BG5150

And talk to them about the Top Heavy rules, too, and how they are not needed any more...

Call your Congressman.

Never mind. 415 corrected under EPCRS. Earnings thru date of distribution. /thread

(When) Did gap period earnings get removed for 415 excesses? If so, when?

A plan terminates in 2016 and funds were distributed. Company opens new plan for 2018. Are those plan distributions added back in as in-service withdrawals for 5 years?

It may or may not be material, but if you are using the software to calculate your coverage testing it will be off by 1 non-benefiting employee.

My compliance department? Where do I send the invoice? ;)

They are counted as eligible but not benefiting for coverage. If they are HCE doctors, then that's probably good.

Non-key HCEs must still get TH.

If you are going to try to correct under EPCRS, there are precious few things you can remedy with a retroactive amendment.

Who is paying the fee?

Side note: At one of the Regional ASPPA's a couple years ago, I asked the panel if the only people who are getting zero are termed employees at EOY, could the ABT still be used for coverage? They agreed that, yes you could. Because termed ee's (like those with <1,000 hours) are reasonable business classifications and they could otherwise be excluded from other allocation methods (pro-rata, integrated) without threat to nondiscrimination (other than coverage).

You must ALLOCATE according to the comp definition in the plan for the particular money type you are considering. However, you may be able to TEST the contribution using any compensation that satisfies 414(s).

Is there one for the new comp rules yet?

Now, you are going to have to go back and see who was affected and make corrections. Hopefully it wasn't too many people. Then you can let them know they should shop around for a good TPA. I hear BG5150 is pretty good ;)

The r/k in its service agreement says: you are responsible for the data you send us, and that's what we are gonna use. Some places make you (the ER) tell them who the HCE and Key EEs are! Basically, they are year-end report writers rather than testers. Only if there is an impediment to processing the data does someone stop the presses (so to speak) and find out why. I don't blame the r/k. It's their business model and it's profitable for them. Unfortunately, when problems do come to light, it's often been happening for years. Hopefully, the payroll vendor is now aware of the situation and will take steps to properly calculate the match. (Which, ironically, some of these payroll/recordkeepers do really well...)

I would find a new payroll provider AND a new record keeper. If the match is calculated on a payroll basis, we do not check the accuracy of it when we get the client's numbers. It's just too difficult to do. We would need from 24 to 52 (depending on pay periods) separate payrolls with comp, deferrals and deferral %'s/$'s requested by the participants. We usually just go with the ER's figures, but put in the letter that we are relying on them. However, we do a reasonableness check. For example, if the match is dollar-for-dollar up to 4% of pay, anyone over $10,800 in match for 2017 was probably not stopped at the comp limit. Some RK's just roll with anything, and I mean ANYTHING, the client gives them and just spit out a report that contains the data. Very little, if any, analysis is done. Yet another reason to use a competent TPA (like me!). If the r/k is not responsible for doing the compliance testing, I don't see why they would vet the data. Heck, you wanna give Susie McGillicutty $26,431.28 in match? Sure. Go ahead. The payroll vendor SHOULD be able to put in the compensation cap. They probably know this and forgot, but they are blaming the client for not telling them to do so... How long has this been going on?

Is that 3% per annum? So 0.75% per quarter? In any event, it would be pretty steep. For a $50,000 loan, the fees during the first year would total over $1,000!!!

Can they do non-whole dollar amounts, like $43.81 per pay period?

Do you keep "the first return/report" box checked if you are amending it? It's no longer the first filing.

Is this HCE a Key Employee?

call Relius. They are usually very helpful.

Fixed for me, too. Thanks!

Same thing happens on IE. It's just my feed. The regular forum list and the threads themselves all show properly.

screenshot.pdf Attached is a screenshot of what I see. The thread descriptions used to go across the entire screen.