BG5150

The withholding go into an account of the franchise. From what I understand.

We are planning on amending out the loan feature.

Did you mean $0.65? The $0.65 needs to be added to the affected participants' accounts. I would not file a 5330 for 6.5 cents (10% of the interest).

The company is a large with many franchises. All the franchise payrolls run through their proprietary payroll system.

We have a sponsor that allows loans in its plan. Someone took a loan a couple weeks ago. Thing is, the ER's payroll system has no mechanism to deduct and remit loan repayments! The sponsor is a big company with a proprietary payroll system, so switching to another program is NOT a solution. What can they do? Can we somehow cancel the loan?

Fortunately, testing is not an issue.

I believe the stated match is also 100% vested.

There would have to be active participants at EOY, otherwise they couldn't have entertained a PS for '18. Remember, 'Active' doesn't been 'Actively contributing'

Don't forget the k Plan will be subject to an annual; audit and the attendant costs.

Have an existing 401(k) Plan that someone (not me!) added a SH match to effective 4/1. Obviously this is not allowed. What is the remedy? Send a "Sorry that you got that SH notice, but you really didn't need to..."? Amend the doc to not have the SH features. Good thing is, there was already a stated match in the plan which was the same as the SHM. Testing should not be a problem.

Thanks, Kev. That's what I figured.

We have a plan transitioning to us, can we eliminate partial withdrawals for terminated participants? We prefer full distributions only for them. Is it a cutback? Ok, say we can. Plan signed sealed and delivered. Restated for no partials. Now, there is pushback. The plan wants it back in. Can we do the partial withdrawal now, then amend it retroactively to allow it? Similar to when a hardship is granted when the plan initially allowed it.

Naive questions here: can HOAs be baked into the mortgage payment similar to property taxes and/or h/o insurance?

Not if it's a mistake of fact.

A plan is transitioning into our platform from another provider. We provided blackout notices to (mostly) everyone. Due to a census snafu, a terminated participant was not included in the notice distribution. Now he is calling the broker saying no one told him his money was moving. The broker is yelling at us saying we are in violation of ERISA. (BTW, we provide 3(16) Administration) What is the remedy besides sending out the notice and typing up a mea culpa? The violation isn't self-reporting is it? Do you think we are not he hook for $131/day?

I would do mistake of fact. The mistaken fact was that there was compensation. It's a one participant plan for X, and it seems as there will be no more contributions to it. No one else to reallocate it to. Send it back; he'll have to redo his taxes.

How do they handle paper files? Do you print e-mails either to paper or pdf?

That seems extreme given the low cost of storage these days. Are those e-mails deleted or archived each year?

Is that with everyone considered their own rate group? If not, would this require a BRF test?

Thanks, rr. I even commented in that thread! In this case, the premium is for Medicare Part B, which is expressly permitted 213(d)

Are premiums paid to medicare an acceptable safe harbor medical expense for a hardship distribution?

I think that's a deduction and maybe a 415 issue.

How did they communicate the no-bonus policy to the employees? I would think the the plan was restated incorrectly, then the SPD was also drafted incorrectly, and the participants would have that info in the official plan documentation. Were they told of the limitation in another way? I'm sure there have been new employees since the EGTRRA restatement, so it's not they they come from a position of "that's the way it was in our previous plan document."

All it says is "failures related to automatic contribution features..."

I want to get this straight; something seems wrong. If a sponsor does not start somebody's deferrals in an auto-enroll plan, there is no QNEC needed if they start the deferrals no later than 9-1/2 months after the plan year in which the first deferral was missed? So, if someone was eligible 1/1/18, there would be no QNEC if they start the deferrals by October 15 2019? That's 21-1/2 months late! (I understand that they have to start as soon as it's brought to their attention, and that match has to be calculated from 1/1/18. But that seems like an awfully long time!) From EPCRS: