BG5150

Does the plan allow for distributions from rollover accounts at any time? If so, the person has to take that money first anyway. If not, I don't see why the entire source would be allowed for h'ship. Why is it different than a "regular" rollover account? And lastly, (should be firstly) WHAT DOES THE PLAN SAY?

ADP tested plan that fails a lot?

As long as the NHCE threshold isn't lower, I don't see the problem. What did you read?

The 5500 instructions give a break down on who is and isn't included in the counts.

Why wouldn't he need an appraisal? Doesn't the 5500 require FMV reporting of the assets?

Was there a TPA involved along the way?

Actually, the plan (probably) says the RMD must be made. It jeopardizes the qualification of the plan if the Trustees do not make the RMDs. We wait until the last minute and cut checks with 10% withholding. Those over $5k cannot be forced out (other than an RMD, IMHO) unless the plan is terminating.

Clever acronym. Robbing Peter to pay Paul, perhaps?

AAAHHHH! You are amending a safe harbor plan mid year!!!!

Does the plan allow only "safe harbor" conditions for hardships? If so, one of the allowable situations are repairs to a home that are not covered by insurance and are thus deductible under §165. However there in no % of AGI involved. So, whoever is reviewing this case should need proof that the repairs are not covered by insurance and are indeed deductible under§165. Does the plan allow for loans? Is an in-service withdrawal available to this person otherwise? Or, does the plan use a "facts & circumstances" approach to hardship consideration? If so, there's a laundry list of things to consider.

I think the money would have been returned to the Employer. The resultant refund should have gone through payroll. Not a distributions from the plan, therefore no taxes, no 1099-R.

In this case, it's a matter of "I didn't think we needed to put code 2K" I don't think an auditor is really going to make a big stink about it.

Has anyone ever got and gruff from an auditor (gov't or CPA) that a code was wrong or missing?

me three

Is there any BRF testing to be done if the max is lowered to, say, 2 years? For example, a long-time NHCE wants to borrow $20,000. a 2 year loan has payments of 440 twice a month, but over 5 years it's 190. Are there a lot of NHCEs int he plan who could afford the more restrictive time frame?

That made me chuckle...

Susan, don't look at CE as a cost, but rather than an investment in keeping up to date with things. As you know, this industry changes often, and things you were doing 2 years ago might have changed. It's almost a full-time job just trying to keep up. just in thee past year or so we got new, complicated fee disclosure rules, and a new EPCRS. Both very important things to know. Sure, these boards are great resources if you have a specific question, but learning and expanding your knowledge helps create a framework so you can understand the answers given to your questions here. Do you plan on bring in new business? (Well, not you per se, but your company) Being credentialed can be a feather in your cap, especially when many of your competitors will have them, too.

Well, not rolls of bills. But many places have cash accounts that garner no interest or gains or losses (John Hancock comes to mind).

Sometimes. Depends on what's in there. Code D, most of the time. J, nope.

Question is, does the amendment take the plan off prototype or VS? Depending on the wording and content, it might.

Aren't the ER contribs on the W2? Box 12, code W (or DD?).

Right. I corrected my original post.

I thought it was they aren't taking DL requests NOW, unless you are off-language. But that a "regular" restatement window is coming up...

So, if you deem them significant, you have until the end of 2013 to do this. Also, if I read EPCRS correctly, you HAVE to submit the plan for a DL the next go-'round, and explicitly label the amendment an EPCRS correction.

What does your attorney say about it?