K2retire

Back in they pre PPA days when I worked on DBs, the actuaries would NOT give such an attestation. The TPAs were left to calculate it as best they could.

If her deferral election said $23,000, she should be able to make up the difference so long has her Schedule C is high enough and she does it before April 15.

Is the employer a school? I have a non-profit university plan that excludes student employees as a valid business classification.

Whether or not an amendment not specifically permitted by the IRS can be made mid-year, is the subject of ongoing industry debate. Because it is controversial, some service providers won't do it as a matter of policy.

Can you define participating employers in the plan? If it's a non-standardized or volume submitter document, each employer would have to execute a participation agreement, regardless of being part of a controlled group. Some document providers call it a joinder agreement.

Is the employer going to also issue a back dated pay check from which to make the contribution?

That's what I thought -- but I'm not sure how I would test that since pieces of each are in the plan.

In 2013 Dad owned 100% of companies 1, 2, 3 and 4. Company 1 sponsored a 401(k) plan adopted by all the other companies. During 2014, 51% of the ownership of company 1 is shifted to adult Son with Dad keeping 49%. Son also owns 100% of company 5 that is not a part of the plan. Companies 2, 3 and 4 are clearly part of a controlled group. What about 1 and 5? My recollection is that there is only attribution from Dad to Son if Dad owns more than 50% of the company. What about from Son to Dad? Or do I have that backwards? And why is it always the client who gets you a census the second week of March who has these kinds of issues? (OK, I don't really need an answer to this last one.)

If the document says the entry dates are 4/1 and 10/1 how do they justify using different dates? I believe that is a failure to follow the terms of the document. That will also lead to having used the wrong entry date compensation for a number of people. I don't think you're off base.

Will these back wages be reported on W-2s when paid or when they should have been paid? The answer to that question may shed light on this one.

If it's a small plan, I would just smile and continue to use the 7 day safe harbor time frame. The auditor can pound sand. That's pretty much what I told the client. We'll see what the auditor says in writing.

Yesterday a DOL auditor told one of my small plan clients that they expect the deposit to be made on the day of payroll.

If you terminate the plan you have to 100% vest everyone regardless of service. You would also have to pay everyone out at termination.

In my experience, they are typically asking because they don't want to pay an ERISA attorney. Of course, in that case they often get exactly what they paid for!

Prudential is correct that they can't move the money to an IRA unless they have it. Is the brokerage firm able to handle it without involving Pru? If so, will they issue the 1099-R?

I agree with both of these issues. However, the client doesn't see it as a problem. Until they do, my hands are tied. They also don't feel the need to be particularly consistent in the timeliness of their deferral deposits. Despite 4 of the last 5 5500 filings reporting late deposits, they have never received any correspondence from the DOL. Because I keep warning them about that, I am now perceived as Chicken Little and they are not interested in hearing my suggestions about the hours issue.

We have a client with a similar quandary. Their tour bus drivers are paid by the job. After a number of discussions about the fact that they cannot use a plan hours criteria that they are unwilling to track, they have chosen to make an assumption that the job is paid at a rate of $10 per hour. It's not a perfect solution, but it was the best they could do.

Which one sponsors the plan?

Hopefully they have it at the courthouse. But meanwhile, he's already collecting Civil Service Retirement until he's eligible for Social Security.

Just out of curiosity, what proof is required of traditional marriages? After 31 years I would be hard pressed to find a copy of my marriage license, and I'm better organized that many people.

I have a related question. Does the amount contributed to the 457 plan have any impact on the 415 limit in the same employer's 401(k) plan?

Where I used to work we typically set our allocation groups to include NHCEs >1000 hours still employed, NHCEs <1000 hours still employed, NHCEs >1000 hours not employed at year end, and NHCEs <1000 hours not employed at year end. That, or each participant in a separate group, would take care of your issue.

A former President, and my father. Thanks for the chuckle!

Expanding on the final sentence of erisa parrot's quote, these plans have the same rules as any other 401(k) plan. So really, the only question is whether they meet the criteria for a particular record keepers solo K pricing, and whether they have to file a 5500. The 5500 question is easy -- no other participants, no form required.

Explaining that they will likely fail the ACP test is often enough to persuade them it's not worth the expense to amend the plan.