Lou S.

If he has not reach RMD age at time of death and the spouse is the beneficiary I don't see why she couldn't elect a rollover to her own IRA unless there was something in the Plan restricting that.

I don't think the IRS would question it if you had proof it was initiated by the deadline. Since as you say they will take a timely mailed check I don't see why they would not also take a timely submitted electronic transfer.

Client has a participant that has 1st RMD coming up. Assume the 401K balance is more than $10K and less than $100K. This participant has been missing for some time. They have scoured their own records and a commercial participant locator service produced an older address that the participant has not been at for some time. What to do with the RMD and what to do with balance that is more than cash out limit in on going plan?

I would assume the correct way to fix is through EPCRS. More than 5 years ago would reduce the audit risk as that's a now a closed year but I'm not sure that changes the answer if you want to fix it properly. Has this been an ongoing problem or a one time more than 5 years ago problem that was just discovered for some reason.

Why would the W-2 be affected? He should get a 1099-R from the Plan for the refund. Any reasonable method to determine earnings can be used. I believe we assume deferrals ratebly over the year and apply the annual earnings rate for 1/2 the year if that makes sense.

We are no longer a service provider to the plan and unable to assist you with the information you are requesting as we have no access to that data and no contractual agreement with that Plan or Sponsor. Please contact the ERISA Plan Administrator and/or Plan Trustee. Our last records which we have previously provided to you indicate they are X and Y. The last known address and phone in our records is _______ and _________. We wish you luck in enforcing the right of the participants with the legally responsible parties but are unable to offer any further assistance. Just repeat that ever time they call.

I would put the date of the transfer as final day. I mean often times we terminate a plan as of X date but the last distribution day is X + Y and we we report the date of the last distribution that closed the trust as the last day for 5500. I see this as an analogous situation.

IDK, amending isn't that hard and you have piece of mind. I guess if you have an acknowledgement file that says it was accepted you can make a call whether or not to amend and supply them with the attachment should it come up later but do you want to risk the IRS saying you made an incomplete filing? I mean I doubt they would for something relatively small like that but I'm not the IRS and can't speak to how that would view it.

I don't think I'd change a thing on the filing with exception of checking the amended box and adding the correct attachment.

Any time not sure, the best course is to refer to them to legal counsel.

Hardships have a 10% default federal withholding but you can opt out and elect a lower percentage, even 0%, or can elected a higher percentage if you want. But Hardships are not eligible for rollover and therefore not subject to the mandatory 20% federal withholding.

If you are in black out, they may not have loaded your loan on to the new providers platform yet. Check the day after you come out of blackout. If doesn't show up, talk to the person in your company who handles the 401(k) and tell them they need to straighten this out or you'll contact the DOL.

The only thing I might caution is since there is only one NHCE and they are not deferring I think I would caution the client to keep good records that the safe harbor notice was in fact distributed and would encourage them to have an "opt out or 0% election" signed by that NHCE just in case the IRS might question it.

Yes you can, meets the ACP exemption.

I believe it causes disqualification problems for the SIMPLE-IRA contributions in the years in which both Plans are maintained. The employer is not allowed to operate another Retirement Plan and I believe that includes 403(b) Plans. Though neither SIMPLE-IRA or 403(b) is the area I focus on so I could be wrong. But my understanding is the same as yours.

While technically correct, I think it is misleading to folks who sign up thinking they are going to get 80% of the first 6% which is a 4.8% match when they are getting capped at 4% which effectively is 80% of the first 5% and 0% from 5 to 6. It just seem like catching folks in the small print. It guess it comes down to how you communicate it to participants.

I think you can do it with the 4% cap. But you are not really matching 80% of the first 6% in that case. I don't see why you don't just communicate the match as 80% of the first 5% because that's what you are actually doing in this case and you would be withing the rules.

Is 80% of the first 6% a fixed match in the Plan document? If yes, you are fine. If it is a discretionary match where they are declaring 80% of the first 6% then I think you have an ACP test as the discretionary match can exceed 4% of pay.

I think if you want to do this with IRS blessing since it well past the 2 year self correction mark, you would be looking at VCP with the suggested correction be that the plan disgorge the funds back to a ROTH IRA since it was not supposed to accept rollover funds from a ROTH IRA in the first place. Assuming the participant can provide the documentation that the funds did actually come from a ROTH IRA originally. What documentation did the Plan get in 2018 to suggest that it was from a traditional IRA and an allowable rollover in?

Why can't they unwind this? They erroneously made deposits. That said I don't see where the IRS would have an issue with the proposed correction.

Start by filing a claim for benefits with the Plan. Request a copy of the summary plan description and submit a copy of the beneficiary designation form showing you as beneficiary and proof that you were his spouse at time of death. Send this by registered mail or overnight delivery with signature required so you a have a record of noticing them. If they are still non responsive, I would suggest contacting an ERISA attorney to assist you and/or contact your local branch of the Department of Labor and request their assistance. I myself am not an attorney and this is not legal advice.

Who is transmitting the withholding? What EIN was attached to the withholding? That's who would be be doing the Tax reporting and which EIN will be used.

I would say you have your answer. Direct the participant to the claims procedures in the SPD and send them back to the Fiduciary who "froze" withdrawals.

Yes that is acceptable. If they have terminated and he is now electing a rollover, you can also use the DC method that will typically give a lower RMD.

A good question and one you should probably send back to the ERISA Plan Administrator or Plan Trustee to direct you in how to act with respect to withdrawals in this time period.