BG5150

^ under the valuation section

I have a plan with a group of "traders" who are partners in a business. Their K-1 show a net employment income of, say, $10,000 (14 A). There is investment income of over $1,000,000. I have read that income could be considered as earned income for plan purposes, even though it is not subject to SE tax. Any thoughts and/or cites? The EOB search doesn't even register a hit with "trader".

Does the sponsor have any legal recourse to force the adopting ER to pay the SH?

And qualification defects affect ALL adopters. Of which this company was one.

Maybe because the thread is in the "401(k) Plans" forum?

My suggestion is that if you want to give out your phone number, do it only via private message given the preponderance of spam we are subject to from time to time...

What about someone who quits or gets fired on 12/31? Do you give her a 1/1 termination date because you can be employed and unemployed on the same day?

Sure you can exclude hourly workers. However, if a decent portion of them work more than 1,000 hours in any year, you will have a coverage problem. Or, you can just exclude a lot, if not all, the HCEs.

If document is silent on the issue, I would say this person was not employed on the last day of the year and thus, is not eligible for a TH contribution. As Belgarath said, the participant might be eligible for a Profit Sharing allocation, though.

And, I would think a Trust Identification Number, b/c any payouts come from the trust, not the company.

Wouldn't unreasonable comp be a PT whether or not it was the owners brother or cousin or his golfing buddy?

ETA, it seems that the allocation was not in terms with the plan doc in that it was based on incorrect compensation.

GB, I think this is more a thinly veiled attempt at promoting paradigm life in the guise of informing people of anything.

What if someone has $100k in the 401(k) Plan but $600,000 with another institution? (And that money could be moved into an account with the RIA) How would you know about it? Shouldn't that person be aware of this newly-available investment option?

They can print the signature pages, sign them, and scan back in.

I'm still trying to figure out how/why access to an investment platform within a plan can be contingent on something, anything outside the plan.

An EACA plan must be for a full-year, I thought.

Hey, folks. You can get a self-directed brokerage account if you open up an account with the ABC Financial Services Company. What a deal! Hey, folks. You can get a self-directed brokerage account if you buy a Ford F-150 from City Ford. What a deal! Where does it end?

When was the distribution done? Could the participant apply for a 60-day waiver for rollover? I'm not sure how long that process takes, but I would think "Let's get this into an IRA ASAP." The problem then becomes, who makes up the missing 20%? Perhaps a "loan" from the ER tot he participant, because if the ER simply makes up the lost withholding, the PP will get a windfall come tax time. Then, you'd just figure out lost earnings somehow. Does the PP have another IRA? Perhaps mimic the returns from there. If the waiver gets denied, then you start looking at long-term ramifications.

Isn't there some other remedy than disqualification of the plan? Seems a rather heavy-handed consequence for one operational error.

Can't you just do a garden variety amendment to allow it?

More like 5500-how-you-doin

How many people are we talking about?

How long was this going on?

As far as I know, my plan is NOT a MEWA, and it seems that it doesn’t have to file an M-1. However, the instructions for the 5500 (p. 18) say to attach a statement of compliance. Item 1: whether or not the plan is subject to an M-1 filing (no?) Item 2: if item 1 was yes… (N/A) Item 3: asks for a confirmation code. If the plan is not subject to M-1, then they want the most recent confirmation code. Is item #3 also contingent on answering #1 “yes”?