BG5150

Side note. I ran it thru nondiscrim and it works as a PS! Only 1/5 HCE got it. coverage over 100%. Gateway passed and then a(4)

Why do companies put in days instead of months for a service requirement? It is MUCH easier to figure it out with months as the baseline.For example, a plan requires 60 days of service, monthly entry (next or coinciding). Employee is hired July 3. When does she enter the plan? September 1. That's 60 days of service.What if it was April 3? June 1? Nope. July 1. 60 days of service is June 2.If it was two months of service, it's much easier. Anyone hired on the 3rd of the month enters the same day: first day of the third month after hire. No counting days. No missed deferral opportunity. Someone hired on Aril 3 has to wait 28 more days to enter the plan than someone hired on July 3. Doesn't make sense.

Is it a pooled account? Or is there just one pooled account for the people who don't elect anything? Is that even allowed? What if one of them wants to open their own account? You'll have to do some sort of mid-year valuation of the account and transfer out that person's portion.

I doubt you would find anything on the 5500 search site. Plans that cover only owners (and spouses) sometimes file a 5500-EZ and those aren't open to public inspection. And many times, I would think, the financial adviser to the plan would be the FA for the owner or one of the partners. Either that, or they are using one of the big-box plans and have a generic adviser (a la Fidelity).

To be honest, we just check that the contributions are within the limits and send/file the 5500-EZ each year as needed. In our annual cover letter we remind them to let us know if they have any employees, even if they are 'part-time' workers. We also tell them to contact us BEFORE any withdrawals are made. Other than that, everything else is up to the accountant.

It's this.

I didn't even know a non-Key HCE could be excluded from the TH contribution.

Plans that intend to comply with 404(c) do not need a QDIA as far as I know. But it bolsters the reliance on 404(c) protection if there is one.

We have a bunch. Though many of them are sole proprietors. Or small professional company where the only staff, if any, work less than 1,000 hours.

Allocation is new comp, but it won't pass testing.

Someone mentioned just calling it bonus pay, under which some people decided to defer the entire thing and others to not do that.

So, unbeknownst to me, the ER wanted to give everyone $1,000 in their 401(k) plan. However, if they didn't have an account, it was paid as a bonus. If they had an account, but chose otherwise, it was paid as a bonus. I know this is a no-no. The contributions will be considered deferrals for 402(g) purposes. (I think it pushed one person over the threshold) But what other correction needs to be done? Could they give all the missing people the $1,000 and just call it a PS? (I'm not sure if they filed their 2021 taxes yet.) I've heard of situations like these, but never encountered one first hand.

We are the 3(16) plan administrator, and are tasked with approving/denying DROs as QDROs. Our legal department does them. Does the fact that the Advisory Opinion was issued in 1990, but the DOL webpage that shows today was obviously created much later mean anything? Has the stance changed?

Some companies fund their match or safe harbor or profit sharing each pay period to amortize their cost over the entire year instead of making one big deposit, so 415 excesses can and do occur from time to time.

Coincidentally, one of the attorneys who pioneered the "In Marriage QDRO" is representing the participant in this.

I got a DRO today for a participant in Louisiana. The DRO says there is no divorce and that in LA, a community property state, the DRO can be a mechanism by which a participant can "donate" to the spouse "of his undivided interest in a thing forming part of the community." Anybody ever come across anything like that? Everything else in the Order lines up nicely to form a QDRO.

In my experience they say the plan is covered for $X but the coverage will increase to the amount required by ERISA (which is 10% of BOY assets). That's why I generally put 10% of opening assets for the bond.

Where is the gold cup thing?

I know the missed deferral opportunity amount is a % of the ADP of the group to which the participant belongs. But what if it crosses plan years? I have someone who was missed on 7/1/21 and we just found out about it this month. The ADP of his group was 3.25% for 2021. But do I have to calculate the 2022 ADP (next year!), or do I just use 3.25% for the entire period?

And just think of the billable hours to fix it all...

That's a simple fix under EPCRS. Just move the excess amount (adjusted for earnings) to the suspense account. The employer can (must) then use those funds to offset the next employer contribution until the amount is exhausted.

i didn't fees were deductible to the employer

Not necessarily. They could use those funds to pay fees. So, there is a reduction in cost to the ER. Or the ER can use the funds to supplement the contribution, thus getting a higher allocation with the same deductible contribution.

You would just need to make sure to separate that match out from the SHM at the custodian.

I don't see why you would need to test ACP. The discretionary match is 1) not matching on deferrals greater than 6%, nor is the match 2) greater than 4% of pay.