CJS07

We have a client with pooled assets. The client's CPA 'manages' the items that need to be done annually. The CPA forgot to get the annual RMD for the owner processed (after several reminders). The RMD came out of the account on 1/20/17 and should have been out 12/31/16. Is the remedy a 5330? Suggestions?

Hi All, When accessing funds for costs related to a primary residence - does this include refinancing and using say 80,000 from your 401k to pay down the principal on your house? I say no.

We have a Plan that would like to remove the Auto Enroll provision EACA . None of the employees have ever been auto enrolled since they've always elected yes or no. The Plan year-end is 12/31. An Auto. Contribution Notice was provided in November of 2016 for the 2017 Plan Year. Can the Plan be amended to remove the EACA now or do we have to wait until November 2017 to make effective for January of 2018?

Checked the Document and it is silent. I agree safest to take the money.

Plan had a terminated employee as of 4/1/16 who needed (and did) take first RMD. Person has since been rehired by same company. Does employee have to continue taking RMDs where he has been rehired and is not an owner?

If there are excess annual additions during 2015 & they are not distributed until September of 2016, does a 5330 need to be filed? Person with excess annual additions is the owner/partner who had a loss for the year and should not have deferred money to the Plan.

Does anyone know why there is the belief among the CPA & Financial Advisor community that once owners reach 70 1/2 and start taking RMDs that they can no longer continue to contribute to a 401(k) Plan?

I had a client call and say they thought the company taxes were due 4/15 but were due and filed 3/15. CPA took the ER Profit Sharing contribution deduction but the client did not make the contribution until 3/22.Is there any correction needed in this situation where the deduction was taken and taxes filed prior to contributing the $ to the Plan?

Hoping someone can enlighten me Plan is Safe Harbor Non-Elective 3%.(SHNE) Age and service waived as of 1/1 for NON-seasonal employees. Seasonal Employees are always excluded. Eligibility is 21 and 1 year of service (1000 hours in 12 month period) with dual entry 1/1 and 7/1 I'm being told that as long as the Plan can pass coverage then the Seasonal employees will NOT receive a SHNE contribution even if they have met the 21/1 year and entry requirements. Something doesn't seem right - isn't this the very definition of discriminatory? The Seasonal people are not covered under a different Plan. How does one go about defining Seasonal? Do you write a very specific definition into your Plan Documents? The client grows different crops and there are 3 seasons. Can you exclude one season (say Summer season) and not Fall and Spring?

Wondering what you would do. Have two clients in similar yet different situations: 1. Client had 1 late 401(k) Deferral deposit for 2013. Just discovered it now. Did now extend the 5330 as we didn't know we needed to do one. Would you file a 5330 for 2013 or wait and file in 2014? 2. Client didn't fund Safe Harbor for 2012. Takeover Plan, we did not know until recently. Client has funded it now. Did not extend the 5330. Do we do a 5330 for 2013 or wait and file in 2014?

Client was supposed to fund Safe Harbor Non-Elective for 2012. Small Plan, form 5500SF. Apparently doesn't have the funds to do so. listed the SHNE contribution on 2012 Form 5500 that should have been made. Now filing 5500-SF for 2013. Do I have to amend 2012 to remove the SHNE contribution or leave it as is? I know there are many other issues since it hasn't been funded but I'm just worried about the 5500 for the moment.

First time I have a Plan that did not start 401(k) deferrals for 2 employees. The Company put in a QNEC contribution for the 2 employees. Would the QNEC amounts be considered late deferrals for purposes of Form 5500-SF question 10a? Or would the QNEC itself take care of the issue? TIA

If a Plan had a QDRO processed during say 2012, and the spouse (who received the funds) left the $ in the Plan, should that spouse and balance be counted in the Top Heavy test?

There is some discussion and disagreement among some of us as we have seen different firms use different approaches - wondering if anyone can settle these 2 questions: 1. If you are preparing a 2012 Valuation and a participant has a loan payment receivable (due in 2012 but doesn't get deposited at Fund company until January 2013). Do you show the payment receivable in your 2012 Valuation as a receivable and reduce the loan balance by that payment? OR Do you report the loan balance as of 2012 without the receivable payment? 2. It is 2013, you are working on a 2012 Valuation. You notice there is a participant that has incurred a 5 year break in service (as of 12/31/12) who needs to have a portion of their account forfeited. Do you show the forfeiture on your 2012 Valuation, have the Fund Co. forfeit the person in 2013, and then make adjustments to the forfeiture account for the gain/loss in 2013 OR do you leave the person as is on the 2012 Valuation, have the fund company forfeit the unvested portion in 2013 and show that forfeiture on the 2013 Valuation? TIA

A terminated participant in one of the Plans I manage, recently received a 'Notice of Levy' from the State of Massachusetts. I didn't think States could levy Qualified Retirement Plans. Anyone have any experience with this? If this is allowed, are there any exceptions?