Chippy

thank you. It is a ASG, and that's what I thought.

A management service organization with multiple entities under them adopt a safe harbor 401 k. Are all adopting employers of the plan required to make the 3% SHNEC every year, or do the individual employers have a choice?

thank you. Would I report that on the 5330 along with the late deposits? same section? There was no match, and the 3% safe harbor deposited by payroll was done correctly.

For the 11/27/2020 payroll the payroll company did not withhold deferrals from a bonus. Can this be corrected? The employer is asking how to correct it and I'm not sure there is a way. It wasn't caught at the time, the employer just realized it last week.

This was a volume submitter, so would that apply to the top heavy minimum too?

What is the due date for the deposit of a profit sharing contribution in a non-profit? They are exempt from filing a form 990 or 1120.

If a participant waives the right to participate in the Plan, do they also waive the right to receive the top heavy minimum as well? Thank you

notices are sent to company emails. Does it make a difference that this is the wife of a senior partner?

that i'm not sure of, but the plan has always been clean and no problems. The administrator seems to be on top of things and have never had any issues.

Yes, they are still proving the annual safe harbor notice and they email that to all the employees too

Company sends out an email to all employees before the entry dates to notify them that it is time to enroll or change their elections. Eligibility is one year (1,000 hours) and then enter on 1/1 or 7/1 following. A key employee's wife who is part time, was eligible for the plan as of 7/1/2020. She did not enroll in the plan, and administrator missed her in the 2020 safe harbor calculation because of her part time status and didn't realize she worked more than 1,000 hours in 2019, she worked 936 hours in 2020. Her date of hire was 1/7/2019 and she worked 1, 039 hours in 2019. Is the email that was sent enough proof that she was notified? or is a corrective contribution needed. They don't individually notify anyone and never have had an issue.

They wanted to add distributions for terminated participants due to retirement is 30 days, but just seems to complicated to add under other with their current 1 year break in service rule. There are only like 10 particpiants in the plan, so I don't see it happening very often.

I'm going to recommend the end of the plan year in which they terminate option. They allow for inservice at age 59 1/2. If someone is retiring, they could request an inservice withdrawal prior to their retirement.

These are my options........ Id like to add it under other but wasn't sure if allowed. Time & Form of Payment 3. Time of Payment (Other than Death) Distributions after Termination of Employment for reasons other than death shall commence (Section 7.02): a. [ ] Immediate. As soon as administratively feasible with a final payment made consisting of any allocations occurring after such Termination of Employment. b. [ ] End of Plan Year. As soon as administratively feasible after all contributions have been allocated relating to the Plan Year in which the Participant's Account balance becomes distributable. c. [ ] Normal Retirement Date. d. [ X ] Other: After the participant has incurred a one (1) Year Break in Service NOTE: Any entry in "Other" must comply with Code section 401(a)(9), Section 7.02(e) and other requirements of Article 7.

This plan is a non-standardized profit sharing plan. I'm working on the restatement and the client would like termination distributions after a 1 year break in service, unless they terminate due to retirement, then they would like after 30 days. Would this be allowable? I'd have to add it under "other" in the adoption agreement.

Plan has a pro rata formula. 3 participants, 2 owners and one NHCE. 25% of plan compensation is 149,126.93. Company would like to make a 129,000 contribution. The 2 owners make around 266,000 each and their P/S contribution is capped at 57,000.00 Their deferrals are less than 6,500 so all are reclassified as catch up. Their contribution percentage comes to 21.39% and 21.41%. Can the remaining 15,000 be allocated to the participant, her contribution percentage would be 25.71%. I can't get the software to allocate it like this, not sure If i'm not remembering something that would prevent the company from contributing that much. The max the software will allocate is 25% to the NHCE.

Plan had 103 participants at 12/31/2019. Eligibility is 1 year of service, for deferrals enter on 1/1 or 7/1 following meeting eligibility requirements. Profit Sharing is one year and enter on 1/1 preceding meeting eligibility. My question is this. at 12/31/2019 there were 103 participants. as of 1/1/2020 there were 14 additional participants eligible for the deferral portion of the plan bringing the total to 117, still under 120 to require an audit. BUT, there were 12 additional participants that became eligible for the profit sharing portion on 1/1/2020 as well but not eligible for the deferral part of the plan. (So hired 2nd half of 2019.) So counting them the total at beginning of year is 129 and would require an audit for 2020. I'm fairly certain those employees all have to be counted in the beginning of year count, but is there anyway not to count them since at 1/1/2020 they were technically not eligible yet and didn't become eligible till they had their 12 months of service for eligibility? as an example, date of hire is 12/01/2019, had 1 year 12/01/2020, date of participation for p/s is 1/1/2020. Thanks for your response.

A physician practice would like to make a loan to a surgery center as an investment from the plan. The loan will earn 10% interest and it'll be for 1 or 2 years. He would like to loan them $100,000 out of $1.8 million assets. This is a pooled profit sharing plan, 6 participants. Is this investment allowed? If so, anything that must be done to allow for it?

Due to a failed coverage test, I need to prepare an 11 (g) amendment. Our firm does not prepare the plan document, can I still prepare the amendment?

I have a large plan, 1600 participants, 7 companies, controlled group. 5 of the companies are eligible for a profit sharing contribution, 2 are not. They also have a safe harbor match. Each individual company passes 410b for the profit sharing separately, but when testing together, it is failing, also fails the Average Benefits Percentage test. It appears the software is not testing separate the participants with less than 1 year of service nor is it excluding terminated participants with less than 500 hours from the companies that do not receive the profit sharing. The software provider says it is because they are not eligible for the contribution. Is that correct? any helpful hints to get this to pass? I'm just so frustrated with all the manual input

If a participant rolls over their qualified retirement plan into an IRA, are the assets protected from creditors like they are in the qualified plan?

I just need the amendment if they want to give her the full contribution for 2020? Is that correct? and what if her excess in 2019 is more than her 2020 contribuition? can I carry it for another year? is that correct? I really hate this time of year. ugh

BG5150, they could use it towards the 2020 contribution deposit?

unfortunately they didn't work over 1,000 hours again in 2020. That's how I realized the error in 2019. Not an HCE but sounds like it's too late to do anything other than take the money out of their account for 2019

In 2019 a participant in a profit sharing plan received the full contribution when they should of received the 3% top heavy minimum due to working less than 1,000 hours. To correct, can it be taken back out of their account (brokerage account) or if the employer wants them to keep it, can the plan be amended to allow? Just wondering the best way to fix. thank you