BG5150

@ERISAlaw have you tried contacting Relius about this?

Tell him to speak with his accountant. But I believe that ship has sailed. Aren't deductible contributions due before the company files its tax return? (In this case sometime in 2024?) Also, they will be messing with the 2025 415 limit, as anything after Oct 15 the following year (for a calendar year plan) is considered a 415 addition in/for the year it's contributed. These are the rules as I understand them.

Participant asked for deferrals to be taken as Roth, but it was done as pre-tax. Started May 2023 through last week when they left. What is the remedy for that? In plan Roth rollover? The thing that gets me is it was the participant who was in charge of entering the deferrals into the payroll system. 403(b) plan, but that shouldn't matter, I think.

I miss the "good ol' days" when we could call Jacksonville and get an answer in 5 mins. From people who actually used the software. Not some guy in the programming department.

We are transitioning to FT William soon. Not sure if this is the reason, but it could be. I'm not privy to the C-Suite shenanigans here.

I'm sure Datai would be happy to share some screenshots and overviews and other marketing material. I used Datair in the past and I liked it. Less powerful than relius, but who really uses it to its capacity as a TPA? Unless you are a daily shop and need pricing and transactions at market, there are other options that are just as good but cheaper.

I don't understand the Profit Sharing --> Yes --> Type --> Match/NE

I don't have a link, but I'm sure there's a bunch of stuff out there. This is a boutique type of calculation, I would consult with your TPA or bundled service provider..

As to the W-4P. Did the distribution paperwork not include a section on withholding? Most of the forms I've seen have a section on taxes where they can elect more than 20% or any percentage if the withdrawal is not eligible for rollover. If so, I don't send a W-4P and just use the form.

Side note: If they know this NHCE will not ever defer, could they put in a triple stack match for next year to get the HCE up to the 415 limit, or close to it? 6% SH enhance match 4% discretionary match 85% of deferrals up to 6% of pay (or whatever formula works to max them out) Remember, only the discretionary match has the cap of 4% in dollars. The company cannot match on deferrals above 6% of pay in any of the tiers and stay SH compliant.

For the discretionary match to also be ACP SH, like Artie said, it has two independent constraints: The discretionary match piece cannot match on deferrals on over 6% of plan comp. Also, the total dollar amount of the match awarded cannot be more than 4% of comp. So, your discretionary match could be 66 2/3% of deferrals up to 6% of pay. It satisfies both of those conditions.

Wouldn't that feature have to be supported by the record keeper? Do houses like Hancock or Voya or Empower support it?

Your compliance software should tell you that all deferrals of the HCEs should be returned. (If an HCE is at least age 50 in the plan year, you can recharacterize up to $7,500 as catchup and not have to be refunded.) You cannot 'disaggregate' NHCEs from HCEs.

I went to 72(p)(2)C: "Except as provided in regulations, this paragraph shall not apply to any loan unless substantially level amortization of such loan (with payments not less frequently than quarterly) is required over the term of the loan." How can an adjustable rate loan be level with an adjustable rate?

Thanks all. I was leaning toward the fact that the employment is implied until outright, um, terminated. So we are going to forgo the RMD this year. We will check in with them in January to see if the relationship ended in late 2024. If it did, we will get the RMD done before 4/1.

Guy works April to November every year. Turned 73 this year. Since he is not employed on 12/31 does he have to take an RMD? Do service spanning rules apply here?

Does it say anywhere that the comp limit is the FIRST $345,000 earned? (for 2024) My doc says "Compensation in excess of $200,000 [as indexed] shall be disregarded for all purposes other than for purposes of Elective deferral." Does that mean someone who earns $700,000 a year, but doesn't start deferring until the second half of the year will get no match? Doesn't make sense. But plan sponsor and advisor want something in writing.

Plan name: ABC Corp 401k Plan Employer on plan doc: DEF Industries, Inc, d/b/a ABC Corp Plan Sponsor on 5500: ABC Corp is it ok to just list the d/b/a as the Employer

Sorry, just realized the OP was way misleading. Edited. This all has to do with, and only with, the 5558. No 5500 or 8955....

Wrong on the 5558.

I've been at a few that did. years ago, I was an "Sr Plan Administrator" Our rates were: Admin $75 Plan Admin $175 Sr Plan Admin $190 (dang I wish I was getting paid $190/hr) Manager $225 Actuary $300 We normally wouldn't bill for something like responding to a 5558 letter, unless it ran into several hours of work we were not anticipating.

Plan assets transferred from Carrier A to Carrier B in 2023. Auditor is looking for reportable transactions (those over 5% of assets). I've never completed that for any transfer between carriers before. Have you? I've had several other plans change carriers mid-2023 and none of them were asking for this. The exception is an individual account where the participant directs the transaction, but the participants in these cases don't direct these transfers. Do I have to attach a schedule per 4j on the Schedule H?

This is why you don't wait until 7/30 to send them. Do it in June. If you get the 5500's filed by 7/31, great. Just don't check the box. Larry Starr (an OG poster here) used to send out his 5558's in January. (At least I think it was him. If not, someone here did that)

Plan name is different than employer name. But we filed the 5558 with the ERs name as both the ER and plan names. For example: Employer: Connecticut Fencing Company Plan name: Fences 'R' Us 401(k) Plan 5558 filed with plan name: Connecticut Fencing Company 401(k) Plan EIN and PN are correct. Will we have a problem? Software is giving me a warning.

Thanks!