BG5150

Keep an eye out for coverage, too.

Are you allowed to do that without express written consent from Major League Baseball? Or, rather, the participant?

Semi-educated guess: the Employer is using the vendor to produce and disseminate the SPD and QACA Notices, etc from the payroll files. So, if the vendor doesn't know about these people right away, ie DOH, then the Notice won't be given timely. I worked at a place like that, and we 'required' the plans to have at least monthly entry dates (for immediate on hire eligibility) for just that reason. 'Require' is in quotes because we knew we could not mandate that, it's just that we could not record-keep that plan and uphold our end of the 316 services we provided.

So the rules are the same for a MEP with 5 adopters with 25 participants each? They re all on the large plan schedule with no safe harbor?

Looks like you have to at least give the 402(f) Notice. But, it says the PA won't fail the requirement if the Notice comes back undeliverable. And it seems like the force out can happen. Isn't that at odds with the lost participant rules that say you have to try other means to locate them? Or is that just for the folks over $5,000?

Plan calls for mandatory distributions under $5,000. It says it will be done without participant consent. Do they have to send out distribution forms to those they want to force out first? If so, what is the cite?

On reading the instructions again, it seems as though we ahve until March 2021 to file and pay the tax.

Plan failed 2019 ADP test. Refunds are being done now. What 5330 would i use? I figured 2019. However, is the form considered late (calendar year plan--it's even past the extension date)?

No problem at all. They are two completely different contribution types. Just be cognizant that the safe harbor MUST be trued up at EOY.

I think we are going to consider the income earned on 12/31. So no income for short plan year ending 10/31. It's ok, b/c owner did not make deferrals and probably doesn't want to fund his own safe harbor--keep costs to a minimum.

I wouldn't think there would be two forms. Maybe this is a SEP IRA or something? Ble_Sky: Is there more than $250,000 in the "plan(s)" combined?

A plan document will be more than just a form or two.

How do you calculate the owner's comp in a short plan year? Doctor gets Schedule C, but is terminating Safe Harbor plan on 10/31 and wants to close up the small plan before EOY 2020.. How is her compensation calculated? Is it zero b/c it's not determined until 12/31? Or do they have to wait until next year and take 5/6 of the net income?

Do you have a written plan document? If so, who did that for you? Talk to them. If not, then you don't have one or two plans. You have NONE.

I find it odd that the coverage test would apply to a contribution that is mandated in the code. The only people being left out are the people the code says doesn't have to get anything to begin with.

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.