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Lou S.

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  1. Like
    Lou S. got a reaction from david rigby in Distribution Form for Lump Sum that is Lower than Plan Assets   
    Why not amend to have excess assets go to the participant? Seems silly to pay a confiscatory reversion tax given the facts you lay out.
  2. Like
    Lou S. reacted to BG5150 in "Clipping" web pages or PDFs for your research file   
    I use BenefitsLink and ask you guys....

  3. Like
    Lou S. reacted to QDROphile in Can a member of controlled group split from it's plan?   
    SIC is relevant to a QSLOB analysis.
  4. Like
    Lou S. reacted to ESOP Guy in Loans and withdrawals   
    Now with more details I agree with masteff and retract the idea there has been an error.
    I would also say that the OP doesn't describe it correctly. The outstanding loan balance isn't larger then their account balance.
    For example in this case the husband's loan balance is: $33,000 which is made up of $13k in investments and $20k in loan.
    That seems to be part of the issue here. The loan is part of their account balance so their loan can't be larger then their account balance. At most it can be 100% of their account balance if they took 100% of their cash as an in-service. In this case the other participants aren't at risk of not being paid.
  5. Like
    Lou S. got a reaction from hr for me in A participant with a loan balance wants an inservice dist.   
    Not true. The security issue at the time the loan is issued.
  6. Like
    Lou S. reacted to ESOP Guy in Terminated Plan - Account's Opinion   
    I can't cite anything other then the instructions say you must attach the auditors report. So I think failing to do so means you have not filed a complete Form 5500. Which means I think they could be fined as if they had not filed one until the auditors opinion is filed.
  7. Like
    Lou S. reacted to AndyH in Combined Plan Limit   
    The first issue is that most SEPs have an exclusive plan requirement, in which case the contribution limit is $0,
    If not for that issue, the limit would depend on whether or not the DB plan were subject to PBGC, first. If so, no combined limit. If not, either the combined contribution must be limited to 31% or the DC is limited to 6% or less and the DB has it's independent limits.
  8. Like
    Lou S. got a reaction from ETA Consulting LLC in Mistake of fact deferrals???? Participant opted out.   
    The easiest way might be to forfiet his account and use it to offset the next deposit.
    Company writes him a check for the deferral. (or do a negative defferal if payroll company will allow)
    Fix the W-2 with the payroll company to reflect no 401(k).
    Adjust his withholding on the next payroll to cover the taxes that weren't taken.
  9. Like
    Lou S. got a reaction from ETA Consulting LLC in Plan has last day entry   
    Unless you have an oddly drafted plan, employees who terminate before their entry date never become participants in the plan.
  10. Like
    Lou S. got a reaction from KTB in Over-Vested - Paid out too much Employer Match to Employee   
    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.
  11. Like
    Lou S. reacted to John Feldt ERPA CPC QPA in Hardships not permitted after Age 59 1/2?   
    Actually, the tantrum is later when taxes are due.
  12. Like
    Lou S. got a reaction from masteff in Hardships not permitted after Age 59 1/2?   
    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.
  13. Like
    Lou S. reacted to PensionPro in Top Heavy Minimum in Terminating Plan   
    yes and no in that order
  14. Like
    Lou S. got a reaction from ETA Consulting LLC in Match due to 401(k) plan   
    If made within 30 days of the tax filing deadline they count as 2013 annual additions.
  15. Like
    Lou S. reacted to QDROphile in 872-H   
    The thought is that the IRS may be forced into hastily asserting liability to preserve possible claims. Once the IRS is in that posture, it is more difficult to deal with and it might want some blood for the extra adminstrative trouble instead of some more cooperative resolution of any issue of interest. I have only refused to extend the statute once. That was with the Department of Labor when it was so far out of line with its original assertions and general rudeness in the process that things could not get worse. That is not typical of my experience with the DOL. We tend to get constructive behavior from IRS agents, too, so we generally accommodate.
  16. Like
    Lou S. reacted to K2retire in When a rollover isn't a rollover   
    Did the record keeper require a form along with the funds? If so, it is likely to include language certifying that the funds are from a source that are eligible to be rolled into the plan. A participant signature on that form should end the issue.
  17. Like
    Lou S. reacted to Bird in Clearly I am An Idiot   
    asap 18-13 talked about this...perhaps at too much length. My takeaway was "No Penalty for Failure to File."
  18. Like
    Lou S. got a reaction from GMK in Basis in Roth IRAS   
    By keeping good records.
  19. Like
    Lou S. reacted to Bird in ADP Test with no compensation   
    no comp = no opportunity to defer; not in the test.
  20. Like
    Lou S. got a reaction from MoJo in QDRO plan administrator not complying with Court order   
    Dear Administrator,
    I have been patient with your system issues but they are not my concern. A valid QDRO has been submitted which you have acknowledged. If I do not receive the payments dating back to your receipt of QDRO with interest in the next 20 days, I will refer this matter to the local branch of the Department of Labor for further inquiry.
    Warmest regards,
    Alternate Payee
  21. Like
    Lou S. got a reaction from Calavera in QDRO plan administrator not complying with Court order   
    Dear Administrator,
    I have been patient with your system issues but they are not my concern. A valid QDRO has been submitted which you have acknowledged. If I do not receive the payments dating back to your receipt of QDRO with interest in the next 20 days, I will refer this matter to the local branch of the Department of Labor for further inquiry.
    Warmest regards,
    Alternate Payee
  22. Like
    Lou S. got a reaction from RestAssured in DC Administrator thinking of offering Cafe. Plans   
    Be prepared for a ton of menial processing.
  23. Like
    Lou S. got a reaction from KTB in 1 CE Credit before year end   
    ASPPA has recorded webcasts ($110 a pop for members with a discount if you have more than one person from same company ordering) that are generally 2 credits a piece and usually good for EA, ASPPA, ERPA, NIPA credit.
  24. Like
    Lou S. got a reaction from Bill Presson in RMD and Life Insurance Investment   
    Yes there is an RMD.
    Calculated based on FMV of prior 12/31
    I don't see a lot of insurance in plans but isn't insurance past NRA problematic from the incidental benefit rules?
    You have almost the same "problem" as if the participant's only asset is an illiquid asset.
    The likely options are distribute the whole policy to participant for full FMV, surrender the policy for CSV or have participant purchase policy from the plan and make RMD out of proceeds.
  25. Like
    Lou S. got a reaction from GMK in Can You Initially Enroll in 401(k) Plan at Zero Percent?   
    I see election forms that are 0% but the particpant elects investments for any employer contribution such as profit sharing or non elective safe harbor.
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