BG5150

No.

If you are calculating the match on a payroll basis (don't confuse calculation with deposit), then you will never use compensation over the limit, unless the pay for that period is in excess of $285,000 (I want that job!). If the comp did go over the limit that pay period, you should restrict the compensation to the limit for that pay period. Also, it is good policy to put match caps in place in your payroll system. If it's dollar for dollar up to 5% of pay, you instruct the program to cap the match at $14,250. If you are calculating the match on an annual basis, then you are already (or should be) capping the formula with the max comp. Kevin, what would you do in the case of someone who makes $$600,000 a year and decides to put in her deferral in the last payroll of the year, or out of the late-September bonus check? Does she not get the match b/c she passed the cap sometime in July?

Again, conditional: 402(f) Notice for distributions, SMM/SPD for amendments.

1. Get Mirco$oft's HR to give you a copy of the QDRO procedures (they should have sent you one already). 2. Like others said, it could be that MS decided not to qualify the order for some reason. If that is the case, they must let you know the reason. There are a lot of things a DRO must include and things it cannot include before the MS Plan Administrator qualifies the order to make it a true QDRO. Divorce attorneys and judges all have different expertise levels when it comes to DROs, so yours may be deficient in some manner and the parties involved have no idea. 3. Like someone mentioned, a company usually has up to 18 months to qualify (or disqualify) a DRO. (It's an absurd amount of time, I know, but I think the rules go back many years where determining what exactly the ex-spouse would get was more difficult) 4. I agree that your attorney (or another attorney who is well-versed in QDROs may have to get involved.

The ER is asking me whether or not it should be withheld. The adoption agreement merely states that Elective deferrals must be at least 1% of Compensation and nor more than 90% of Compensation. The deferral election form says I elected to reduce my salary by X% or $Y and have it contribute this amount as a pre-tax Elective Deferral. (similar language for Roth) I told her not to take the deferral b/c it's the same check date, and to me, the same pay period. But, I told her the match due for the period is based on both the regular and bonus compensations.

But if someone was withholding 5%, you'd take it, right?

Plan does not allow for separate election for bonuses. Participant elected $500/pay period for 401(k). Bonus is coming this week as a separate check. Do they take out the $500 from the bonus, too?

So the Employer did not take out 401(k) from bonuses. Correction is a 50% QNEC (with earnings). However, the participant's deferrals are Roth. Is she now losing out b/c the earnings on the QNEC are taxed, where the earnings on a Roth deposit wouldn't have been?

Just because you file on a cash basis doesn't mean you forsake checking to make sure all the deposits were made. It just makes putting together the 5500 a little easier. We file many of our plans on a cash basis, but every year, I reconcile out the receivables.

Some of my clients insist on the accrual 5500's so the Employer contribution matches the company's tax return.

Why would you think the IRS would audit a plan like that? There are no red flags. 10 Actives. 20 Accounts.

Also to ask: would a prudent trustee allow (probably) non-savvy participants access to all sorts of investments, especially ones that a) involve tremendous risk and/or b) are complicated and difficult to understand?

It's a discretionary match. Are the people who were "over matched" HCEs? If not, you can probably come up with some formula tat can fit the circumstances. If they are HCEs, then I think forfeiture is a good way to go..

A couple things to consider: Are you SURE that 2018 really passed? Are the method and assumptions you are using exactly the same as 2018? Of note: the term'd people do NOT get a TH contribution. They don't have to get anything if there is a last day rule. But if they do, they must get at least the gateway. If the allocation calls for more and there is a last day rule, you need to do an 11-g amendment to get them what they need to pass the test.

The question to start with is: from which paycheck(s) were the deferrals taken? If before 3/15, then the deposit is most definitely late. If after, they are not valid deferrals, because the plan was terminated. Was anyone else allowed to defer after that date? (This may warrant looking into past years, too. Does the owner really just get one big paycheck at the end of the year for the deferrals? Or did he get paychecks throughout the year and he just deposited the deferrals at the end of the year? Did those deferrals really get taken from each of the paychecks? Or was the W2 "corrected" to show the deferral at the end of the year?)

It doesn't make any sense to do that, b/c they will still be subject to TH and ADP testing for the year anyway. If they are worried about having to make the contribution to satisfy the PPP, just amend to a non-discretionary match calculated per payroll. Then amend out again.

OK. Got it. That's what I figured. Something in the wording gave me pause.

I have another question. This is from the DOL closing letter: Say for 2017 the amount involved is $100. Interest paid 2020. The excise tax will be $15 x 4 = $60 because there were 4 taxable years it was outstanding. However, do I owe another $300 for the tax years it wasn't corrected per item #2?

??

Does the plan not already allow for loans? Just curious.

is that a taxation issue? If the dad is dependent on the tax form, then he is a dependent in this case...

If you want to do a PS, you could use the ABT to pass coverage if the demographics are suitable.

Exclude HCE Discretionary match: hourly get match 1, salaried get match 2. Automatically passes BRF and ACP. But if the owner does not want to get a match, is it worth it to even have a plan and pay $1,500/yr TPA cost (plus carrier fees) with less than $2000 ER contributions? How much are those NHCE EE's deferring? Maybe a SH Match? is that person (hourly) making $30k a year deferring a lot?

That was my first thought..

Does the owner have to get anything? If not, just exclude the owner.