BG5150

I don't think they'll let you extend it out 5 more years. That would be a 10-year loan.

Is it that much of a problem to scan three pages instead of just the one?

Side note: no one noticed that their paycheck didn't go down for two years?

Plus, you have to make sure the original loan is paid off w/in on or before its 5th anniversary. There's an example in the EOB.

When the contribution is DUE and when it's DEDUCTIBLE are two different matters. I would say the TH minimum for the 2012 plan year is DUE by 12/31/13. No earnings adjustment needed. As to the DEDUCTIBLE, I would refer them to their accountant. For 415, it is treated as an annual addition1 if it's contributed within 30 days of the due date of the tax return (including extensions). Why don't they just amend the return? If anything, it's a deductible contribution and it must be made.

What else would you do?

Years ago, I seem to remember that a person subject to RMD, the first distribution(s) of the year would go toward the RMD. Not "may" or "can" but "will." If the money is rolled over, the plan satisfied its RMD duty, but there is a problem with where the money landed. (I could be wrong)

Does your service agreement say anything about records retention?

Thanks, Kev.

Where/how do we report CE for ERPA? All I read is that you have to do the credits and keep the records for 4 years. Nothing about how to report it? Is it on the honor system, but you have to have the stuff in case they ask?

And maybe think about amending the document for '14 to have an annual match, rather than a payroll match.

Us: Datair--5500 + 1999, etc Admin--Admin FT Bill--Docs Though any of that can change at any time...

Can't force them to defer it, though. Plus, need to be careful of people who already defer the max. Those putting away the max won't get the benefit of their account being trued up for the surrender charges.

I just hand calculate everything. Keep records on college ruled paper.

Has anyone done a quick calc to see if this would pass non-discrim?

I know. I was just having a bit of fun...

The fiduciary had a duty to provide the best investments available to the participants. Perhaps the investment in question was not prudent, given the surrender charges. The IRS does allow for fiduciaries to make a contribution to make up a loss as a deductible contribution if they (fiduciaries) feel the loss occurred due to their choice of the specific asset or that participants might likely sue.

I suggest making each employee come to a location and get a physical copy of the SPD. I would also have postcards printed up and affixed with some sort of hologram (so you know the cards are authentic) with the employees name, SSN and other employer related data (division, pay grade, location, EE-id, whatever). When the SPD is handed off, the employee must show government issued photo identification (driver's license, passport, etc.) and a secondary piece of id. Also, as proof of receipt the employee must sign the postcard and give two thumb prints--one right, one left. Get the cards notarized, too. Having the whole process under video surveillance is an additional safeguard. Make several copies, and store them on a variety of media (flash drives, dvd's, digital video tape, on the company's HR servers and any backup servers, copies to attorneys, too.)

The participant was "harmed" in that he or she has two years of 2% of income that was taxable rather than pre-tax. Whether it turns out to be beneficial or not in later years remains to be seen.

I think a 2% QNEC is not necessarily "wrong" in this case, but counterproductive. If you make the QNEC, you will have to "forfeit" the excess money that went to Roth. To me, it's essentially a zero sum game. Otherwise, the participant is getting a windfall.

FWIW, I had a plan in that exact same situation. Employee received only commissions, and commissions were excluded from comp. AND, he was an HCE, no less. We included him in the ADP test as a zero. Consequently, the test passed. Without him, it would have failed. The year in question went thru an IRS audit with no problems. (PY 2008 I think it was.)

So instead of regular 5% and Roth 3%, they changed it to regular 3% and Roth 5%? If so, I think you would only have to switch the money from one "bucket" to another. But that would be only if the funds were invested identically all along. Also, proper administration of the basis.

Gotta get the money back, in my opinion. No other way to characterize the distributions under the plan.

is the HCE over 59 1/2? Does the plan allow for in-service withdrawals?

Some participants in a plan took final distributions who, as a result of termination of employment, defaulted their loans. However, the office preparing the 1099-R's did not issue them for the loans, only the distributions. Evidently, this has gone on for some years. How can we correct this? Can we issue 1099's currently? Are the ones that happened the past couple years eligible for SCP and older ones VCP? These aren't loan problems, but reporting problems as we see it. As always, your thoughts are appreciated.