TPAMan

Income that comes in the form of cash is typically either a dividend or interest payment. The fact that it is reinvested has no bearing. That being said, it often gets tossed in with the net gain (loss) of the underlying asset.

The whole SSA reporting process is ridiculous! I have never seen an SSA letter connect anyone with a 'lost' benefit. Good luck!

Typically when we do distributions out of the country we withhold at 30%. Question came up for a participant with a ROTH balance. I am thinking that this would be exempt form the mandatory 30% withholding, but am not having any luck finding a cite. I am tempted to forgo the withholding as taxes have already been paid, but would feel better if I knew the IRS was on board as well. Any thoughts!=?

A 401(k) plan with Safe Harbor only contributions is generally exempt from the Top Heavy provisions. You can google for the cite.

I have always understund the regs to say each business that you choose to treat separately would need to have a minimum of 50 employees. The business with fewer than 50 employees would need to be agregated with the larger busineess as it does not stand alone as a SLOB,

The plan documents we work with stipulate 100% vesting at death prior to normal retirement age or termination of employment. If your document simply says 100% vesting at death, then you should probably to that.

"in-kind" distributions simply eliminates market risk. To sell, transfer funds and rebuy a stock typically takes several days. The price of the stock will change during the time you are out of the market. Transferring 'in-kind' removes the risk of missing out of gains (and/or losses.) Usually not a big deal, but in a volatile market, could be quite significant.

The code and regs certainly allow such a transition. The client's plan doc and/or the vendor contract may have incorporated wording which could disprupt the transition and require restatements or new accounts, but only because those are the policies and provisions the providers have chosen to include.

If the deferrals were never withheld from pay, then there can be no late deposit.

If the holding account is not inside the plan trust, then the amount contributed, including earnings, would be subject to annual additions. If the holding account is inside the trust, check the plan document for proper allocation of earnings.

Ditto on having trouble. Clicking on 'view new posts' is working for me this week. Last week I had a different work around and the week before that I had to open up all the forums. Good to have a challenge now and again. Clients and regs are never enough!

Run away!

So it takes 3 months for the 5558 extension to get posted giving the plan sponsor an additional 2 1/2 months to file. However, the EBSA is able to send out a late notice within days of your 'extended' filing. Yes, that could be a problem. Good news is that there are numerous easy solutions. What would be your favorite? Be nice!

Only have two we are waiting for in Web Client. Still would be nice to head home sometime tonight.

Anybody know if/why Relius Web Client fell off the face of the earth today? Nothing I have published showed up on Web Client. No response to incident submission from RA.

Heck, I always thought the correction was to proceed with the six month suspension.

If this is a QCPA audit, I wouldn't think that the auditor would have the authority to disqualify a SH Hardship distribution after the fact. He/she could recommend a change in SH Hardship determination procedures for the plan...

I, for one, would be curious as to what code/reg the attorney is citing lest I consider him/her credibly uninformed.

If you are expecting the agent to tell you there are valid reasons for not periodically valuing plan assets, don't hold your breath. If the assets have not been properly valued in the past, the agent really has no reason to expect they will be in the future. I know, you know, we all know it doesn't make any difference until an event occurs that will require that valuation. The agent is not going to walk away and say, "Go ahead and wait until then." Just because LPs are hard to value doesn't mean they don't have to be. It is just means more time and money.

The agent is making this too hard! The answer is really very simple. Most of the qualified plans I have worked on utilize a trust fund for the accumulation of assests and the payment of benefits. The SPD names this trust fund, often but not always, the same name as the plan. Note that this parallels the two questions on the 5500 asking about the funding arrangement and benefit payment arrangement. Most of us have automattically checked the 'trust' box for so long, we have forgotten that different types of plans could have different arrangements. There may be some fully insured plans out there, but not likely in the 401(k) arena these days anyhow.

I need a new calendar! No Emancipation Day on mine!

I would be inclined to say April 16th.

Check the Plan's QDRO policy and procedure. Often times it may be necessary to freeze distributions on a participant account pending certification of the QDRO.

This is a trick question. Not about accrual requirements, it's about who is benefiting in order to pass minimum coverage.

Sure, although you probably mean maximum 2 in-service distributions per participant (not just 2 per year for the plan)! Also, use a plan definition of 12 month period such as 'plan year', 'limitation year' or 'calendar year.' You probably don't want to deal with tracking rolling 12 month periods.