Alex Daisy

This question is related to a 401(k) Plan with many partners and rank and file employees and not to a Solo SEP or 401(k) with 1 partner. For the 2018 Plan Year: After i calculated a maximum Contribution (employee deferrals, Safe Harbor 3% NEC, and Employer Profit Sharing for a partner as $55,000, their accountant is telling me that the partners maximum Contribution should be limited to 20% of their reduced K-1 income, which comes to approximately $50,000. I have found information about the maximum contribution for self employees individuals to be limited to 20% of their reduced K-1 income, but does this apply to 401(k) Plans? and not just to SOLO SEP'S and 401(k)'s with 1 employee (the partner) Any guidance is greatly appreciated Alex

Correction: Can Company B increase the existing matching vesting schedule to 100% for existing participants and then be on the same vesting schedule as Company A (surviving plan) for any new matching contributions effective 1/1/2017?

Company A (surviving plan) acquires Company B and the plans will be merged effective 1/1/2017. For the company match, Company A (surviving plan) has a 1-5 year graded vesting schedule and Company B has a 4 year graded schedule. Can Company B increase the existing matching vesting schedule to 100% vesting for existing participants and then be on the same vesting schedule as Company B for any new matching contributions effective 1/1/2017? Or does the merged plan need to keep the Company B employees who were eligible before 1/1/2017 on the more favorable 4 year graded vesting schedule?

My question is on what is the definition of an "Officer" in a 401(k) Plan fo rTop Heavy Purposes. I know that its a facts and circumstances test. Someone with the title but no authority is not an officer, someone who has the authority but no title could be. My question is what Authority? Is it the authority to hire / fire, authorize / sign checks, legally bind the company to a particular course of action, e.g., set process or fees? Does each employee who is considered an officer need to be able to make these decisions independently of another employees? If two employees who can hire and fire but cannot do it independently of each other still considered OFFICERS? Thank you in advance

Thank you very much.

I am the TPA on a 401(k) Plan that has life insurance policies and the premium payments are paid directly from the life insurance policy holders 401(k) participant account. How should these premium payments be reflected on the 5500? The Plan Auditor is telling me the change in value is netted against the premiums paid and is reported on line 2b(5)(b) on the Schedule H. Any help is greatly appreciated.

An active employee had their loan balance deemed because it was not paid off within 5 years. However, the employee continued to pay off the loan after it was deemed. How is this reported on the 5500? Does it get reported under deemed and or corrective distributions?

It was reported as Non Employment compensation on the 1099 Misc. and the owner will be paying FICA taxes. Why wouldn't this qualify as eligible comp?

I am checking how it is being reported on the 1099 Misc.

A one person Sole Proprietor 401(k) P/S Plan. The owner is in the consulting business and gets paid commissions that are reported on a 1099 misc form. Is this eligible compensation? The Plan definition of compensation is 415 comp. If so, is it further reduced for the 1/2 FICA deduction?

Tom: The Discretionary Match formula is 50% of deferrals up to 12% of compensation, which comes to 6%. Because this is more than 4%, doesn't this require me to do run the ACP test on the entire Discretionary Match?

Safe Harbor Match Plan (100% on the first 3%, 50% on the next 2%) gives an additional Discretionary Mach of 50% of deferrals up to 12% of Compensation. I am pretty sure means that the ACP test must be run. Can you tell me what Matching contributions are included in the ACP test? Do I include the Safe Harbor Match plus the Discretionary Match, or only just the Discretionary Match? Does the answer change if the Discretionary Match has a Last Day rule? Any guidance is greatly appreciated. Alex

3 plans are members of a control group. Plans A and B are Safe Harbor Basic Match plans. Plan C is only a 401(k) Plan with no Safe Harbor feature. Can someone describe the compliance tests that I need to run for this control group situation. If I can pass the Ratio % test with Plans A,B, and C combined and with Plan C not benefiting, does this satisfy compliance testing? Any assistance is greatly appreciated.

Can you define participating employers in the plan?

The PS percentage given to 2 out of the 5 members of the control group is uniformed at 2 percent The other 3 out of 5 controls groups get zero Profit Sharing