BG5150

When was it deemed? 2020 or 2021?

The DOL made the change, so the preparation software is giving warnings whenever an SF filing is created with only 1 or 2 participants. They seem to only be warnings. I've filed several forms successfully so far.

That is correct.

Relius does the same thing.

Fair point.

I would be careful about that. Do you also explain to them they can also roll over the funds to an IRA or another qualified plan? They may take your explanation to fill out the form now as advice to take the lump sum distribution. Could that make you an unwitting fiduciary?

Unless those senior managers are owners, or relatives of an owner, then they are not HCE year 1. Is there even a coverage test even needed?

I am getting conflicting advice on my end. Does the default 10% withholding apply to RMDs (unless they opt otherwise on W-4P)? An entry on Investopedia says this: However, that [1] points to the early withdrawal tax, not withholding. Does anyone have a specific site as to whether the default 10% withholding applies to RMDs? I always thought it did.

I meant, can you have someone eligible for the plan, but not get safe harbor b/c they are otherwise excludable.

Can you OEX someone out of Safe Harbor?

It is NOT retroactive. Only prospective. They need to correct the error for '20 and thus far into '21. Then then can amend the plan to have 21/1 eligibility requirements and as long as the employee did not satisfy both conditions yet, he/she is out of the plan until they do. I don't think anyone said it would be retroactive...

After the correction, they can amend the plan to have 1 YOS and the employee would be out (unless they work(ed) 1,000 hours in a year along the way). Participation is not a protected benefit.

We've never dated ours and never had a problem.

I figured this was an S Corp because husband is also direct owner. To me that implies partnership taxed as a corp.

She doesn't take W2 at all, or just on the commissions? Isn't there something requiring owners to take "reasonable" W2 compensation in order to calculate some taxes?

So, bad news. We cannot use the PBGC program for this because the date of the plan termination is October 2016. The program is only available for plans terming on or after 1/1/2018. (I thought it was October 2017, but still out of luck...) Any other thoughts on how to get around the spousal consent issue? Because these people are missing, we can't even be sure if they are married or not.

You may run into a problem though, if your opening participant balance at BOY 2020 is less than EOY 2019. That number cannot go down, only up (new participants entering 1/1). Might have to amend the 2019 filing with the correct participant count. You can leave the audit.

Nope. If participants are under 80, you MUST file as a small plan.

I think putting the money into an IRA as basis is the best way to do it. Side note: the lady was found. When they said she "went to Uruguay," we thought she went back home and finding her would be difficult. But she was only visiting and came back. But this was a good academic exercise and now we have a good place to start if this ever happens again.

What would happen if you had 10 NHCE in 2015, but only 2 of them are still employed? Could you just give a QNEC to just those 2? What if it was 2 out of 15 or 4 out of 30?

But chances are it will be returned, just like the unopened distribution paperwork.

I'd be hesitant to do that so soon.

Problem is the plan is terminated, so the suspense account is of no value.

If the person is no longer at that address, what's the point?

"After tax" or Roth contributions? Did you check with your 401(k) custodian? Maybe you are looking in the wrong place.