BG5150

0% HCE and 7% NCHE is a pass, no?

If this is a corporation, doesn't the ER have to declare the discretionary match formula each year, similar to a profit sharing contribution?

So, if it's in the Gateway, is it in the general testing? I thought I read somewhere that ADP QNECs are included..

Yes. Particiapant wants full distribution now and will probably retire in June.

Participant does not qualify for a PS (term < 500 hrs). However, plan fails ADP and he's getting a QNEC in lieu of HCE distributions. Does that QNEC trigger a gateway?

Who has been reviewing this plan in the past?

I think I know the answer, but: Participant is age 75, non-owner, still working. She decides to take a full in-service distribution and rolls it to her IRA. In June, she retires. Does she have to remove what should have been her plan-related RMD from the IRA?

I find it odd that people who are eligible for a plan but have no account must get an SAR, but someone who may have been an actual stakeholder for 1, 3, 7, 11 months then cashed out doesn't get one. Especially, if the plan terminates and there is nothing left at all.

What about a plan termination where there are no more employees?

Can you do an amendment giving just the affected folks 100% vesting currently?

Yes they can. I've done it several times in the past.

I don't think the problem would be with the current ee's. Would you have to take into consideration anyone who took distributions (how far back?) who would have be more vested for BRF?

Did you work at least 1,000 hours in many of those years?

They have an employee who (it seems) has discretion as to when to be paid on a W2 and when to be paid on a 1099-Misc. As we know, 1099 income is not allowed for plan purposes. Thing is, he has been ‘deferring’ from his 1099 income throughout most of 2018 and continuing into 2019. (This may have happened in 2017, also) I believe that the 1099 ‘deferrals’ should be considered a Mistake of Fact and the funds should get sent back to the company. In the past, we have only been considering his income and true deferrals from his W2. Using only that compensation, he is definitely a NHCE. However, if we consider his roughly $150k in 1099-MISC income, he is way over the threshold. So, I’m not sure what to do. (A) Send the 1099 deferrals back and leave it as it is. (B) (A) + consider the 1099 income in my testing and make him an HCE (2017 test will probably fail now). (C) Consider both the 1099 income AND deferrals in my test. Your thoughts are appreciated.

Except if the results are bad. Then you expand the selection, it seems.

RBG has it right. If you have problems in your small sample, you pick a bigger sample. So, if you have little or no problems in your small sample, you move on?

What about the flip side of that. Just because your small sample contain few if any errors, would it be reasonable to interpret that there are little if any errors throughout the entire population?

Or, if they were younger participants, maybe they needed to get a contribution in order to pass a4 testing.

No "if" involved with the taxes. You must withhold 10% if the participant does not give you a W-4P (or equivalent).

I don't think any match would be made if no deferrals were made. However, since the match is determined on an annual basis, someone may want to figure out if there is a true-up needed and make up the difference. But if this is the middle of the year, I probably wouldn't put any match in.

Is there something in the regular match section?

You are looking in the wrong spot. Look in the match/safe harbor section to see when the match is calculated. It has nothing to do with compensation. Again, you can have a match that is CALCULATED on a PER PAY basis, but the employer does not deposit it to the trust until the end of the month. or quarter. Or semi-annually. Or even at the end of the year. But you could also have a match that is calculated on an ANNUAL basis, but, perhaps, the employer deposits match that would be due each pay period, with a true-up at the end of the year if necessary. One exception is if a Safe Harbor Match is calculated per pay period, you must deposit it before the end of the calendar quarter following the pay period of the deferral.

Not PAID, but CALCULATED. You can have match calculated per pay period but deposited almost any time.

What does the plan say about the calculation period? Per pay, or annual?

4 coffees is a lot!