mariemonroe
Registered-
Posts
119 -
Joined
-
Last visited
-
Days Won
1
mariemonroe last won the day on September 1 2013
mariemonroe had the most liked content!
About mariemonroe
- Birthday 12/10/1973
Recent Profile Visitors
924 profile views
-
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?
-
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.
-
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?
-
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 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.
-
I have a client who wants to give phantom stock to a director. The phantom stock will vest and pay out upon a change in control. However, the client wants to be able to remove the director at any time before the liquidity event but the director (now former) will still get paid out upon the change in control provided he hasn't violated his non-compete/non-disparagement, etc. agreement. This feels problematic but I can't really pinpoint why except I don't know how the company can deduct any payment to this guy if he is no longer a director. What else am I not seeing?
-
I have a client who requested a distribution due to severance from employment. She received paperwork earlier this year stating she is entitled to $X as a distribution. She turned her paperwork in in early March. The Plan administrator is now telling her they are going to do an interim valuation on 3/31 to value her account and she will get whatever she is entitled to after that date. The Plan includes the following language: It is contemplated that the Trust Fund will be valued by the Trustee and allocations made only on a Valuation Date. At any time that the Plan's valuations are not performed on a daily basis, should it be necessary to make distributions under the provisions hereof and the Plan Administrator in good faith determines that, because of (a) an extraordinary change in general economic conditions, (b) the occurrence of some casualty materially affecting the value of the Trust Fund or a substantial part thereof, or (c) a significant fluctuation in the value of the Trust Fund has occurred since the immediately preceding Valuation Date, the Plan Administrator may, in his sole discretion, exercised in a nondiscriminatory manner, prevent the payee from receiving a substantially greater or lesser amount than what he would be entitled to, based on current values, and cause a re-valuation of the Trust Fund to be made and a reallocation of the interests therein as of the date the payee's right of distribution becomes fixed. The Plan Administrator's determination to make such special valuation and the valuation of the Trust Fund as determined by the Trustee shall be conclusive and binding on all persons ever interested hereunder. Such interim valuation shall not discriminate in favor of Highly Compensated Employees. Is anyone aware of any case law or statute/regulation that interprets the language in bold? I am trying to determine when my client's right to a distribution became fixed.