Lou S.

I would simply report them on e(2) {if you treat the PBGC as an insurance company} or e(3) {Other - type in PBGC} as payments to provide benefits.

No. The MP assets must retain their J&S characteristics.

You don't http://www.irs.gov/Retirement-Plans/Terminating-a-SIMPLE-IRA-Plan Can I terminate or amend my SIMPLE IRA plan in the middle of the year?No, you cannot end your plan in the middle of the calendar year. Once started, you must continue your SIMPLE IRA plan for the entire calendar year, funding all contributions promised in the employee notice.

They need an audit for 2014 unless the plan distributes all assets by no later than 7/31/2015 in which case you could defer to 2015 PYE. From Instructions to Form 5500 -

If the plan is TH than the $5500 deferral will trigger TH minumum.

Unless you have an oddly drafted plan, employees who terminate before their entry date never become participants in the plan.

Be aware that many packaged products (though not all) require a licesed broker, insurance agent or registered investment advisor to sell the product that you may be using. In theory that person is being paid to advise the Trustees on investment option selection and quite probably other things as well. Most invetsment advisors are required to work for a broker dealer in some capacity. The broker dealer oversees the advisor. Some of this deals with SEC regulations on investment products.

The loan follows the source it came from as it is mearly an investment, not a seperate source, and should be considered part of that source for testing purposes. Exclude the portion of the loan that is from the unrealted rollover source.

The finacial advisor may have a problem with their broker dealer for the reimbursment but I don't think it is a prohibited transaction with the plan from them to make up the lost earnings if it was their fault the deposit was late.

Calendar year 401(k) plan. If the plan terminates mid year, say 7/31 with the intention of getting assets distributed by 12/31 how is the ADP testing done in the final year? Is the comp limit 7/12th of the 401(a)(17) limit? What happens if the final distribution of assest is say 10/31? Would that change the proration to 10/12th? Does this mean you can't do the ADP test before earlier of 12/31 or all asstes distributed? If participants rolls to and IRA and later it is determined the plan failed ADP I know the procedures to fix but they can be something of a pain for both TPA and partcipant so we'd rather do refunds before hand if there are any but how can you caculate a proper ADP if you're not sure what the denominator is going to be for some HCEs? Assume they are not running a short PYE for the year of termination. Does this make sense? I searched for some other threads on this but didn't find anything on point back to 2009 but maybe I missed it.

We the real answer is the trustee is supposed to make every reasonable effort to recover the over payment. The reality is the amount involved is so small that it would probably cost more to recover it than any potential recovery. I'd probably send a letter to the participant requesting a return of the over payment and keep that in the file. But I would probably not followup to hard when the participant files that letter in his/her circular file.

He can't assign his benefit directly to the company but there is nothing that says he can't pay the distribution over the the compnay after he recives it. How you accomplish this is often a matter of art.

Being a typo king myself I found this quite humorous.

I think the idea is for 1 part plan to fund max DB limit, make after tax contrib of 415© limit to DC plan, then convert after tax account to ROTH via in plan rollover and circumvent the ROTH 401(k) limit. I believe there was similar thread on this early if you use the search function but I can recall if there was any concensus on if this ws allowable or not.

No QDRO no distribution. If Hubby is eligble for in-service of somekind he can take and give to ex-wife but taxes will be hubbys.

Are you asking about the 415 limit itself or the benefit calculation? The 415 limit itself is not affected by the DC offset (at least not since the elimination of 415(e)) since DB & DC plans have seperate 415 limits. The benefit itself I think you need to read the plan document to determine the order in which the offset is applied. That is to say is the offest done to the benefit calc and then the result compared to the 415 limit or is the 415 limit applied to the benefit and then the offset applied. Depending on how the document is drafted I think you could potentially have either result.

Absoluetly. A plan that consists soley of deferrals and ER safe harbor contributins is deemed to be NOT top-heavy for that year regardless of the T-H ratio.

Every year we get 1 or 2 who take hardships, elect no withholding and then come April the following year are calling up asking to take a hardship to pay thier taxes. It is funny that you are allowed to take a bigger hardship to cover the taxes at the time of the hardship but not allowed to take a hardship to pay the taxes later under the safe harbor rules.

Does the trust have a seperate TIN or are they using the employer EIN? I think that may control for timing but I'm not 100% sure.

If using the IRS safe-harbor hardship rules I think this is correct because you have to exhuast all other avenues of receiving funds before requesting a hardship and the participant has access to funds w/o requiring a hardship though the in-service feature. On the plus side you don't have the 6 months suspension of deferrals for in-service that you have hardship.

I think you are stuck with 5 years if you refinance.

I agree with Rigby. Seems like a pretty black and white issue if he meets the age and service condiction.

If determining HCE/KEY use the higher percentage; if allocating costs, ask the accountant.

Using prior year testing the contibutions would have need to have been made by plan year end to satisfy the 12 month rule. I'm not sure I follow what the actual contributions are, it seems like regular fixed contribution is always going to be greater than the minimum unless there are some allcoation conditions and the 3% is just the TH minimum. If you are trying to designate the first 3% as QNEC to NHCEs I think you may be creating a potential nondiscrim problem with the rest of the contribution since you can't double count the QNEC as part of your intergrated uniform contribuion formula.

That would seem to be a poorly worded document. I assume it was written like that to get the most bang for the TH buck by throwing it in the ADP and no one thought about the HCE as non-key problem. I don't think you are required to put the QNEC in the ADP test but if you don't put the HCE QNEC in the test, I don't think you can put the NHCE QNEC in the test either. Can you run it both ways and see which results in the lower refund? As a side note if the plan is TH and making a 3% to only non-key anyway why not just amend to 3% SH and excluded HCEs from the SH to avoid this problem as well as eliminate refund at the same time?