Nassau

This question pertains to a DC Plan only. Assuming service with the same employer, does service prior to meeting the plan's eligibility criteria count towards eligibility? vesting? Is it optional or required to count service prior to eligibility? For example, If the plan's age and service requirement is Age 18 and 1 year of service and a participant is age 17 and has been working for the company for 1 year. When the participant is Age 18, will the 1 year of service that the participant had prior to meeting the plan's eligibility criteria count towards eligibility? and vesting? Can someone provide me with the regulations that is associated with the answer? Thanks.

Can someone explain how partnership compensation works with respect to elective deferrals and which year the contributions should represent?

No, the client just wants to charge the actives one price and the terminated participants another price. Does the fee need to be uniform accoss the board?

One of my clients is looking to split their annual recordkeeping fees, which their participants pay, by active and terminated employees. The question the client has is can those fees be different meaning $40 for actives and $50 for terminated participants? Would that be discriminatory in nature?

Yes, this is the same question from earlier yesterday. If a person holds an ownership interest of greater than 5% in a Company, but the person is not an employee of the Company, and he or she does not receive a salary /guaranteed payments from the Company, Is this person required to take an RMD from the Company if he or she meets the RMD requirements? I agree that If the person is not an employee, how does he or she have any money in the plan to withdraw.

If a person holds an ownership interest of greater than 5% in a Company, but the person is not an employee of the Company, and he or she does not receive a salary /guaranteed payments from ABC Company, Is this person required to take an RMD from the Company if he or she meets the RMD requirements? I thought for purposes of section 401(a)(9), a 5-percent owner is an employee of the company and in this situation since the person is not an employee of the Company and did not receive a salary/guaranteed payments from the Company he or she would not be required to take an RMD from the Company.

If a person holds an ownership interest of greater than 5% in ABC Company, but the person is not an employee of ABC Company, and he or she does not receive a salary /guaranteed payments from ABC Company, Is this person required to take an RMD from the ABC Company if he or she meets the RMD requirements? I thought for purposes of section 401(a)(9), a 5-percent owner is an employee of the company and in this situation since the person is not an employee of the ABC Company and did not receive a salary/guaranteed payments from ABC Company he or she would not be required to take an RMD from the ABC Company.

I received a question from one of my clients and was wondering if someone could assist me in providing a response back to the client. The heart of the question is, can the client continue to make the profit sharing contribution for 2012 earnings and the 2012 plan year and still deduct the contribution from their 2013 tax return instead of 2012? Below is additional information that the client forwarded to me. As a follow up to our phone call, we wanted to pass along some information regarding the potential deferment of the 2012 accrued profit sharing deduction to 2013. In order to defer the payment of the 2012 accrued balance at 12/31/2012 to a 2013 deduction, the company should designate in writing to the plan trustee that the contribution is on account of the 2013 taxable year of the employer. Doing this, would push the deduction from 2012 to 2013. This would mean that on the 2013 return, there will be the 12/31/2012 accrued balance deducted in 2013 and the accrued balance at 12/31/2013 paid in 2014 will be deducted on the 2013 tax return. There is a limitation out there for 2013, that being the 2013 “double deduction” (the 2012 non-deducted portion and 2013 accrued deduction). The total of these cannot exceed 25% of W-2 compensation of the participants for 2013. I am assuming this will not be an issue for the company, but wanted to inform you of this limitation.

So are safe harbor contributions available to be withdrawn for an in-service Disability Withdrawal? An in-service disability withdrawal means the participant is not terminated but he or she is on a short or long term disability and is currently not working for the company but he or she is permitted to take an in-service disability withdrawal from the plan.

But I thought that safe harbor contributions follow pre-tax contributions and could not be withdrawn before age 59 1/2 ?

Are safe harbor contributions available to be withdrawn for a in-service Disability Withdrawal?

Are safe harbor contributions available to be withdrawn for a Disability Withdrawal?

Participant requested a Roth Hardship withdrawal. Client indicated to withhold 20% but system will not allow this. The participant is not 59.5 so should this be processed tax-free?

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Quick question for one of my law firm clients: What is the deadline for profit sharing contributions? I know it is typically corporate tax filing deadline plus extensions. However, in this case, the partners of the law firm will be making the contributions individually. Is the tax filing deadline the same, or is it the individuals tax filing deadline?

I was determining eligibility for a discretionary match this week and came across an interesting note in our plan. Generally if you are not employed on the last day of the year you do not qualify for the DM. However there are several waivers; death; disability; early or normal retirement. No problem there. Normal retirement age is defined as "date of participant's 65th birthday (not to exceed 65th). Does this mean if the participant is 66 he does not receive the DM? Reference a participant who retired 12/14/2012 and had his 66th birthday on October 22, 2012, (born in 1946). Does this mean he does not receive the DM since he has exceeded his 65th?

Question if my client is using compensation from the "date of entry" when calculating they company's 2012 Safe Harbor Contribution. I thought that Safe Harbor contributions followed elective deferrals when it came to Pre-Entry Date Compensation, but wanted I wanted to check?

IRC Section 72(t)(2)(A)(iii) provides that no penalty will be applied to distributions that are attributable to the employee's being disabled within the meaning of subsection (m)(7). What is the meaning of subsection (m)(7)?

This client of mine is a 403(b)7 client - we are the single provider. Are there any special provisions regarding fee disclosure that I need to be aware of for 403(b)7 plans that is covered under either 408(b)2 or participant paid fee disclosure?

Does the IRS require 401(k) participants to take a loan before they can take a hardship withdrawal or is this a plan-specific rule? My client contact informed me that there SPD states that "The Plan Administrator may require that you take a Plan Loan instead where this is financially feasible." My client contact thinks that language is rather vague and not sure how financially feasible is determined. Please advise. Also, if the participant does not have any money available for a loan or does not have enough to meet the minimum requirement for a loan issuance, can the client allow the participant to take a hardship withdrawal?

Participant recently completed a QDRO, 50/50 split, with an effective valuation date of 12/30/2011. The QDRO transfer transaction was processed and traded normally on 5/2/2012 with earnings from valuation date onward. No issues there. Participant's RBD is 4/1/2013. Participant is in the process of initiating his first year of RMDs and is requesting that the effective date and amount of the QDRO be applied to his 2012 RMD. Essentially he is stating that because the QDRO dictates that 50% of his balance was not his starting 12/30/2011, even though money did not move into separate accounts until months later (5/2/12), that his 2012 RMD should use 50% of his 12/31/2011 closing balance to determine his RMD amount for 2012. Please confirm: Option 1: $312,214.02 / 27.4 = $11,394.67 (participant satisfies 100% of 2012 RMD) Option 2: $156,107.01 / 27.4 = $5,697.34 (50% prior year end balance due to QDRO effective date) What should the RMD be?

Can you tell me if a participant returns from Military leave and wants to make up a missed contribution for a prior tax year, does the participant have to amend that prior year's tax return or does the participant just claim it on the current year's tax form? Can you provide me with the Regulations that provides this information? Thanks.

The measuring period for vesting is the Plan Year. The Plan Year means the 12-consecutive month period which coincides with the adopting employer's tax year . Year of vesting service is 1,000 hours of service (actual hours). Once the participant was rehired last year what should have been the participant's vested percentage? I am trying to figure out the vesting for one of our employees who was rehired last year: 2001 – worked less than 1000 hours (original hire date – 9/10/2001) 2002 – worked more than 1000 hours (0% vested) 2003 – worked more than 1000 hours (20% vested) 2004 – worked more than 1000 hours (40% vested) 2005 - worked more than 1000 hours (60 % vested) 2006 - worked less than 1000 hours (employment ended – 6/9/2006)) 2007 – not employed 2008 – not employed 2009 – not employed 2010 – not employed 2011 – worked less than 1000 hours (rehired 7/10/2011) 2012 – worked more than 1000 hours (DOES HE NEED TO START FROM 0% VESTING?)

My client is considering amending their plan document for 2013 to add a traditional safe harbor match. However, they were recently acquired and there is a chance that the plan will be merged (not terminated) into the parent plan. 1. Would they have to amend the plan to remove the safe harbor feature before merging if the parent company is not safe harbor? 2. Does a plan merger constitute a short plan year (so that they wouldn’t have to test)?

My client is considering amending their plan document for 2013 to add a traditional safe harbor match. However, they were recently acquired and there is a chance that the plan will be merged (not terminated) into the parent plan. 1. Would they have to amend the plan to remove the safe harbor feature before merging if the parent company is not safe harbor? 2. Does a plan merger constitute a short plan year (so that they wouldn’t have to test)?