BG5150

I use BenefitsLink and ask you guys....

If this HR person is named in the document as PA and leaves, he or she will still have the responsibility and liability of the PA even though they have no control over anything. Do you trust the directors of the company to amend the plan as soon as the person leaves or transfers positions in the company?

How do you correct a loan under SCP?

If you "terminate" a SIMPLE plan on 12/31, can you start a 401(k) on 1/1 following if there are assets still in the SIMPLE?

I picked up Parmenter a couple weeks ago. I'm thinking of taking EA-1 and -L in the spring.

Um.. The above discussion was from Jan 2014.

What do Cash Balance plans have to do with 409A? Aren't those non-qualified deferred comp plans? Cash Balance plans are qualified pension plans.

Has anyone seen this picked up on in an audit?

Yes, SH reasons only. We are not going to amend the plan for F&C terms.

You use the net income from the K-1. No W2 necessary.

Of course he can. To the extent he has positive income from the LLC, he could possible defer and get match & profit sharing.

Way off topic, but what was participant invested in that they made less than 1% in 2012? Even weighted, it seems very low.

Situation: Man lives with his aunt. At the end of the month he must get out. Reason: unknown. Can he take a hardship for a down payment & 1 month's rent? Safe Harbor reasons.

Is there going to be a big reduction in the match formula? Is the ER expecting a lot of turnover in the next 10 months? Why not wait and do it for the full plan year and get all the protection and administration cost savings that SH affords the sponsor? All the old SH match is 100% anyway. All the ER would lose out on is the match over the remaining part of the year to the level that it mighn't be vested.

Did you ask the people who wrote the document?

A 401(k) plan is just a PSP with a 401(k) provision. Why can't you amend a "401(k) plan" to no longer offer deferrals. Mid-year of a safe harbor plan notwithstanding.

Unless you have records that go back to the mis-pricing, then I would just allocate it pro-rata on the original distribution amounts. If the plan is not terminated, you won't be able to force out someone if they get more than $5,000. Where has the $20,000 been sitting? You'll probably have to allocate earnings, too.

Could she put, like $1,000 bucks into the plan?

Is the last day of the year the only plan entry date?

If the plan uses the Safe Harbor reasons, I don't think the resources portion of the test applies. It's merely an immediate and heavy financial need. As long as there are no other distribution options in the plan, and a loan is not counter-productive (don't get me started on this piece of great legislation!), I think he would be good to go if: 1) the pool could be considered part of the principal residence; and 2) the "casualty" is deductible under sec. 165. As "backup" you may want something in writing from the participant, or the participant's tax adviser, that the event is indeed deductible. If it's not,t he argument ends there.

Maybe you should consult an ERISA attorney.

Closing balance - additions - fees - distribs - opening balance = earnings.

Are you the plan administrator?

Why doesn't the sponsor pay and get reimbursed by the broker?

This should also be the case if the plan allows for distribution of rollover amounts at any time. (And of course, if the participant has rollvoer funds...)