BG5150

Qualified plans have to stand on their own when calculating and distributing RMDs (as opposed to IRAs which can be aggregated). Was the distribution done in 2017? If so, the plan should have paid the RMD first, then rolled the balance to the IRA. My thoughts: technically, the RMD (and any accrued earnings thereupon from the IRA) should be returned to the plan, and the plan should make the RMD and issue the proper (at least) two 1099-Rs. Could the IRA pay it out? I don't see why not, as long as the participant receives the total amount she has coming to her. Keep in mind, she has until 4/1/18 to take any and all RMDs.

They are independent tests, and you can do they any way you want.

Yes.

Plan is prior year tested. Last year, no NCHE contribs, no HCE. 2016 1 HCE and some NHCEs. HCE is over 50, deferred $2,500. ADP test fails, but no refund, re-characterized as catch-up. He received a $600 match. ACP test obviously fails. BUT: do I forfeit the match b/c the ADP test failed and all the match is attributable to deferrals anathema to the ADP test? Or, do I refund the money, as the ACP test fails?

When calculating the covered comp for the 25% deductibility, do you use pay as a participant or full year pay for mid-year entrants and when benefits are calculated on partial year pay? For example, participant paid $50,000 in 2016, but entered the plan on 7/1 and made $25,000 thereafter. PS is 5% of $25,000. Am I using $50k or $25k when calculating the max deductible tot he ER?

But is the vested amount in the amendment only to the contribution, or the entire sources. Say Sheila has $1,000 in her PS account and is 0% vested. She leaves in '16 and the plan has a last day rule. The plan is forced to give her a (100% vested) $200 contribution via an 11-g amendment. So, in March, she now has $1,200 in her account (let's ignore any earnings). How much does she get in April when she asks for a distribution?

This si the way it is in our document software. No indication of BOY date. PLAN/LIMITATION YEAR (1.44/1.34). Plan Year and Limitation Year mean the 12 consecutive month period (except for a short Plan/Limitation Year) ending every: Plan Year (Choose one of (a) or (b). Choose (c) if applicable.): a. December 31. b. Fiscal Plan Year: ending: ____________________.

So when DO you have to do the ADP test in an ostensibly safe harbor plan?

^ What did the document say the plan year end was? "Last Saturday in Sep"?

^ that would make sense.

I think they should already be in there in line 4 in Part III.

Our plan documents have the last day of the plan year written in. We have a plan that ends Feb 28. What do we do in leap years? The doc says Feb. 28, not "last day of February." Do the regs address this?

Where can I find a write-up on when a SH contribution is missed, when are we required to do the ADP test? Is it in the EOB? I have a plan where, for whatever reason, the ER did not deposit a SH for two people. They did it for the other dozen or so participants. Do I have to do an ADP test for 2014 and 2015? And still have the ER make the SH contribution. What if it was for an entire population for a year? What if it's just a true-up that was missed for the plan/a few participants? I don't think I've ever sat down and read an clear, concise procedure for

If not, come up with something reasonable and go from there. What's teh worst that can happen? You are off by a little bit and you have to do another, tiny refund with a negligible 5330 penalty. I read in the 5500 "green book" (Wegesin?) that the trust has only a limited amount of time to furnish all the records to do a 5500. We are probably past that. I could make a case that if there are additional penalties because of incorrect earnings,t he old r/k should pay them because they did not timely provide the reports.

Shouldn't your client have a 2015 report showing those closing balances?

The refunds need to be determined using a reasonable approach. If you cannot get the earnings for a period, I would think its reasonable to go about it the way you suggest. Do you have an EOY report for the previous year? The HCE will have a balance. The HCE will have a converted Balance. The HCE has a yearly contribution. Subtract what was put in with new r/k and you have what he put in before. (This ignores any BOY rec'ables). Earnings are Converted balance (-) contribs (-) BOY. The prior r/k would HAVE to provide information for the plan to file its 5500. That would include a detailed report of the plans holdings by account. And they have to do it within a reasonable amount of time after the end of the PY. Maybe two months? Month and a half? I forget the actual timing, but there is a date this must be provided by.

At one of my former companies, if a new TPA (or a new record keeper or even the client) wanted copies of work that was already sent to the client, we would have an hourly charge and postal costs (if mailed, obv.) for the retrieval and duplication of the material. The charge was higher for documents stored off-site. (This was before most things were kept electronically). Work was only delivered after invoice was paid. I see no problem with that practice, as long as the charges are reasonable (and ours were).

Plan fails coverage, with no fail-safe language. In my document I see the protocol for letting people in when there IS fail-safe. But how do you correct it if there is no such language? Do I need an 11-g amendment?

Unlike forfeitures, I don't think they would have to be exhausted by the end of the year. That is, if there is no ER contribution, then it would just stay there, rather than being reallocated or used for fees as with a forf account.

You would use the entire amount removed toward any employer contribution (except deferrrals) until the suspense account is depleted. In fact, there cannot be ANY employer contribution until it's depleted. From good 'ol EPCRS

How do you know if match is to be refunded if you haven't run the ACP test yet? Do you mean there was match associated with deferrals that had to be refunded? Those are forfeited.

This is what it says on the BPD headers: Defined Contribution Volume Submitter Plan My quote is in the definitions section, # 1.35, Matching Contribution. © 2014

I think it's a VS in adoption agreement format. So it has a BPD and an AA

Hopefully she's not an HCE!

I think its Relius.