Alex Daisy

We recently merged a few Multiple Employer Plans into a new Multiple Employer Plan effective 6/1/2014. As part of the merger, there were forfeitures associated with the old Multiple Employer Plans that were transferred into the new Multiple Employer Plan. Can we use the forfeiture money in the new Multiple Employer Plan to pay plan expenses (final 5500 fees) for the old Multiple Employer Plans that were merged into the New Multiple Employer Plan? Any help is greatly appreciated.. ALEX

I asked the software provider for further clarification regarding the Combined Marginal Tax Rate and what is being combined. Their response was: The tax rate for the various individuals impacted, e.g. partners and owners. It's not going to be exact, just an estimate for illustrative purposes.

I just started working with a new proposal system and one of the fields to enter in is "Employer's Combined Marginal Tax Rate". Could someone help me figure out what this means? Could it be the average of the owners individual tax bracket and the companies tax bracket? Any help is greatly appreciated. ALEX

Two Companies are part of a Controlled Group, but they maintain separate Plans, and the plans will be combined for testing, is it necessary for the plans to be "mirrors" of each other? If they are not mirrors of each other, do they still need to be combined for testing because they are part of a Control Group? If the Plans are able to pass testing without being combined, do I still need to combine because they are part of a Control Group? Any help and guidance is greatly appreciated. ALEX

The Plan's LOAN PROCEDURES state that The loan will become payable in full on your termination of employment. Does the Cure Period apply here? The cure period is stated on the Plan's LOAN PROCEDURES Could the terminated participant pay it back with 90 days and not be in default? Does the cure period apply to both active and terminated employees? Even if the loan pocilty states "will become payable in full on your termination of employment."

Does anyone have a sample correction letter to show me, such as an election form that is sent to the client getting them to authorize the correction method (refunds/qnec)?

A 401K Plan has 3 partners who get a K-1 to report their income and 5 staff members who's income is reported on a W-2. How do I calculate the Net Income for the 3 partners for the ADP Test? For example, they each are showing $100,000 in Box 14 on their Form 1065, Schedule K-1 (Self-employment earnings)

A 401k plan has 4 regular employees whose compensation is reported on a W-2, and one partner, who gets a K-1. My question is what compensation do we use for the Partner when I am trying to do a New Comp PS calculation? Does the partners K-1 income have to be adjusted for the self employment calculation?

Thank you for the link, but do you know which Tables are acceptable to use for Cross Testing?

Can someone tell me where I can find copies of all the different Mortality Tables that can be used when doing a Cross Tested (New Comp) Profit Sharing Calculation.

I am researching how to a manual calculation for an Integration with Social Security allocation. Does anyone have a good example that they could show me?

A custodian is charging a Plan an Asset Based Fee, but it's NOT a transactional fee deducted from participant accounts Instead, the fees are assessed against the unit values of each fund that a participant holds assets in. Is this considered Direct or Indirect Compensation for Schedule C reporting?

I am preparing a Schedule C and had a question on eligible indirect compensation. I need to report 12B-1 fees from an investment manager, What if I am not sure the Plan Sponsor was provided with the written disclosers to be considered “eligible” indirect? Is a fund prospectus enough to satisfy the written disclosure rules?

I am taking over a Plan where the Plan Document has not beed amended for at least 5 years, and does not have the GUST, EGTRRA or PPA Amendments. I remember someone telling me about a Correction Program that the Plan can enter to bring it current. Does anyone have any information on this and the cost assocaited with it? Any help is greatly appreciated.

I am a TPA and having a hard time getting the requested Schedule C Fee Disclosure information from various Investment Managers / Custodians. Are they legally required to provide this information and what legislation / documentation can I site that will show they that they are legally required to disclose the fees? Any help is grealty appreciated.

A participant terminated in 2009 with an outstanding loan balance. They took a distributuion in 2009, less the outstanding loan amount. The loan was defaulted. A 1099 R was issued for the distribution and for the loan default My question is where to report the default of the outstanding loan amount of the Schedule H. Is it reported on line e(1) Benefit payment to participants or is is reported on line g Certain deemed distribribtions of participant loans? Thank you for any help

What if a distributable event occurs, such as termination of employment, but the participant elects to keep her account balance in the Plan. The Loan is in default and something must be done. Is this a Loan Offset or a Deemed Distribution?

How is a Deemed loan counted on a 5500?

A terminated employee has an outstanding loan. They elect to leave their account balance in the Plan and not take a distribution. How do I handle the outstanding loan balance. Is it Deemed or Deemed with Offset? Can you explain both options?

Do you mean 2008 and not 2009? In such case, except for EZ filers (and to my knowledge the 2009 EZ has not been released), doesn't 2009 have to be filed electronically? Sorry, I meant to say 2008. I am more concerned about how to file now since the Plan EIN has changed and well as the state of incorporation.

A Plan Sponsor changed locations from New York to South Carolina in 2009, and also changed Employer Tax Identification Number, and did not inform me as the TPA until after we mailed them their 2009 5500. The 2009 5500 was never filed by the Plan Sponsor. What needs to be done now to file the 2009 under the new company that is located ion SC with a new EIN?

A Plan Sponor has the Safe Harbor Non Elective Cont with a follow up Notice election in their Plan Document. They amended the Plan in November 2009 to elect the 3% Safe Harbor Non Elective Cont for 2009 Only. The Plan Sponsor just informed me that the company is in a critical stage of survival, and will not have the resources to fund the 3% Safe Harbor Non-Elective option of $35k. What options does the Plan Sponsor have at this point? What if they do not make the 3% Safe Harbor Non Elective Contributoon for 2009? Any guidance is greatly appreciated. ALEX

How do I distribute the $16,500 from the Plan, as a refund, or is it left in the Plan as forfeiture?

I am working on a ADP test and I have two owners of a company who deferred $16,500 each and now they are reporting to me what their K-1 will show zero earned income. What are the conseqeunces of this and what has to be done? Do I include the owners in the ADP test?

I am working on a New Comparabilty Plan with a Last Day & 1,000 hours rule. If a employee is terminated in the year, but works more than 500 hours, and does not get the Profit Sharing Contribution, do they have to be included in the New Comparabilty calculation with a zero EBAR?