BG5150

Can they do an 11-g amendment to some people in to get it over 70%?

Just barely. 52 weeks/yr. 1/3 x 52 = 17.3333 700/17.3333 = 40.38 I'm thinking someone too the "standard" 2080 hours a year and divided by 3 (693.33) and rounded up.

What does teh DOL have to say about having ONLY brokerage accounts, with no DIA's?

# 2 had 1,000 hours in '11, '13 and '15 (3 years.) # 3, same thing. But we ignore '11 & '12 because they are before age 18.

What test was this for?

EE 1: 5 years EE 2: 3 years EE 3: 2 years EE 4: 2 years At first it looks like only 2. But EE 4 turned 62 in 2013 and became 100% vested at NRA. So, now you have three. Just my guess.

Someone in my office seems to remember a rule that custodians must provide a trust report for a plan no later than 120 days after the plan year. Is that true? if so, where does it say that?

As far as I remember, the amount of the need can be increased for taxes, but not the funds available. 10% is the standard withholding. However, the participant may elect not to have withholding. Also, they can request more withholding. Nothing that I can see allows less than 10% but more than zero. For example, they cannot request 5% withholding.

And this means that she doesn't have enough to cover the $75 fee, which as you say should be applied before or after the distribution. That's what I get for doing math before my morning coffee My poor math not-withstanding, she can only get $472, fee or not.

Can you share that article with me?

Thanks, ETA. It's been so long since I've worked with a plan that allowed after tax that I forgot the procedure for reclassifying the amount as after tax.

She cannot get more than $472 for the hardship, because that's all she has available per the rules. You apply your $75 fee before or after the distribution, it won't matter, as that should NOT be part of the distribution (IMO). So, after the dust settles, she will have a $3 balance. (BTW: a 20% gross-up of $400 is $480, not $500.)

What is the amount involved for late contributions for the 5330? I would usually use the interest (and the interest on the interest) as provided by the DOL calculator as the amount involved. However, someone here uses a spreadsheet with the gross amount of the late contribution and a loan factor and interest rate. Obviously, the latter method is more complex. Is there anything out there that tells us how to (easily) calculate the amount involved?

How does money that wasn't taxed get post-tax basis? Do they issue a 1099 for the amount?

Does a 2-yr old get paid on a W2, or 1099 for something like that?

There is no minimum wage, however, there are state laws governing the employment of minors that may be applicable.

Are you sure they're not subject to ERISA? When making this determination, a plan covering only partners of a partnership is different from a plan covering owners of a corporation. Good Luck! Where does it say that? I've heard it mentioned, just never seen it in print/

So he's not really "forced" to sell his home. It's just that circumstances are such that it's the best way to accomplish his goal. He is not being "evicted." He has a "bill" from his ex-wife for $30,000, and selling the house is an unfortunate way to satisfy that debt. It is not a letter from the bank that says "pay up or get out." he already "owns" the house, so he would not be purchasing a principal residence. This is all assuming the plan uses merely the safe harbor conditions for issuing hardship distributions.

Maybe you've found a new space in the QP world...

DC Plan. One insured. Death Benefit a/o 1/1/15 was 3.6 million. I'm not sure who the loan was made out to. So we agree this has a potential to be a cluster-fudge.

I would call the IRS and ask why the 'P' is there.

This is a correction, not a forfeiture. EPCRS says that excess amounts (plus earnings) must be held in a "suspense account," the proceeds of which must be used to offset any Employer contributions (except deferrals). And there can be no ER contributions (except deferrals) until that account is exhausted.

I got this annual statement for an insurance policy in a plan of mine, but I'm not sure how to value it. Open Value: 625,000 YTD Policy Change: -20,000 Total Policy Value: 605,000 Loan Principal: 570,000 Loan Interest: 14,000 Total Indebtedness: 584,000 Surrender Charge: 110,000 Net Surrender Value: -89,000 I would think the net surrender value is my number. But it is negative because of the loan. Do I ignore that in the calculation? That is just use Policy Value - Surrender? And what really has me concerned is the half million dollar "loan" Any thoughts or suggestions?

^ and the taxpayer can claim the $6,000 over 402(g) as a "catch-up", but neither plan is affected. So, the only concern for this plan (or the other one) is if the participant contributed more than $24,000 combined. And if it's split up between two or more plans, it's up to the participant to notify one or more of the plan administrators of his error.

A deferral is a deferral is a deferral. Until you hit a limit: 402(g) ADP Test failure threshold for an HCE Plan-imposed deferral limit 415 Then, if the participant is 50 years or older at any time during the year, up to $6,000 (for 2016) can be considered "catch-up." Anything above those amounts, are treated as an excess pertaining to whatever limit they exceeded. By "system" do you mean a payroll program? Or is it the record keeper's software? Or the TPA's software?