BG5150

Dude, that was like almost 5 years ago! But I did forget about it. And there was no overall consensus. Thanks for the reminder.

Plan has a few participants whose religion precludes them from investing in any of the plan's alternatives. There are several hundred active participants. What duty, if any, do the fiduciaries/trustees have to include a fund/funds that would be eligible under a haram/halal investing strategy? It is quite a niche corner of the investing world (at least here in the US), and funds can go from performing to underperforming quite rapidly quarter over quarter. Would the these participants have some sort of religious discrimination claim if these types of investments are not offered? just on a fact-finding mission for now. I sent the plan sponsor to their attorney, but I'd like to get the community's take on this.

Company inadvertently added a term date to a participants census at the r/k. Subsequently, the participant was forced out (twice). Neither of the checks were cashed and they will be re-deposited into her account. However, there was 20% withholding from one of the checks. How is this usually recouped? (This did not cross tax years)

If a 403(b) plan excludes EEs who work <20 hours a week, are they excluded from the 410(b) coverage test by default?

If you are never unsure what a particular provision in a document means or doesn't mean, ALWAYS check with the document provider first. They wrote it and support it. If you are not satisfied with the answer, then consult inside (your company) SMEs. Thay may dealt with the same issue in the past. Then consult outside support if needed.

Was the default investment communicated to the employees

Is it a preparer of the 5500 or the auditor? If it's the auditor, run!

Quick example: One distribution $10,000 80% vested. Only $20,000 in deferrals contributed. Open balance: $100,000 Contribs: $20,000 Earnings $1,000 Distribution: ($8,000) Fees: ($500) Closing Balance $112,500 Note the distribution is NOT $10,000, but only the vested piece of $8,000. The $2,000 was already in beginning balance, and is still there (in the forf account instead of participant's account) at the end.

@thepensionmaven: did the plan doc say the accounts are supposed to be participant-directed? Of did you advise your client they should amend the plan to be participant-directed?

Here is a discussion from a couple months ago:

Also, if they amend the plan to loosen the eligibility rules, they shouldn't be too quick to change them back. They don't want it to look like they were just doing this for the benefit of the spouse. Are there any other, current employees who would benefit from a change?

Does the IRS match up 1099-Rs with 5498? Do IRAs issue 5498's for transfers in from, say, 401(k) plans? if so, I would think then need to amend both the 1099-R and 5498.

Was there tax withholding on the original distribution?

If the 5500 is done on a cash basis, is there perjury?

Where does it say that a participant must pay off a defaulted loan before they can take a new one? What if it was offset after a distributable event? (Plan allows only one loan at a time)

Does the plan allow for after tax contributions (NOT Roth)?

to expand on Lou's answer: DOL credentials are personal and not employer-related. So, say you are have been signing the 5500 (as an employee of) for BG5150's Pension Company 401(k) Plan for three years and then leave the firm (get out!). Then you start work for Lou S's Even Better Pension Company and they want you to sign their 5500. You would use the same credentials.

I agree. I don't think it's allowable to match Roth deferrals at a different rate than pre-tax. match should be calculated on the combined pre-tax and Roth as if they were one deferral.

I know a payroll-based SH Match must be deposited by the end of the calendar quarter after the quarter in which the deferrals were taken. Obviously, for a calendar year plan, those QE dates are 3/31, 6/30, 9/30, 12/31. What about for off-calendar plans? For a PY that starts on 3/1, do they still adhere to calendar quarter dates? Or do they use 5/31, 8/31, 11/30 and 2/28?

Do you think we will get an official release from the IRS. Other than from ASPPA saying the IRS told them so?

Ok, but how long must they keep it? Ad infinitum?

Plus, it'll get him out of the double taxation thing. (It seems the CA extension lasted until 8/15, unless they put in another one in for the recent hurricane.

If new small plans have to be auto enroll soon, how long do they have to keep that provision? Can they set it up for like a month and then take it away? After the first plan year? does it have to stay in indefinitely? Until over 120 poeple?

Thing is, the company has to re-do the W2 for other reasons. So why not knock out two birds w/ a single missile?

Side note, the participant live in CA and has an IRS extension due to the wildfires, so taxes were not filed yet.