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Participant has an In Roth Conversion account balance in his prior employer's plan. The participant has not attained age 59 1/2 nor has the 5 year period expired. The participant would like to transfer this roth balance to his current employer who also allows for roth contributions. Is he allowed to transfer the funds directly from the prior plan to the current plan and not jepordize the roth account balance. Thanks

I have been informed the plan is terminated and with the PBGC. Since this is an asset sale only, doesn't the prior own have the responsibly for this filing and any additional costs associated with it? It maybe my client can not purchase the assets until the PBGC filing is done and the benefits are paid. Can not figure out why my client would be responsible since he only purchased the assets, unless, the current owner has no money and the PBGC figures they will go after the new owner.

covered by PBGC - not sure if it is a union plan

I am assuming the assets are not sufficient to cover the benefits

A company offers a DB plan with that currently has an unfunded liability. The company may be sold - asset sale only to an unrelated party. There is no controlled group issue or any relationship between the potential buyer and seller. I am told that even though this is an asset only sale, the new buyer would have to take on the unfunded liability. Is this correct? Why would the new owner have to take on this expense?? thanks

I have a client - controlled group. Each employer has their own plan, but for testing purposes, the plans are aggregated. It appears during some prior plan years, the documents were not updated to add additional participating employers to each plan document. The recordkeeper suggested filing under VCP to bring the participating employers into the plan - note, the employees in the participating companies have been participating in the 401(k) feature. The recordkeeper is filing a VCP for each plan. Since they are a controlled group, can one VCP filing be done for the plans. This may reduce the over cost of the filing. thanks for your assistance.

Good Morning, I have a client who is a more than 5% owner. Back on 12/21/1983 he signed the waiver of RMD until the later of normal retirement age or the year in which he actually retires. This has allowed him to forego RMDs for 2011, 2012 and 2013. The participant is still employed, but wants to take an in service distribution of his entire account and roll it to an IRA. He will continue to make 401(k) contributions and receive employer contributions. Question - Does the RMD waiver prevent him from rolling his funds to an IRA? The notice talks about when the payment is made in annual installments over the lifetime of the participant with the balance at his death to his participant. OR since he is still active, and eligible for an in service, can he take his account and roll to the IRA. In essence he will be rolling over funds that are not adjusted for prior RMDs due to the waiver - Is this ok?? We have the signed waiver, and it was properly and timely executed. Just never saw one before!

Can a plan sponsor limit non residential loans to 50% of the vested account balance up t0 $30,000 and residential loans to 50% of the vested account balance up to $50,000? They wanted to reduce the 50% for non residential loans, but that I would say is a no!! Just not sure if the IRS allows the plan sponsor to reduce the maximum $50,000 amount. Thank you

Plan offers a loan provison- Payroll deduction set up for loan payments Employee A takes a loan and the amortization is set up for bi weekly payments. The employee is a commission only and for the month was not paid any commission therefore no loan payments were made to the plan. The employee is not paid a base salary. Although the plan require loan payments via payroll deduction, if the employee is commission only, then doesn't he have to issue a check to the plan each payroll period for the loan amount. Or issue one check for the outstanding loan payments prior to the end of the cure period? thanks

Does the notice need to be specific regarding the fees charged by the different vendors? For example if the RIA is paid 0.10% does the notice have to state this amount. The TPA is paid from the plan the actual amount will vary depending on the participant count. A specific amount is not known. Is it sufficient if the notice includes a general statement that the plan incurs expenses for general administration such as legal, accounting or recordkeeping services . Fees charged are reflected on the quarterly statement thanks

Company A maintains a salary deferral plan with a 3% non elective and 11.5% fixed profit sharing contribution. Effective 11/2013 Board Resoluitno to terminate Plan. The next day the company A was sold to Company B. Employees will continue to receive paycheck from Company A. Starting 1/1/2014 paid from Company B. 1. Company A told no participant notice is required for the termination - informal termation 2. Company A told the safe harbor and employer contribution will be based on wages from 1/1/ - 11/8/2013 3. Company A told the participants can continue to defer through 12/31/2013 Question: Doesn't Company A need to notify the particiapnts 30 days in advance the Safe Harbor will be eliminated? If the resolution was to terminate the plan 11/8 - can the employees continue to defer? If the employees can defer on wages from Nov to December - is it ok to base the sh and employer fixed on wages from 1/1/ - 11/8? thanks for your assistance

changing the loan progam is an administrative procedure. The loan feature is already in the plan document. Loan procedure provided to participants requesting the loan.

The employer currently has a safe harbor plan ( and will be safe harbor for 2014). In addtion the plan offers participant loans. The loans are getting out of control, but not to the point where the Plan Sponsor wants to remove them. the Plan Sponsor is considering limiting one loan outstanding at a time. Does this change in the loan policy need to be implemented before 1/1/2014, or can this procedure be changed durnig the 2014 plan year. We are not amended the plan to add or remove a feature, only modifying the current loan procedures. thanks

Under the key considerations of FAB 2013-02 it stated, the flexibility ( referring to the transitonal period for the second annual notice), allows you to align the secound round of 404(a)(5) disclosures with other plan disclosure and notices deadlines, creating a cost efficent solution for mailings. It also allows participants to receive the information in conjuction with other plan materials, notices or dislcosures. The QDIA and Auto Enrollment notice must be distributed by December 1 ( 30 days before the beginning of the next plan year). If the purpose was to co ordiante notices, can't I include the 2013 404(a)(5) notice with these notices?

Need some help with timing of notices. We want to send "one" set of notices to the participants. QDIA, Auto Enrollment and 404(a)(5). The QDIA and Auto Enrollment Notice would be sent out November 1 to all participants. The 404(a)(5) notice currently produced by the platform shows returns as of 2/2013. I thought I could include this as the annual notice for 2014 along with the QDIA and Auto Enrollment Forms. the platform tells me that they will post a new 404a5 notice in 2014 and that is the annual notice I must provide to the participants for 2014. so confused need so thoughts

The Plan Sponsor received a check for a settlement on an investment that has not been in the plan for over 8 years. The payment was less then $700. Going back to the time when the asset was held in the plan is impossible. Is there any guidance that will allow the employer to deposit the funds in the holding account and use to offset fees? Allocating the funds to the current participants would result in pennies to each participant. Thoughts on what to do? Thanks

I have a client and they failed the ADP test for 12/31/2012. When the TPA calcuated the refunds, they noted one HCE terminated in 2012 and rolled his account balance to an IRA. In addition to the refunds, there were match funds attributable to the refund that needed to be forfeited 1. Doesn't the IRA need to return the match attributable to the refund to the plan? Otherwise he recevied a higher match than the NHCEs 2. Doesn't someone need to tell the IRA custodian to much was rolled into the IRA. The refund portion is not eligible for rollover, and needs to be distributed to the participant? TPA has done nothing for 8 months. The client pays for TPA work but it seems this TPA could not be bothered to correct an issue that occured on their watch. Thanks

The employer wants to make a safe harbor match of 100% of the first 3% and 100% of the next 2% - this would be an enhanced match of 100% of the first 5%. Since the match formula is not less than the contribution determined under the basis match this is a good enhanced match. Now the employer wants to cap the match at $10,000. The accountant says this is ok, since the "level" in the enhanced match is better than the basic match. He claims even though the particpant receives less of a contribution under the enhanced match than the basic match, the fact the level is better, will allow his client to implement this match. When I read the ERISA Outline book it states, ... A matching contribution will satisfy the ADP safe harbor contribution requirement if it is no less than the contribution determined under the "basic" formula. I am looking for some quidance regarding the "cap". My thought is you cannot cap the safe habor. Need some help in understanding the rule. Thanks

to my knowldge all key employees are doctors.

For the 1/1/2014 Plan Year, the Plan Sponsor wants to exclude all doctors from the 401(k) Safe Harbor PS Plan. At this time all doctors are currently in the plan and receiving employer contributions and deferring. Can the Plan Sponsor now ( 2014) say these participnts are excluded? Coverage would be met since they are all HCEs. If they can exclude them, do you continue to include their account balanes for top heavy determination? edit. They are removing the safe harbor in 2014, if the doctors are excluded

the Divorce is not finalized and neither is the QDRO. So even though everyone knows about the divorce, the plan allows for hardship and the participant is entitled to receive the funds.

Plan Sponsor is aware the participant is in the process of a divorce. The participant needs money to pay medical expenses not covered by insurance. The plan allows for hardship. this is a 401(k) Profit Sharing Plan Since there is a pending divorce, is there a "risk" if the Plan Sponsor distribures the funds due to the hardship? What happens if the QDRO amount is more than what is in the account due to the hardship payment?

Company A will be acquired by Company B over the next couple of months. In lieu of termination Company A's 401(k) the plan will be merged into Company B's 401(k) Plan. The Trustess of Company B want to know if after the merger, do the Trustees of Company B have complete liablity for Company A's Plan. For example, if there it was discoverd, there was an operational error in a prior plan year, are the Trustees of Company B held accountalbe, or does this fall back to the prior Trustees. Are they any other issues the Trustees need to address prior to merging the plans??

Under a DB/DC combo plan Only 2 of the HCs are covered under the DB Plan to pass cover, the employer would need to cover 15 NHCEs. Can the employer just pick the 15 to cover? Plan will be amended to show the names of HNCEs to cover Is there any discrimination issue with picking 15 participants?

401(k) Vendor is covering the cost for the Plan Sponsor to visit the vendor's home office and see how things operate. This includes, flight, hotel and meals. The question came up is this a prohibited transaction. Any thoughts???