BG5150

Having a brain cramp today. I have a plan that has 3 month wait, entry is date of event. Cross-tested 3% SH plan. Do I have to give the otherwise excludable folks the gateway if I am testing them separately? GW will be 5%.

^ Thanks, Doc. I wasn't planning on excluding them from just the SH. I'm going to exclude them from the plan altogether. deferrals, SH and PS. It should pass coverage.

Can I amend a 2019 3% SH plan now to exclude a certain class of Employee. Coverage not a problem. None of the current Employees thusly situated are eligible for the plan now.

It should be part of the loan paperwork they signed.

thanks, all

We have a company that would like to have each year's PS contribution to be on a separate vesting schedule. It would be a 4-yr cliff. Assume no Top Heavy. So, it would look something like this: 2019 contrib fully vests 2023 2020 contrib fully vests 2024 2021 contrib fully vests 2025, etc. I don't think this is possible due to the minimum vesting standards. For example, someone hired in 2019 has 4 years service in 2023, so the 2020 contribution would have to be 100% vested for that person in 2023, not 2024. Is there any way around it?

I meant someone who owns stock in the company where that stock is not held by the plan. For example, I own 80% shares of the BG Company, and 10 others own 2%. We start an ESOP. We issue NEW shares to the ESOP. Whereas the original owners' share % drops with the issue of new shares, I will be an HCE with respect to the 5% owner rule for quite some time, I hope.

ESOP's don't own 100% of a company's stock, usually. You can have other stock owners outside the plan.

When I worked on daily plans, the forfeitures were usually held in cash, so no dividends.

If the plan isn't TH now, no one is subjected to that schedule. Can't you just amend the plan to have the TH schedule match the regular one? There's no cutback b/c no one is currently on that vesting schedule.

I doubt the original e-mail (if it went out) showed everyone's e-mails. usually, in a mass e-mail, companies send the email to one person in the company and blind copy everyone else, so as not to expose everyone's email addresses. So, I wouldn't use that as proof that you didn't receive it. Do you usually check your spam folder? Or just delete everything automatically? Many times, an e-mail that goes out with more than a couple recipients will automatically get flagged as spam, even if the sender is a trusted source.

Company ABC had a 401(k) plan for several years. In May 2017, they adopted the XYZ MEP. It's an open MEP. How does the ADP test work in this case? Do we (they) do one ADP test for the entire 2017 plan year? Or, do they run two ADP tests, one from Jan to April and the other May to Dec?

Hardships under facts and circumstances can be for almost anything. There are many financial considerations to consider, though. From: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-hardship-distributions So, if they have a brokerage account, or a pleasure boat, or even a coin collection, then they may have other resources available.

So, no 2018 RMD it seems.

Participant turned 70 1/2 this year and died in late November. His RBD is 4/1/19. Spouse wants to roll over the entireaccount now. I believe the RMD must be taken first. Others in my office are sticking to the RBD of 4/1 and she can roll out the entire amount. Who is correct? Cites?

Then answer as to what is better is up to the Trustee(s) as to what it sees as the more prudent investment. To me, it doesn't make much sense. You said they allow transfers from the SVF to the Target Date funds. Can the participants transfer to their own elections later? Or are the funds stuck in either the SVF or Target funds?

What does the plan say?

Company A wants to sponsor a plan in 2018. Owned 50-50 by brothers. Company was in existence since 2016, but only really started conducting business in October 2018. Brothers, their wives and a child are all getting paid for services. Company A adopts a 401(k) plan 10/1/18 effective 1/1/18. 21-1 YOS, semi-annual entry. EEs employed 10/1 have service waived and enter immediately. The brothers also owned another business, Company B, with 6 other (NHCE) employees. So, controlled group. Company B folded 9/30/18. Company B did not have a retirement plan Two employees from Company B started working for Co. A in November. I'm guessing I have to count their service with Co. B. When do they come into the plan? January 1? Do we have a coverage issue?

Coverage?

FWIW, Relius allows for TH to be allocated to: All Exclude current year Keys Exclude Keys a/o determination date

I have a plan that allocates a discretionary match on top of the SH match. Max up to 4% of pay. Last year, we had one owner deferring and no staff deferring. No problem. This year we have the owner and another HCE who is deferring. Can I structure my discretionary formula to be: Owner and staff 100% deferrals up to 4% of pay; non-owner HCEs 0%

Was thinking of trying something new. How can I change my avatar? I didn't see anything in the settings.

The 402g excess would be easier. Plus the r/k gets the distribution fee!

I would just do a 402(g) excess distribution from the account. Normal earnings calc would apply (sometimes the carrier will do it, sometimes the TPA calculates it). He gets all the money back (withholding is optional). It will generate a 2018 tax form, so he'll pay taxes on it. And you don't mess with payroll.

It cannot affect the Trustee's decision at all.