BG5150

I agree with chc93. If deferral elections were in place, you use those. I think the OP is beyond the time to have the participants make up the missed contributions--you need at least 9 months left in the plan year to do that (under SCP). How long did this go on? Did the people think they all got raises all of a sudden?

I would say that if two paychecks were issued, you could make the case there were two payrolls. They just happened to coincide.

You can use workplace e-mail, but they have to be voluntary given. DoL website: http://www.dol.gov/ebsa/newsroom/2011/ebsa091311.html Links to: http://www.dol.gov/ebsa/pdf/tr11-03.pdf The stuff is a year old, but I can't find anything more recent.

No one?

A safe harbor plan that has matching contributions MUST cut the suspension to 6 months. From 2012 ERISA Outline Book, p. 6.209 (emphasis mine) Other plans may have longer suspension periods (such as one year).

I thought the irrevocable election to not participate had to apply to ALL plans of the employer. You do not need to get separate elections for each plan.

Check with each carrier. Some will allow you (or the plan sponsor) to edit or add to their disclosure to include the TPA fees or anything else that might need disclosing. Some carriers' deadlines for doing that have passed, but others may still be open. If it's too late for the first one, maybe you can do your own this time around and then piggy back on the carrier's notice next year.

Someone in my office said the current rules say that the SAR must be distributed before the 5500 is e-filed by the sponsor. Is that true? If so, what regs changed?

Ask around on LinkedIn. I'm sure you'll hear about a bunch there in the myriad retirement plan groups.

I have an owner who defaulted on a loan a few years back. My recollection says that this is a PT--we cannot just do a regular default and have him taxed on the remaining balance. Where does the code address loans to owners and the consequences of default? Company is C Corp.

I have a client that has a former owner (50%) still paid via K-1. They say he is a "contract" partner, and shares no part of capital nor profits. Would I consider this person a former key? Can/should he be paid on a K-1? The K instructions say its for people who share in the profits or the capital.

Silly question, maybe, but is the Profit Sharing discretionary or is it a stated formula in the document? This is a great example as to why it is not a great idea to "pre-fund" profit sharing. If you feel the need to amortize the PS cost over the year, put the money in a separate account and then move it all to the PSP trust after the year is out.

Assuming the vested account balance you list does not include the loan, here are my calculations: Account Balance: 15,850 (after loan is paid off) Outstanding loan: 4,150 Total Balance: 20,000 50% of total account balance: 10,000 Minus outstanding loan: 10,000 - 4,150 = 5,850 Available loan: 5,850 Some providers consider the loan when they give your balance. Be sure you are using the right numbers.

So there are no footnotes or anything? (except for large-plan filers) Just prepare it with the same opening balance, put a note in the file and move on?

Yay. It's been a while since I've done a "manual" calc of an excess.

I agree w/ K2. For PLAN purposes, it has to be done by the end of the next plan year. For the company's TAX purposes, it has to be done by the time they file their tax return. If the deposit is made after the tax deadline, it is deductible in the year it was made. However, I think you may want to check 415. The firm has 30 days after the taxes are due to deposit the funds so that the amounts count toward 415 for the previous year. If made after that 45 day period, it counts in current year. (Treas. Reg. §1.415©-1(b)(6)(i)(B))

My document provider is telling me that if the plan has a $1,000 threshold for mandatory cashouts, I must include the participant's rollover account in the determination. I was under the assumption that if after calculating the balance to be under the threshold (be it $5,000 or $1,000), any mandatory cashout (or auto-rollover) would include the participant's rollover account. they referred me to Notice 2005-05 which deals with auto rollovers. I don't see anything in there that would contradict my thoughts on the matter. Any other insight?

One of the companies I work on has a non-equity partner who made $350,000 on his K-1. Is he considered a key employee? I am assuming that the 350k is more than 5% of the profits.

I come up with 6,397.32 Testing comp: 106,800 Deferral: 12,000 ADP: 11.24 NHCE ADP: 3.25 To pass test, HCE max: 5.25 Difference, 5.99% 5.99% * 106,800 = 6,397.32 That leaves 5,602.68 in the test. 5602.68/106800 = 0.525

In the past, a plan's 5500 was produced using a cash basis. They are now our client. We generally do the forms on an accrual basis for our clients. If we change it to accrual, how do we go about it? Small plan filer. Just adjust in other income what's necessary? Any thing else? Is there a footnote somewhere?

Have you tried using gross comp?

What does this mean? Not stock or property?

In a plan that uses the safe harbor basis in determining hardships, the above is not applicable. Whether the invoice is paid or open not withstanding, in a safe harbor situation, I could have a million dollars in cash sitting on my kitchen counter, but I'd still be able to take money out of the plan to pay for funeral expenses.

Does the plan use the "Safe Harbor" method for determining hardships? If yes, all you need is a bill from the funeral parlor, and make sure no other distributions or loans were available under all plans of the employer. That's it. No statement saying there are no other resources needed.

Are you getting 8 different answers?