imchipbrown

401(k) Plan is terminated. All plan assets are paid out, a final 5500-S/F is filed and the company is sold. One individual's brokerage account was paid out in a check for $10,000 in March, then a check for 5¢ in April. The $10,000 is deposited; the 5¢ check goes stale and returns to the account. Participant can't be bothered to deal with the 5¢ check. What to do....?

My wife interviewed and got a job at an employer that was my client. My last name is common, so client was none the wiser. When my wife told me she got the job, I told her that it was my client and she disclosed to them. We all worked together for eight years until my wife quit. A few months later, my firm was left go. That's the way it goes.

I've seen this too. Distribution to participant, payment to the employer.

If the plan is not a 401(k), I believe you can have up to a two year wait, if you vest 100% on entry. I could be wrong.. that's why I retired 😆

I remember calling FT William about this: Hello Steve,Per the DOL regulations that one participant plans must be filed on EZs starting this year, the warning is triggered if the participant count is 1 or 2, to ensure the owner and spouse scenario is covered. If this warning does not apply to your filing and the plan is not a one participant plan, you would continue with your filing as normal. Let me know if you need anything else and have a great day.Best regards,

I've never had one requested in 40 years. Haven't really had a MP Plan since the PS limit was increased.

401(k) Plan terminates a/o 12/31/20. Two payrolls are receivable a/o 12/31 and hit the participant's individual brokerage accounts in January. This is a partnership with Safe Harbor 3% NEC, so partners' shares and 3% amount are TBD. All rollovers/distributions are in process with a hopeful close-out date of 2/28/21. I don't think I can do a Final Return for 2020 showing "liabilities" to zero out the ending account balances, especially when partners' final number is unknown. I think the final is a 2021 Form 5500. Anyone disagree?

Thanks Bird, I "kind" of agree about the securities being cash-equivalents. I'm trying to neaten things up but don't also want to foul things up over trivia. I can't see any harm in the amendment.

Employer was bought in an asset sale. Most participants are to be employed by the purchaser. Plan accounts are held at larger brokerage with self-directed accounts. Plan termination date is 12/31/20. Distribution forms have been distributed with the option to roll the self-directed accounts in large brokerage to self-directed accounts at same or other brokerage, to new company 401(k), or in cash. Looking at the Plan's AA now, it says distributions can be made in cash only. Would like to amend (post-termination) to "cash or in-kind". Is this OK. Who signs, authorises? No distributions have been finalized. Is current date OK?

If there are no unvested funds, I'd suggest you leave some money in the account ($50 or so) there's still an account and no re-openning involved.

I use onlinefiletaxes.com. $3.50 per form, mailed to distributees.

I've never had to pay the late filing penalty (over a dozen times caught in this bind). They were waived with good and lame excuses. However, the penalties then were $25/day, $15,000 cap vs $250/day, $zillion cap now. Think I'd do DFVCP.

Can you Trustee to Trustee transfer to an IRA, then withdraw from there? No withholding from IRAs.

Don't forget he can only defer from W-2 wages. Also, 401(k) limit spans employers, though it seems you've considered this in your question.

How "Way off"? I generated an APR table that gets numbers like Life only = $ 693 and J&S 100 = $565 @ age 67. Got the qx from 2008 Applicable Mortality Table. Certainly not close enough for the actuary but maybe for illustration purposes.

I'm winding down and as clients retire or move on, I'm wondering about record retention. I've got filing cabinets worth of old 5500s, Plan Documents, valuations, trust accountings, etc. All my paper has either been provided to me, or generated by me and sent to the clients. So, the questions are, how long do I have to keep this stuff? Does anyone charge for "Record Retention?". Do you offer to send the client all your files? Shredder's looking hungry. ?

I think you get multiple years for the same fee.

Contribution for owner (what, 5%?) can't be enough to make the easy termination this complicated. Just pay the taxes and move on. My 2¢

You can check the filing status on the EFAST site. Maybe it was accepted? Stranger things have happened.

I switched from Target Benefits to Age-Weighted PS Plans. Simpler calcs.

My little spreadsheet says there's $10,000 available if you can lend no more than 1/2 vested account balance. $45,000 VAB - $35,000 highest 12 mo outstanding loan.

Whop, do they have a Plan Document and have they filed Forms 5500? Maybe they don't really have a 401k?

I've always hated PS Plans because I've always used accrual. I've hated Sole-Ps, Partners, Matching of any flavor. Deferrals that don't hit the brokerage statement until January 2nd. Come to think of it, almost every plan has some kind of accrual. Going to Cash accounting would be like stealing money! So simple! Can you change horses mid-stream (accrual to cash). I'm waiting on a Partnership for final SHM and the Sole-P above (with all his problems). I'm guessing we're ONLY talking about Forms 5500 XXX here, NOT valuations in the discussion. I can't help but feel that DC valuations have to include the various accrued contributions.

Former client (and someone I'm still friends with) asked me to look over the mess of the new administrators (rhymes with Daysex). Plan is a 3% Safe Harbor Non-discretionary. For whatever reason the 3% has only been allocated to those employees that are deferring. Last time I checked in on the friend, that battle was still being waged. It wasn't resolved by the end of 2019 to any extent. The client is a sole-proprietor with 10-15 long time employees. So, maybe 12 are still due their SHNDC and the tax return of the Sole-P has yet to be processed. So, how does Daysex generate a 5500 for signature when so much is still incomplete? Does anyone prepare a 5500 before the sole-p's income is known or final contributions receivable are calculated? It's certain to be in the $60k-$75K range. I guess, if I'm Daysex, I can say I only report what's on the books on December 31. Never, ever have I seen this.

I've never had anyone opt for an annuity but have needed to provide the estimates before. One "comforting" tool is the Schwab Income Annuity Estimation at https://www.schwab.com/public/schwab/investing/accounts_products/investment/annuities/income_annuity/fixed_income_annuity_calculator