BG5150

Was a 5500 filed for 2019?

Given the fact there were no contributions in 2019, was 2020 in fact the first year of the plan? Then given the 12/31/20 balances, the plan was TH for '20? And if the Key EEs only had a 1.5% rate, then the TH contribution is only 1.5%. Better than 3%!

How big were the RMDs? A few thousand each? Tens of thousands? Hundreds of thousands? I sure the govn't gets less lenient the bigger the un-reported payouts got. Could the IRS disqualify the Plan for something like that? Obviously some sort of operational failure on part of the Trustee to assure the participant (himself) received the proper tax reporting documents. Also, does the govn't cross check between r/o on 5498 and 1099-R under the same SSN?

I'd speak to the manager. There might be a systemic failure of not producing 1099's for most if not all their clients...

What if 2020 is the first year. That will be TH, too. Does the 2021 SHM do double duty for the '20 and '21 minimums?

Was this the first year? Could there have been the prior year/3% provision? The person who got the refund, is she the only Key EE? Was there a match? If so, how much does she make? $2500 is 3% of $83,333. Could it be the key allocation this year was less than 3%, so the TH is less?

How/why was this not discussed with the client beforehand?

This is my prime gripe with EPCRS's correction of this issue. It leaves zero responsibility to the participant. I ask for 5% of my pay taken out, and then nothing happens. Free money baby! I'm almost hoping my ER messes up...

I wouldn't worry about not reporting them this year. Has anyone been in trouble for missing ANYBODY on an SSA, let alone someone who missed their RMD payment?

Yes they are.

I believe you can eliminate it prospectively. That is, r/o money in the plan now (and the future earnings thereon) is protected. But any r/o money coming in after amendment date can be restricted.

They hit 415? Or did you mean 402(g). And don't forget, if there was any sort of match, they get the full amount of the match they would have received.

You knew what the deferral % was supposed to be, so you don't need to worry about ADP percentages. Calculate how much was to come out of each paycheck and you have the missed deferral. Your QNEC is 50% of that. From EPCRS:

Are they contemplating the father's balance was artificially inflated? For what reason? So he could get a higher payout? Or to lower the son's balance? How far back does this go? Did your firm do all the allocations? Is the atty questioning your integrity? Who is going to pay for all this research?

And if the ex-spouse thinks the account is lower than it should be, she should get the old statements and see how they track out. Do they think the plan was purposefully under-valuing his account all along? Or just the most recent valuation.

Opening balance: $A Deferrals: $B Match: $C Distribs: $D Total plan earnings: $X Earnings basis: PARTICIPANT [BOY + .5(contribs) + adjs - distribs] / Plan [BOY + .5(contribs) + adjs - distribs] Total participant earnings: Basis * Total Plan Earnings That is all the attorney needs.

Only a handful of other employees. However, it only seems that a retroactive amendment is allowed via VCP. Plan has $650k in plan assets, so VCP fee alone is $3,000. Plus, our boss doesn't think we should prepare the filing. (I would have no problem doing it.) So, add in an attorney's fee for doing it.

High end boutique. Around $250k in income every year. Around $25-30k PS for 6 or seven years. Plus earnings.

'Twas the trustee who too the distribution. The trustee was informed she could take an in-service withdrawal eligible for rollover. Not by me! So, the Ttee thought she was acting within the rules of the plan.

Update on the facts: The distribution was for $220,000. There was no money source (yet) as the money is in a brokerage account for the participant. The brokerage does not separately record keep the sources; we do that annually. She had enough funds in the PS account at BOY to support the distribution. I believe the money is still in the IRA, so re-payment may still be possible.

From EPCRS 6.06(4)(a): But I guess I have to use VCP.

She rolled it over. Are COVID distributions allowed to be rolled over?

Plan allows for in-service withdrawals at age 59.5 for deferrals and SH, and PS at NRA. Participant was told she could take an in-service withdrawal from the plan. She was not told about the age requirements. She took a $100k distribution from the brokerage account in September 2020, and a 1099-R was issued. Problem is, she is only 35. Can we retroactively amend to allow in-service w/d from Non-Elective contributions at age 34? I see in EPCRS you can do that for hardships and loans. Nothing about "regular" withdrawals. If not, what's the correction? Return the money and reverse the 1099-R?

Why does the plan have the EACA? Do a lot of people take advantage of the 90-day withdrawal window? Do they really need an extra 3 months to do their ADP refunds?

I'm not sure what the point would be. The thread will soon be buried behind dozens of other "normal" ones. Unless there is a separate subsection for them...