BG5150

You are subject to the RMD rules for the calendar year in which you turn 70 1/2. If a distribution is done in that year, but before the participant turns 70 1/2, then you still have to take the RMD first. I think you have an ineligible rollover to the the DB plan and the RMD money has to be returned to the plan to be paid out as an RMD.

FWIW: if using VCP for only a loan, the fee is cut in half

It's certainly not a MEWA. So, you are saying I have to submit an attachment anyway?

never mind. It had something to do with the M-1 filing and it was in the instructions, not an ASAP. Doesn't apply in this case anyway.

From the EPCRS section dealing with correction of loan defaults: (emphasis mine) Sec. 6.07

I'm filing a 2013 Welfare Benefit plan. Were there any changes for 2013? Someone in my office seems to remember and ASPPA ASAP about it, but I cannot find it. Your thoughts are appreciated.

yes. the DOL calculaor does a good job on the interest and the interest on the interest.

I would think you could get by, like John said, by job classification. To me, it's a valid business classification.

Here is my Safe Harbor Match calc spreadsheet. Someone in the forums gave me the formula, I think. You can modify it to your formula. Safe Harbor Match Calc.xlsx

Like many things here, the plan document often has the answer. How does the plan define a Year of Service?

True. So, scratch my response. I had a client that WAS a 1-man plan, but he hired someone and that made us put the plan on the regular 5500 (because of non-qualifying assets).

If the collectibles are more than 5% of the assets, I think he has to file an regular 5500, too. With proper bonding, of course!

I have a plan that had deferrals taken from an ineligible compensation (overtime). One correction under consideration is refunding the overages (plus investment experience). This would be considered an excess deferral. This happened in 2013. If not an excess deferral, what correction is it then? It's either an excess deferral (as defined by the code or a plan limit) or what? We were thinking of being aggressive going down the "ineligible participant" route, in that deferrals were taken from an ineligible source of income. This would allow us to forfeit the contributions and make the participants whole outside the plan and also avoid the onerous tax consequences. Some people in my office just think we should correct moving forward, let the participants know what happened and move on. I'd like to self-correct, as this plan has over 1,000 people and the cost of VCP is 15,000 just to submit. This affects 80 out of 1200-1300 active participants, and the amount in involved is miniscule compared to total deferrals.

Lou, What correction is it then? It's either an excess deferral (as defined by the code or a plan limit) or what? We were thinking of being aggressive going down the "ineligible participant" route, in that deferrals were taken from an ineligible source of income. Some people in my office just think we should correct moving forward, let the participants know what happened and move on. (I'm going to copy this into the Plan Corrections Forum to properly place it.)

I have a plan that had deferrals taken from an ineligible compensation (overtime). One correction under consideration is refunding the overages (plus investment experience). This would be considered an excess deferral. This happened in 2013. Because we are past April 15, how is the distribution taxed? Is it earnings in 2014 and excess in 2013 AND 2014? Or did things change and everything is taxable in 2014?

How does the plan define a year of service?

Are these individual accounts? If so, I think you could/should use the individual return on the investment, instead of the plan as a whole.

I'm with John Feldt ERPA CPC QPA

Are all the HCE's key?

I see what you did there...

I should hope not. Would you want to be paid every three months?

You don't HAVE to file under VFCP for the late deferrals. Safest thing to do might be to get an ERISA attorney involved.

One. Million. Dollars. (sorry)

Were there deferrals from key ee's? If not, no TH needed.

I don't understand. Did the ER not withhold anything and still sent money in September? How did he know how much to send? Is this a Safe Harbor Match?