BG5150

Get a POA. call and ask for a supervisor.

true. i guess I'm just used to throwing those in with the rest of the reports in our annual "compliance reports"

402(g), 415.

Consult an ERISA attorney.

Automatic Enrollment question: Plan is starting ACA at 3% for all new EEs plus anyone who is currently deferring less than 3% of pay. How do you treat those who have chosen a dollar amount instead of a percentage?

An initial corrective QNEC must be applied no more than 12 months after the year of deferrals. In this case (I'm guessing), it's the 12/31/23 plan year. Therefore the deferrals in consideration are from 2022. The QNEC must have had to have been applied no later than 12/31/2023. However, if you wait until 2025, you are in EPCRS correction and can therefore apply a QNEC again. (Keep in mind, though, correcting under EPCRS, you cannot test otherwise excludables separately; they must be included in the test and might increase the QNECs substantially.

I see no problem with it if the DRO otherwise satisfied all the conditions to make it a QDRO. And make sure there is no ambiguity to which plan each provisions refers.

As long as no HCE has a higher rate than any NHCE then the test should pass on a current/contribution/allocation basis.

Plan excludes Union employees. January 2022, non-union employee, Tim, takes $10,000 loan for 5 years. May 2024 Tim becomes union employee and is now in an excluded class in the plan. What happens to the loan?

But if it's after 4/15, it's not a distribution of an excess anymore, right? It's just part of a 'regular' distribution.

Participant defers $30,000 all Roth across two plans in 2023. Age 35. ($15k each plan, say) It's too late to take out the excess. So does that mean the earnings on the excess will stay in there and get earnings on top of that and come out tax free in 40-50 years?

EPCRS says to distribute the money. However, I'm thinking because EPCRS says "in contravention to 401(a)30" and neither individual plan went over (a)30, we cannot use this method. And just to be sure, if a participant has their individual tax return on extension, they still cannot make the distribution because the regs say prior to April 15 and mentions nothing about the individual's tax deadline?

I'm just wondering if they can do an excess deferral distribution at all. Age 40. No distributable event. And if he can't take the distribution, where can I find the backup. A cite to EOB or the code would be appreciated.

In 2023, EE deferred 7,000 to plan A and 22,000 to plan B. Neither plan had excess contributions under 401(a)(30). Nor, individually had an excess over the 402(g) limit. Is it too late to correct the participant's excess deferrals? If so, where can I find that language? I looked in the EOB, but didn't see it. Is it in the code somewhere, too?

So just to be sure: the NHCE NEVER worked more than 1,000 hours and NEVER qualified for the profit sharing component of the plan?

Participant ina plan took a distribution in early 2023 from his account with Provider 1. Never cashed the check. In the interim, the plan transferred to provider 2. Meanwhile, the check got stale dated and Provider 1 sent the proceeds to Provider 2 who put it in their Unclaimed assets account. Subsequently, the funds got paid out to his IRA. The participant is looking for a 1099-R. Neither company is claiming responsibility for the 1099-R. Provider said because the check went stale dated, they have no responsibility. Provider 2 is saying they won’t doing it either since the distribution didn’t happen on their system. Any idea whose responsibility this is?

Plan as-written was participant directed but everything was invested in a pooled account. For a bunch of years. Currently, they are with a record-keeper and everyone is directing their stuff moving forward. What's the fix for the prior years?

An 11-g amendment letting them in for that particular year only. Done.

They don't have to. But I always continue to file. 10 minutes of work every year is less than than it's gonna take going back and forth with the IRS as to why the form doesn't have to be filed in the first place.

Does the plan have fail-safe language to fix coverage issues? If it does, do you even have 11-g available?

For such a big plan, I doubt is would be feasible. If you offer it to one, you have to offer it to all.

Dude, that was like almost 5 years ago! But I did forget about it. And there was no overall consensus. Thanks for the reminder.

Plan has a few participants whose religion precludes them from investing in any of the plan's alternatives. There are several hundred active participants. What duty, if any, do the fiduciaries/trustees have to include a fund/funds that would be eligible under a haram/halal investing strategy? It is quite a niche corner of the investing world (at least here in the US), and funds can go from performing to underperforming quite rapidly quarter over quarter. Would the these participants have some sort of religious discrimination claim if these types of investments are not offered? just on a fact-finding mission for now. I sent the plan sponsor to their attorney, but I'd like to get the community's take on this.

Company inadvertently added a term date to a participants census at the r/k. Subsequently, the participant was forced out (twice). Neither of the checks were cashed and they will be re-deposited into her account. However, there was 20% withholding from one of the checks. How is this usually recouped? (This did not cross tax years)

If a 403(b) plan excludes EEs who work <20 hours a week, are they excluded from the 410(b) coverage test by default?