BG5150

Basic SHM caps at 4%. QACA match caps at 4.5% My thoughts are: EACA/SHM because they can have flexibility with initial rates and escalations --OR-- QACA because they can have 2-yr vesting and the match is only an add'l 0.5%, I think the client wants to start at 6% rate with 1% escalation, so under EACA it could be: 1: 6%, 2: 7%, 3: 8%, 4: 9%, 5: 10%, 6: 11%, etc QACA: 1: 6%, 2: 6%, 3: 7%, 4: 8%, 5: 9%. 6: 10%, 7: 10%, etc.

Plan wants to offer auto-enrollment. Can I have a basic SH match with it, or does it have to satisfy the QACA match?

I think they are, after speaking with the client. I am suggesting using an auto-rollover company. Maybe Penchecks. Any other good ones out there?

I'm with RBG on this one.

Thanks. I just wanted to make sure I wasn't missing anything big. We are just going to have the ER pay the participants out (its a pooled plan) and we will get them the 1099-r's

But you can't pick & choose, right? I can't have two people in the same situation and only have one be treated as excludable.

Plan requires cashouts of vested balances under $1,000. PA has been negligent is this regard. Is there any sort of penalty that could arise from not doing this? (It has been universal, no one has been cashed out involuntarily) What if it's cought in audit. Is it one of those, just cash 'em out now and be more diligent in the future, type of thing?

Thing is, the late deposit makes it a 415 annual addition for the year it is depsoited, even though it was based on 2015 allocation overall.

The odd thing is, if the participant kept the money in the plan, the entire amount would be in the denominator. But since she took a distribution, only 60% of it is now being considered.

Sounds like severance

I know that if a PS for a year is deposited more than 30 days after the ER's tax return is due, then those amounts are annual additions for the year in which the deposit is made. (Let's assume a calendar year plan and tax year) However, what if it's a pooled plan, and some of it was already deposited timely? Do I prorate the late amount across the participants? For example, there are $25,000 (out of $60,000) from the 2015 PS allocation that hasn't been deposited yet. For 2016, the owner is due $40,000 between deferral, SH and PS (under 50, no catch-up). Is the owner's portion of the $25,000 prorated over the 2015 allocation? (If he was going to get 40% of the 2015 contribution, then $6,250 of the $25k is slated as an annual addition in '16?)

I thought so, but I wanted to make sure. In this case, it's cheaper to keep him out. He's not benefitting, so my rate group coverage is (1/1) / (1/1)

So, the forfeiture account gets added to the denominator? I always excluded it from my calculations.

I would think all of them. Neither the plan nor the regs say only some fringe benefits.

Does this help? Publication 15-B (2017), Employer's Tax Guide to Fringe Benefits

Doing a 2016 TH test (balances a/o 12/31/15) We have someone who termed July 1, 2015 and took her balance in September 2015. She was 60% vested. She was paid $6,000 and forfeited $4,000. How much do I add back in to my TH test? Just the 6k or the full 10k?

I have a plan with 1 HCE and 2 NHCE. Last day rule for this PS only plan. One NHCE terms with 200 hrs of service. Can I exclude him from the ABT test for contributions? (I believe I can for coverage)

Does the CPA think this is some sort of ROBS situation?

Oddly enough I had the same issue this morning! The workaround: Tools --> Accessibility (I had to hit the little icon in the upper right to get additional menus. In accessibility, choose Measuring tool. Draw a line across the page and you can use the scroll wheel and the line will move up and down the page. I'm still trying to get the nuances of it.

if DOH = 12/21/15 you could theoretically keep him out until 6/21/17 (6 months after 1 YOS.), so I'd say he was otherwise excludable. (Even with 1 YOS and semi annual entry dates, he could be kept out until 1/1/17)

Just make the match and correct the deferrals going forward.

Over age 50? 41,000 for 2016. 42,000 for 2017. Under age 50? Subtract 6,000 from each. This, of course, only applies if: 1) testing passes 2) the amounts do not put ER over the deductible limit

For a partner or a "regular" employee?

So, if there was a fund change and all of Fund A was moved into Fund B and the amount moved was, say, 12% of plan assets, it needs to be reported?

I like that they tried to talk to him 415 times