BG5150

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?

Were you allowed, once allowed, to take away the CRDs before the statutory expiration? Wouldn't that be anti cut-back? Was it specifically allowed.

Didn't the CRDs expire? Why put an end date?

Sure. You had participants, I'd guess. So file it with all zeroes except the participant account.

Hardships are for immediate and heavy financial need. The former does not apply.

No deduction yet. For 2020. Taxes not filed.

I figured. Just grasping...

In 2020, ER deposited $100,000 to a holding account in the plan (I know!). Maxing out the owner and giving 5% to the EEs results in a $70,000 allocation for 2020 and passing of tests. Does he have to allocate the remainder to the participants? Or can he take back the funds as a Mistake of Fact?

Based on the letter of the law, assuming the plan uses the safe harbor rules, I'd say no. She is not purchasing a principal residence. Nor are moving expenses listed. Does the employer not provide moving expenses?