emmetttrudy

Limitation year = Plan year, so no worries there. And correct, no mutual ownership whatsoever. Tow completely different companies with no affiliation or commonality. It does feel aggressive, I agree. But, I haven't been able to find something that convinces me it would not be permissible, or would be in excess of a particular limit.

Employee participates in Plan A for part of 2020 and contributes the maximum of $19,500 employee Roth Contributions. Employee terminates service and moves to a different company where he/she is immediately eligible to participant in Plan B (there is NO controlled group between the two entities). Plan B permits after-tax voluntary employee contributions. No employer contributions are allocated in Plan B. Can the employee deposit a maximum of $57,000 as an after-tax voluntary contribution? I believe the employee contribution is a calendar year limit (maximum of 19,500), but is the after-tax voluntary contributions subject to the 415 limit which is a Plan limit?

I forgot to mention an important detail too (since added to original post) that the participant is the 100% owner. NRA = later of 65 or 3rd anniversary of Plan participation date. So, his NRA would be 1/1/2021.

I am trying to determine when the first RMD is due for this participant in a Cash Balance Plan. Details: - Participant is 100% owner of the plan sponsor. - Participant turns 70 1/2 in 2018. - Plan's original effective date = 1/1/2018. - End of year (12/31) valuation date. - Plan excludes service prior to the effective date of the Plan for vesting purposes, and the vesting schedule is a 3 year cliff. Would the first RMD be due 4/1/2021?

A Plan handed out the NOIT 60 days prior to the proposed termination date. Assume they did not sign the plan termination amendment within that 60 days. But they do sign it within the 90 days. Can they distribute a revised NOIT with the new termination date, and still rely on the date the original NOIT was sent out? Or does the 60 day clock re-start on the day they hand out a revised NOIT with the new termination date?

Thank you, that's what I was hoping to confirm. And yes, "as much as they want" up to the 404 maximum deductible amount.

Plan Sponsor has a PBGC-covered DB Plan and a 401k Profit Sharing Plan. I understand because of the PBGC coverage there is no combined deduction limit. However, does the 25% limit still apply to the DC plan only? My understanding is that yes, it does. For example, they could deposit and deduct as much as they want into the DB Plan. And in the DC Plan, anything up to 25% of compensation is allowable. But anything over 25% in the DC plan would be a non-deductible contribution and subject to an excise tax.

If there is a DB Plan that is covered by the PBGC and eligible to file an EZ, are they required to get an AFN? It is not clear since this Plan would not be required to distribute a SAR, and the AFNs are "in lieu of the SAR".

OK - I think my original question partly relied on what is considered the distributable event. It sounds like just turning 70.5 is not considered a distributable event, but getting to the RBD does trigger a distributable event? So, let's assume the Plan does have an in-service distribution provision (at age 62, or at NRA age 65), then the participant could choose to elect a distribution prior to the 4/1 RBD, and this isn't necessarily because they are 70.5, but rather because they're otherwise eligible for a distribution under a different provision in the plan?

It is my understanding that the Required Beginning Date is the date by which a participant must take his RMD. If the person chooses, he can take his RMD earlier, correct? He does not have to take it on the RBD? For example, if the RBD = 4/1/2018 but the participant wants to take his RMD prior to 1/1/2018, so it affects his 2017 taxable year, he could. Is this correct? This is for a Cash Balance Plan, not a DC Plan. Thanks.

thank you

Owner A owns 100% of Company A Owner A owns 50% of Company B There is no other mutual ownership (or even employees). Both plans allow for profit sharing contributions. I know the employee (over age 50) can only max out his deferrals at $24,000 taking into account employee contributions to both plans. But what about employer contributions? If he contributes $24,000 employee deferrals to Company B and they give him a $35,000 profit sharing contribution to get him to the $59,000 limit, can Company A also allocate him a $53,000 profit sharing contribution? Assume no controlled group or affiliated service group. Is that what makes them considered "related"?

woops - my apologies I left out that important information! the owner turned 70.5 in 2013 so his required beginning date was 4/1/2014.

Cash Balance Plan effective 1/1/2014. Service prior to effective date excluded for vesting purposes. Owner becomes vested in 2016. When is his first RMD due?

Often you see a case where an employer deducts a 401k contribution but fails to deposit it or deposits it late into the plan. What about this situation? An employee completes a deferral election form and the client begins to deposit contributions to this participant's account on a payroll basis (about $600 over 3 months). At some point the employer realizes that even though they were correctly depositing the funds to the participant account they were not deducting them from the participant's paycheck! What is the best way of going about fixing this? Have the employer deduct the full amount from the next paycheck? Can they spread it out over the remaining paychecks, in addition to the regular deferral? Is there a better way?