BG5150

The only way I see the auditors side is if you get only get paid once a year.

Will these manager become HCEs relatively soon?

Is restating the plan considered an amendment? If so, I would say that it would be a discretionary amendment and not eligible to be paid out of plan assets. Could you be surreptitious about the billing and say there is a $1,000 "take over fee" or something and that the new document is part of it? Maybe.

I have a participant who moved from "regular" employee to union employee, and thus now ineligible for the plan. She has a balance from deferrals and ER contributions. Can she take a hardship distribution?

Why would the ER do this? Is there an asset breakpoint that will be hit?

Nope.

Good point, Two Pennies.

I agree with Kevin. If the terminated participants will be charged an EXTRA $50, I doubt that will sit well with the agencies. If the company is already paying $50 a participant and they want the termed people to pay instead, I believe that's ok. I already do that with some of my clients.

Is there a penalty when a plan administrator does not cash-out the low balance accounts timely? (Assuming the plan document calls for it) Obviously, it is a failure to follow the plan document. But has either service assessed penalties when the PA doesn't keep up with it? Or is it just "get it done" when it's discovered?

Would the ER have to open up an account in the trust's ID? My guess is they'll have to get a new one, as the old one was put out to pasture and/or recycled.

I believe they do.

The 3(16)s responsibilities go as far as the agreement with the plan sponsor goes. I would certainly add some sort of "garbage in, garbage out" provision in any agreement, distancing myself (as 3(16)) from bad data. 3(16)s can also limit the administrative burden on the employer. We have a lot of 20-100 person companies as clients. many times, the owner wears the plan administrator hat. Does she want to have to come in to work and worry about shuttling loan paperwork between the TPA and participant or poring over a QDRO? Let the owner run her company. Plan administration is my bailiwick, not hers.

How many of your "plan administrators" really go through the numbers you put on the 5500. How many clients are doing annual vendor reasonableness reviews? How many are truly reviewing the reports you send for accuracy? How many are really preparing and delivering the disclosure notices properly? How many clients want to spend money on attorneys when that one disgruntled employee decides to sue every Tom, Dick & Harrry out there when he gets fired, including the plan?

Why is that?

Why Kevin? Isn't it just the cost of administering the plan, this time with a new RK? Whether the cost is reasonable is another debate. OP: What difference does it make who the TPA is for reliance on an opinion letter? (I can understand that the prior TPA/vendor wouldn't support the current document any more, but I don't see how an opinion letter status is jeopardized.)

Some sort of agreement for buying a house. Nothing specific. A side note tot he discussion.

I think you would have to take it on a case-by-case basis. Would John Hancock or American funds transfer the assets in that way?

I was on a webcast wherein the presenter was talking about a plan that got audited (investigated) and got into trouble for allowing home loans (5+ years) without proper backup.

How about this then: Annual Administration: $1,000 Plan Documents & Amendments: (Included in Annual Administration) Just curious: where does it say you can't do stuff for "free"?

Would this work? If the TPA is performing other services, bundle the "legal fees" in one of the other services. So, instead of: Compliance Testing: $1,000 Legal Fees: $150/hr You have: Compliance Testing & Legal Fees: $1,000

Residency is some like 31 days. The IRS website has some pages that help distinguish between Non-resident and resident aliens.

Your coverage test is the same either way, no?

We use Datair, and there doesn't seem to be ANY error check across item 6 and the number of entries in Part III. I have 1 D and 2 A's and entered 12 on 6a. No error. Ticket sent to Datair.

The 2013 instructions for line 7 still say :

If a plan doesn't have coda in place, you can add it at any time during the year. In the same circumstances and you want to add safe harbor, the SH must be in place for at least 3 months.