KevinMc

Would severance pay be considered be considered post severance compensation in the definition of 415 Statutory Compensation? I'm pretty sure it would just want to get someone's confirmation. Thanks for any help.

A plumbing & construction company currently has a plan. They have set up another service company (same owners) with a different TIN. Can the new company simply adopt the current plan, or do they need to set up their own plan since they have a different TIN? Thanks for any help.

Thanks!!

Company A just purchased Company B (December 5, 2024). Company B will be adopting Company A's Safe Harbor 401-k Plan. Company B currently has a Simple IRA. I am being told we need to wait to terminate the Simple until 12/01/2025 because the participants must have a 30 day notice? Does the fact that they are being acquired impact this? Any thoughts would be appreciated.

Company B was acquired by Company A and is adopting their plan effective 1/1/2025. Company B has a discretionary match with a vesting schedule while company A is a safe harbor match plan with no vesting on the safe harbor or profit sharing. Is it permissible to make everyone at Company B 100 vested with their funds that currently are not 100% vested? I know going forward there would be no vesting but what about the funds that are currently forfeitable?

Does a safe harbor plan with less than 100 employees need to give the safe harbor match (or non-elective) contribution to these Part Time employees now eligible to participate?

Under the provision of the Act dealing with the ability to get ER Roth Matching Contributions, is the employee taxed on the match immediately? If so, what happens if the funds are not vested at the time the employee leaves employment? Is there a deduction, would they amend their return, etc.? Or am I missing the mark on the fact that they would be immediately responsible for the tax? Any help greatly appreciated.

A small company just started a 401-k last year and has less than $10,000 in assets as of the end of the plan year. Are they required to file a form 5500? (is there a minimum asset level)?

What are the requirements and timelines for participant notification that they're plan is being merged/adopted by another common owner in a controlled group? Any input would be appreciated.

I hope I'm on the right message board here. I had a client ask me about taking his RMD and directing it straight to a charity tax free (and still have it count as his RMD). I have a couple questions on this topic and any input would be appreciated: Can the RMD be taken from a Profit Sharing Plan or 401-k or must it come from an IRA? If the answer is just IRA than can the client accomplish this by rolling funds from the Profit Sharing to an IRA and then directing it to the charity tax free? Does it have to be an RMD or can any distribution directed straight to a charity receive the favorable tax treatment? Obviously if the transaction is tax free (and still counts as RMD) then the funds going to the charity aren't eligible to be deducted since they are already tax free? Does it have to be the whole RMD or can you direct a portion to a charity tax free and take the balance as a taxable distribution? Any clarity on the matter would be greatly appreciated. Thanks!

No,that answers my question perfectly, thanks!

I have a situation where one company was bought. Both have plans, one being a safe harbor match plan and the other discretionary match. They have apparently missed the deadline to merge the plans/make the plans equal with same benefits. Is it possible to elect safe harbor option for the non safe harbor plan before the end of the year (each plan is calander year) given that the plan is out of compliance or do we need to wait until the start of the next plan year with notifications provided in the 4th quarter? Any thoughts are appreciated.

If the plan document allows, are hardship distributions now allowed from a safe harbor match money source in a 401-k plan?

For a 401-k plan that allows hardship withdrawals I have 3 questions as I'm confused as to what has changed with the Secures Act, and what may have changed back!!: 1. For a 1st time homebuyer is there a limit of $10,000 or is it based on need (which may be $14,000 for example). 2. Can funds be used from the safe harbor match (for a safe harbor 401-k)? Are there certain needs it could or couldn't be used for. 3. Can the new qualifying birth and adoption withdrawal come from all sources? (safe harbor match included) Any help is appreciated!!!

In the event of a common owner that meets the definition of a controlled group buying multiple companies (some with plans, some without plans, some with safe harbor plans, some without safe harbor plans): how long since the acquisition of any particular company with any particular plan does the new ownership structure have until they must test all plans together and presumably offer the plan to companies it has acquired without one? Participant notifications? Any help is appreciated.

So is it allowable to have a retro date to January 2023? That would be great to get the full limits. I didn't know it could be backdated that far.....thanks.

Is any date acceptable for a traditional 401-k plan to start a plan and have a short plan year? (assume all notices have been given to employees). Does it have to be beginning of month? Quarter? or could for example, it be December 20th? Thanks

A client is about to turn 62 with a serious health issue that may or may not be terminal. Spouse is 5 years younger. Client has plenty of assets to live off of. What are the implications of him taking social security at 62 as opposed to waiting? If he waits will his spouse receive the benefit he would have gotten (if he dies in the next year) when he turns 66 or 67 (or 70 for that matter). Is there any advantage in this scenario to him starting the benefits at 62?

When is a 401-k plan (safe harbor) required to be audited by an independent CPA Firm? I know it used to be 100 employees but I think it recently changed to the amount of account balances? Any information is appreciated.

A company with 30 employees has a non elective safe harbor contribution of 3%. They would like to change to a safe harbor match with a 4% match (or using the match formula). Can this change be made anytime with participant notice or must it be done at the beginning of the next plan year with participant notice? If it can be done during the year: what kind and how much of a notice do the participants need to be given. Thanks for any help!

Is the deadline for calendar year plans Monday August 1 since 7/31 falls on a Sunday this year?

Small business has discovered that it did not contribute enough in the past 4 years. They are making the correction and will make a contribution to make whole the contributions for the previous years. Can they deduct everything this year (the year the contribution is made for correction) or do they have to go back and amend the previous 3 years returns to show the deduction for the year it should have been made? Any direction would be appreciated.

A small firm wants to start a 401-k plan with salary deferrals but all are 1099 employees. Are they able to do salary deferrals? Would they have to "take" a salary to make a deferral? Thanks