chc93

I would have thought that the interest portion is part of the net gain of the pooled trust... and allocated to all participants. The principal portion reduces the outstanding balance of the loan... which has "assigned" to the participant.

Yep... sorry to all who read this. I've got the years all mixed up. So for valuation at x+1, assuming average comp stays at $22,000 through year x+1, TNC is based on benefit accrual of $1,100. Is this correct?

Luke... this is my understanding. A gets $100K in cash. B gets $50K in cash, and *already* got $50K as a loan. The $50K loan may be "worthless" to the plan, but B did get $50K in cash so not "worthless" to B. And then B gets his $100K account... in one way or another.

Back date? Never seems like a good idea.

First... does your "x+2" should be "x+1"? Anyway... For valuation at x, accrued benefit is $2,800... use for FT at x. For valuation at x+1, accrued benefit is $8,800... use for FT at x+1. For valuation at x+1, TNC is benefit accrual from x to x+1... or $2,800 to $8,800... so benefit accrual is $6,000 for TNC. Make sense?

Hi Kristina... can you please explain. I just looked on EFAST, and all forms from 2009 are available. Thanks...

2019 RMD is satisfied, so no additional RMD in 2019. Total account balance can be rolled over to IRA by Dec 31, 2019. If no account balance at Dec 31, 2019, no RMD's in the future from the plan. (I hope I read your questions correctly.)

Pam and Luke... what if the left over money in the ERISA bucket is already in the TPA's checking account. How does his money get back to the plan to allocate to participants as earnings. Simple "dividend earnings" deposit?

Also, I know we are talking about starting or changing deferrals... but on the other end, I thought there was a requirement (not dependent on plan document) that a participant could stop deferrals at any time. If so, this would/could "mess up" payroll too... as the OP suggested. So even if starting or changing messes up payroll, stopping at any time would/could do the same. Don't see the reluctance, as others have already said.

In our one case that I remember, the prior TPA apparently refunded amounts that were paid to them after their services were terminated. Negative amount was reported on the Schedule C Part I 2(a) column (d). This was for plan year ended 01/31/2018. Haven't heard anything about this from IRS and/or DOL.

We file 1099-R's electronically through the IRS FIRE system. As far as we know, there is no actual Form 1096 for this process. In the last couple of days, 2 separate clients received the same letter from the IRS stating that they can't process any of the information returns because they're incomplete or not in the required format (lists 1096, 1098, 1099,, 5498, and "certain other information returns"). Then the letter goes on to say that there was not a 1096 included in the submission. Strange thing is that the letter starts off by saying "Thank you for the inquiry dated Feb. 11, 2019". But we filed electronically on Mar 20, 2019. No one knows who made an inquiry to the IRS on Feb 11. Anyone else get these? Thanks...

But... if no one could defer from 1/1/18 to 9/30/18, then we've been told by ERISA attorney that compensation for SHNE can (should?) be based on 10/1/18 to 12/31/18.

Bird and Luke... thank you very much for your comments.

Plan sponsor rolls over his wife's plan benefit into his own personal IRA under his SSN. How can this be corrected. This happened in 2017.

Luke, thanks for your explanation... and thanks, Larry, for also commenting...

Interesting... I read this to mean that you "may" correct by plan amendment, and if you don't correct by plan amendment, then you are not in compliance. Not that if you don't correct by plan amendment, you can correct by other means... unless the plan document allows.

Interesting... I thought this wasn't an acceptable solution. We've always amended the plan for the specific year to allow the earlier entry.

It is also possible that his company has outsourced the administrative services to Vanguard. If so, only Vanguard can help (or not).

In our case, we amended the non-SH plan to a SH plan... then aggregate for testing. Didn't really affect anything since the non-SH plan was already planning to give contribution amounts that would meet the SH requirements.

My understanding is that the Code D is only to remove the participant from the SSA list... who only gets on the list when reported as a Code A. So if never reported as a Code A, no need to report as a Code D... how we've done it.

At one time (for many years, actually), I thought the joint table for spouses more than 10 years younger was optional. Recently, I thought I read somewhere that if the spouse was more than 10 years younger, the plan was required to use the joint table. Not sure if I can find the reference again. Recently been using the joint table.

In our case, with the 3% SH, we had an ERISA attorney say the same thing. Mid-year, 401k deferrals started. Comp for 3% SH was only from date 401k deferrals started. Sorry, but did not address SHMatch in this case.

My expectation is that you will not hear anything from the IRS or DOL. My understanding is that the extensions are filed with the IRS. The IRS gets notice of filings after the original due date from EBSA. (I think EBSA only looks to see that the filing under Form 5558 box was checked.) The IRS then checks their data base to see if an extension was filed. So if the IRS doesn't get any notification from EBSA that a filing was after the due date, the IRS doesn't do anything with the extensions other than enter it in their system. As another example, we have filed extensions for the 5500 with the IRS, then subsequently filed the 5500 before the original due date. Never told the IRS to disregard the extension. Never heard anything from the IRS or DOL.

But need to make sure that the increase to NHCE's is "meaningful". That is, the contribution increase should be at least partially vested. So giving to a 0% vested participant, especially if terminated, will not be sufficient.

Maybe too late, but could the 2 loans be consolidated into 1 loan in the prior plan, then roll over the 1 "new" loan...