BG5150

^^ Nope

Were these people ever "Active" before? And then "Inactive"? If so, I think they get automatically reset to Active. I don't think it has logic to properly account for someone who satisfied the eligibility requirements but quit before the entry date and then came back.

Use the check date.

Be careful about the plan specifics. If the plan says all participants get a top heavy minimum (instead of non-key), and 401(k) contributions are made, the owner may need to give herself a up to 3% contribution regardless if she wants to make a profit sharing contribution.

for the record, he counts in coverage as not benefiting.

I think you would also have a deduction issue. The money already in the plan was probably deducted for 2009.

And have a procedure in place to help ensure it doesn't happen again.

Have the person pay it back. W/ interest. No harm, no foul.

Was it done this year?

Then what IS the purpose of the 30-day "extension" for 415? Why not just make it last day of the next plan year?

Ours is "hourly rate based on the complexity of the order." You can do the math using your firm's ad hoc pricing. One that says "pay $20,000" is easier than "pay 1/2 of acct balance as of January 8, 2009" which is easier than "pay 1/2 of account balance plus investment experience thereon as of October 23, 2003."

I would refund the money to the participants. Not eligible for rollover. No withholding required. From the IRS site on fixing plan mistakes http://www.irs.gov/Retirement-Plans/Fixing...tribution-Plans

No it's not. The participant should have changed his or her address with either the plan administrator or the asset provider.

FWIW, I believe you can charge back the participant's account the fee.

Don't you need someone's permission to do a credit check?

Boy, if I had a nickel for every time I said that about a retirement plan issue, I could probably retire...

Do you even have the records to do all the old 5500's?

I couldn't find it in EPCRS now, wither. But it is in the "Fixing Common Plan Mistakes on the IRS website: http://www.irs.gov/Retirement-Plans/Fixing...tribution-Plans

One of the corrections is to distribute the inadmissible deferrals to the participant (plus earnings). Taxable, not eligible for rollover treatment. I do not think the 59 1/2 penalty applies.

Do you have a link to this? I cannot find it.

Have her verify that it wouldn't be a new loan from the proceeds from the rollover, but actually rolling over a prior obligation. Side notes: how do you get around the fact that the loan defaulted on March 31? What will the correction to get it caught up be? And is John Hancock going to calculate the interest through the date of distribution if it is going to be rolled over?

Will the new plan accept a rollover of a loan? I don't know of many plans that will let you do that.

Has anyone mentioned fiduciary responsibility to them? The DoL takes a dim view on brokerage-only setups. From FAB 2012-02R, Q: 39

To what lengths should a sponsor go to obtain an address of a "lost" participant in order to supply the 401(a)5 notice?

Unless you are in the OEE group. Those in the Otherwise Excludable Employee group are not required to get the gateway unless the benefits in the OEE group also need to be cross-tested (which is highly unlikely). Think of it as a separate plan. I replied in the spirit of