BG5150

B is no longer in the CG. My thought was that C would be getting a bigger deduction by contributing funds to the plan based on compensation not paid by the company. And B would be getting no deduction. It's only one person, but still...

At my previous job, we used Inspira. They will try to track down the people, and if they can't they'll do an auto rollover.

No one?

Side note: once under 80, you MUST file as a small plan.

Depending on the definition of comp of the plan, when he takes the money OUT, it may be included in that year's income, so he'll get a SH on that comp.

*side note* You can allocate a QNEC for a prior year test, too. BUT: you have to wait more that 12 months after PYE and do it under SCP. (And you really should only be doing this once, as one of the tenets of doing SCP is that you put a process in place to conform to the plan doc.

I've seen discussions where the DOL doesn't want TOO low of a rate either.

I think you may have missed my point. HCEs don't have to take a 12% loan since they surely have access to standard rates through a normal lender. NHCEs may have poor credit, meaning that it's either the plan or another loan shark if they need to borrow. There are plenty of HCEs with bad credit or who have maxed out loans elsewhere.

Company A sponsors plan, with Companies B, C, and D adopting employers as a controlled group. Calendar year plan. 3% Safe Harbor allocation. On Oct. 1, 2015, Company B is sold. One participant leaves Company B and starts working for Company C. She made $75,000 for B and $25,000 for C. The sponsor wants to know if Company C can pick up the entirety of the Safe Harbor for the participant. Or must the cost be proportionately shared between B & C?

FULL refunsds

Does the participant have a history of paying his brother some sort of rent?

1. Right 2. I would think they are 2016 contributions, subject to the 2016 Annual Additions limit. Is this a large-plan filer? Is it a lot of money? If large plan, I would jsut add a footnote to the 2016 audit if it's an insigificant amount. As an SF, I'd just add it as a 2016 contribution, b/c that's the year it's deductible for. (see my "thought" in #2.)

Remind them that the accounts "belong" to the trust. The Trustee is just allowing them limited control by allowing them to direct the assets in the segregated account under the trust as a whole.

About the withdrawal: these are trust accounts, and the Trustee should have the say of who can and cannot take their money. It should be up to the Plan Administrator to follow prudent plan policies as to what is needed to make a distribution. If the Trustee is satisfied with those policies and is confident they have been followed, it should approve the withdrawal.

I know some companies send out annual "let us know if you want to change your deferral %" correspondence to everyone. I'm guessing some of them have "you are deferring x%. Let us know if you want it changed."

Let me put this another way. I need to do corrections to some accounts and using actual earnings is not reasonable. Does anyone have a spreadsheet rubric to make a reasonable effort to calculate the earnings? I have developed a formula using the excess contribution earnings calculator from the IRS Pub. 590. Does anyone have anything different? Or better?

Can the person prove that HR received the election in good order?

Your personal liability should be covered by your employers E&O

If you are "considered the plan administrator for certain functions", then you have probably already taken on some liability for which you could be personally held accountable. That's the POINT to being a 3(16) Plan administrator. You agree to take on the RESPONSIBILITY and the LIABILITY that comes with the various functions. It is more than just an administrative convenience for you to approve distributions and monitor payroll. If you are truly concerned about the exposure, perhaps you should not have entered the 3(16) "space" to begin with. I would immediately seek ERISA counsel to determine what your liability is and assess your risk tolerance thereto.

The EPCRS correction for an excess allocation is to remove the funds (plus earnings) and put them in a "unallcoated account." (I call it a "suspense account") NOTE: It does not say anything about "forfeiting" the money or putting it into a "forfeiture account." It further goes one to say that the ER cannot make any contributions as long as there are funds in the suspense account. That means the next ER contrib will be offset by the amount in the suspense account. Section 6.06 (2) Nor does it say anything about whether it's a Safe Harbor or regular match or profit sharing. It's odd that the various record keeping systems have yet to add a suspense (unallocated) account along with a forfeiture account.

The 3(16) duties should be detailed in the service agreement and/or the plan document. I have seen documents define the PA as the employer and a designated 3(16) administrator with duties outlined in a separate service agreement. If the signing of 5500 is not expressly mentioned in either document, then the 3(16) should NOT sign.

Wait. You said the person has a social security ID and "previous ID" Did he just chuck the previous ID?

I didn't see anything in there about furnishing SPDs or SARs

If the test is passing at just gateway, lowering comp will lower allocation. 5% of $25,000 is less than 5% of $50k. [Thanks, Captain Obvious!]

Which would spin-off require: no way to make a distribution, or allowing them?