Cynchbeast

We have a client who wants to rollover some SEP IRA annuities into their DB plan and are asking if these accounts can receive new or existing DB monies. Technically, I see no problem; however are there any rights or features to either type of money they would be giving up by co-mingling in one investment?

Employee deferred in 2016 & 2017, rolled over large amount ($182k), then terminated in 06/2017 and rolled over all money to an IRA. She wasn't eligible until 07/01/17. Will look into retroactive amendment to make her (and others?) eligible; alternatively I am thinking: $182k rolled into plan ended up back in an IRA so net result is same as if had never gone into plan $1,136 deferrals were in 2016 and $4,498 were in 2017 and both ended up in an IRA. Since she was withing IRA limits for each year (assuming she didn't have other IRA contributions), net result again is same as if she had just put into IRA and not into plan Given above, we should just be able to document all this and consider issue self-corrected. Thoughts?

Plan is new comp, 3 classes. Adopt Agreement allows allocation for each class to be: i. A percentage of Compensation ii. A fixed dollar amount iii. the greater of i. or ii. Plan design was always intended to be % or $ and plan has always operated with this type of allocation. When preparing PPA restatement effective 02/01/15, we mistakenly checked box i. instead of box iii. This error was missed when doing valuation for PYE 01/31/16 but caught now. Please comment on proposed action of simply documenting error and correcting that page of Adoption Agreement.

Plan is new comp, 3 classes. Adopt Agreement allows allocation for each class to be: i. A percentage of Compensation ii. A fixed dollar amount iii. the greater of i. or ii. Plan design was always intended to be % or $ and plan has always operated with this type of allocation. When preparing PPA restatement effective 02/01/15, we mistakenly checked box i. instead of box iii. This error was missed when doing valuation for PYE 01/31/16 but caught now. Please comment on proposed action of simply documenting error and correcting that page of Adoption Agreement.

Perhaps I need to clarify a llitte. At this time, the two adult children have put in a claim for their father's money. We have heard nothing from the "spouse" - what we are trying to determine is if there is in fact a legal spouse in order to determine if the children are still the legal beneficiaries. The spouse, wife, ex-wife, or whatever she is has made no claim thus far.

We have 401(k) participant who died in 2012 and at this point it is not clear whether or not he was married at the time of death: · He named son & daughter as beneficiaries in 2007, at which time he stated he was not married · He died in 2012; Death certificate shows him as married at time of death, identifies surviving spouse, and lists informant as the surviving spouse, relationship WIFE · Son and daughter are now putting in claim for his account balance; son says father was not married at the time of death but that his mother was trying to re-marry his father so she would get some of the money. Sponsor is presently trying to get some clarification from “Wife” in the way of proof of marriage or an amended death certificate (if not married). Meanwhile, I welcome any and all ideas on how to address this situation. The 401(k) balance is in the range of $15,000, and the participant’s relatively small – there was no plan for going through probate. This is in CALIFORNIA. Also, what if they were married but in another country (San Salvador possibly).

After reviewing documentation on a PS plan (calendar year) we recently took over, we found the following: Owner of "Company" retired in mid-2013, and his step-son took over all his employees as well as his PS plan. Step-son's business has a name close to but not identical to original sponsor ("Company II"), and has its own EIN In operation, Company II assumed sponsorship of the plan, and the plan was renamed as "Company II Profit Sharing Plan". Nothing else has changed, and employees continued in plan with credit and vesting for past service Starting in 2014, 5500s were filed by Company II with Company II's EIN and the new plan name. No documents were ever prepared transferring sponsorship of the plan or amending the plan for the new plan name and sponsor. No PPA restatement was ever done (somehow because of the documentation problems prior to that) This was all TPA negligence and as far as we can tell the sponsor has no idea that anything is improper with the plan's documentation. I welcome any and all suggestions on how to best remedy this situation. Does this fit into any EPCRS programs?

After reviewing documentation on a PS plan (calendar year) we recently took over, we found the following: Owner of "Company" retired in mid-2013, and his step-son took over all his employees as well as his PS plan. Step-son's business has a name close to but not identical to original sponsor ("Company II"), and has its own EIN In operation, Company II assumed sponsorship of the plan, and the plan was renamed as "Company II Profit Sharing Plan". Nothing else has changed, and employees continued in plan with credit and vesting for past service Starting in 2014, 5500s were filed by Company II with Company II's EIN and the new plan name. No documents were ever prepared transferring sponsorship of the plan or amending the plan for the new plan name and sponsor. No PPA restatement was ever done (somehow because of the documentation problems prior to that) This was all TPA negligence and as far as we can tell the sponsor has no idea that anything is improper with the plan's documentation. I welcome any and all suggestions on how to best remedy this situation. Does this fit into any EPCRS programs?

To Dave Baker - yes, it would be most helpful if you could provide what CE credits would be available, as well as whether participation in live webcast is required, or if credits may be earned through watching a recorded version.

Mike - could you please elaborate? Lest you give me another one word answer (yes), please explain what you see to be the problem(s)

We have client where wife has her own company (100% owner) and husband has his own company (100% owner) - unrelated businesses. Wife is also on husband's payroll and he has DB, PS and 401(k) for his company. Does anyone see a problem with wife benefiting in husband's plans and also having a SEP for her company?

The participant died around 2012 so we are clearly beyond the year after death. So if beneficiaries roll over to inherited IRA, RMD rules are based solely on their own lives - is that correct?

In the past, I satisfied my requirements with McKay Hochman's annual Retirement Insights class (15 hrs CE) supplemented with some recorded webinars from ASC. ASC webinars mostly repeat and update each year, and McKay Hochman is no longer (2016 was last class). I need ideas on where to look for CE and especially a source for several hours credit at a reasonable cost (like I got from McKay Hochman).

What are the RMD rules for non-spouse (child) rollover to inherited IRA? His father died at about age 62, but would turn 70 1/2 in a few years. Son and daughter are trying to get money out of plan now and this would be a consideration in the rollover.

Thank you all - you have answered case where participant has 5 yr break and so forfeits unvested money. But what about the participant who say terminated in 2014 with 40% vesting, and was paid out in 2015 and so his 60% forfeitures were allocated with the 2016 contribution? Or perhaps the person who just last year was paid out and we haven't allocated the forfeitures yet. Is it tough luck, he was already paid out? Or does the sponsor have to come up with the forfeitures he would now have vesting to had he not been paid out?

Can someone please steer me toward this cite?

We have always operated with the understanding that plan may simply pay out terminated participants with less than $200, of course with nothing withheld. Does anyone have a reference we can cite authorizing the plan to do this? We have plan trying to clear out old dead wood and several people have balances well below the $200.

We have a plan that will be terminating and has about 10 terminated participants with remaining balances. A few of these have been gone so long their unvested money has already been forfeited. What happens to these participants upon PLAN termination? Do they become fully vested and get their forfeitures back in their accounts? Recognize that these forfeitures have already been allocated to other participants.

If he wanted to, is there a way for the owner to waive part of his allocation in order to pay others?

So in other words they just have to bite the bullet and deal with disgruntled participants? Well, it was their fault anyway (nice when you know you didn't do anything wrong)

Our client has a pro-rata Profit Sharing, fiscal Y/E 06/30. Well after we finished reporting for PYE 06/30/15, the client advised us that 2 of the comps reported on the census were incorrect. One owner's comp increased by $200,000, and another HCE's comp increased by $100,000. We had allocated originally allocated 25% to everyone; revising the allocation, this was reduced to 13.52%. The two people involved of course get a lot more, one owner gets a lot less and all the NHCEs get a lot less a little over half of original amount. Distribution of participant statements will be a bit touchy. If the employer wants to avoid reducing NHCE allocations, is there a way he can get around the pro-rata formula for the year?

We have a client with a prior employee who threatened to sue for wrongful termination. She terminated in 2015, but the employer settled with her through arbitration. She was therefore paid an agreed upon amount (not yet provided to us) through payroll in 2016 but worked no hours. Q: For 2016, is she included in testing as non-benefitting, or excluded altogether? Since she worked receive pay in 2016? And if I include her, do I include at 0 hours, or equate the pay to some amount of hours?

This is a new one for me. We have a plan that was effective 01/01/04. We have been TPA from the beginning. The sponsor provided us with their EIN; we used this EIN to obtain and EIN for the trust (SS-4), and have put this sponsor's EIN on every 5500 filing from 2004 through 2016. Only yesterday did my contact advise me that this number is not theirs. She will check further and get back to me. If we obtained the trust's EIN using the incorrect EIN for plan sponsor, and have filled 2004-2016 returns using incorrect EIN for plan sponsor, what do we do? Is this a big issue with IRS, or do we just change it on next 5500 filing with an explanation???

I have been ERPA since 2013. I checked the website, and for each year, I have credits listed for a 2-day McKay Hochman seminar I took (2013, 2014 & 2015 - 2016 hasn't hit yet). None of my other credits show; I have about 40 additional hours that don't appear - all from 2 hr webinars from ASC. But I have already successfully renewed my ERPA, so I guess the IRS didn't question the credits I listed on the renewal application. What do I do about the missing credit? If I have certificates to prove I earned the credits, would that be sufficient were the IRS to question them?

Does anyone know of a website to go to in order to check your CE status for ERPA? Someone I met mentioned checking to see that all her credits were properly reported.