bevfair

What are the repercussions for not timely distributing the SAR? Is the correction to distribute as soon as possible following the discovery of it not being distributed? I've searched and can't seem to find any answers. No participants are asking for it, but the client is preparing for their 5500 audit and the auditor asked for documentation proving when it was distributed. TIA!

My apologies for not providing more information. The first loan had 5 year term, with a repayment amount of $31.38 and was paid off early so that the participant could take the second loan (plan only allows for 1 loan at a time). The second loan also had a 5 year term, with a repayment amount of $140.53. Even though the client was advised of the new loan/new payment amount, and also advised of the fact that the first loan had been paid off and to start the new payment amount accordingly for the new loan (loan 2), they continued to withhold $31.38 as a loan payment. So essentially, they continued paying the loan 1 repayment amount but applied it to loan 2, rather than withholding and repaying the correct repayment amount to loan 2. I hope that fills in the gaps and doesn't muddy the waters. Thank you for your insight.

Plan allows for 1 loan at a time. Participant has a loan, which he took out in 2014 with a weekly payment of $31.38. In August 2017, the Participant contacts the Investment Company, pays off the loan and requests a new loan. New payment amount is $140.53. The TPA approves the loan and it is then approved by the Plan Sponsor. The entire process is done electronically. Participant is not married so there is no spousal consent and thus no physical paperwork is generated for the request until the loan is approved and the IC sends a confirmation report to the participant which contains the terms of the loan. This is a standard procedure. TPA and IC notify the client that the first loan was paid off and provide the amortization schedule with the new payment amount to be implemented via payroll. Payments are being made but the IC/TPA do not provide loan monitoring for this particular client. Fast forward to October 2018 during the 5500 audit, the auditor picks up this loan for his sample and discovers that while payments were made timely, the amount was incorrect. How does this get corrected? Would this loan be considered in default, even though payments have been made timely just in the wrong amount? Does the plan need to file under VCP? Can the loan be re-amortized so that the loan is paid off by the end of 5 years?

Anyone still using UltraVNC or something comparable to Logmein? We use logmein but their fees have increased quite a bit over the years.

What if this participant terminated 3 days before that first payroll date? Would you answer the same way and start deferrals even though they were technically terminated before their eligibility date?

Participant is on worker's comp and has not worked since November 2016. Participant is now working at a non-profit, while being on worker's comp. The sponsor indicated that the hours are being reported to them to pay the participant. Are these wages eligible for deferrals? Thanks.

That exactly correct.

Bird - it is a retirement planning software. Perhaps there is new coding that needs to be done that I'm not aware of. I'm going to reach out to them. Thank you all for the input and clarification.

Mike - neither software is reducing plan compensation for salary deferrals for non- self-employed individuals. But one does reduce plan compensation for the self-employed by the deferral 'cost' of the non- self-employeds. Based on what you and 401king are saying, I take that to mean that in essence it is doubling the use of those deferrals in the SE compensation calculation and that is not correct.

I'm working on a calculation of employer match for a self-employed participant/plan. The plan has 10 common law employees. We're transitioning from one software provider to another. The provider we've used for many years, includes the salary deferrals of the participants in the common law plan cost. The new software provider only includes the employer match in the common law plan cost. While this doesn't impact my match calculation directly, it does impact the resulting plan compensation for the my self-employed. So my question is, which software provider is correct? I've not had any luck doing a search to see if this has come up before and reading the SE instructions hasn't been helpful either. Thanks.

Top Heavy will be triggered anyway if we just reallocate the forfeitures. It seems like a no win situation. Unless someone has a more creative idea?

Plan has regular match forfeitures that occurred after the safe harbor match was implemented, due to non-vested terminated participants taking their distributions. Document allows us to pay expenses from forfeitures however the contract is written such that we don't bill the client directly. I'm left with a few grand in forfeitures to allocate to roughly 18 people. Plan is top heavy and the key defers. The only other option currently in the plan allows me to reallocate with employer contribution or on a salary ratio basis. Client wants to amend the plan at the end of the year, for future years, to use any new forfeiture to offset an additional employer match. (Plan document doesn't currently allow for match in addition to the safe harbor match). The client also wants to 100% vest this new match source. Can forfeitures be used in this manner? I thought I read that forfeitures that originated from non-vested accounts could not be allocated as a money type that would be 100% vested (the reason we can't use them to offset safe harbor match)? Or am I reading too much into that position? Thanks.

Can you file for an extension of time to file a Form 5500 for a terminated plan, beyond the 7 month deadline?

If an HCE takes multiple hardships, from profit sharing, a year for various reasons: medical and education, would you question the abusiveness of the hardship? Obviously we don't know the whole financial situation but taking two hardships within a month's time seems, on the surface, abusive.

A small law firm plan allows deferrals and match. Plan is top heavy, only non-Keys receive. No other employer contributions. Match formula is 100% up to 3% for NHCEs and 100% up to 1.5% for HCEs, with a last day of the year requirement. 3 non-keys retired. 2 at Normal Retirement Age and 1 at Early Retirement Age. 2 NRA retirees deferred. One terminated on 12/31 and will receive match but not the full 3%. Since all 3 are terminated before the end of the year, are they required to receive the minimum top-heavy under the NRA/ERA provisions or do top-heavy rules supersede, meaning they do not receiving top-heavy as they are terminated? Document is unclear on the matter. Thanks for your input.