PainPA

Hard to find some definite details on this concern and really only have 2 plans that are profit sharing only. Plan Sponsor has a Profit Sharing only plan for 20+ years. Now wants to add a 401k with a Safe Harbor design feature. 1.) Does the start of the 401k safe harbor have to be the 1st of the plan year? or can it be anypoint in the year to start the 401k? 2.) Is it mandatory when adding a 401k that that it have an automatic enrollment since it is not a "New Plan" Thank you in advance.

Need to be careful if plan is relying on the S/H to satisfy top heavy as well.

The W-2's show the pre-tax correctly and balance out to the trust allocations and all are timely. The plan administrator just did not know that roth was mistakenly added to the plan document and when an enrollment form was completed by an employee for a roth deferral he would consult with them that Roth is not an option in the plan and they would correct. So there was never a $1 entered into the trust for roth and the match was never missed or late.

Plan Admin/Trustee did not want to offer Roth. Roth was added during the 2016 restatement in error (?) and was not found out until now. So an employee selected roth on the enrollment form but the administrator went back to them and said we do not offer roth and then the employee placed the same percentage in pre-tax but never crossed out the roth. So everything moved forward and the employee did not miss $1 of the safe harbor match. The plan has as internal audit and this employee was selected. What is my legal correction? Everything I am reading relates to missed deferrals, missed entry, missed eligibility..... and how to fix..... making up the difference.... Basically I want to do a retro amendment... just not sure... any ideas....

I agree on the “ounce of prevention” as a no brainer until I thought filing $0 would cause some flags. then again it is better to not file and then have an effective date of 11/01/2018 and no 5500. I can flip flop all day thank you everyone for the posts, all of which raised the same concerns I was going thru in taking the path of least resistance. Happy 4th

New p/s plan adopted in November 2018 and the 401k was going to start 1/1/2019. They decided not to make a profit share contribution for 2018. So no assets for 2018 at all. Do I still file a 5500 with 0.00 for 2018 ?

What is everyone's thought on if a governmental entity adopted (10+years ago) a MPP document that was not structured for governmental plans whereby the J&S is mandatory. Is this a protected benefit that cannot be removed?

So her retirement date is 1/12/2016 so she did not need to take one. Additionally does the plan year being fiscal start 7/1/2016 add any other issues. thank you for you help.

Is the RMD determined by the when 70 1/2 is obtained or the year it is obtained. Participant DOB 3/1/2016 so will turn 70 1/2 on 9//1/2016. Participant does a rollover before on 8/1/2016. Is a RMD required before the rollover?

Does anyone know that if an amended filing if it replaces the original or would you be able to see both versions?

Have a similar question to yours and I saw your recent post so I would value your opinion. We have a an auto-enroll with a standard discretionary match at year end. Should an employee who Opted Out but did not complete a form for the refund be eligible for the match? Would it matter differently if they received the refund or not? And if they are entitled to the match do you still provide the match (year end) to only forfeit it right after to show a trail? Thanks for your input.

Plan allows for 3 loans. Employee has a balance of $15,000.00 All 3 loans are exhausted and total $7,500.00 Can participant take a Hardship of the remaining $7,500.00? Is the 50% loan security only needed at the time of the loan? Never came across this.

That is good information. The plan is with John Hancock whereby they send the participant statements quarterly. I cannot understand why this former TPA of the plan required for this supplemental statement other than it had language on it about permitted disparity. I have safe harbor plans that include the same language and the notice I provide is more of annual notice instead of strictly a safe harbor notice. However, this plan is not a safe harbor plan.

Who can shed some light on a supplemental QUARTERLY statement requirement under Sec 508 of the 2006 PPA. When it is it required if the plan is say with John Hancock.

Is the distribution code used when dealing with 59 1/2 the age when the distribution occurred or is it 59 1/2 during the tax year?

I just had 2 clients receive the late notices. This is becoming a burden as I had a few back in October as well. This is such a simple process. Maybe it is screwed up because they hired the programmers from the the HealthCare.gov What do other TPA's do for proof the 5558 was filed? The one thing I question on our end is that I send out about 20-25 5558's in early July (I do not wait until the end of July with the onslaught they must receive) with a USPS confirm return receipt. How antiquated? Do others send individually? Do they ask for the client to send a copy of the IRS receipt of the 5558 when they receive the letter 2 months after it was sent in? Frustrated............

Is a RMD required to be processed before a rollover out of the plan is processed? e.g. Participant DOB is 11/1942 Retired on 04/2013 Sent in paperwork to roll to an IRA in 08/2013 I realize that the RMD can be delayed until April 1, 2014 to take the 2013 RMD and then the 2014 must be taken before 12/31/2014. The question is do we have to process a mandatory RMD before the request for rollover is processed? And does it matter if the plan is a 403b vs a 401k? The plan doc does allow for the later of 70.5 or retirement.

I would probably just ask the governmental entity. Some states do not have anything. I guess I was just advising you to make sure you state the service in your agreement to ensure payment.

Some states have their own version of a 5500 that they might be asking you to complete. Also usually a 457(b) is part of the retirement plan(s).

Just participated in a 5500 Webinar with 1,100 people attending and they polled the question about placing the name on the paid preparer: a.) Plannning on puttting our name in the paid preparer b.) Not going to put name in the plan preparer c.) Not sure The results were: (giver or take) a.) 2% b.) 86% c.) 12% very surprised on the results and the moderator recommended not putting it on there.

I think it is a good thing. There is still a lot of "junk" out there. I doubt the payroll providers that provide TPA services will want to put there name on it. I will walk in the same shoes as the plan sponsor as I know I do a very good job for my clients.

I have the same concerns for the 404a5. I do a lot of business with John Hancock and they have a SendSmart system that is great. However I am looking for the same service for my non John Hancock plans.

I am using Ft William and I do not see any way to limit this by number or take it outside the document to a policy. Thanks for your help.

From reviewing other posts that a hardship can be limited in a plan, to say 1 per plan year. I do not see that avialable in my document without adding the criteria. Can it be like the loan policy administered outside the document?

Do the pending 408(b)(2) and 404(a)(5) disclosures rules pertain Govermental plans that are exempt from ERISA?