Dazednconfused

We took a plan over where a participant has terminated, has two outstanding loans, he is still sending payments by check on one of the loans but stopped on the other one which still has an outstanding balance. Does the plan administrator/sponsor have a responsibility to inform the former participant that his loan payments are behind and the loan will be defaulted? Thanks.

Thanks, yup that is what I meant, not enough funds left in his account to distribute the ADP refund required. I can't really find anything regarding as of yet, but that does seem like a solution for now. Thanks!

Plan fails ADP, one of the HCE's who requires a refund took a hardship and earlier in the year and is about $800 short of the refund amount. How is the ADP failure corrected when this happens? Can part of the earlier hardship be 'recharacterized' as part the the ADP refund? I would assume that the 'recharacterized' amount would be the $800 or could it be the entire ADP refund amount (the hardship was well over the ADP failure amount). Thanks for the help.

So client want to file today on paper for a late 2008 form 5500 (today is 10/15/2010). I read that this is acceptable but today is the last day that paper will be accepted. My question, where do I send? I am wondering if the address has changed from the instructions, does anyone know? Thanks,

We have a plan that has yet to file their 2008 form 5500, we have requested the dfvc but no luck with them paying for it. We received 2009 data and have the 2009 ready to go. Now that 2009 deadline here, should I file their 2009 timely without the 2008 filed? I think the employer is slowing coming around to the fact that he will need to pay the dfvc for the late filing. Suggestions? Thanks!

Yes, I am using Relius Webclient, and yes, when I do check box on the admin. line my credentials magically appear, however, my name didn't (the client name did stay in the box). I guess through magic it knows I am signing on his behalf with my credentials. Anyway, just was wondering whose name does go in as admin if I sign as preparer, it sounds like the sponsors name (also admin) but with my credentials. ugh

I have attached the signed pdf. form 5500SF, all looks good, however, when I go to e-file-> I am use the 'sign as preparer'. Once I do this I check the box on the plan admin line and enter my credentials do I also change to my name or leave the true plan administrators name? From reading the directions I think I leave his name but use my credentials... Please let me know if I am on the right track. Thanks for the assistance (and hope for a blanket extension)

I have a plan that was filing on the form 5500EZ but now has a couple of NHCE's as participants, so they are filing a form 5500SF for 2009, dumb question of the day is do I need to mark the 5500SF as the 'first return' for the plan? I am thinking I don't need to but any thougths. Thanks all.

Plan started 5/1/09, and is a 12/31 year end, we received schedule A info from insurance carrier for the policy which ran from 5/1/09 through 4/30/10, ending persons covered was 167. Do I complete the Sch. A insurance carrier policy / contract year as ending 4/30/10? I reviewed this and it is my understanding that contracts are reported in the plan year that they end, if so then this policy would not be reported until 2010...is this correct? Thanks for any help.

Thanks, I don't think that that was done in this case, I guess they should just pay the tax under the participants ssn. The majority of this was done by the investment company so I am in the dark on most of the process. Any thoughts on paying the tax under the ssn even though he is 'out of the country'? I guess it is really the only option now.... Thanks again!

Participant was working here with green card, then left the US and gave up green card back in 2004, so no longer living here. He received a distribution in 2009, the 1099 was issued with his ssn. However, the investment company withheld the 20% but left in his account for some reason. Since he was not a US citizen I guess they weren't sure if they should pay the tax or what. I think they should have just paid the tax. Is there some special form that needs to be completed since he was a not a US citizen that I don't know about? Thanks!

Yes, I know, but just wondering regarding the amendment.. in my experience, ER's so far have always 'made whole' through payroll and Forfeited the ineligible contributions. Now one may want to amend, I just have never gone this route. To me it seems that this option gives the ER the impression that they can 'waive' (just make an amendment for the specific person they want in early) at their discretion, which many of them think they can... then it is always a pain fixing... Thanks again.

ER decided to waive service requirements for a new hire and let them defer and receive ER contributions upon hire date (document has YOS and 21 for ER and EE). I know we can FF the contributions and make the EE whole through payroll. How does the retroactive amendment work? That is what is the process, do you need to go through VCP or ?? Also, does the amendment specifically name the person or is the amedment on a plan level, which may let others in as well? Thanks!

Plan failed the ADP test, we made distributions to the plans HCE's, then a few months later the ER informed us that they sent us incorrect comp (due to a payroll system switch), we reran the tests with the corrected comp and now the amount that was refunded was too much. How is something like this delt with since the HCE's already took a distribution? Can they put the difference back into plan? Thanks!

We just took over a plan that looks like has been filing under a fiscal year end of 1/31 and not 12/31 as the document states. I am researching if there were any amendments or such. Is the only way to correct by going back and amending the plan year end on all the 5500 with the incorrect date? I know I am way to optimistic about an easier way.... Thanks!

Yes, I do agree, not my call, I will discuss the options and such with the ER and let him make the final call. Thanks!

A large plan is selling one of its stores, the number of affected participants is 20, the total number of participants is 230. I know the rule of thumb is 20%, however, in this case, since the ER is selling the store, what are the chances of this being a partial termination? Since the ER is the one initiating, I am tempted to to call it a partial term to be on the safe side, any thoughts? Thanks! Jason

Hi, thanks, he increased his plan loan payments so that shortened the original loan will be paid off earlier than 15 years, he did not refinance his personal home loan. Thanks again.

Participant received a plan loan in November 2007, 15 year payment period for purchase of his home (final payment October 2022. Plan allows for refinancing of loans. He has since refinanced to increase his payments and to shorten length by 5 years already. Now he would like to lower his payments (of course this would extend the repayment period and perhaps beyond the original final payment date), anything out there that would not permit the 2nd refinancing? If not, does the refinancing and new payment period have to be completed in a certain length of time (since it was for purchase of a new home)? That is, does the re-fi need to be within the first 15 years it was first made or .....? Thanks!

Hi, Plan has participant directed accounts for deferrals and pooled for Er contributions. Plan document states distributions when admin. feasible. Valuation is done yearly for pooled Er funds. Is there any issues with doing a quarterly valuation when there are distribution requests (and no valuation for quarters that do not have distributions)? Thanks!

Employer's payroll company did not withhold deferrals for one payroll period. What is the correction required for one missed payroll? If the ER has to make up in QNEC has anyone ever experienced the payroll company paying for this? Is it permissible to 'double up' the next payroll (and pay the lost earnings for the late deferral when calculated)? However, the 'double up' doesn't seem likely.... Thanks,

I thought the classes had to be determinable (or something to that nature), if so, Doctor Group A, seems a bit 'grey'. Just wondering, I am perfectly happy putting those groups in the document Thanks!

Thanks! That's somewhat what I thought but then I would like to try and id two - three doc groups to avoid the doctors thinking that they could 'individually' choose there funding rates... Could I use Doctor group A, B? Doesn't seem likely. Thanks,

Medical office with about 25 ee's and 6 doc's, wants x-tested plan, however, a few doctors do not want to fund anything but the min and of course a few doctors want to fund the max. How / what would be the best option of classes for the doctors? The ee's are going to be in two classes - staff and management. Thanks in advance.

Hi, Thanks! Yes the PW is treated as a non-elective and not matching. I am ok with the Gateway test but then the 401a4 is where I am losing it. Are participants who are receiving only PW included in the 401a4 (rate groups and such, most terminated during year and would not be eligible for PS so no GW either) along with participants who are eligbile for PS allocations. The test passes easily since participants with PW contributions are many. I think they all who are receiving a contribution be it a PW or PS or both I should include since they are 'benefiting'.... Thanks again for clearing the mud.