BG5150

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?)

If there is no valid company (of which he purports to be sole prop), then there is no valid employer. Hence, no valid plan.

I don't want to look the wrong thing up. is that 401(m)(11)((B)(ell) or 401(m)(11)((B)(eye) or 401(m)(11)((B)(one)?

What does "open up a 401(k) plan" mean? Did he complete plan documents and open a trust account? Or just open up an account he told the broker was a "401(k) account"? Does his company have a plan and allows SDB accounts? What kind of shady or professionally derelict brokerage office would open up such an account on the say-so of a guy coming in off the street? (Or even just on the say-so of a current client?)

I thought the 4%/6% limits were for discretionary match when added to the SHM.

Yes.

^ does doing something like that put the TPA in a fiduciary position in any way?

Mine works just fine on this cite, too.

"cite"! They are cites. Not sites.

I, too, would feel comfortable using the FAB 2006-01 as a basis. Also, if when the allocation method is decided upon, and if the amounts to the participants will be de minimus, you can use the amount to pay plan expenses. The easiest was would probably be to just reallocate to everyone in the fund in the plan pro rata across account balances on a current basis. Excerpt: (emphasis mine)

If the amounts are small (per participant), you can use them to pay expenses.