401king

Go with Pre-Tax for now and get the match. It's the simplest one and most 'portable' when you leave the company. Then, re-evaluate your choice when you have more time to educate yourself on the differences (which may involve a conversation with the Plan's service provider).

I believe the DOL has written guidelines for electronic delivery. Off my head, the employer has to be sure that that the employee can access the email account and checks it regularly; it must be a valid email; an election must be made for the employee to receive electronic disclosures; employee may change at any time; must be notified that the document is available electronically. Prob some that I'm missing.

Whose attorneys? Do they work for the Plan Administrator? Your mom shouldn't be the one needing an attorney - it would be the other claimants to prove that they are the beneficiary(ies).

Thank you all for the input.

Is there a general consensus on who is responsible for signing the Form 5500 when the trustees change after the end of the year? Would the new trustee sign the prior year's 5500, or does the previous trustee retain that responsibility?

I don't think excluding normal wages would fit 414(s)-1(d)(2). (ii)Items that may be excluded. A reasonable definition of compensation is permitted to exclude, on a consistent basis, all or any portion of irregular or additional compensation, including (but not limited to) one or more of the following: Any type of additional compensation for employees working outside their regularly scheduled tour of duty (such as overtime pay, premiums for shift differential, and call-in premiums), bonuses, or any one or more of the types of compensation excluded under the safe harbor alternative definition in paragraph (c)(3) of this section. Whether a type of compensation is irregular or additional is determined based on all the relevant facts and circumstances. A reasonable definition is also permitted to include, on a consistent basis, all or any portion of the types of elective contributions or deferred compensation described in paragraph (c)(4) of this section and, thus, need not include all those types of elective contributions or deferred compensation as otherwise required under paragraph (c)(4) of this section.

Curious as to how they would see the IRA rollover option as a benefit. Why not just keep the money in the IRA?

If FTWilliam is claiming that this provision requires hours worked then I am inclined to take them at their word. Does the Plan Document expound on this at all?

@BG5150 Interested in your thoughts- Would you differentiate between an Excess Allocation and Mistake of Fact?

Given those facts, move the funds to a suspense account and use to reduce any contribution. Edit: Accounting for gains/losses.

May be a browser issue. If I do a search, click a link, then go BACK it takes me back to the search results. FWIW I'm using Chrome.

The only part that makes it a "nightmare" is explaining the rules to participants who simply want their money. Still, easier than explaining to a business owner that because he has a lot of money in the Plan he can no longer save.

https://www.irs.gov/retirement-plans/retirement-plan-fiduciary-responsibilities "Basic responsibilities ... [of fiduciaries] ... include ... following the plan documents"

There is no deadline after the entry date for which a participant may enter the Plan. Once eligible, they may enroll at any time. The entry dates are not the dates on which a participant must enroll.

Although if this were a non-Safe Harbor Plan consisting only of Keys and HCEs, you would agree that the HCEs must receive Top-Heavy, correct? (Assume, for the example, Keys were maximizing PS contributions)

FWIW FTWilliam reports corrective distributions separate from other benefit payments on the SAR.

I don't think you get a break for the last three months. It was not corrected within three months so you lose the "Get Out of ERISA Jail Free" card. I may have misread it, though. https://www.irs.gov/pub/irs-drop/rp-15-28.pdf

Maybe this has already been covered, but I thought the statutory default was to require one quarter's worth of payments to be made each quarter. If missed in one quarter, you have until the end of the following quarter to make them up. In this case, he did not make a full quarter's worth of payments, and never made them up. Strictly speaking, this loan should be defaulted, no? I would say they defaulted one quarter too late (Missed quarter was Q2 2017).

The downside is that you may contribute too much or too little to the employees. If too little, you have issues with testing and BRF because owners have received deposits in a discriminatory manner; if too much to the employees, it costs owners more than necessary. I have some clients who want so badly to fund it per pay period that they provide more than we estimate the minimum to be just so they don't have any BRF issues.

I do not believe their terminating employment should preclude them from receiving the corrective contributions for prior years.

Given that no notice was provided to the employee, I lean toward using the higher of the two (50% of ADP vs. 50% of missed ACR). Plus earnings.

Was the auto-enrollment notice provided to the participant? I.e. were they given an opportunity to enroll?

Even if they were paid out, they would still be eligible upon being rehired, right?

They can go back as far as they want. They should know your deposits from your personal/corporate tax returns.

Thank you all for your help.