BG5150

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)

I know that the 3% Safe Harbor notices are no longer needed. But what about an existing plan that is adding it? Do they have to give a notice the first time? If we do an SMM, it's not due until 210 after the plan year of the amendment! Same thing for an SPD of an in-effect plan. What about a start-up plan? Is a notice due? Or will the SPD suffice?

Why do auditors ask for prior year 5500's? All the filings going back to 2009 are online, and can be downloaded in an instant.

Company missed a deferral opportunity for one employee. Failure to implement an employee election. No doubt here. Correction is 50% QNEC. I get that. But to make up the match, it's: What does "nonelective contribution for the matching contribution" mean? Is it a convoluted way of saying it has to just be a match? If not, what kind of nonelective contribution? This is NOT a safe harbor plan, so it won't be a QNEC.

You can do it in-year, I beleive

Can you share that correspondence? Redacting any privileged info?

Why do you have to remind the participant EVERY YEAR? Are they going to forget there is a match? And for most people, I would think, just the 3% employer contribution isn't much in the way of retirement planning. The way (I think) it should be done is that you look at what your desired income after retirement should look like. Then you see what percentage of your pay should be put aside each year to get to that number. Then you figure out how much of your pay to defer in combination with anticipated employer contributions. For example, if I think 7% of my compensation will be enough to fund my retirement, then, with only a 3% NEC, I would need to defer 4%. If there is a dollar-for-dollar match up to 4%, the I will defer 3.5%. If no employer contributions at all, then 7%. As long as the Participant has access to the information on employer contributions (NEC or Match), then why MUST you go out of your way to tell them about ONLY the match EVERY year? That said, why not have to send a notice out each year for ALL kinds of matches, not just the safe harbor? I think it would be more important ro remind people there is an hours requirement and/or last day requirement for a match. It may keep someone on the job through December. How cruel is it to deny someone a match if they leave the company on December 20? Might they stay if they knew? Check the SPD you say? Them check it for the safe harbor match then, too.

Then how do you know there were excesses?

Plus, I feel so important now! (Don't worry, the feeling will pass quickly)