DPL

Some plan sponsors are getting calls from former participants who receive SSA letters about benefits they may be due. But these participants are born in the 1970s!! Anyone else hearing the same thing?

What if the plan references 401(a)(9) AND also spells out when RMDs can be paid. What happens if there is no plan amendment? Webinars on the subject have said if the plan says pay in accordance with 401(a)(9), then the 2020 RMDs are suspended but if the plan spells out the RMD payment details instead, the RMDs continue to be paid if there is no amendment.

So if a balance forward 401k plan moves to a platform that will take care of all future withholding under their paying agent #, it would seem to make sense to final a final 945 with respect to withholding under the trust EIN. Any problems there - like de-activating the trust EIN? What if we forgot to check the final return box? Form 945-X instructions imply that it is for reporting liability and deposit errors and doesn't seem suitable for simply saying, go away, no more 945s under this #.

I meant to say from 2/9/18-2/9/19. So the participant would have less than 1 YOS at 12/31/18. Lot's of viewers but no takers?

If effective date of ESOP is 1/1/18 and service for vesting is measured from the effective date forward, how do you calculate the vesting for someone hired 2/9/16 under the elapsed time method? From 2/9/17-2/8/18?

So if plan is several years old AND employer made no match in 2016 AND plan uses the prior year testing method AND there is no shifting that can be done, then allocate the 2017 year - end match to all who are match-eligible including HCEs. Then the test fails and you refund the HCE vested match. Correct? Some say don't allocate the match in the first place, but what is the basis for that?

Does anyone know the answer to the question yet? An EACA would really help one client if it could be uniformly applied to "plan compensation" which consists of bonuses only. Client needs the 6 month period for ADP refunds because there are always 415 issues with the ESOP, and the test is run after the 415 issues are addressed.

Company has 401k plan and an ESOP with 10/31 yearends. Plan year is limitation year. Age 60 Participant defers 22,000 in calendar 2015. None recharacterized as catch up on the 10/31/15 ADP test. $2000 of that amount was deferred in Nov and Dec 2015. In 2016, participant defers 16,000 from 1/1/-10/31/16. 415 additions from both plans = $63,000. How much can be called "catchup" and not be subject to 415 correction? $6,000 or $8,000?

Yes, this is private company stock and yes, the stock purchase agreement is dated January 1.

What if owner sells his stock to an ESOP on January 1 and plan is calendar year. Considered an owner on 1/1 or not for ADP test purposes?

Plan is DC plan. Recovery of an expense previously paid by the Plan.

Plan terminated and paid out in 2012. In 2015, plan has an expense recovery of $56,000, which needs to be distributed to 75 participants. What are the mechanics for re-opening the trust and handling the payouts so that they can be rolled over?

Can the same process used to ID catch-up contributions for an ADP test also be used for 415 if the plan has a fiscal year and the limitation year is the same? I am being told that the TAG question below only applies to the ADP test and not 415. Question: Is it OK to have 2 calendar year catch ups within a 7/31 plan year and not exceed the Section 415 limitation? This plan has a 7/31/2006 year end. One of the participants in this plan deferred $18,000 from August through December 2005, and $20,000 January through July 2006 (including catch up contributions), for a total of $38,000 during the 2005/2006 plan year. The participant in my example would have within the plan year: $29,000 employee deferrals 9,000 catch up deferrals 15,000 discretionary contribution $53,000 TOTAL Is this permissible? Answer: Yes. This is a bit counter-intuitive, but example 6 from the final 414(v) regulations makes this clear. Well, clear considering it came from IRS. In example 6 (below), Participant E makes $600 in (402(g)) catch-ups from 11/1/05 - 12/31/05, and $1,000 between 1/1/06 - 10/31/06. The full $1,600 in catch up contributed during the 11/1/05 - 10/31/06 plan year are subtracted from Participant E's deferral in determining the ADP for PYE 10/31/06, but only $1,000 counts towards the 2006 catch up limit.

ESOP acquires shares w proceeds from a 10-year loan. Note and pledge agreement specify P&I release. Accountant for plan sponsor insists on using a Principal only release for financial statements. Says he called AICPA last week and confirmed his understanding that SOP 93-6 requires the use of the principal only release. Where do I find guidance that says otherwise? I have examples from seminars which he says are not authoritative guidance.

Has anyone received a notice on a DC plan for failure to file a Schedule C? No change in acct or actuary. No indirect comp paid to any vendor. Total direct comp $3000. EBSA is sending a notice asking why the Schedule C was not filed.