Lou S.

Assuming he died in 2020 and not a prior year... Q1 - If it is a DC Plan then no RMD is required for 2020. Q2 - 10 years for non-spouse death payouts under Secure act. Q3 - the 10 year period starts in the year following death so year one of ten is 2021.

If there are no participants age 70 1/2 I don't see where the amendment is required. You simply follow the terms of the current document and process RMDs for the zero participants that require them. As for timing as long as you are in the remedial amendment period you should be fine.

It would seem you have a SHNE contribution due for 2020. You have a continuing annual Safe Harbor Match notice to all eligible participants, contributing or not. Starting in 2021 you have have no employer contribution requirements for non contributing participants assuming the only ER contribution is the SH Match. If that's what you mean by "nothing further given"

I think if you want to convert your single employer Safe Harbor Plan to a PEP Safe Harbor plan you should do it on the first day of the next Plan year. Assuming you want to keep safe harbor status for the year.

I agree with BG5150

That's probably a better question for their tax accountant (which I understand they probably don't have) but I'd have a hard time seeing where the CARES, Act option you lay out wouldn't be a better option than the 2021 default. The only scenario I can think of where taking the default in 2021 looks better is they expect to be in a lower marginal tax rate in 2021, that is they expect a big drop in income between 2020 and 2021.

It's unclear from your post what exactly happened but it sounds like a USSERA violation if the Employer forfeited a portion of their benefit while on active Military duty. You may want to see if the fact pattern fits one of the FAQs from the DOL. https://www.dol.gov/sites/dolgov/files/VETS/legacy/files/USERRA-Fact-Sheet-Pension-FAQs.pdf

I think you are fine for ADP, I like others I don't believe this satisfies ACP since NHCE can not receive the discretionary match and thus HCEs receive a higher rate of match - even though the intent seems to be to give HCEs the same match as NHCEs "in good years". I think this is also a contribution that is likely to blow the deemed not Top Heavy excemption. Though this seems to be one of those times that the Plan is in compliance with the spirit of the regulation, just not the letter of the regulation. But for the record, I'd like to be wrong on this because it's hard to see how what they are doing is descriminaroty in practice.

DeltaRat, some pension plans do not allow for single sum distributions (rollover to IRA or cash distribution) but only allow annuity distributions at Early or Normal Retirement age.

I have a 1 man plan where owner just reached NRA this month and is under 415 limit on payout but getting close. The question I have is can I terminate the Plan effective 12/31/2020 to have full plan year, but have have him elect a lump sum now and rollover to IRA so possible gains don't push him over 415 payout? He is not married so spousal consent not an issue. I don't think there is an issue but wanted to make sure I wasn't missing anything.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments It is a taxable distribution in the year the collectable is purchased with the IRA funds. I am not aware of any additional PT issues since it is considered a distribution at the time of purchase and not held by the IRA. A 1099-R is required to be issued for the distribution which I believe is equal to the purchase price of the collectable. It appears to be treated the same as if the the IRA owner took an cash distribution form the IRA and then purchased the collectable with the funds received.

Assuming the wife is the sole beneficiary wouldn't it be processed like any other death benefit of the plan through the Plan's administrative procedures? The issue than becomes one of withholding to a payee outside the US and what withholding rules may or may not apply.

I don't know the answer to that, but I can't see the IRS or DOL having a problem sending money form the plan that is required to be paid to the participant directly to the participant's account assuming you were sure it was the participant's account and sending it the same place you send his or her paycheck would seem to be their account and presumably they have given consent to send their compensation deposited to that account. I'm not sure why it wouldn't extend to the Plan of the Sponsor but I am not a lawyer.

Prohibited cut back to add a last day requirement for 2020 for anyone who statisfied the current allocation requirement.

You can keep reissuing the check or you can call HR and see if his paycheck is direct deposited and send the next one directly to his bank via ACH or Wire.

I agree with Bill. You could establish a regular 401(k) Plan for 2020 using prior year testing and cap HCE deferrals @5% of pay. That would allow HCE's to contribute 5% of annual pay plus the 2020 catch-up limit if they are 50 or over. It's not the full limit but of your HCEs are over the comp limit of $285K and at least age 50 they could defer $20,750. You amend the plan to SH for 2021 and also remove the 5% of pay cap for HCEs for 2021.

In other words the lump sum is the greater of plan rate or 417 rate but not in excess of 415 limit.

Because 415 trumps 417 in the lump sum benefit calculations.

If your pensionable income is equal to or higher than $266,667 your 401(k) should be fine as the $19,500 401(k) contribution does not go into the 6% calculation for deduction purposes and $16,000 is 6% of $266,667. If you are a corp that will mean your W-2 is $266,667 or higher 2020. If you are schedule C, talk to your TPA about what your earnings for pension purpose are as it can be a bit complicated and circular as every dollar of employer retirement plan contributions will reduce your income by $1. But you'll probably want to run through all the numbers with your TPA/actuary and possibly your CPA who probably has a better handle on it with full information.

Simple 401(k) or Simple IRA? Matching Simple or Non-elective simple? If it's a SIMPLE-IRA the IRS FAQ may be helpful to you. https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions

If the sponsor is worried about wide spread participant loan fraud, don't offer loans.

Or if employees abuse it, amend out plan loans. They aren't a protected benefit.

Default the loan under the plan's loan provisions. Issue 1099-R for the income. Carry the loan including accrued interest on the books against the participants loan limit until the participant has a distributable event.

I haven't checked in a few months but I thought participants who died on or before 12/31/2019 are subject to pre-Secure Act rules and that participants who die after 12/31/2019 are subject to Secure Act rules.

Leaving it in the Plan Sponsor bank account wont work. Setting up an account in the name of the Plan at the Sponsor's bank will work for reasoanbly segregating the assets from the Plan Sponsor into the Plan. The question of whether the assets held in a back account for several weeks while the investment account for participant direction is setup is a fiduciary question about prudence.