BG5150

Please see my first sentence: "If in fact..."

OP says it's a SH match.

If in fact the Key EE in question is supposed to get a TH minimum, the 5% deferral doesn't count toward it. He or she must get a 3% ER contribution. For the future, you may want to amend the plan to give the TH to only the non-Key EEs.

To me, that looks like standard restatement stuff meaning you won't have to re-satisfy eligibility requirements just because there was a restatement. The OP states that there will be an amendment excluding a class of people. As we all know, eligibility is not a protected class. You can take someone's eligibility away. And unless the amendment specifically says that it only applies to new people, it applies to anyone in that class. To me, they (those with no balances) are no longer participants in the plan. The first definition of an active EE for 5500 purposes is someone who is covered under the plan AND is earning service credit. I would venture to say that people in the now-excluded class who have a balance is "covered" AND they are earning service credit. Those without a balance are earning service credit but are NOT covered under the plan, so they will no longer be counted in the 5500 count.

If the person was an owner of a fund on the ex-date, what right does the plan have to take a dividend from him?

I always looked at it like this: 2013 is a year. That year is from 1/1/13 to 12/31/13, not 1/1/13 to 1/1/14. When someone is hired 7/2/13, I use the same approach. His year is 7/2/13 to 7/1/14.

Who wrote the document? Ask them for their interpretation.

Not true. They can have these "brokerage accounts" but the Trustees limit the funds allowed in the accounts to a predetermined schedule of investments (a "fund menu").

And I just KNOW everyone had the refunds done at the custodian by the 13th this year, so all the check dates were on or before 3/14!

Does the plan allow hardship distributions from 401(k) amounts? Does the plan allow for inservice withdrawals before age 59.5?

But for 2016, there's an extra day in February, so we get one back...

^ I would say this is a relevant argument if the costs of mailing was to be borne by the participants.

^ I think most of those are when the fiduciaries are investing pooled assets, or when stock is involved, and not when they had 12 choices on the Prudential or Great West or ING platforms, etc.

^ Ok, then. Next question, did they withhold? Or roll the money over? A PT? I don't think so. VCP? I doubt it. Get it fixed. Come up with procedures that keep it from happening again.

How much would it cost to send those notices? A case of paper is 25 bucks. Another ream or two is another $5 say. Envelopes. $200-300? Stamps: $2,940. Administrative cost? [insert figure] Round it all up to $4,000. For a company that has 6,000 participants, is that cost relevant? What about the cost if the DoL comes asking? Greater or less than $4,000?

This is what was supposed to be typed. I guess my attempt a humour has failed. I won't quit my day job.

Damn, we're using the wrong carrier. Ooops. Fixed original post.

I'm in the same boat with Bird & Lou. They are simply finder's fees. And we certainly do not get paid 8 grand apiece. Probably a little more than 3 bucks, but not much more.

I was always of the opinion the loan payment is considered made on the paycheck date. Some record keeping systems will use that date for the daily interest calculation. However, some use the deposit date for that calculation. It kind of makes sense either way. I never figured out which was was correct.

I'm not sure it has anything to do with us having insurance license. We are kind of like the middle man. Company A is insurance company that sells bonds. Client X needs a bond. BG's company goes to company A (website?), downloads the form, fills most of it out and gives it to client X. Client X signs it, sends it back to us. They either send us a check with it or they send the check directly to Company A. We send the p/w to Company A after we make sure everything is filled out. Company A pays us like $8,000 per policy. Or maybe $3. Or something in between.

Do I need a PTIN to draw up a 5330 for a client? I am not specifically paid to produce it. It is part of our general administration services for the plan. I know I don't need one for 5500's, but 5330's involve actual taxes and IRS revenue, so I'm a little hesitant.

Did they pay the interest on the late deposit and pay their excise tax on Form 5330?

yes However, if it's under $200 we usually just send a check, as there is no withholding, so the participant has no taxes to make up if they want the funds in an IRA.

We work with a company that will underwrite bonds for our clients. We fill out the paperwork (online maybe?) and the client sends the check. We get a couple bucks for it from the insurance company (fully disclosed in our service agreements, of course). Small value added service for not that much work.

Spouse: Individual is deemed to own stock owned by spouse unless legally divorced or separated by decree. An exception to spousal attribution exists if all the following conditions are satisfied (Be aware that a community property interest nullifies this exception): o No direct ownership in spouse’s business (caution: community property ownership = direct ownership). o Not a director, not an employee and does not participate in management of spouse’s business. o No more than 50% of gross income from spouse’s business derived from passive income. o No distribution restrictions of spouse’s stock in favor of the spouse or minor children. (Be aware that distribution restrictions other than to a current co-owner are very rarely found and must be specifically included in the company’s charter or operating agreement for this provision to apply). Attribution to a minor child may still result in a controlled group even when the spousal exception applies. Minor child: Parent is deemed to own the stock of a minor child (under age 21); conversely, minor child is deemed to own the stock of parent. Adult child: Parent is deemed to own the stock of an adult child (age 21 and older) only if the parent owns (or is attributed as owning) more than 50% of the stock of the company. Conversely, an adult child is deemed to own stock of parent if adult child owns (or is attributed as owning) more than 50% of the stock of the company. [source: CPC Related Groups and Business Transactions Module Study Material, © 2013]