BG5150

Well, I'm taking ERPA part II in early February. That'll give me some 4 1/2 months to do all 4. They are multiple choice so I don't think they would be about articulating complex issues. Just guessing, as I've never seen the questions. Lemme make sure I pass ERPA first and then I think I'll be able to finish the modules with 10-15 hours of study time each.

Well, I'm a QPA now. (pauses until applause simmers down) The next logical step is CPC. My question is on the modules. ASPPA has a "deal" on the 4 core modules: $405 for the 4 core modules. The thing is, they "expire" at the end of June. Any ideas if completing the 4 in that time is feasible? I'm not sure of the depth and breadth of the topics. For the modules, at least, do I have to LEARN the material? Or is it sufficient to be a competent researcher? And when researching, what's the scope of the questions? Website says 5-20 hours of study. Is that reasonable? Your thoughts are appreciated.

Were her gross 401(k) contributions $10,000? 'Cause she can't take the earnings. Also, she should take the loan first. She needs to take all available loans & distributions before she can take a hardship.

"Deferrals" mean 401(k) deferrals. EmployER contributions are NOT part of compensation. If you have access to the ERISA Outline Book, there is a chart in there that compares all the stuff that gets included for compensation for plan purposes when using safe harbor 415, simplified 415, W2 or withholding wages. They are all pretty close, but there are some subtle differences.

have you asked your document provider what they think?

Brings back fond memories of grammar school.

Darn, Andy. I usually just mimeograph posts at BL and send them to my clients to help in their defense during audits and investigations.

Or you can take ASPPA's intro Retirement Plan Fundamentals tests. PS: It's Sungard Relius One last thing: you will never really get 100% of compensation for 401(k), as some will money will be required to be withheld for Medicare, etc. Last, last thing: your plan document should (has to) spell out what the correction of a 415 failure will be. Usually, it's a refund of 401(k) money first, then Employer money.

When did you send him the form? Did you follow up with him or JH to see if the RMD was done? Did you impress upon the Employer that not only was the RMD an individual tax issue, but a plan qualification issue as well? I agree with those above int hat you make sure the RMD is done and then write a mea culpa (or a JH culpa) saying "I really meant to do this on time, but someone messed up." And, an RMD does NOT require the signature of the participant, just an authorized signer of the plan, so if there is someone else at the company that signs off on forms, it could have been done before 12/31.

You don't classify match as catch-up. There should be somewhere in the document that says whether or not the match will apply to deferrals classified as catch-up. If the match does not apply to catch-up contributions, you forfeit the amount that was attributable to the catch-ups. If it does apply, then you do refunds of the funds per ACP testing rules.

Does the plan not allow for catchups to match?

If the loan porgram says payroll deduction only, then how do you handle a loan to an owner? Besides, the loan program can be changed at any time.

My cape doesn't flutter any more. Can we no longer use .gifs for our avatars?

If there ever was an SPD it sounds like the plan was at one time covered under ERISA. That is an irrevocoble commitment. They can't decide to not be covered under ERISA any more. Or did they do an SPD out of the goodness of heir hearts?

From the EOB: Chap 5, Sec II, A.3c

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.