BG5150

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.

If the plan terminated in 1989, why were there subsequent TPAs? Were the assets not all distributed?

Aaaaaaaaahhhhhhhhhh! ?????

This. You could've filed 10 years worth of EZ's with a balance of $40,000 then just stop. However, be prepared for the letter from the IRS. But, you just answer back: I didn't file b/c I didn't have to. The only EZ under $250,000 you must file is the Final one, if I'm not mistaken.

I don't know why I'm blanking on this, but we have a client where the only active "employees" are the husband and wife owners. There is one former employee who still has an account. Is this considered a 1-participant plan? MY gut says no, because I would think that the existence of that third account would require bonding of some sort.

Without asking you to do my work for me, do you think that would be in the BPD or the AA?

My only question is: does the 500 hour rule get prorated to 250? It's important in that we have someone who terminated with 450 hours. The ER has limited discretion in that she can do an 11-g amendment to add people if she wants. Other than that the contribution is defined by the plan doc.

I would call the SSA and ask them how an alien can obtain a TIN for work purposes now that the offices are closed.

So the kid isn't able to participate unless they hire someone else under age 21? I would think it would be discriminatory if the reduced the age for 2020 and reinstated age 21 next year.

Short plan year 2020. Plan terminated 6/30/20. ER wants to do PS. Has last day/500 hr rule. Does that 500 hr threshold get prorated to 250?

The EOB Compensation grid says NQ Plan Distributions are included in W2 and Withholding Wages, but NOT 415 (and simplified 415) comp, unless the plan says otherwise.