BG5150

That's why we like to do them by the end of June, the latest. No harm in sending one in but filing before the original deadline.

And remember, with an 11g amendment you can only increase benefits. You cannot reduce them, even for HCEs.

We have a potential client that employs people in several different unions. They want to start a plan for those union ee's only. But there are different requirements for eligibility for each union. The ER wants to put in "as specified in applicable CBA" Is that kosher?

This is a Safe Harbor plan. I need to base the SH contribution on something that satisfies 414(s). FWIW, Relius uses 3% as the de minimis.

That's my next stop. RTFD, BG510!

I know if a plan fails the 414(s) test, we have to use compensation that satisfies the test. Say that plan excludes bonuses and the 4149s) test is failing. Instead of just including the bonus and move on, could I perhaps exclude HALF of the bonus if that would then pass the 414(s) test? For example, only NHCEs get a bonus. This year, they all got a 6% bonus. test fails; difference is 6%. Could I exclude only half the bonus, so now my difference is the widely-accepted 3%?

Docs are electronically signed via docusign...

Plan was written with an effective date of 5/1/18. However, in the SH effective date section, someone put 4/1/18. Since the plan wasn't effective until AFTER the original SH effective date, can we amend the plan to properly reflect that without messing anything up?

And tell your client: you get what you pay for.

The the r/k that the relevant section is only for the "Computation" of the SH. There is nothing in that section, and almost definitely not in any other section, that prohibits "depositing" the SH when they want.

Side note: I wouldn't get any of the optional modules (other than the 2, I think, you must get). I don't think it would be impactful.

I have a plan that wants to do a fixed match in excess of 6% of pay (dollar for dollar up to 10%) --generous, I know. There's a 3% SH Nonelective. Oddly enough, I've never had to perform an ACP test on match in a SH plan. I know I can test ALL the match together. But if I just want to test the non-safe harbor piece, what percentages am I using? I'm guessing if someone has a 10% match, do I give them a 4% in the ACP test? Someone deferring only 6% gets a 0?

Company had SIMPLE IRAs for their EEs in 2017 & '18. There were deferrals (one in '17 and one in '18) that were withheld but not sent to the IRAs. The IRAs are closed (they still exists, but no new money is being contributed) Company has 401(k) Plan for 2019. Most of the people still have the IRAs as they are waiting to roll the money into the K plan. One person cashed theirs out. They are small amounts, less than $50. I'm guessing they need to deposit the amounts to the existing IRAs. What about the one who closed theirs?

I can probably come up with billable hours totaling $6,000. Send them my way. ;)

We have a SH plan that was effective 5/1/2019. We generally write plans with a full initial year, but this one slipped through the cracks. Can we amend the plan to be effective 1/1/19 (with a deferral start date of 5/1)? Could I interpret this as an allowable amendment because it is increasing the SH benefit (12 months of compensation compared to 8)?

To answer my own question, yeah. At first, it's not he list of prohibited changes, but you can if certain requirements are met. A mid-year change to modify (or add) a formula used to determine matching contributions (or the definition of compensation used to determine matching contributions) if the change increases the amount of matching contributions, or to permit discretionary matching contributions. However, a plan may make such a mid-year change if: a. the change is adopted at least 3 months before the end of the plan year, b. the change is made retroactive for the entire plan year, and c. the plan sponsor gives an updated safe harbor notice and additional election opportunities to each employee otherwise required to be provided a safe harbor notice at least 3 months prior to the end of the plan year.

I know I can add a discretionary match to a safe harbor plan mid year. But can I add a stated match? We have a client that wants to make a big match on top of the 3% SH. More than the discretionary match constraints would allow.

That's the one! Thanks so much!

Does anybody have a good link to this document? Or a copy of it? All the links I could find are dead.

He notified us about a week ago.

The BPD says this: It doesn't mention anything about the 4/15 deadline.

So, this participant CANNOT take the distribution AT ALL until they have a distributable event?

Does an one have first-hand knowledge that there is a significant (or slight) chance that answering the late deposit question on the 5500 will result in an investigation? I've been hearing it for years. We've answered yes to more than a handful, but I've only been part of two DOL investigations in the past 10 years, neither of which involved late deferrals.

So, if a person defers $10k into two unrelated plans, they are stuck with the double taxation with no remedy?

Was the 20,000 including penalties of some sort? The calculator back them was about 3% per annum. If the interest was only $400 on 150 payrolls, that's like $3 each time. If it was higher than 3%, then each p/r's interest was even less. How did the DOL get $133 each?