Santo Gold

We have 3 companies that are part of a CGroup and each wants to sponsor a separate 401k plan just for their eligible participants. Lets assume that there are owners who would be eligible for all 3 plans. Would each owner (or participant) have separate 415 limits in each plan? Or does the CG mean that they share only one 415 limit across all 3 plans? Thanks

Our TPA firm obtains authorization from the plan sponsor/plan administrator and files the 5500 for the company. Can the 5500 signature from the plan sponsor/administrator be digital or does it have to be a "wet" signature in order to be valid? thank you

This 401k plan does permit hardships for non safe harbor reasons. But does that mean it can be any hardship that the Plan Administrator deems to be an acceptable hardhship reason? Assuming it meets the immediate and heavy financial need, would an employee purchasing a new furnace for which she has no other means other than the plan be acceptable? She is a non-HCE and we assume that any future requests for new furnaces from other employees would be reviewed and accepted? Thank you

What type of person/organization would you reach out to if you had a client who wanted to establish an Employer Educational Assistance Program? Anyone you can recommend? Thanks

It was an asset sale. I understand, I just thought there was room to argue that since the new owner bought the old business and she is still working for the new owner, that perhaps in this case it is not viewed as an employment termination for RMD purposes.

We have a 401(k) Plan participant with a balance in the plan, DOB in 1946, still employed, is a non-key. This year (2021), the company was purchased by another business. The old company is no longer in existence and the 401k plan is being terminated (not a plan merger). The new owner has hired most of the prior company's employees, including the above individual, and is crediting service with the prior business for all purposes in the new owner's 401k plan. Balances from the old plan can be rolled into the new plan immediately. Would an RMD be needed for this individual this year? We could do the RMD before she rolls her balance into the new employer's plan or after the rollover? And if one is required from the old plan, would it also be required from the new plan in subsequent years even though she would continue to be employed? Thank you.

I have a small investment group (5 people) looking to start a new 401k plan. They will want individual brokerage accounts for each participants. In general, would they receive a 404a5 notice from the brokerage account company? For example Schwab or Fidelity? If not, would the prospectus' they receive as well as the contract information that details what their account fees are be enough to satisfy the content requirements of 404a5? Thank you

Makes sense. Thanks

Yes, I meant to keep the question on the 8955, not the 5500. Thanks

Realized there is another question: On the 8955-SSA, would you now show all previously reported terminated/vested participants as paid out on the final 5500?

The plan has been reporting on an accrual basis. The post merger deposits were for the old plan.

The plan has been reporting on an accrual basis. The post merger deposits were for the old plan.

We have a 401k plan that was merged into another plan towards the end of the plan year (calendar year). The merger date was 12/15. The last 401k contributions were deposited into the new plan as was the full employer contribution for the plan year. Preparing the final 5500 for the old plan, would you report either that final 401k contribution as part of the overall contributions in the old plan? Same with the employer PS? Thanks

Not a DB plan; just a 401k. No PBGC

For calendar year 2020, if a plan covers only 1 individual and that individual is not the owner or spouse, would they file a 5500(S/F) or a 5500-EZ? Thank you

Thank you for your replies

This involves a fairly standard smaller 401(k) Plan that started in 2016. At that time, all participants completed a beneficiary form. The one participant completed his, naming his spouse as primary beneficiary and his son as contingent beneficiary. 2018 the participant divorces and then marries spouse #2. But never changes the beneficiary form. 2020, the participant passes away. Even though a new beneficiary form was not completed, the new spouse would be the beneficiary, is that correct? Is that automatic? Thanks

Understood and thank you for that reply.

No, terminated participants cannot take loans from this plan (we don't have any that would allow for this) but I think that plans can allow loans to terminees. My question centers on whether the plan sponsor can eliminate the loan feature for all participants or just to eliminate it for terminated participants or newly eligible participants. Thank you

Just looking for confirmation, but a participant loan program in a 401(k) plan can be eliminated as loans are not considered a protected benefit. Does eliminating the availability of new loans apply to all participants, or just to terminated participants and/or newly eligible participants? Thank you

If a plan uses match formula of 100% match on the first 1%, plus 50% match on the next 5%, is that considered a safe harbor match?

I can ask a few more questions, but the he seemed set on a 401k.

I am working with a doctors office and their 401k plan. They currently have a One year of service/1000 hours eligibility requirement to enter the plan. However, they would like to change that to 6 months elapsed time requirement for new doctor hires. The new doctors would not be owners. If the new doctors make less than $130,000 (2021) and are not HCEs in their first year employment, then there would not be a discrimination issue for 2021, is that correct? What if in future years their earnings are above the HCE dollar threshold? Is that something that could be viewed as discriminatory a year or 2 after they are hired? I would not think so since I think any eligibility discrimination would be applied in the year of hire. But I wanted to check if that is correct? Thank you

Thanks very much. I appreciate the replies

I am talking with an attorney who has a practice with no employees, just him. He has dba business name and he puts all revenue through the dba which he reports as a sole prop on his tax return. But he does not have an EIN and seem reluctant to create one. He wants to start a 401k for himself. Can he do that without an EIN? Thank you for any comments.