BG5150

I think it's FAB 2006-01 https://www.dol.gov/ebsa/regs/fab_2006-1.html

Given the fact that ADP excesses are taxable in the year of distribution now, rather than in the olden days where they might be taxable in the previous year, I don't see why anyone gets uppity about failed ADP tests. To me, with a failed test, you are guaranteeing the economic engines of your firm are putting away, to the penny, the maximum allowed given what the staff is contributing.

I am humbled that ToPo cribbed his answer from mine...

Wow, Tom and I posted eerily similar posts moments apart...

It doesn't matter when you actually RUN the test. You still have all the available methods to get the ADP and/or ACP tests to pass. When none of those methods produce a passing result, you must correct the test somehow. Within one year, you have your standard corrections. After one year, you look to EPCRS, and there you find you cannot disaggregate to calculate your refunds/QNEC amounts.

I think you can use it, but only for a passing result.

If it was a mistake, I would say that it must be repaid to the plan account(s). With earnings, no less. As long as the custodian is disgorging the improperly paid fees. So this would be a correction rather than a reimbursement.

I would look to EPCRS and the overpayment sections

Ah.

Why don't you just pay off the whole $10,000 now? You'll be rid of the loan and have $10,000 less in savings for the college aid people to see. Side note: if the loan program allows for it, and if someone wants to pay down a load from their own funds (additional payment(s) above the payroll deduction), I suggest the participant writes a check to the company and the company remits the payment along with the regular payroll. This way, on audit, all the payments are flowing across the company's books and no one will forget about the payment.

Why not just do a retroactive plan amendment and make him eligible? Is this person an HCE or reasonably expected to be an HCE in the near term?

Is there anything in the service agreement that allows them to charge a late fee? For what? You are not paying the TPA or Voya, you are paying the plan. Also, I would refuse to pay the late fee, as, per the loan note, the payments are indeed NOT LATE. And, like Bagwell said, loan software that doesn't have quarterly payments? Ridiculous. Our software goes beyond quarterly even, with semi-annual and annual payments allowed.

Vesting schedules, if different, would be subject to BRF, I think.

OVER 120.

But isn't there something about employees whom you reasonably expect to be an HCE when looking at people who are included early? If not, then why not let your brand-new CFO right into the plan; he's (currently) an NHCE after all...

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?