BG5150

What do you do when the owner refuses to allocate a SH contribution on her own behalf?

I wouldn't put it on 2019 if it was corrected in 2018. I think you are reading too much into it. Think of it this way: "People are not allowed to purchase alcoholic beverages until they are age 21." "Late contributions must be reported until the year after they've be corrected." Using your line of thought, I will be able to buy an alcoholic beverage only when I turn 22.

From the slide: Matching contributions may be included in the ADP test to the extent they are: –100 percent vested –Subject to the same distribution restrictions as 401(k) deferrals –Designated as QMAC –Not tested in the ACP test –Not disproportionate (over five percent or two times rep rate)

That's what I have you guys for! ?

Did you run a hypothetical ACP test with the re-characterized amounts yet? It'll be very embarrassing telling the owner he doesn't have to take an ADP refund, but after all is said an done, an ACP refund is needed.

Are they over 59.5? Then can add an in-service w/d provision.

Well, the plan would have to allow after tax contributions to everyone. (Though, any NHCE using that feature would only be a benefit). Does the plan also allow for Roth? If so, that could get very confusing. Payroll could be a nightmare if anyone wanted to do, say half pre-tax, half Roth and an additional $150 after tax per paycheck. Did you actually do a projected ACP test to make sure it would be ok? (The after-tax gets tested with the match in the ACP test). Besides, the money will still be taxable to the HCE if that's what they are trying to avoid. Plus any earnings on it when they take it out will be taxable (unlike the Roth). Does the Edward Jones guy really know about the after tax thing? Most plans I've seen replaced voluntary after-tax with Roth a while ago. Maybe the EJ plan has it so people can go over the 402(g) limit?

So how do you show it when it goes back out? Negative 'Other Income'? It can't be a distribution. It's already been claimed as much.

Liabilities? It's money that's promised to be paid out.

I can confirm Lois's link works

How is that incentive good for lower paid worker in present day. Half the 402g limit is $9,750. That's almost 20% of a $50,000 salary. All for what? An extra measly $500 in my retirement account?

Plan had a hard cap on a discretionary match. It is $250 in the document, but for the past couple years, they have been contributing up to $350 to those who qualify. Can we do a retroactive amendment to change it starting in 2018 when they made the change? ACP test passes no problemo. Mostly union people. I guess I should ask if the union docs got updated....

I would think that depends on what tax bracket someone is in. I'm not comfortable giving that sore of tax adice.

Thanks.

Does anyone use this site? It had a pretty robust community. Seems to have vanished...

I would do 2 true-ups.

What if no one remembers that an election was attached to the 5500 in, say, 2001? And then they stop filing? Do you think the IRS would still even have that election somewhere? And if they did, would anyone ever be able to find it? I have an image in my mind of the last scene of Raiders of the Lost Ark where they are wheeling the crate into the big warehouse. I picture the election filed away in there.

I'm not sure if I'd want my employer to know I'm being kicked out of my house or that I'm being treated by the community psychiatric hospital. People do talk even though they shouldn't. (This is not to say that the OP is in any of these situations)

If your employer lets you go, you don't HAVE to pay back a loan. Any outstanding amount will become taxable income to you. The hardship withdrawal is also taxable income to you.

Why would a church elect to have it's plan subject to ERISA and subject the plan to all sorts of qualifications?

We have a church plan that was established way back in the 90's. The initial plan document says the plan is "Not Subject to ERISA." However, they've been filing 5500's throughout. What's not clear is if they ever formally elected (as an attachment tot he 5500) to be subject to ERISA (or filed for a determination letter with that attachment). So, what if they are not subject to ERISA? Can they just stop filing 5500's and when the "where's your filing" letter comes just write back and say "we don't have to file b/c we aren't subject to ERISA"? I understand that if they ever elected to be covered by ERISA that it's irrevocable.

oops

But now you have the problem that participants were notified of the problem. Are they going to rescind the notice? "Hey, we screwed up your match, so we are gonna make it right." "On second thought, nope. Psych!"

And, with the Final 5500, you do an SSA with all D's just in case.

This is my answer, too. I always question 100% participation. Especially with groups of more the 8 or 10.