chc93

Recently, we had one plan that didn't have the audit report ready, so filed the 5500 anyway; They got a letter from the DOL saying the filing was rejected, and that they had 45 days to file an amended 5500 with the audit report. Also had to let the Office of the Chief Accountant notifying them of the amended filing. Did that, and don't think we heard from the DOL again.

" A contribution has been made for the 2017 plan year and the funded status is over 100% in 2017. " This sounds to me like the contribution paid in 2017 was at least as much as was required for 2015, 2016, and 2017 in total. So 2015 and 2016 have unfunded minimum required contributions, but after 2017, the plan is OK... ? Or are you saying that the funded status is over 100% based on only 2017 benefit formulas and 2017 contributions (assets)... in which case the plan is not 100% funded since there are 3 years of benefit accruals but only 1 year of contributions. <confused>

I recall something about the IRS having a "grace period" (unofficial) for mailing... something like 5 days. So if mailed on 7/31/18, as long as the IRS receives it by 8/05/18, it wouildn't be considered "late". Apparently the IRS received it on 8/10/18... so 10 days late? Maybe only necessary to show the IRS the proof of mailing.

What about an administrative policy that accounts less than $____ will be forfeited for fees...

David... thank you very much. I understand... I was wondering if there might be some computational effect on the ADP test.

Could you briefly explain how this might affect the ADP test?

What about transferring the excess assets to a qualified replacement plan... $100K with 35 participants... seems like this could be allocated within a year.

Haven't seen this one-or-the-other. Change payroll systems...

I think I misread the post... doesn't say that the owners are not HCE's, which was my first impression. But yes, without sufficient NHCE's contributing, no pass.

I don't have any cites, but we have many ERISA attorney volume submitter documents for our plans that use forfeitures in the year following the year in which the forfeiture occurs.

Just curious... the owners are not HCE's?

In our experience, ACP testing is the problem, since almost always, it is only the owner/HCE who wants to do this.

The are related rollovers for top-heavy determination purposes (plans of the same employer). But as Bird says, they are like any other rollover into the 401k plan where any "feature" of the rollover money is not retained.

DOL FAB 2006-1 was what I was thinking of also. We've actually had one terminated plan with all assets already distributed send subsequently received litigation settlement checks back (small amounts)... not the same as what the FAB specifically addresses (demutualization proceeds), but gave sort of the general thinking of such issues. The OP mentions "12b-1 fees are returned to participants by the institutional trustee". EPCRS has a section on "Delivery of small benefits"... if less than $75, distribution is not required if costs of processing and delivering the distribution exceeds the amount to be distributed.

Maybe... NRA is the later of age 65 and 5 years of participation?

But at least for "pension law", the application of the employer's interpretation should be consistent for all cases.

The Plan Document should specify if valuations can be done other than quarterly based on Plan Administrator's discretion.

Premium payment is due Oct 15. Will premium be paid on time? Have you determined that the plan is covered by PBGC?

On the DB 5500, entered the amount transferred to the QRP as "Transfers to (from) the plan. And listed the DC plan name, EIN, and PN in the section on transfers from the DB plan. We did not work with the DC plan. The DC 5500 showed the transfer from the DB plan as "Transfers to this plan" (goit this from EFAST online). Don't know if there were inquiries or issues from the IRS with the asset transfer. The DB plan got an IRS DL for the plan termination, and went through both IRS and PBGC plan termination audits successfully without inquiries or issues on the transfer of assets to the QRP.

ERISA attorney told us "no".

Thank you very much for the correction and clarification.

In that case, the 2018 RMD amount will be an excess contribution in the IRA, which has to be removed from the IRA by the end of 2018.

Wasn't there some informal position by the DOL that they will accept "administrative" delays. For example, the only person that can sign the deferral checks goes out of the country for awhile... or is out sick. Or in this case, unforseen glitches in recordkeeper changes prevents timely deposits. 2 to 16 days late would seem to fall into this category. In the end, it is the PA who has to answer to any audit... IRS and/or DOL.

Wouldn't you just do a $42,000 profit sharing contribution... then total additions for the year is $60,000... then since over the $54,000 limit, $6,000 of the 401k deferrals are now catch-up. In other words, none of the $18,000 is re-characterized as catch-up until the $54,000 limit is exceeded. Hope I got this right. 401k deferrals can be re-characterized as catch-up upon ADP failure, statutory limits, or plan limits.

Yes... thanks. I overlooked that. But still, the cushion with 2 plans might be worth it.