BG5150

Does the document have 'fail safe' coverage? If not, have you tried running the average benefits test?

Great point. (I KNEW I was overlooking something!) But what if 3/6 left are HCE (non key) Then you have (3/6) / (3/4) = 37.5%

I forget if I asked this before, but are Top Heavy contributions subject to coverage if that's the only ER contribution? Hypotheical: Plan is 401(k) only. Does not allow for match or ER discretionary contributions 1 owner, 10 NHCE/non-keys. Everyone eligible for 401(k) BOY. 4 NHCE quit in summer. Plan is Top Heavy. So, only 6/10 EE's get Top Heavy. Do I have a coverage issue? How do you get around that if I do?

In September, I did a lost earnings calc on the VFCP site with these figures (among several other entries): Principal: 12,132.67 Loss Date: 4/29/2019 Recovery Date: 5/2/2019 Final Payment: 9/28/20 Amount Due: $6.40 But, they never made the correction, so I'm re-calcing the interest with a Final Payment of 10/28/20 this time. I entered: Principal: 12,132.67 Loss Date: 4/29/2019 Recovery Date: 5/5/2019 Final Payment: 9/28/20 Amount Due: $12.83 Notice I made a small mistake. The Recovery Date is 3 days later. And the amount due is MORE THAN TWICE AS MUCH! When I run the original figures again with 10/28/2020 Final, it gives me the $6.40 again. Does it make sense that a Recover Date merely 3 days later would result in a 100% higher result?

Just you Dave. The Plan Document to me is merely a collection of suggestions and recommendations.

That is a matter that is up to the participant. Ask him how much you should (re)start withholding. He should consider how much he wants to defer for the year (probably the $26k), see how much more is left to achieve that and divide that by he number of pay periods left in the year. I would not unilaterally do that because you have a 5% instruction received from him. I would not change that level of deferral without written instructions from the participant to change it.

Well, lots of documents with that language have received satisfactory Opinion and Determination Letters...

You don't stop deferring when someone hits the comp limit. However, you will be using $285k when determining if a participant goes over any limits (like a % of pay for match). And you use 285 cap when you are performing any testing. I would suggest re-start the deferrals and allow then to continue until the YTD hits $26k. Make sure the proper match is calculated along the way. How is the match calculated--by payroll, annually? (Don't confuse calculation with contribution. Yiu can have an annually-calculated match deposited every pay period.)

Is it the PS "balance" that offsets the DB plan, or the PS "contribution" for the year that offsets what needs to go into the DB?

If everyone is in their own group, any dollar amount you get is both a % of pay and a flat dollar amount. If you made $100,000 and get a $2,200 contribution, your "group" got both a $2,200 flat dollar amount and a 2.2% of pay contribution.

And maybe try to find out somehow why the participant is wanting to see them to stay ahead of any potential issues, whether valid or not.

The Plan Doc we mainly use is the Datair Non-Standardized Cash or Deferred Profit Sharing Plan. Question A.1.a is: Plan Permits this type of contribution. (Choices are) Elective Deferrals, Safe Harbor Employer Contribs, SIMPLE K Employer Contribs, Non-elective Contribs, Matching Contribs, Prevailing Wage Contribs Any of them can be selected as yes, or left blank as no. So it's easy to see how a plan can check off only Deferrals and Match only, therefore not having a 'Profit Sharing' component in a "Cash or Deferred Profit Sharing Plan"

But I offer the intangibles.

[Dr. Evil]One. Million. Dollars.[/Dr. Evil]

I don't think I've ever seen anyone charge the copy costs. It'll cost your bookkeeper more time in putting the few dollars into the ledger than the "revenue". I agree: send .pdf or send them to: https://www.efast.dol.gov/portal/app/disseminatePublic?execution=e1s1

How does two plans help if the EE's get nothing in the second plan? They have to be tested together as they can't pass coverage by themselves.

I had a client several years ago accusing me (my firm) of putting his personal info out on the web when his 5500 was posted online. He had one other employee. And him and the wife did indeed have about 99% of the assets. One of his colleagues found it online and must have brought it up to him. I had to explain that we did nothing wrong, and were just following the law. He wasn't very happy.

I believe the PA/Trustee approved the distribution. They just didn't inform us until way late.

Participant in plan that has brokerage accounts took a distribution of all her funds in 2019. We are just finding out about this like last week. She took the money to herself and there was no withholding. Is there a penalty for not withholding? How does it get assessed? I know there's gonna be a late fee for the tardy 1099-R.

Put your concerns in writing to the client, suggest they get input from an ERISA attorney.

Yep. This one, I believe: https://lrus.wolterskluwer.com/store/product/5500-preparer-s-manual-for-2019-plan-years/

"Impliedly" I learned a new word!

Perfect!

I saw the same thing. At law.cornell, the text of ERISA itself, and the EOB. But: Who exactly are "receiving benefits under such plan"? Do they have to be due money (ie have a balance)? Or is it benefiting like under 410? As of when? 12/31? (for a calendar plan) Or the date the notices is given out. In the past, I've been telling my clients anyone who was eligible in, say, 2019, even those who did not receive any sort of contribution, and any former employees with a balance on the date the SAR is given out. But looking into it (a client asked me to point out where it says what I told them), I'm having a hard time justifying my stance given the wording. I think it can easily be interpreted as only people with account balances (receiving a benefit).

Oddly enough, if the phone # is there, the SAR reads "To obtain a copy...write of call the office of EMPLOYER at ADDRESS, or by telephone at (123) 456-7890. Without the phone number, it just stops at ADDRESS. I'm surprised the logic is there to omit the "or by telephone" wording.