BG5150

Give me a call. I know a guy who can help someone or something 'disappear' 😉

Is there time enough to get the investment accounts properly set up?

What is the new comp formula? If it's everyone in their own group, then it's up to the ER who will get a PS and how much (subject to the testing limits, of course). If it's the grouping method, you need to allocate the appropriate amount to everyone in each group. Don't use Chat/gpt. It can point you in the right direction, but the answers are still suspect. We had someone here use it to determine eligibility of a rehire and it got it all wrong.

Often, when there are late deferrals to a plan, TPAs are using the DOL VFCP calculator to determine lost earnings. I understand that's only allowable if the Sponsor is filing under VFCP. And if not submitting, they must use EPCRS to determine the earnings. The first and best option is to calculate actual earnings for everyone involved. Than can get hectic if there are more than a few participants involved, or multiple payrolls. Hectic and pricey--we charge by the hour, and the cost can easily overtake any benefit to the participants. We may have a way to calculate the Rate of Return (RoR) individually for each payroll, rather than exact earnings. My question is this: Is that enough? Using the RoR per participant (and if unavailable, the RoR for the during the same timeframe?) The DOL calculator determines not only lost interest, but the interest on the interest. Would I need to do TWO calculations? First determine lost interest from payroll date to deposit and then another from deposit until 'today'? How do you guys do it? Several colleagues at other firms just take the path of least resistance and still use the DoL calculator. I haven't heard anyone getting in trouble for doing it that way. Have you?

Is this true? Often in component testing, one group (the one with the young HCE) is tested on a contributions basis and the other one(s) tested on accrual basis. Does the contributions basis 'plan' have to satisfy the gateway? It's its own 'plan' after all.... 'Tis been a few years since I last did one of these 'boutique' calculations as a former employer used to put it. (And I kind of remember that the combined sub-plans, if you will, must satisfy the ABT? I'd have to dredge up my notes....

I don't trust these new-fangled computing devices.

I do all my stuff on green sheets still.

Plus, i didn't the match could increase in later years. (In the same spirit as 'Cuse's question, I guess)

The contributions are funded by the employer, the r/k doesn't front any money. The R/K pulls the funds via ACH they day they receive the contribution file. Sometimes that is before the participants get paid. I thought deferrals to the trust had to be from current, not future income.

Found a r/k who posts deferral transactions before the check date. Basically, they process the contribution file when it comes in. For example, they processed the 5/9/25 payroll on 5/8. I didn't think they could/should do that, but they said it was ok. Do you agree?

If so, is there a stock report I can run? Do I ahve to get my backend team ro create a crystal report for this? More questions: I think maybe I'm asking if there is a rate of return report that can be run with ad hoc dates? Could it be run on a plan-wide level but with participant detail? The accounts are daily-valued in the Relius ecosystem.

I guess in a narrow view, nobody HAD to explain it to the ER. It's up to them to understand the plan document they are signing, and they are the ones (usually) tasked with operating the plan. However, I'm guessing someone approached the ER about setting up the plan and steering them to a SH arrangement. Whoever did that should have at least explained it to the ER the mandatory contribs and the conditions under which they would be made. It's certainly possible that the ER just tuned out and/or only heard the PS part of the funding. Or maybe thought the SH and PS were the same... I guess they can remove the SH for '26 and just do ADP testing. And tehy doen' even have to give refunds! They can do a QNEC. And guess what? Those don't even have to go to those employed on the last day of the year either!

Did no one explain this to the client during plan setup?

Is there something in EPCRS that addresses the issue of an Employer mistakenly deducting (from a paycheck) and depositing Roth funds for a participant when the ppt's election was pre-tax? In other words I would correct this int he same manner as in my example above, regardless of its relevance to catch-ups.

If they don't want to change their address, change it to mine. I'll gladly accept the check...