Lou S.

My understanding is yes. A conversion is treated just like a contribution for the 5 year clock.

The plan did nothing wrong. The participant has taxable income for 2015. Heck since no payments were even made in 2014 the loan was probably in default back then and a 2014 1099-R should have been issued.

Yes plan needs to stay current with all applicable law including restatements. How is the 5500 being filed if the sponsor no longer around? Why on earth hasn't this plan been terminated if the sponsor is not around and only paying out benefits? Lastly is this a DC or DB plan? They have different restatement deadlines.

Restate with VCP seems like the safest, easiest course of action to recommend.

How does a deceased person change their mind? I'm assuming you mean the beneficiary took the distribution in cash. I'm pretty sure they can still rollover to an Inherited-IRA if they are in the 60 day window.

Seems like a simple amendments that states something like "All participant's actively employed on the date of the sale of __________ to ___________ shall be 100% vesting in their accounts." or something to that effect. but I am not a lawyer.

1) - I believe they can take the greater of (MRC15 + MRC16) or Max404(o)16 2) - They can increase benefits for 2016, just be careful not to run into a "pattern of abusive amendments"

No problem. Use the 2015 Form for both.

The DOL has a calculator where you can calculate lost earnings http://askebsa.dol.gov/VFCPCalculator/WebCalculator.aspx If it was me I'd write a letter to the employer and send it with some sort of tracking asking them to make all missed deposits within 30 days or you will be contacting the Department of Labor. Then if they don't make them, contact your local Department of Labor office. If they can't help you directly, they can point you in the right direction.

I image they want to give a one time immediate entry to the 401(k) feature for folks employed on 1/1/17 while keeping the year of service for the PS and having just one eligibility rule of 1 year of service for both thereafter.

If the plain language of the document says you credit service, then you credit service. If the document was drafted to say yeas of service at "D" prior to 1997 are credited, you would credit service for all years before 1997. If the document says employees of "G" hired in 1997 shall receive service credit for time at "D" prior to 1997 then that's how you apply it. At least that's my understanding but I am not a lawyer.

Anyone still employed is receiving an "in-service" distribution. For 1099-R coding both would be "7" unless something unusual applies.

I assume you've already send in the first filing with a letter noting they are asking for a 5500 for a year before the initial effective date? If you have and they haven't fixed time to start making some phone calls and get a warm body to address the issue.

1 is too few, 13 million is too many. So somewhere in between. Like jpod I don't thing there i any direct guidance on the optimal number of investments. It is left to the prudence of the Trustee's to decide.

You can't use the forfeitures to fund a safe harbor contribution, QNEC or QMAC but there is nothing that I am aware of to stop you from using it for a discretionary match that happens to be to a 100% vested source.

Are they on a PPA document? If the answer is yes you are done, the deadline is 4/30/2016 but it could have been done as early as May of 2014, I believe since that is generally when the preapproved PPA documents first became available. If the answer is no and they are on an EGTRRA document then they need to restate the plan by April 30, 2016. Answers above assume Plan is using a preapproved volume submitter or prototype document and is not individually designed.

Unless there is an expectation that the loan won't be repaid I'm not sure why a prior bankruptcy will impact his ability to take a participant loan.

I can think of no good thing that can come out of such a design but several potentially expensive ones. But maybe I'm missing something obvious.

If you are talking about Federal Tax Withholding on a distribution, the answer is no. It is simply part of the distribution to the participant. If you have federal tax withholding for some other reason, (UBTI maybe?) I don't know what the answer is.

I don't know if there are specific rules relating to rollover checks but my guess on DOL investment standards is they would simply extend the current rule for investing deferrals and loan payments. I'm pretty sure the DOL would find 2 months an unreasonable delay. But the investment issue as you correctly point out is the receiving plan issue, not yours. You are in the difficult position of not really being able to close the trust.

It's a fiduciary violation for the new plan to sit of the checks. If the participant's haven't made election the Trustee needs to invest the money for them or put them into the plan's default fund. But you probably know that. That said I have no clue what to tell you. Maybe a cashiers check?

I think you are OK as long as you don't file before the non extended tax deadline which invalidates the extension.

Unless you take steps to formally terminate the plan you still have a plan, just with zero eligible participants and zero current assets.

Did the prior plan terminate? Was a final return filed even though there are still assets in the trust? Why was the transfer initiation left up to the participant and not done by the trustee's of the company 401(k) plan?

Yeah it it is always an interesting question with self employed. I think in 415 compensation definitions it is almost certain that the pay would qualify as 415 compensation. Even though it is "fixed on 12/31" I don't see any reasonable way of classifying it as anything other than pay earned while in the employ of the employer.