BG5150

Prior to the end of the tax year...

I just got the same thing, Lou. Do you use Relius for your 5500's? Though the message I got was not for an EZ. 'Twas an SF.

$1,500 for two or more plan years, no?

If he's paid $350k in 2021, how is he not an HCE for '22?

Has the comp limit ever gone up more than $5,000 in a year? Going back to 2008 it went up $15k to 2009 from $230 to $245. All other years since then it was $5k increases (with a few years of staying the same)

I don't mind all the questions. It just bugs me you are a Mets fan.

Plus earnings.

"Retirement" in a plan is severance of employment on or after Normal Retirement Age.

If a plan has a balance in the forfeiture account after the fees are paid, the remainder should either supplement an employer contribution or be reallocated as an Employer contribution. The Employer may not be making a Profit Sharing this year, but they could always "declare" one in the amount of the forfeitures to be used. Even if to pay expenses is the only thing checked int he adoption agreement, the remainder should still be reallocated. This is from the Datair Basic Plan Doc we use: [quote]Unless otherwise elected in the Adoption Agreement, the Plan Administrator shall allocate such Forfeiture in the same manner as a contribution by the Employer for the year in which said Forfeiture occurred. For each Plan Year that Forfeitures are allocated, the Plan Administrator shall designate the specific Employer Contribution or Contributions that the Forfeitures reduce or supplement. The Employer may elect in the Adoption Agreement to use Forfeitures to offset administrative expenses of the Plan to the extent the expenses are Plan expenses and not settlor expenses and any remaining Forfeitures shall be allocated in the same manner as a contribution by the Employer for the year in which said Forfeiture occurred. Forfeitures that are used to supplement a contribution will increase that contribution that was otherwise specified for the Plan Year. Forfeitures that are used to reduce a fixed required contribution reduce the amount that the Employer would otherwise have to contribute to the Plan for the Plan Year.[/quote]

Dave, you only have 176 posts to go to be a Senior Contributor!

If you have been the TPA for this plan for a while, you may want to ask yourself ('you' meaning your firm), why haven't the plan's forfeitures been timely allocated in the past? They are supposed to be used every year.

Peter, do you think anyone would get in trouble if they report $500k bond when it was actually $2MM?

Plan has the standard force-out of terminated participants option: under $1,000 cashout, and under $5,000 roll to an IRA. Plan is ongoing, not terminating. If the plan administrator cannot locate someone with less than $1,000 can they roll the money to an IRA and let the new custodian work it out? This is assuming the PA has satisfied her due diligence by sending mail to last known address and subsequently sent mail to a more recent address obtained via commercial means. All attempts resulted in returned mail. What happens is the mail is not returned, but the PA has reason to believe the participant is not at any of the addresses available through commercial investigation? I guess the people living there now are just throwing away any correspondence to the participant at that address.

It's yours

"When in doubt, max them out." (with the vesting) I just made that up just now.

FWIW: I just put the actual bond amount.

Yes. It is an employer-initiated reduction in staff, and it's significant. 50% of the staff (if the owner is the 3rd participant) is now no longer in the plan.

I list CPC and ERPA. The CPC implies the other ASPPA designations were achieved. I add then for a few reasons. One, it implies some sort of industry competence, even if the layman has no idea why it's there. It's there to show other professionals in the industry that I've gone through the rigours of the training. It's good for potential employers to see. From time to time a client will ask me what the letters are for, and I'll tell them. It helps garner some trust in my abilities. If/when I get the Tax exempt/Govn't plans designation, I'll add that in there. Maybe. Not sure yet. At least on these boards here and on my resume I'll add it. It shows people that I might know what the hell I'm talking about.

Maybe something was missed in translation. I'd rather have Relius deal with it than have to deal with it here...

Yes, use $340k. But be mindful of the 402(g) limit and catchups. So the QNEC is limited to $9,750 (plus $3,250 c/u) no matter what the compensation.

What if the person was fired (ER action), but the position was not eliminated, but restaffed. Depending on the timing of the hire, it could be nearly 18 months until that person becomes a participant. (Think someone hired July 5, 2021. With 1 YOS and semi-annual entry, they aren't in the plan until 1/1/23!)

I'd ask Relius that.

I think with the new EPCRS, there is much more latitude with retroactive amendments. Just be cognizant of who may be benefiting versus who may get a cutback of sorts.

(d)(i) If the employee was not provided the opportunity to elect and make elective deferrals (other than designated Roth contributions) to a safe harbor § 401(k) plan that uses a rate of matching contributions to satisfy the safe harbor requirements of § 401(k)(12), then the missed deferral is deemed equal to the greater of 3 percent of compensation or the maximum deferral percentage for which the employer provides a matching contribution rate that is at least as favorable as 100 percent of the elective deferral made by the employee. AND The required QNEC on behalf of the excluded employee is equal to (i) 50 percent of the missed deferral, plus (ii) either (A) an amount equal to the contribution that would have been required as a matching contribution based on the missed deferral in the case of a safe harbor § 401(k) plan that uses a rate of matching contributions to satisfy the safe harbor requirements of § 401(k)(12)...

I thought retirement was 30 days? For the others, is the plan sponsor gonna tell the people over 59 1/2, right be fore they get fired, "If you want any of your retirement money soon, you need to take an in-service withdrawal. Because soon, you won't be in-service with us any more..."