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PensionPro

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  1. PensionPro
    I would add that the plan sponsor should be prepared to defend its position regarding both the termination for cause and partial plan termination vesting issues before a judge or in a DOL investigation. On a side note, it is odd that the employer has 25 dishonest employees, that is a big number.
  2. PensionPro
    We do not furnish SAR under these circumstances as no one is "receiving benefits under such plan."
  3. PensionPro
    On the basis of DOL guidance it seems to be a fiduciary rather than a settlor expense that may be paid from plan assets as the filing is required to keep the plan in compliance with SEC regulations as long as the fees are reasonable and permitted by the plan etc.
  4. PensionPro
    You did an ADP test as of 6/30/17, you have till 6/30/18, i.e. 12 months after the close of the plan year for which the excess contributions were made.
  5. PensionPro
    I am not aware of an excise tax owed by the plan sponsor on excess deferrals.
  6. PensionPro
    what is the purpose of filing form 5330?
  7. PensionPro
    why not transfer the obligation for the deferred compensation from the old management company to the new management company?
  8. PensionPro
    Hmm, not quite sure what you are saying, particularly the references to spinoff plans and multiple plans, as the original post relates to one plan. But to clarify, when I said those employees are treated as not benefitting for 410(b) purposes, it does not mean they are excluded from the test itself.
  9. PensionPro
    Plan did not terminate so it is not a distributable event. Whether or not balances are included in TH test is a function of those employees' status, terminated vs. active. For testing purposes, employees of the non-adopting employer are excluded employees not benefitting.
  10. PensionPro
    2019. It is 3 out of 5 preceding years. An employer may use less restrictive provisions, so check plan documents. Here is an IRS example.
  11. PensionPro
    Check plan document provisions relating to top heavy minimum allocation. It is an elective provision in the documents we use.
  12. PensionPro
    Thanks for the information!
  13. PensionPro
    non qualified plan?
  14. PensionPro
    This part does not make sense to me unless the plan uses different definitions of compensation for deferral and PS purposes.
  15. PensionPro
    If a plan sponsor takes actions to terminate a plan but doesn’t distribute the assets as soon as administratively feasible, the plan isn’t considered terminated under IRC 401(a), so you have an ongoing qualified plan. The problem is with the distributions as was noted upthread by another poster. How do you undistribute assets when you retroactively take away the distributable event?
  16. PensionPro
    There are several discussions about unterminating a plan before commencing distributions. I don't think you can put the toothpaste back in the tube once you start paying out participants. Their option would be to pay out the remaining participant ASAP and start a plan 12 months thereafter. Or look at options that do not trigger successor plan rules such as ESOPs, DBs, SEPs, SIMPLEs, 403(b)s, 457(b)s.
  17. PensionPro
    I was addressing question 1 in your op relating to a 401k plan document.
  18. PensionPro
    Per revenue procedure 2015-36 pre-approved program does not cover non-electing church plans. This will change with cycle 3 restatement but those documents will not be available until 2020 at the earliest.
  19. PensionPro
    The excess can be refunded after April 15. The 401(a)(30) limit applies to an individual. The participant will be taxed twice. Tax was already paid at deferral since it is Roth. Tax will be paid again at distribution because participant does not get credit for basis on the excess deferral. Plan document should contain provision for excess deferral situations where participant also defers to an unrelated plan.
  20. PensionPro
    A rehiree is not a retiree. The rehiree is eligible for distributions to the extent the plan allows in service distributions.
  21. PensionPro
    how does the plan define compensation?
  22. PensionPro
    § 416(i)(4) exempts union employees from the top heavy rules. What is the basis for this employee's entitlement to top heavy contributions? Never encountered this situation myself.
  23. PensionPro
    Our valuation software has the option to mark yes or no to the question: Last day terminee considered active?
  24. PensionPro
    You should read the Summary Plan Description (SPD) as it relates to the timing of distributions. If you do not have a copy, you can request it from the Plan Administrator.
  25. PensionPro
    attached dol q&a with aba from 2009 presents a different perspective and suggests two plans sponsored by an employer are okay even if it results in avoiding the audit requirement. temp.pdf
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