BG5150

Most of the rk's we deal with just have the withholding elections right on the form.

The $1,750 (plus any gains/losses) should be removed from the account and moved to a suspense account per the EPCRS correction on excess allocations. It is not tested in ACP.

It's $45/hr...

If it's calculated on a payroll basis, there is no true-up.

Does he want to defer? You can exclude his job title from the plan altogether.

I think if you are using the 5% gateway, then you have to use 415 for the gateway test.

Can someone give me a link to where I can see the IRS service spanning rules? TIA

Not yet.

I'll cash out, buy bitcoin and deal in SSNs and passwords on the darknet.

Ask him why he is doing it that way, and why he would think that's acceptable. How could an eligible participant who's never had a contribution (deferral or PS or whatever) all of a sudden now have an account b/c the trust had a gain? Are you sure he's not trying to allocate a Profit Sharing? And, tip of the iceberg, indeed. If this is how he allocates earnings, I don't wanna know how the rest of the plan is being run...

In theory, if the person of the ER who is responsible for signing off on distribution is unavailable for more than three business days in a row there was a blackout, albeit, non-communicated. Example: HR director goes on vacation for a week and no one can make a distribution

Match is not an Employer Non-elective, so it won't affect gateway. It stinks when someone defers 2%, gets a 2% match and must get a 1% TH. Then they have to get the gateway.

That is incorrect. (sorry, I was late to that party)

Ok, here is the twist. The ADP test is run with the 6,000 in it and it fails in January and there are refunds. In August they decide to allocate a profit sharing as mentioned above. Now, if those deferrals are not in the ADP test, it passes. Do I have to get those refunds back from people?

Who's gonna break the tie? I will be adding the twist a little later....

401(k)12 is "regular' SH, whether Match or Nonelective. (k) 13 is the QACA SH. This is from the EOB:

HCE defers $6,000 for 2018. He's over 50. Employer makes a $55,000 profit sharing for him. Total Annual Additions $61,000. $6,000 is catch-up. What do I put in the ADP test? $6,000 or $0.

Does this plan use "facts and circumstances" or the "safe harbor" reasons for hardships?

I would say to not include the receivables if you are doing your return on a cash basis. Take this exaggerated example: Plan has 20 participants. A 3% SH plan was set up late in the year. The one owner is the only one who deferred, and he deposited $1,000 by 12/31. So, your closing balance is $1,015 after earnings. But, you have a SH rec'able for those 20 people. Are you going to say there are 20 account balances for the $1,050? It doesn't make sense.

David, I don't think there are multiple plan in play here. "DB" is Davis Bacon. Not Defined Benefit.

A tip that works for me (I think!), is before I start the exam, I write down the #'s of the questions. 1-50, or 1-75 or whatever. As I take the exam, I put a symbol next to each question # as I do them. I put a check mark next to a question I am nearly 100% certain I got correct. (can you ever really be 100% certain?). I put a circle next to a question I'm pretty sure on, but I may have some doubts, or that I want to re-read it to make sure I didn't miss anything. And I put an X next to a question I don't know how to do, or I'm guessing at. I also put the letter of my answer. Them when I'm done, I revisit the X's first. Sometimes later questions will give you a hint or reminder on how to solve it. (Oh, question 33 mentioned 415 limits, I should take that into consideration for question 14). Sometimes just setting something aside for a little while will appear easier upon re-inspection. Then I work on the O's. Re-read. Re-calculate. Re-affirm. If you have time, go through all the questions making sure they are all answered (I think the computer tells you if something is unanswered) and answered with your choice. I've come across some answers I initially clicked 'B' when I really meant 'C'.

Were those sample tests, or old exams? From time to time topics and their weights change over time. So, what you are practicing may not exactly match the exam. Be sure to download the correct syllabus for your sitting. Go through the topics. See anything on there you have trouble with? Bone up on that. As far as I know, they will not test on material that is not released on the syllabus. I don't know if they do it any more, but they used to put, like, 5 probationary questions on the exams that are not part of your grade. They are there to assess the difficulty (too easy?/too hard?/just right?) of the questions for future exams.

Became a CG in late '17. Does the transition rule apply to new companies as well as mergers? We did pass testing otherwise excludes. But, baring any new-hires/attrition, we will be in a similar situation for '19 but with no excludables...

Given that, seems like I can use the ABT for coverage because I cannot add anymore bodies. And if the ABT fails? QNEC until it passes? To all NHCE? Can I pick and choose?

We have a 401(k) plan who's sponsor is part of a controlled group. Company A sponsors the plan, and is the only one of the controlled group that does. The pan has immediate entry for 401(k). The plan is failing 410(b) coverage by the ratio test. I do not believe the ABT is available as coverage uses the fail-safe provision. What's my remedy? Do I bring in one or more of the employees of the members other controlled group? Companies that have not adopted the plan at all?