BG5150

To my knowledge they don't. And, to be honest, I don't trust that they apply the accumulated amount rule properly either. I've never been in a position to check.

I don't think so. Is someone asking for a list of HCE & Key EEs?

To me, the term "and to what extent" means they can put a cap on those distributions, or choose which sources are allowed. At any rate the window has now closed, so it's a moot point.

So in this case the A/P can't take their money either whenever they want or if/when the participant has a distributable even, or when the participant terminates? They have to wait until the participant dies/turns 72? Is the participant's account so severely restricted? They can only take the money at retirement or death? That's harsh! Check with the document provider for an absolute answer. You may be looking in the wrong spot. The Datair Doc I deal with let's the employer to allow distribs to A/P a different times, like attainment of retirement age, severance of employment or even just when the QDRO is effective.

I've seen on a platform that you can invest different sources into different investments if you wanted to. Like put your deferrals into the life cycle fund but invest match into something more aggressive. But I've never seen a different set of investments offered from one source to another. Like funds A, B, C & D allowed only for pre-tax and funds D, E, F & G available only for Roth and maybe funds H, I , J & K for match.

Mary do you mean that for a plan with both pre-tax and Roth deferrals both sources have the participant invested in the same funds? OR that they can invest, say, into funds A & B for pre-tax and funds C & D for Roth? Or are you asking if it is ok for the plan to offer funds A, B, C, D for pre-tax and maybe funds A, B, E & F for Roth?

10% withholding unless otherwise elected by the person?

That's for the NHCE %. I'm using HCE % and working backward. But that little saying is ingrained into me for many years...

This is a question for the employer's counsel, IMO. Is the employer reasonably certain the information was received? Are the notices sent to company e-mails or personal e-mails? If they are going to a home address, they must give consent first, I believe.

Is the company tracking that the e-mails are successfully delivered and read?

Take the HCE ADP and subtract 2. Or, if HCE % is under 4, divide by two. If it's over 10% divide by 1.25. Just a thought.

But in future years, if someone is eligible to make a deferral but somehow is not eligible to get a match, they are NOT included in the ACP test. Still have to pass coverage though.

Not an answer to your question, but a best practice is to require anyone who does not want to participate to affirmatively make that election in some fashion. If they don't make an election, keep bugging them.

What if the plan administrator is the employer, but the employer is no longer in business?

Try VCP

Who is responsible for filing the 5500--plan administrator or trustee? We have a client whose business closed. Unbeknownst to us, they terminated the plan and paid all the assets in 2021. Obviously, they have to file 2020 and 2021 5500s. Client says "who will know" if they don't file any more 5500s? I know that answer. Plus, he says, there's no more money to pay us for the 5500. But if they don't file, who does the IRS/DOL go after? The plan administrator or trustee? Can IRS/DOL go after his personal finances? I know for fiduciary breaches they can do that. Is filing the 5500 a fiduciary act? I want to impress upon him the gravity of the situation, but I want to properly put the fear of God in him.

If you are in the UK, I doubt anyone can help you on these boards. We are US-based.

And I bet there is a great lobbying effort by the annuity industry going on...

How would removing the CRD differ from removing any other in-service withdrawal? What makes it different?

Just making sure I wasn't cramping

What happens if there's J&S and the participant does not complete the paperwork on time?

If there was no withholding, I'd want something in writing, just to chronicle it. Good thing is if it's a W-4P, then I believe the election is good until revoked. With W-4P "equivalents" I'm not sure if that election carries forward. And, if the RMD is distributed without the participant's consent, then, IMHO, the 10% MUST be withheld.

2021? or 2020?

Wow, I used "allowed" a bunch right there...Better query: Once CRDs were effective for a plan, was it permissible to remove them before their statutory expiration? Wouldn't that be a cut-back in benefits? Or were they specifically allowed to be put it and taken away at the sponsor's or administrator's discretion?

Was 10% withheld for federal taxes?