Stash026

I have a doctor who is considered a statutory employee who wants to setup a plan for himself. All of his income will be funneled into a Schedule C (there's no 1099 or W2). Any thoughts on if he could setup a plan based on that income? Thanks in advance everyone!

I remember someone once telling me that if Plan Assets were under $250,000 the Plan was not required to file Form 5500 but I don't see it in the actual instructions. Is that no longer the case or does it only apply to those who file Form 5500-EZ? Thanks everyone!

Sorry: Plan currently limits to three outstanding loans at a time. Person in question has three loans outstanding (estimated current outstanding balances? $5,000 to be paid off in 2 years $7,500 to be paid off in 3 years $4,000 to be paid off in 4 years The current investments are $50,000 so if the plan had allowed more than 3 loans there would be an available balance for an additional loan. I think the client basically wanted to do it as a work around to allow a fourth loan. Generally I would've just said no, but the investment provider had told them that they could which surprised me. Thanks and any insight would be appreciated!

I have a client that wants to allow participants to consolidate loans (take two loans and make them into one). I don't see my plan document/loan policy software addressing this. Does anyone have any guidance as to the language to put in to allow it?

Is the approved interest rate when calculating an EBAR in a Cash Balance Plan still between 7.5% and 8.5%? I was discussing this with someone and know that used to be the acceptable range, but I wasn't sure if that had been changed or indexed. Thanks!

So they could do something like 33.3% per year if they wanted

I know this is a basic question, but I've got differing answers for some recent. Can a Cash Balance Plan have a 6-year vesting schedule or is it just a 3-year cliff? Thanks in advance

The Plan is set to give a Cash Balance of $3,000 to the rank and file each year. It's more of a general question, should the plan be underfunded in a given year if they will be on the hook for a greater contribution, like a "traditional" defined benefit plan

I got a question from a client and the person that normally handles our Cash Balance Plans are out. They wanted to know what happens if the cash balance investments perform poorly. Is the employer on the hook to make up the lost interest? Is it annual (additional required contributions for the shortfall)? Sorry for the question, just wanted to hopefully get back to them quickly. Thanks in advance!

Does anyone know how long it generally takes the IRS to respond to a VCP submission? We sent it in back in January and the check was cashed, but we haven't gotten any actual response. Is there a phone number we can call to see the status? Thanks in advance!

Here's my situation: Company 1 - Husband & Wife owns 100% Company 2 - Husband owns 50%, Another Individual owns 50% So we don't have a controlled group. The Husband maxed out his 401(k) in Company 2 and they pass all testing, but can he get Profit Sharing from both plans and what would the maximum be for each? Thanks in advance!

Just want to make sure I have this right. Have a Top Heavy Plan but the only contributions made during '18 was Employee Deferrals (Key Employees all maxed out). Is a 3% Top Heavy required or is it not since they didn't receive any Employer Contributions? Thanks in advance!

I have a client asking to include after-tax contributions (not a Roth) up to the DC Maximum for two partners in a Plan. Are there any ramifications for doing this? I haven't had to handle a plan with it in some time. Thanks!

Perfect, thank you Belgarath!

I was looking through the loan regulations and couldn't put my fingers on anything. Is there anything in the regulations that limits or doesn't allow a participant who has defaulted on a loan previously from taking a subsequent loan? Thanks in advance!

Just looking for an opinion on this. The Plan states that an "actively employed" participant is eligible for an in-service definition once every 12 calendar months. If the employee is currently out on disability, would he/she still be classified as actively employed (assuming they are expecting to return to work)? Thanks in advance!

I know the rules for the deductibility of employer contributions, but a client wants the regulations to show to one of the contributing employers. I can't seem to put my fingers on any IRS regulations regarding the timing, so does anyone have it handy? Thanks in advance!

Am I right in assuming that no QDRO is necessary in the case of an annulment (since it's like the two were never married)? Our client is questioning the documentation, which states that there was an annulment and not a divorce. Thanks in advance!

We have a participant that recently took a loan and is now going out on maternity leave. Is there any special regulations regarding repayments while she is out or if no repayments are made does she default?

So basically just amend the section "Appointment, Resignation, Removal and Succession of Trustee" and add a section that states who the "Backup Trustee" is?

Does anyone have any experience naming a "backup" Trustee for a 1-man Profit Sharing Plan? The plan document only states that the business would name a subsequent Trustee if in the even of death, etc. He wants to have it stated somewhere who would control the Plan. Thanks in advance!

I was able to get a little bit more information. There's basically a dispute that the company feels he owes them money from a project and he is in dispute/refusing to pay. How does that impact the Trustees decision?

I'm running up against an issue that I've never had before. The financial institution requires the Plan Trustee to sign off on any distribution. We have a terminated participant who has requested a distribution of his account (which includes 401(k) deferrals) and it appears that the Trustee is refusing to authorize it. I'm not sure if there's a reason behind it, bit what are the ramifications if the Trustee refuses to ultimately approve it? Thanks in advance!

I know the IRS defines a Hardship as "costs relating to the purchase of a principal residence". The question is what would be included in that? For example, does the cost of a moving van, etc. fall under that? Or does it mean closing costs, attorney fees, etc.? Thanks in advance!

Perfect, thank you!