it?

Thanks everyone.