401king

$750 DFVC fee to file the 2015 if it's not necessary. $504,000 as of 12/31/2016. There was nearly $300k in rollovers in 2016.

Client was self-administering his solo-401(k) from 1/1/2015 (effective date) through 9/1/2017 (when employees became eligible). Since then, my company has been administering the 401k. Based on my conversations, I was under the impression that he was under the $250k threshold prior to this year (lesson learned - don't rely on client's assumptions). Assets on 12/31/2015 were <$80,000; assets on 12/31/2016 were >$250,000 but no Form 5500 was filed. I am now starting to work on the 5500 via DFVC but I have a few questions. 1. We do not need to file a 2015 5500, correct? (Nothing about DFVC will require a 2015 & 2016 5500?) 2. Should the delinquent 2016 5500 be filed on a 2016 Form, or 2017 Form? 3. This will be the first filing for a Plan effective 1/1/2015. Will my 2016 Plan Year be 1/1/2016 - 12/31/2016, or 1/1/2015 - 12/31/2016? (Including all contributions made for all years in this first 5500.) 4. The client should first file the late Form 5500 and subsequently (immediately) file and pay for the DFVC, correct? Thanks!

Is a sign-on bonus 401k-eligible (assuming it's paid after their start date)? Or is it like severance pay - ineligible because it is paid for reasons other than normal service.

You can check your old W2/tax returns to see how much you deposited. The 5500 won't give you the information you're looking for.

Would this former shareholder receiving a W2 be an HCE? If not, you will have a hard time excluding him on the basis that he used to be an owner. Same for the other person, although I can't imagine that a ~$70 top heavy contribution will rile up the sponsor. Is it normal for someone to receive a W2 when they don't do any work? On who should receive a W2: "You must file Form(s) W-2 if you have one or more employees to whom you made payments including for the employees’ services in your trade or business during 2017."

The DOL is the government agency to receive complaints.

Yes.

In these circumstances, is this a forfeiture when the employer overfunds an account? Should the extra contribution be considered a NEC (or QNEC) for that year ?

Even the most discretionary option we have requires some formula entry. Not sure if the same is true for all documents from the bigger providers.

Would the document need to permit such a "flexible" match formula? I.e. a different match for each "Class". Our document software could not accommodate various formulas.

Perhaps the Plan has its own limitations. You need to take your questions back to Vanguard for real answers.

Your loan should not be affected by the rolling 12-month balance; that only comes into play when your loans near $50k (combined).

I think you should speak with Vanguard for clarification.

The 12-month balance may not apply because your combined loans does not exceed $50k. Are you sure that the $26,238 does not include your loan balances? Are you sure that you're 100% vested? Did they give any info on how they got to $4338?

Net - otherwise I'm not sure how you would process a distribution for someone with a $200 balance?

Why would Roth contributions have an exception to a failure to implement deferrals?

Continue withholding deferrals. That compensation is eligible for deferrals, just not for testing calculations.

On the bright side - It provides an incentive for Roth contributions.

What is the opt-out period? Is that a company policy?

I'm curious how one would be affected if they become an HCE within the 18-month period. Non-HCEs are eligible immediately, but 12 months later they could become an HCE and thusly ineligible for the Match. Would the document have to address this?

Sometimes knowing the goal can help with the answer. What are they trying to achieve here?

Maybe you can elaborate on this. Did you take money out of your 401(k) to pay the loans back?

In the only case I've had this happen the client was able to take an in-service distribution to cover the illiquid asset so it was resolved prior to the wire.

If you don't mind elaborating for me - What would you be using this account for? How is it funded?

237 including our cover letter, AA, PD, Trust Doc, opinion letter, IPS and SPD.