BG5150

I can't see how he could participate in the current 401(k) plan post 7/1 b/c he'd have no allowable wages from which to defer.

Be sure to read the plan doc carefully, especially the Basic Plan Document if there is one. I dealt with one plan that said if there are allocation conditions for match such as hours or a last day rule, AND if the are any deposits to a participant's account before the end of the year, then the allocation conditions are considered waived for that year. (And then everyone would get a full-year match with true-up.)

Just because it's calculated on a payroll basis, doesn't mean it has to be deposited on a payroll basis. Unless it is a Safe Harbor Match calc'd on a payroll basis. Then it has to be deposited by the end of the following quarter.

Could there be some workplace retribution if she doesn't pay it back? (I know it's not allowed, but if she is still working there, the company could make it tough going.)

I have a client that has two people (NHCE) that they would like to exclude from the Basic Safe Harbor Match; they would still be able to defer. Coverage is not an issue. But, I still don't feel I can do this. But why not?

Just because they did it, doesn't make it right or legal.

If he's a shareholder in an S-Corp, only his W-2 counts as plan compensation. And since he did not have any deferrals taken out of his paychecks in 2017, he's out of luck. If he's a shareholder in a partnership, why is he getting a W2? I've seen that, though. If so, I believe he can defer from his partnership income, if he has any.

Just get the payroll report. Gross YTD wages. That's it.

I just say: "Trust me. I'll pick the best provisions for you." ;)

What does the payroll report list as YTD gross compensation. I'd go with that.

Do the rules for full-year EACA apply here? I know it's in place already, but only for part of the population. Can you add more people mid-year?

[redacted]

I had to do an 11-g amendment to give benefits to one person. Do I have to create an SMM for her?

Bummer. My second plan does not pass the ratio test, and combining the two for ABT in no good either. I'm going to have to shift some of the people from the accrual group to the contribuions group. :(

So, to be clear, if one of my component plans fails the ratio test, I'd have to test BOTH component plans TOGETHER using the ABT.

Would something like that take the doc out of prototype/VS status?

So, Tom: I am doing component testing, and I have a small group I'm testing on a contributions basis and another group I'm testing on accrual. Do I have to pass 1) rate group testing on the second group by ratio method or 2) the entire plan on the ABPT?

I'd send him a letter telling him that he's getting two checks. One for the RMD and another for the rollover. Also tell him, unless he advises you otherwise, 10% will be withheld for taxes. Don't forget to include the 402(f) notice.

Then they just get the money refunded. It's like an $18,000 bonus the next year!

duh. never mind. i need more caffeine this morning...

Where does it say that an HCE is not required to get a Gateway?

If the only contributions are 401(k) and SH Match, is there a Top Heavy issue?

Gonna be Friday next year. So, I think you will want all your refunds done by at least the 14th, so the check dates read 3/15. Otherwise they will probably read 3/18 from most investment houses.

And I think it's supposed to be the check date, not the transaction date.

There is an excise tax due of 10% on the gross amount of the refunds.