BG5150

One of the selling points I've seen with 3(16) Plan Administration services, is that the 3(16) PA will sign and file the 5500, leaving the employer largely uninvolved. In the past, if the PA and the Sponsor were the same, then the 5500 only needed to be signed in the PA spot. If they were different, then two signatures were needed. Is that still the case in the age of e-filing? I couldn't find anything in the instructions. If only on is needed, great! However, if both are needed if PA and Sponsor are different, does the 3(16) administrator still need to get the sponsors signature?

If the plan goes under 80, it MUST file as a small plan (either 5500-SF, or 5500 with Sched I) regardless of what was filed the previous year.. They can get it audited if they want, though.

I thought it was 1 year after the last 401(k) funds left the plan. In this case, there were no 401(k) funds. Can you terminate a plan that was never qualified? What exactly goes into declaring a plan unqualified? Do you fill out a form or something? (I have never had to go through this). That said, I think terminating a plan and starting a new one would be much more costly than just filing a "blank" 5500.

^ yep

1. That is correct. Any ER contribution that would have otherwise been deposited must be offset by the amounts in the "suspense" account. The amounts may not be used to pay fees. 2. These are not forfeitures, even though in most, if not all, r/k systems, the suspense funds are held in the forfeiture account. EPCRS, in this case, does not say the amount is "forfeited." It says "the account balance of an employee who received an Excess Allocation is REDUCED by the Excess Allocation (adjusted for Earnings)." (emphasis, mine) Forfeitures are unvested funds that leave a participant's account for any of several reasons. The are not unvested funds, they are mistaken funds. So, you do not run afoul of the "no forfeitures to fund safe harbor" rules.

Similar discussion here: http://benefitslink.com/boards/index.php/topic/59538-safe-harbor-plan-and-employee-after-tax-contributions/?hl=solely#entry263727

Is this an EACA with a 90-day return window?

Seems ok

What type of entity is it? Corp? Sole-prop?

Only if the plan doc does not use the fail safe option for coverage, no? With fail safe language you have to correct the way the doc says. usually, it is adding people until you are covered and the ABT is not available for coverage.

Anything major? I, too, will be perusing it this weekend, but was jsut wondering.

Rev proc 2015-28 change that to 25% if after 3 months. No QNEC needed if within 3 months.

That's what we do. And also place the match and/or safe harbor and/or PS into a suspense account to be used to offset immediate future ER contributions.

In this case, we have a SH Match. Everyone here seems to agree that TH is triggered. [but just realized the sole Key EE made no deferrals for '15, thus no THM due in any case!]

Can I hijack this and ask if Prevailing Wage contributions also trigger a THM if the plan is otherwise TH for a year?

So, someone at 66 who is still working at the company cannot take his/her retirement benefits?

How would it work on the record keeping system? How will it know who is slated to make more than $45k? Is it an annualized figure? What if I'm supposed to make $60 this year, enter the plan on July 1, but I get fired in September after making only $40k? What happens from year-to-year, if people go above and below the waterline? I make $42k this year and I'm in Roth at 3%. Next year I make $46k and I'm now 4% in pre-tax? Or does it all stem from my initial auto enroll type?

I agree with FBJ. But I figured when the term ERISA attorney was mentioned that they brought it up. With EFAST, you need to file everything again.

But insurance premiums aren't a direct expense of medical care, are they?

Did you office do all the filings? That would be nice. Just prepare amended Form 5500's and upload the whole form & schedules & audit. (after getting the required signatures, of course) Otherwise, you'll probably have to re-type it all into your software. Does anything in the audit even mention single- vs multiple-employer? Even so, I do not think it would be material, requiring an amended audit.

Under what terms may a participant take a hardship withdrawal per the document? Safe Harbor rules? If so, what category would it fall under?

I would posit that it depends on the plan doc language. If it says entry date is next following, or coincident with... then the entry date is 12/31/15. Never mind that. It's immediate entry. So I would say that the person satisfied eligibility on 12/31, therefore enters the plan on 12/31. What about comp? Is it full-year or participation comp?

Money withheld for taxes is still part of the distribution, so you cannot take those funds (in this case) from match.

I would say they are doing it incorrectly, and owe you the match.

Out of curiosity, why "kind" of contribution was this supposed to be? Deferral? PS? Rollover? If it was PS, he can amend the plan to allow for distributions of employer money at any time. (Wait, does a seasoning rule have to apply? Or is that optional?)