BG5150

I would say you combine the comps.

Is comp for full year, or only considered when a participant. The doc should address that, at least.

Well, you would have to send a form, as it's probably under the cashout. Also, since it's under $200 you don't even have to withhold! Keep copies in the plan file of everything and move on.

Send a check for $40 to the former EE and $10 to the IRS and send the proper 1099 for 2018?

Reopen the account?

Thanks, chc. I forgot about that.

Why do we need to be concerned with a former employee being highly compensated?

Why file an EZ if under 250,000? You could always file a 5500-SF using the owner-only questions, which are pretty much the same as the EZ questions. They you don't have to worry about corp or partnership or whatever. PLUS, you get the added benefit of knowing the govn't received it. (with a potential downside that the form now is open tot he public)

Right. B/C there would be a zero balance on 12/31/17.

Could someone take a 99.9% partial withdrawal?

I noticed that yesterday! I was looking it up for someone else in my office, and for whatever reason I decided to do the arithmetic and saw the $480 cost as opposed to the calculated $465.

Yes.

True. It was never unvested money. Those funds should go to an unallocated account (as opposed to the a forfeiture account) and be used to offset future ER contributions. (In fact, EPCRS says there can be NO ER CONTRIBS until the unallocated account is exhausted.)

Ours just says match is discretionary. That's it. We have the option to put in a formula, but why do that? That's the document. The r/k system is a different matter. I would be difficult to allocate different formulae to different groups, but not impossible, I think. (Put people into divisions and run a match for each division, changing the formula as needed)

I think what you do is rend revised tax forms showing $8,000 less distributed. If he doesn't return the money, the ER is on the hook to replace it. It wasn't merely an overpayment, but payment of funds that belonged to others in the plan. Check EPCRS correction of overpayments, thought. Don't forget, he has to send back earnings, too.

Darn

Was this person an NHCE? How much money are we talking about?

And make sure it didn't happen to anyone else!

make it a discretionary match. then you can do whatever you want subject to testing. pretty much

That's why I put "MAY" in my post. I'll go back and edit it to highlight.

Side note: is there a Profit Sharing allocation with everyone as his own group? You MAY not have the ABT available for coverage at all. As with many things in our world, the facts and circumstances will bear it out.

I thought the targeted QNEC was to correct failed ADP/ACP testing. In our document, the coverage remedy is to allocate to those employed at EOY with greatest # of hours. If, after that, it still fails, then allocate to termed EEs with greatest number of hours. The fail safe language mandates that contributions are made. absent that election, you are allowed to use the ABT. However, if ABT fails, I believe you have to resort to the remedy above. maybe with a VCP filing you can try something else with an 11(g) amendment (can you even do one more than 9 mos after EOY?) and cross your fingers.

What if a person takes a partial distribution? Account balance: 40,000 Age 67 Takes a 10,000 distribution Fee: 50 1099-R: 10,000 or 10,050?

...and don't be surprised if that company stock is unavailable for the hardship as well.

But how can you back date amendments? ;)