Beemer

When preparing a 5500 in this case, are these distributions or transfers? There is no 1099r from TIAA CREF, but if we indicate this is a transfer out we need to indicate the plan the assets are transferred to. Also on the Form 8955-SSA, can we say that the previously reported participants are "Code D"?

That was my assumption, but I can't find a Michigan state source to confirm this.

A terminated participant in Michigan has an outstanding loan. Michigan withholding is 4.25%. Do I also apply the withholding percentage for the state to the loan balance when calculating the state withholding?

OK, thanks!

We are working on a 403(b) plan termination with TIAA CREF. Although TIAA CREF has certified that the plan is terminated, we have plan summaries with assets after the termination date, which, according to TIAA CREF, is attributable to individual contracts. These plan summaries still have the plan sponsor's name on the reports. At what point can we say that we have sufficient documentation to say that the plan is terminated and all plan assets have been distributed?

A client provided a "COVID stipend" to employees in 2020. 401(k) contributions were not deducted from the stipend in 2020. Can the definition of compensation be amended retroactively as part of CARES Act amendment?

I understand that I need to consider universal availability. However, the TIAA-CREF prototype for 403(b) plans has the 3 usual base compensation options and the current selection is W-2 compensation. Are you saying that there may be an issue with using this prototype?

So, if you have employees who reside outside of the U.S., you should elect 415 safe-harbor compensation in the plan document rather than W-2 wages in the adoption agreement? Would that take care of the issue?

She wouldn't be eligible for the employer contribution though, would she? Just the 403(b) deferral?

Even though the adoption agreement defines compensation as "W-2 wages - Compensation is defined as information required to be reported under Code Sections 6041 and 6051, and 6052 (Wages, tips and other compensation as reported on Form W-2)." ? The definition seems to emphasize how this is reported.

The U.S. employer reports her income on a Canadian Form T4. Does that make a difference?

Thanks!

An employer has a 403(b) plan and an employer contribution plan. A former employee and participant has been rehired. This employee has relocated and now lives in Ontario, Canada. She has dual citizenship, but lives and works from her home in Canada. She is the only Canadian employee. The plans defined compensation as W-2 compensation, but there is no non-resident alien exclusion. She does not receive a W-2. Am I correct in thinking that 1) She cannot defer in the 403(b) plan or receive a contribution in the employer contribution plan as she has no W-2 compensation 2) She should be included in participant counts as an active participant, testing, etc. 3) They could increase her compensation so that she could contribute to the Canadian RRSP. Thanks for any replies.

OK, thanks!

The sources I was looking at refer to an existing plan, not necessarily an existing 401(k) plan, which is why I was considering two plans. This would not be the first plan year, but rather, the first plan year with a 401(k) provision. I also don't think getting this in place by 1/1 would be easy as we would need to schedule employee meetings, etc. The plan is currently trustee directed and the sponsor wants to move to participant directed accounts. (I should have mentioned that before).