BG5150

Yeah. Plan Documents. Doesn't Relius have a separate bonus election form?

The bonus election form from Ft William reads (in part): Note that the year is in there. I think it could be implied to be just for the 2012 year. However, it could be construed to mean everything after the dates entered. You may want to adjust your forms to say they are for a specific year only. Or even for a specific bonus. Just to avoid any confusion.

This was my first thought.

Mike, I've been going with this over the years. From the EOB (Chap. 8, Sec. V.) (emphasis mine)

Is everyone considered to be in his/her own group? If so, I believe you do not pass the classification test and therefore cannot rely on the ABPT. Am I right in this?

The EOB seems to think it's okay to do that. But be careful of stuff like that happening only to HCEs. (Chapter 4, section IV, Part F2, 2(f))

I think if there were any full-time employees, they would have accrued 500 hours in the plan by now. 40 hrs/week x 13 weeks is over 500 hrs. 13 weeks from 9/1 is the last week in November.

Are we talking a huge amount of money? Taxes on a few hundred dollars I don't think the IRS is gonna go crazy over. Taxes on a few hundred thousand, that's another matter. Especially in a case like this. What about this: open an escrow account, and take the RMD and place it in there while you go about the business of locating the beneficiary. The money is out of the plan and safe for the time being.

If the participant is in more than one, it could read: 50% of the ABC Company Profit Sharing Plan, and 50% of "The 401(k) Plan" sponsored by D.E.F., LLC

Is the employer trying to get more money into participant accounts? Above the MP contribution? Looking for a bigger deduction? Could be some reasons they want to do so this year.

I think you can always get rid of the brokerage accounts. That's not a protected benefit.

As an aside: the daughter was adopted, right? Otherwise, we are to assume she gave birth at 62! Has anyone checked with the current occupants of the apartment? Maybe they know where the participant moved to.

Why not just leave them there to offset (and maybe completely cover) the next remittance?

I think you are over-thinking this a bit. You don't have a new plan, just a different plan document. I would certainly have the new plan document effective at the same time or before the money is transferred from Fidelity (because of the brokerage account). Unless the basis of the Employer contribution changes, I doubt it would matter under which document it was made. I would produce a blackout notice and have it in the file. This way, the owner isn't going to try to sue anybody if he comes across that once-in-a-lifetime investment opportunity during the blackout that he wasn't allowed to get into. Is there going to be more than one brokerage account for each source? Or are you going to value the money sources once a year or so?

Maybe impress upon the laggard what the penalties are for a late filing.

We just got one. And we didn't report anything on the 2011 5500 as being late. (We didn't have all the data available to make that determination)

$300,000

I just removed it. The left-right thing has always been there. Soon, there should be a "QPA" in there, too. I'm trying to think up something witty to steal from someone to replace the stupid question sayjng. (Well, at least someone was looking at my signature! Thanks for noticing.)

Her you go: http://www.relius.net/Events/seminardetail.aspx?EID=26180

...or you amend the document to allow the discretionary match on top of the SH match. The SH match will get you out of ADP. The SH match will get you out of ACP. The SH match + a restricted discretionary match will get you out of ACP. The SH match + discretionary match above the restricted formulae, you need to do ACP test. But, the document has to allow for it. Is it too late to amend for 2013? maybe not.

If almost half of the employees make less than $34,000 not one of them could ever hit the $17,000 mark.

What would happen if Mr. Charged took 50% in January and that was it?

A closer read shows: "Such Participant's benefit shall be payable, in cash or in-kind, in one lump sum payment." (emphasis mine) So, I guess it's all-or-nothing. But are the terms codified anywhere?

I believe you can distribute the account once it goes below $5k again. But to what lengths to do go to accomplish that? As TPA, I don't think it's part of my job to check it every day. David, when did the "if ever over $5,000" rule change? I remember hearing about it, but it was at a time when I was doing (pretty much) customer service work, and wasn't much in tune with the regs.

What's the difference between a "lump sum" distribution and a "single sum" distribution?