401king

It wouldn't raise a flag, per se. The IRS doesn't know how what is due to a Plan, only what is reported on the Form 5500.

Assuming the doc does not exclude him from the SHM, then he is required to fund the $54 to himself.

They're not going to take the $12k out of your $18k, dont worry about that. An offset implies a taxable event. So you will not receive a new check but you will get a 1099 to report $12k as retirement income, subject to taxes and applicable penalties. IMHO They're not trying to yank you.

The amount of a hardship distribution must be limited to the amount necessary to satisfy the need. This rule is satisfied if: The distribution is limited to the amount needed to cover the immediate and heavy financial need, and The employee couldn't reasonably obtain the funds from another source. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-hardship-distributions As a fiduciary, I don't think a trustee would be overstepping by asking if the participant has applied for a loan. Particularly for $500k.

Sounds like you should reach out to your Plan Administrator. Each system will be different; some require SSN for beneficiaries; some do not. But a payout to a non-US resident has its own set of complications that you may want to research first.

One could argue the "immediate" need because it is unlikely that they "need" the full purchase price. More than likely, they could be approved for a loan on 80%+ of the property. If I were the Sponsor I would request proof that the participant attempted to obtain a mortgage and were not approved.

Have your boss contact Vanguard.

Not necessarily - it's still a % of the gross which could be less than what's available after other deductions (e.g. an extreme 90% deferral rate).

Somehow he ran payroll on time. Should be able to do the same for 401k, traveling or not.

Using one of the services that some here have suggested.

They may be able to get the money to an IRA without effort, but likely uninvested. Banks won't invest unless the account holder completes something.

A Solo 401(k) Plan effective 1/1/2017 crossed the $250k threshold as of 12/31/2020. When reporting on the Form 5500-EZ for 2020: The plan year will be 1/1/2020 - 12/31/2020. (not the effective date through 12/31/2020, right?) The beginning assets are actual assets on 1/1/2020 (as opposed to potentially $0 assets because it's the first return). Thanks!

Even if providing $0 to the owner?

Why not profit sharing? Less restrictive than a match formula - you wouldn't have to give anything to EE 3.

You should plan on not funding your IRA until you receive your W2 for a given calendar year so that you can verify the "COVERED" checkbox is unchecked, as imchipbrown mentioned above. It is possible that your boss makes an Employer contribution to your account which would then trigger the "COVERED" checkbox, even if you do not contribute.

I'm surprised to see your default rollover is to the new 401k. 401k will nearly *always* have higher fees than the IRA; wouldn't you agree?

Did these EEs make a special election and the ER failed to withhold? Or did the EEs not make an election?

I don't know if I interpret "payable in full" as "Deemed Distribution." I would say this person has until 12/31/2019 to pay down the loan.

They *can* but you need to check if the Plan Document allows distributions from rollover sources at any time.

We've come across some conflicting information regarding hardships and the default/options for federal tax withholding. Is it true that the default withholding is 10% of the Hardship amount? The result is that the default withholding will result in a check for 90% of the participant's requested hardship amount. If 10% is the default, is it required that the participant file a W4-P to either opt-out of tax withholding or elect an amount greater than 10%?

Does the match allocation formula require all participants to receive the same match rate? If so, it has to be withdrawn, or everyone else has to receive additional match to compensate.

Can a company freeze a plan and start a new plan immediately or does the 12-month rule apply?

How would a new plan not fix the vesting issue if the new plan had a vesting schedule?

If your current provider will not/cannot answer these questions then I strongly suggest seeking an provider who's willing to take the time to explain it. If you started with a "Budget-friendly" TPA then you're now seeing how they keep their costs down.

The payroll system cannot accommodate an after-tax deduction? Or is it the mechanics of auto-stopping that is the issue?