BG5150

Did enough people opt out of the auto-enroll to have such a small non-key balance? has the match been allocated and deposited thus far, too? And how would the payroll company know what the balances are, and consequently that it's top heavy? Is the p/r company doing administration, too? Is there even such a feedback between the two systems?

Why would you have to stop deferrals in any even if the plan was top heavy? To lower the TH minimum? In the case of stopping at 10,000, even at max comp, you're over the 3% allocation that drives the full minimum contribution. Thoughts on how the client "communicates" with the payroll provider? "You're fired."

Never mind. It mentions 2015, so I guess it's just a "trying to be helpful" type message. /thread

recently, we have received two types of notices from the DOL. One states: hey, no audit was attached. Amend the plan and get us the audit post haste or bad stuff will ahppen. The other is a bit odder. It's "Tips for Selecting and Mnitoring a Plan Auditor" and starts off with: The notice goes on to talk about the importance of getting an good audit and choosing a good auditor. It seems to be merely informational and no futher action or penalties will ensue. The form was filed in early October and included the audited financials. So, why did we get this? Is this something that maybe should have gone out in the summer but was sent out late? Anyone else get these?

Especially since there is a last day rule. No one has actually accrued the match yet, so you can change it.

After February, no more new ERPAs. https://www.irs.gov/Retirement-Plans/Enrolled-Retirement-Plan-Agent-ERPA-Program-Changes

This is the next paragraph, at the top of p. 6: Does that help?

Should be ok. test will fail, but all refunds will be reclassified as catchup. Any Top Heavy implications?

What happens when a plan terminates and the person who, then still employed, rolled her money out and then subsequently leaves the. company?

Send an e-mail to support@datair .com

We often have plans with a couple hundred over-matches, or Safe Harbor contribs more than 3%. In one case, we have a plan that allowed participants to defer from bonuses when they are explicitly excluded from the plan. We are trying to get procedures in place to most efficiently calculate the earnings for those transactions that have money leaving the plan. (Or at least, the participants' accounts)

So, people who had a loss are just SOL?

No.

For #3, check the plan document. The cashout threshold may be as low as $1,000. Many plans lowered it to $1,000 after the auto-rollvoer rules came out. They didn't want to deal with the hassle of setting up IRA's. Now with the proliferation of companies that welcome these small rollovers, and the ease with which an agreement can be set up, it's reasonable again to have a $5,000 cashout level again. But not everybody changed back. And this bears mentioning, as I've seen it come up recently: Check the plan doc to see if unrelated rollvoer money counts or doesn't count toward the threshold.

Slacker

ETA, what section of the BPD was that in?

I have a plan that is failing the 414(s) test on the percentage test. I did not run it through the rate group test. They are excluding bonuses, and everyone is getting one. My difference is ~5.4% higher for HCEs. This is a SH Match plan that is determined on a payroll basis (not annual). Because no deferrals are taken from bonuses, there is no match. Do I even need to have a correction? If so, what would it be?

We have a plan that withheld 401(k) deferrals from bonuses, which are excluded in the plan document. So we need to return the deferrals to the participants. For corrective contributions, that is, when we need to GIVE the participatn something, we've been using the DOL calculator for earnings out of convenience. Can this same method be used when calc'ing earnings on funds LEAVING the plan? If the participant experienced a loss in real life, then using the DOL figures will jsut serve to exacerbate the losses. So how do you figure out the earnings for funds leaving the plan in practice? (My software cannot accomplish this)

Right. 2012, too. If you go outside the prescribed method in EPCRS, you don't necessarliy have to go thru VCP. Those are the acceptED corrections, but not the only acceptABLE onces.

Will this be the participant's primary residence? If so, yes.

Don't forget, you can still correct 2013 & 2014 under SCP.

Who defers 100% anyway?

If the fact pattern is right (that they were able to file as a small plan for 2013-14, and if the opening count for '15 is 120 or less, they can continue to file as a small plan. (Why did they file a 5500 with Sched I instead of an SF? Is it because of non-qualifying assets?)

I would say so. (Don't forget to add 3H to the plan characteristic codes!)

As long as 5500's are filed, whether 1 participant or not, SF or EZ, using the same tax id and plan number, I think you are ok. I agree with the above that says even if you are under $250k, still file the EZ. Or, you can wait for the "you didn't file for 20XX" letter and explain it then. Probably take more time to put together a response (and a response to their response) than to just create the EZ, sign it and put a stamp on it.