BG5150

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.

Give her a list of all the people who cased out in the plan term and tell her to contact them for 45 cents each, the portion they got of her forfeited money...

i think so.

Did the original DL include the EGTRRA good-faith and 401(a)9 provisions?

Did the financial institution give a 402(f) notice? Going forward, I would inform the trustee that a Notice MUST be given, and since nobody can really monitor all the financial institutions with which the participants invest, it's best the requests come throguh your office. BTW, the penalty for not providing the Notice is $100 per incident (up to $50,000 in a year.) http://www.irs.gov/irm/part4/irm_04-071-018.html#d0e1092

If the plan has fail-safe language, I don't think an amendment would be needed. He would have come in per the document. I thought those situations were only for the year(s) in question, and that the eligibility doesn't carry over.

How do you know where to find stuff like that?

I think it's a-flappin' again...

This is just a side note: The $70 account. Is that all there ever was? Or was there a total distribution of something larger and this was just a trailing contribution or dividends or something along those lines. I usually don't charge the second time around for the small stuff. Especially if I can use the previous paperwork and don't have to send out a subsequent tax notice.

Which professional titles do you put after your name on your business correspondence? Hopefully, by the end of the year I will have: QKA QPA CPC ERPA Now, that's a handful to place on a signature line. For example, this looks a bit cumbersome: Jim McGillicutty, QKA, QPA, CPC, ERPA So, which ones do you put?

That would be a heckuva commute from Poland!