BG5150

I've know people to do this, but why? What if the accounts lost money? Would you still give the participants a 3.5% per annum interest? Now the correction is merely punitive instead of compensatory.

Plan fails coverage and does not have fail safe language. What happens if the coverage failure is not discovered until November the next year. It's now too late to do an -11(g) amendment. How does it get corrected?

Does the plan have fail safe language?

What kind of retroactive amendment are you doing? If the plan has fail safe language for coverage, you need to follow the rules in the plan document for corrections.

Participation is not a protected benefit. Amend away...

In the case of models and such, doesn't the company usually pay the modelling agency or the company making the commercial/ad instead of compensating the model directly?

I doubt he's going to fire himself....

Filing and signing are two different things. And may be done by two separate entities. Are you signing the 5500, too?

Again. It all depends on what the 3(16) Agreement says. Often, the 3(16) agreement does call for the 3(16) administrator to sign and file the 5500. Who did the testing in the past? Same responsibility I would guess. (Other responsibilities MAY include implementing deferral changes, furnishing notices, approving distributions incl. hardships)

They should consult the service agreement they have with the service. And/or they should consult with their attorney how to accomplish the severance of service.

Plan offers loans that are paid back via payroll deduction. Is there any reason how/why loan repayments can stop? Can the participant ask the plan administrator to stop loan repayments citing they can't afford it?

And, having a 3(16) agreement in place does not absolve the plan sponsor of his or her fiduciary responsibilities to the plan. The buck starts and stops with them even if the 3(16) administrator is tasked with some responsibility to run the plan.

One-PERSON option. Just sayin'

We were just talking about this int he office. I just file full-year forms. I've had two plans (over 25 years in the business) that were audited post-termination and in neither case was it mentioned. Side note: I do try to get them done within the 7 months after the last assets leave. But sometimes you just don't know until way late. I had a plan on a record-keeper who was also the document provider. So, the sponsor does amendments with them. A few years ago, they did an amendment to terminate the plan, and all the assets were out by February. We did not get the census request back until April of the next year. That is the time we go out and download the reports. So, we did not know the plan terminated and was liquidated until 14 months after the fact. We just filed a full year 5500-sf and moved on.

What is a 3(15) service? Was that a typo for 3(16) services? if so, what responsibilities were given tot he 3(16) administrator? You need to look at the agreement.

Participant in plan elected to stop deferring, but the company kept up the deductions. The company has made her whole through payroll. We are correcting this as a mistake of fact. What happens to the earnings? The participant shouldn't keep it as a windfall. (This participant is an HCE and Key EE) I don't think the company should receive it either. Do I put it into the forfeiture/suspense account? Deferrals are the only contributions in the plan. I wouldn't want to reallocate the $200 as a PS as it will result in tiny amounts for people who don't even have accounts. Your thoughts are appreciated.

The deposits were made, just not the earnings yet. Recordkeeper says it has permission from its legal team to use the forf account to fund the earnings. Where are the regs that talk about interest on late deposits? I don't see anything in EPCRS about it.

Can a plan's forfeiture account be used to fund QNECs due from late deposit of deferrals and the attendant earnings?

I would just file the EZ, not the SF. One participant plans are not allowed to file SFs any more.

If you don't file for 2021, but remember, the client will probably get a letter some time asking where the filing is. Easily explainable, but still something to keep in mind.

When will the new tables be available?

That is my understanding as well.

OP should call Relius. Their help, I find, is pretty good.

ha ha ha

Thanks, WCC. I even chimed in on that brief discussion. Looks like its doable. I just need to see if my document will support it.