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Lou S.

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Everything posted by Lou S.

  1. Lou S.
    Was the distribution eligible for rollover? If yes and it is not rolled over mandatory withholding rules apply.
  2. Lou S.
    A work around might be to have him reduce his 401(k) contribution to a level where the 401(k) + safe harbor match = the total amount he wants to contribute.
  3. Lou S.
    You could offer to resign and let the accountant take over plan administration since he fancy's himself an expert in the field.
  4. Lou S.
    You may need an ERISA attorney involved. But it sounds like the Plan Administrator (PA) incorrectly paid the APs portion of benefits assigned by the QDRO to the Participant. The PA would likely be on hook for making the AP whole and then trying to recover the over payment to the Participant on behalf of the Plan.
  5. Lou S.
    I believe we started electronic filing in 1998. So several of the recent early 2000 filings were definitely electronic but before they were on FIRE. But don't know if they were EFAST1 or EFAST2. I can't recall any since the newer separate form filed through FIRE but older stuff does come up for sure. Anything before that was paper. We had one participant from the 90s still question us when we sent her a copy of the 1099-R and her notarize election form. We happened to have all of it scanned.
  6. Lou S.
    SSA is not always the best at removing folks, even when reported with a D code, especially if the D code was reported long ago. The last 4 participants to call our office with one of those SSA letters where all reported as D on the SSA in the year they were paid out.
  7. Lou S.
    I think I misunderstood the nature of the original question. But as a followup is the ER plan that covers the union employees considered covered under a collective bargaining agreement? If yes can you take advantage of IRS regs that allow you to aggregate all your union plans and do a single test? I think the applicable reg is IRC 1.401(k)-1(g)(11)(ii)(B). But I don't know if this would make your situation better or worse.
  8. Lou S.
    I believe you are supposed to run two test in this case. One that covers just non-union employees and one that covers only union employees. I'm pretty sure the union and non-union employees must be disaggregated for ADP and ACP testing. I believe that the union portion gets a free pass on ACP but not ADP. Though there might be rules that allow you to aggregate the two populations. However it's been some time since I looked at the rules for plans covering both Union and Non-Union because employees we don't currently administer any like this.
  9. Lou S.
    Have any of the other restricted partners requested a lump sum and been denied?
  10. Lou S.
    True. The TH minimum need only be the lesser of 3% or the greatest allocation rate of any key employee. That said a 2nd year 401(k) plan where you tell the keys oh by the way none of your can contribute is not likely to be a Plan that is around for long. And there are some instances where you might make a 2018 TH contribution to Non-Keys only which is sufficient to make the Plan not Top Heavy for 2019.
  11. Lou S.
    I'm assuming you have a calendar year plan established in 2018? For which the determination date for both the 2018 and 2019 plan year is 12/31/2018. If your top heavy ratio is more than 60% on 12/31/18 you have a top-heavy minimum required for 2018 (which will most likely be deposited in 2019) and for 2019 which will likely be deposited in 2020.
  12. Lou S.
    The first distribution has to satisfy 401(a)(9). Also the Plan needs to independently satisfy 401(a)(9). Either way you need to do the RMD before the rollover for the owner. If he wants to delay the RMD into 2020 he needs to keep the plan open until the first quarter of next year.
  13. Lou S.
    In our document he would be eligible and enter the plan 8/31/17 just as CuseFan describes above as our document has the same or very similar language. Your plan document might have different language, that's why you need to read the document.
  14. Lou S.
    He picks up all of the union service for vesting and eligibility. Your plan document should address entry for employees who move from ineligible classification of employee to eligible classification of employee.
  15. Lou S.
    To add to what others have said, that's no way to allocate gain/(loss). It sounds like a perfectly reasonable way to allocate contributions to the plan, assuming that's the formula in the Plan Document, but not gains/(losses).
  16. Lou S.
    Sounds like a prohibited transaction.
  17. Lou S.
    If they are occurring at the same time I don't see why not.
  18. Lou S.
    Can she take a loan from plan to cover down payment? When she turns 59.5 take an in service distribution and pay off the participant loan early? It's not best idea but it could be a decent work around if you are talking about saving potentially thousands in tax penalties.
  19. Lou S.
    I have no IRS citation to provide him but on this one I'm certain of the answer. This may or may not be a good citation if he need back up for the office https://www.irahelp.com/slottreport/age-55-exception-10-early-distribution-penalty
  20. Lou S.
    The exception only applies only to the Plan that you separate service from after attainment of age 55. If you roll the funds from that plan to an IRA or another qualified plan they pick up the characteristic of the new vehicle.
  21. Lou S.
    ^Close for 415 aggregation the "at least 80%" in CG gets replaced with "more than 50%". Since they each have exactly 50%, neither has "more than 50%. It's in the 415 code but I forget which exactly. I think it's 415(h) but I might be off.
  22. Lou S.
    Yeah if somehow it is not an ASG you are fine since it's not a controlled group and neither has more than 50% of the LLC so you also don't need to worry about 415 aggregation. However I got the feeling that all profits from LLC flowed back to the corps which makes me think they are sharing employees and trying to get a max SEP deduction/contribution in their own Dentist Corp which probably have both of them as the only employees while not covering any of their staff which is probably a 401(k) deferral only plan. But maybe that's just the cynic in me.
  23. Lou S.
    What does the 3rd LLC do? Hard to see a situation where this isn't a classic affiliated service group but maybe I'm missing something.
  24. Lou S.
    How does a 1,600 hour requirement satisfy 410(a)(1)(A)(ii)?
  25. Lou S.
    ^this rule relates to ending a safe harbor match. As for the 3% non-elective, if the correct notice was handed out and the Plan document allows for it, absolutely. The Notice is commonly referred to as "The maybe notice"
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