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BG5150

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Everything posted by BG5150

  1. BG5150
    More info: https://en.wikipedia.org/wiki/When_I'm_Sixty-Four
  2. BG5150
    If there are any losses in these corrections, it is up to the plan administrator to make the participants whole. If it was the investment company's fault or the TPA's fault, it is still incumbent on the plan administrator to pay for the losses--it wasn't the participant's fault. Then it's up tot he PA to seek relieve from the offending party.
  3. BG5150
    Maybe those cents are into the fourth or fight decimal place of the fund price? Can't sell 0.0001 share. Just spit-balling.
  4. BG5150
    I wouldn't reduce the deferral excess allocation, but refund it. I'm not a big fan of mistake of fact processing. Who is making sure the participant is being "made whole" outside the plan? That the deferrals will be paid to the EE, but without doubling up on the reduction already taken from the deferrals?
  5. BG5150
    Tell him to run it past an ERISA atty
  6. BG5150
    Side note: if and when it's distributed to the participant, what 1099R code do you use? I'm sure it's exempt from the 10% penalty tax.
  7. BG5150
    I do not think this applies to Deferrals. From EPCRS: 6.06(2) Because what if there are no employer contribs? EPCRS explicitly says the suspense account cannot be used to fund deferrals.
  8. BG5150
    If they even remembered they needed one in the first place...
  9. BG5150
    Thanks, all.
  10. BG5150
    Former Employee left in 2019,turned 70.5 in 2020. Her first RMD was for 2020, but that was suspended. Initially, she needed to take that one by 4/1/21. But since she didn't have to take it, the 2021 RMD will be her "first." Does she have until 4/1/22? Or is is due by 12/31/21?
  11. BG5150
    Two participants took distributions in 2020. The paperwork CLEARLY states that they wanted state tax withheld at 10% (New York). The major carrier failed to withhold. Participant only finds this out in February 2021 when they get the 1099-R. The carrier told me that because NY doesn't have mandatory w/h, they just don't do it. Even though the form, again, CLEARLY, has a section for it. Does the participant have any recourse against the plan/carrier for failure to execute the instructions (in seemingly good order) of the account holder?
  12. BG5150
    If he can get the taxes paid on time, he can get the 401(k) deferrals (and loan repayments; don't forget those!) where they need to be. If the current process is inadequate, then the process needs to change.
  13. BG5150
    I wouldn't worry about it. Fact pattern is there.
  14. BG5150
    I change my mind. I think they enter on the next entry date after rehire. They didn't fully satisfy before termination. So under my document, they revert to the schedule for new hires. But upon their rehire, they have 1 YOS and are 21. So they enter ont he next entry date.
  15. BG5150
    As far as I know there is no exception for owners and their families. The law doesn't seem to be there to protect participants, but to dissuade companies from using what should be plan assets for its own use.
  16. BG5150
    That's more of a sentence than a penance.
  17. BG5150
    My very first post about coverage and testing was based on the OP. Didn't realize the premise had changed.
  18. BG5150
    But now I see he said this. Conflicting info. Or did he really mean the non-CEO HCE would get 0%?
  19. BG5150
    This is what I was basing my comments on.
  20. BG5150
    I would think they enter right away. They have 1 YOS? Check. They turned 21? Check. Entry date has come and gone? Check. Participant on rehire.
  21. BG5150
    Give them Code C in the new plan and D in the old plan. Code C Use this code for a participant previously reported under the plan of a different plan sponsor and who will now be receiving a future benefit from the plan reported on this form. Also, complete columns (b), (c), (h), and (i). Code D Use this code for a participant previously reported under the plan number shown on this form who is no longer entitled to those deferred vested benefits. This includes a participant who has begun receiving benefits, has received a lump-sum payout, or has been transferred to another plan (for example, in the case of a plan termination). Also, complete columns (b) and (c). Participants should not be reported under Code D merely because they return to the service of the plan sponsor.
  22. BG5150
    Obligatory: What does the document say?
  23. BG5150
    If group C is more than 30% of the NHCE and they get nothing, and they otherwise satisfy the conditions to receive a PS, then you fail coverage. Note: remember these groups are artificial constructions. Everyone is considered separately, you so can give everyone a different rate as long as you are passing the testing. And don't forget you still have to pass nondisrimination testing. If the owner is a lot younger than a bunch of the staff, it'll be difficult to pass the test with palatable contributions to the NHCE.
  24. BG5150
    If this isn't a SH Nonelective plan, the poorly performing people do not need to get anything at all. As long as you are passing coverage and nondiscriminaiton testing.
  25. BG5150
    Not unless officially adopted, right?
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