BG5150

Catchups are excluded. So, where does it say that if my earned income is $19,500 I cannot put in $26,000 including catch-up. Assuming no other contributions, my 415 comp is $19,500 and my annual additions under 415 are $19,500. I haven't violated 402(g) as that is merely a dollar figure. (Not that I would allow this, but now I'm curious as to what reg is involved.)

402(g) is merely the dollar cap. Isn't there a code section that also caps it at 100% of income?

What is the penalty for filing a 5500-SF instead of an EZ for a one-participant plan? Is anyone really going to care?

Have an S-corp client. Father owns 100% of company. Daughter only employee covered. Can they file an EZ? Does attribution count for this?

I'm not sure what you mean by the bolded. The only people who must get at least a gateway are those who are getting a 401(a) contribution. Match does not count. So unless the plan is top heavy, that person doesn't HAVE to get something if they are in a class that is receiving zero PS. However, if the sponsor wants to give them something, then they will ahve to get at least the gateway. Any nonelective 401(a) contribution (except a QNEC) is subject to the plan's vesting schedule for that money type. Remember, if the sponsor makes a PS, they lose the TH pass due to the SHMAC. If the plan is TH and that person must get the TH contrib, but doesn't meet the criteria for a PS, they still must get the gateway.

I don't think the last day of the plan year matters much if it's w/in a couple days. I always just use the end of the month that the last withdrawals happened. Again, I like the round numbers.

Then why are there two lines if only one is needed? It seems the administrator MUST sign the form. The Sponsor is optional then? If the Administrator and Sponsor are different people, do they both have to sign? What if they are different people and ONLY the Sponsor wants to file? The edit checks in the EFAST system will reject a filing if only the Sponsor signature is present.

What if the snail-mail comes back as undeliverable? Does the Plan Administrator have to follow the lost participant rubric to get them SPDs and SARs? Does anyone really do that? Side note: what about participant statements? They must be furnished with at least one per year. I know some custodians will just turn off mailing the statement if it comes back as undeliverable. Should it not fall to the plan administrator to try and find these people?

One of the selling points of a 3(16) service is that they sign the 5500 for their clients. I understand that a true 3(16) administrator can sign as Plan Administrator on 5500's. But I always thought that if the Plan Administrator and Plan Sponsor were the same, you only needed a signature on the top line, Plan Administrator, but if they were different, you need 2 signatures. So, obviously the appointed 3(16) is NOT the sponsor. Wouldn't two signatures still be necessary? If not, why are there two lines? If you only sign as sponsor w/o administrator the filing fails.

I know there are proscribed steps to find lost participants before you can shuffle their benefit to an IRA. However, is there such a rubric for when participants cannot be located when they have to be sent an SAR, SPD or SMM? For example, plan is adding installment payments as a distribution option. An SMM is prepared and mailed to all affected participants. That will include any former employees with a balance in the plan. What happens if some of the SMMs to former EEs come back as undeliverable? Obviously, the SAR will come back, too. Are there rules similar to the ones for the forced distributions? If so, does anyone ever really take those steps?

Two separate questions: (PY 7/1 to 6/30) 1) PSP has last day requirement only. If someone's last day worked is 6/30, do they a PS allocation? Why or why not? 2) For 5500 participant count. If last day worked is 7/1, are they considered 'active' for 5500 purposes at BOY? Why or why not?

Amending union people out if they are in there, might violate a CBA. Be careful before including or excluding them.

What does it have to do with a qualified plan?

Peter, I don't think there's anything that says they couldn't file on 11/24. I just like round numbers. And just like that, tomorrow is December 1. And tot he OP, you do file on a 2020 form but just update the plan year. Talk to your software vendor on how to do that.

Whew, I thought I was the only one...

I'd just do it on December 1. Make PYE 11/30/21.

Found one! Thanks to anyone who was looking for me...

Does anyone have a Disclaimer of Benefits form I can use? I'm sure there's a standard or I could probably create my own, but I don't want to re-create the wheel. We have a spouse who wants to disclaim the benefits of his deceased spouse and have the kids get the money. As I understand it, he cannot disclaim the benefit and choose who it goes to, but that's not an issue as terms of the plan say after the spouse, the benefit goes to children equally. In this case, not in RMD pay status.

If there are no union or leased EEs then no problem amending them out. Don't even have to provide SMM as no one is affected. Just make sure they get a new SPD to give out.

Here's hoping you and yours have a great Thanksgiving holiday weekend! To my friend in Canada, Happy Belated Thanksgiving. To those elsewhere, have fun working tomorrow! LOL

Does your document software have it?

When we do amendments the software has an employer resolution template where they and both add and remove trustees. In the adoption agreement, we just delete the old Ttees and add the new ones. The memorialization (is that a word? I don't think so) comes in the resolution, not the plan doc.

(quote edited for clarity) Your response here seems contradictory (to me). You first say expenses can't be paid. Then you seem to say, well, why not; go ahead.

Good point, shERPA

416(g)(4)(H)