BG5150

JAN.1 Plan doc doesn't say "first business day of the month". It says "first day of the month." Sunday is a business day for some companies, anyway.

We just send stuff carrier pigeon. No one ever thinks to hijack a carrier pigeon.

If the trustee knew or suspected there may not be enough compensation each pay period, did err in granting the loan in the first place?

No. The first distributions from a 401(k) plan in any RMD year must be the RMD.

Nor can you combine 401(k)s. Each qualified plan stands on its own for RMD purposes.

Just google small estate affidavit _______ [state name]

Poetic license for sure with that rhyme...

Maybe at one point, it was a viable option, and now it isn't. From what it seems, the company is not forcing people into the stock. Plans do this all the time, but probably with the "it's not a good investment" line. Fund A is no longer available for new investments. We have chosen fund X as its replacement. You can leave your money in A, or transfer it to any other investment allowable in the plan. Replace "Fund A" with this company's "stock investment".

Put your thoughts in writing, taking care to explicitly state that these are concerns of yours and not merely an attempt to be contrarian, and you fear that if discovered upon audit or investigation, fines may be levied and penalties up to and including disqualification of the plan may arise. Type it on letterhead, send it to the president of the company via registered mail. Signed by you or the president of your firm (perhaps both).

OP, what's your skin in this game? How did you get involved? (Just curious)

The TPA shouldn't confuse "participate" with "contribute." My thoughts in bold. I can't see how this is ambiguous at all.

The trustees have to weigh the pros and cons of eliminating the stock as an investment. One one hand, it seems as the participants want it in there. (Why, if the company itself sees not much upside to the stock?) On the other hand, the trustees must act in (what they believe to be) the best interests of the participants. That may or may not coincide with participant wishes. If the participant really like owning a part of the company, could the existing stock be left in the plan, and other opportunities be offered outside the plan to purchase the securities? And not allow any new purchases within the plan? (I've seen this done numerous times with fund lineups). Make sure you allow the participants the ability to get out and move to other funds if they want to. This way, I think, the trustees are covered somewhat. The plan is no longer offering a "bad" investment, except to the people who really decide to be in it. A couple thoughts that may or may not mean anything: Does it cost a lot to value the stock? Can that cost be borne by the participants as a group, or only those who have it as an investment? Could the plan sponsor send out a memo stating: "Hey, really really don't think this stock is a good fit for your retirement plan, so you can get out if you want. Don't blame us if that investment does not perform to your liking."

^ninja'd by Lou Nothing I can see in 72(p) that says you can go longer than quarterly.

Cons (?) (4) Testing of short year will have to be done. (4)(a) Some limits are prorated (5) 5500 for short year will have to be done.

In my experience, it's pretty standard, when divvying up the account that if it's a percentage as of a specific date and not a flat dollar amount, then earnings (good or bad) from the date are usually included.

I think in an ACA you only have to tell them once you are going to do it. With EACA, you have to give a notice every year. EACA has to be for the entire year, ACA can be implemented at any time. The Sponsor may not want the headache of processing the 90-day distributions.

What do they have against this person deferring? Jeez.

Then find a new TPA. And what does the record keeper have to say about it? Just take the money when we send it to you, take your 20 basis points and shut up.

Page 131? .pdf only has 4 pages!

Just in time for Thanksgiving!

Was 401(k) taken out?

Keep in mind, while the SH Match may be CALCULATED on a payroll basis, it doesn't have to be DEPOSITED every payroll. A SHM calculated on a payroll basis must be deposited no later than the end of the quarter after which the match was earned. For example, the May 5 payroll match would be due no later than Oct 31.

No one got paid for 2 months?

I think this would be more of a company by-laws issue than a plan qualification issue.