mlp0816

I have a prospect that is a part of a PEP. He wants to exit out of it and operate his own 401(k). I have never done this but from what I'm reading it's not a simple task. Anyone have insight as to if it can be done and if so, how? Thanks

Hi Team! Looking for a Study that defines Roles/titles as well as Compensation levels for the Employer Sponsored Retirement Plan industry. As our team grows it's important for us to have an idea of what the industry is calling for so we stay competitive. Hoping someone has a resource or contact. Thanks!

No worries Larry - I think it was the "garbage in garbage out" comment. I admit I certainly don't have your experience. Sometimes it not what we say but how we say it. Thanks and have a good weekend.

Well - I guess we just have to agree to disagree and leave it at that. Hope you all have a great weekend!

Larry - There's no need to be Rude. Not being an expert in this field results in asking questions for assistance. How about just state what questions I would need to ask for further guidance on the matter. shERPA - thank you.

I have a client that is selling his medical practice (5/1/2020). The buyers do not want to maintain the existing Company SIMPLE IRA Plan. Can it be terminated since he did not give notice to the employees as of 11/1/2019? Does the fact that he is selling his practice weigh in?

Our Firm is setting up a Company SIMPLE IRA plan with 10 participants. We chose to complete a 5305 form and designate a Financial Institution. These two questions are on the Advising side: Since these plans are Participant directed, should we follow the same guidelines as the 401(k)’s whereas we can offer guidance and education but not specifically advise on the investment selection? With this program with Amer Funds, there are about 20 mutual funds to choose from. What about random current clients that are a part of SIMPLE IRA plan (that we are not managing as a company) but they would like for us to review and advise on their account? I just want to make sure we're handling the fiduciary duties correctly. Would welcome any thoughts. Thank you.

I can buy the trickiness to the 5 year rule but you would think with the sophistication of tracking basis these days, we would be able to accommodate.. but I certainly thank all for their input!

thank you... there must be a reason that you can perform the same action on the Pre-tax side (from a 401(k) to a Traditional IRA, back to a 401(k) and not for a Roth? I will inform my client... thank you.

interesting.... so it looks like you can roll from a 401(k) into a Roth IRA but once it's there, you can't roll it back into a 401(k) (even if the 401(k) allows the Roth provision?

Have a client who lost his job and rolled the balance within a 401(k) (with a Roth provision) into an Roth IRA. He has since found employment and would like to roll the Roth IRA into his new company's 401(k) (that allows rollovers and has the Roth provision). The service provider that is managing the Roth IRA won't allow it and just keeps saying, "it's not allowed because it's a Roth IRA going back to a 401(k)'??? can anyone help? Thanks.

Just to clarify Lou's response..... All assets were distributed by September of 2013. So the 12 month wait period was until September 30th 2014. So, they would have had the green light to start a plan up in October of 2014, correct?

Great... Thanks John

Have a client who terminated the company 401(k) Plan and all assets were distributed by September of 2013. From pressure from his employees, he would like to now start a 401(k) plan back up again. Is there a time limitation as to how long he has to wait until he can start a 401(k) again?

Hoping someone can help me out here! One of my employers failed to begin elective tax deferred contributions from an employees paycheck. The employee signed up last July of 2014 and is just now reporting that deferrals are not coming out. The employer has a signed copy of election in the employee's file (the company also matches on deferrals. Is there a regulation that states how this should be handled? Is the employer responsible to make up both the EE and ER contributions?

Great...thank you both for the comments!

I have a client that currently operates a Simple IRA plan. he would like to terminate or freeze this plan and start up a Safe Harbor or Traditional 401(k) Plan. Since he missed the November deadline to notify his employees, what are his options? Can he start up a Safe Harbor (his target date is Feb 1, 2015)? Does he have to start up a traditional 401k until Jan 1, 2016? Is it possible to operate both plans at the same time throughout 2015? there is also an issue that 3 of the 12 employees are HCE's and the non-discrim test might fail if not a safe harbor. Please help advise... thanks

Thank you.. so if I create a SH Plan effective January 1, 2015, (the bulk of the dollars are held by the 3 individuals that want to utilize the SH 401(k)...... can they roll their balances over into the SH plan, since they have had the account for 14 years? or can they only roll over the portion that was contributed prior to 2 years ago? That's were I'm hung up...

I have a client that has operated a Simple IRA plan for the past 14 years. He would like to take advantage of larger deferral opportunities and other perks of a Safe Harbor 401(k). Can the simple IRA be converted to a Safe Harbor Plan? Can dollars currently held if the Simple IRA be rolled over to the SH Plan without restrictions (since it's been in operation for 14 years)? Can the safe harbor plan start at any point or is there a deadline? Thanks in advance!

WIthin a 403(b), since there is not a ADP test that is performed, can HCE's contribute at least $17,500 without worry of receiving a refund? Or is there some other type of test performed to avoid discrimination on the deferral side if the NHCE's are not deferring that much??

Thanks for the replies!

Have a situation where I need to determine common ownership and if I need to include the employees of company "B" into the parent 401(k) Plan: Here is the layout. Company A: John Smith owns 51% Mary Smith (John's daughter) owns 19% and the remaining 30% is owned by Mary's Trust Company B: John Smith owns 51% Mary Smith owns 1% Bob Smith (John's son) owns 48% is there a common ownership that we need to include the employees of company B into the the 401(k) set up for Company A?

Have a client who signed a Auto Rollover Agreement for balances between $1k and $5k. For "lost" participants, we normally send them to "search" to locate a good address for them. In the past, we have charged the $25.00 fee to the participants account and if moved to an IRA, a fee of $30.00 to set the account up. Are these participant fees allowable to charged against the participant account? Thanks.

I have an indiviudally drafted 403(b) PS Plan that has a 5 year vesting schedule. I have read the document 5 times but no where does it state how to use the Forfeitures? Has anyone come across this?

I have a large 403(b) client (with ERISA coverage) that is the fiscal sponsor for an additional small not for profit organization. In the Past, the small not for profit organization has employed a couple of people on a short term basis and paid them as 1099 payees. The small not for profit now wants to hire 2 full time employees and has asked my client if they could add them to their payroll, and then reimburse them for the costs of payroll, taxes, and healthcare. These individuals would not be employees of my clients 403(b) organization, but they would be on their payroll and I could see them being perceived as employees by ERISA/IRS. Would they then be eligible for my client’s 403b? Or is there a way to set them up as a certain class of employee so that they would be disqualified? And same for the discretionary non-elective contribution? They may or may not stay on the Payroll for a year or more. Any help on this one would be appreciative