Mr401k

Plan year has been April 1 - March 31 for some time, but is then amended for PYE Dec 31. One plan year ended March 31 2019; the next plan year will be short, ending December 31, 2019. For PYE 3/31/2019, what is the deadline for depositing a profit sharing contribution? Does the deposit need to take place by 12/31/2019 (i.e., the last day of the following/short plan year)? Or does the sponsor have a full 12 months...until March 31, 2020? Only asking about the allowed timing. Not about deductibility, comp, or limits on amounts. Thanks

A calendar year plan still hasn't deposited its Safe Harbor Non-elective for 2016. The operational failure can be Self Corrected as long as it's done within the Correction Period. Regs say the Correction Period starts the year after the failure occurred......but in this case, did the failure occur in 2016 (the year the contribution is for), or 2017 (12/31/17 was the latest the contribution would have been considered timely)? Thanks

A plan implemented a QACA effective 1/1/2017; prior to then it had a plain old ACA. The QACA auto enrolls at 3%, with 1% increases every January 1. The plan's first auto increases will be 1/1/2018. A participant was already deferring 4% as of 1/1/2017; his rate stayed at 4%. Should that person ever have his deferral rate auto increased? If so, would his first increase be on 1/1/2018, or on 1/1/2019? In other words...since he's already at 4% - the minimum rate for the second period - does he skip a year before being increased? Another participant became eligible 4/1/17, and elected to defer 5%. Would he ever have his rate auto increased? If so, when? Thanks!

One of my plans currently requires 1,000 hours of service in a plan year (calendar) to receive a year of vesting credit. Client is considering changing to elapsed time. The current six-year schedule will remain. Do I have this right, regarding a mid-year change? Credit that was already granted for years prior to 2016 will remain unchanged -- based on counting hours, not elapsed time. Anyone who has any hours of service at the time of the change this year will receive a year of vesting credit if they complete 1,000 hour in 2016 -- regardless of whether they reach that number of hours before or after the change. Anyone who reaches his 2016 anniversary date after the change will receive a year of vesting credit. Potentially, then, a participant could receive two years of vesting credit during 2016: One for completing 1,000 during the year, and another for reaching his anniversary date by the end of the year -- assuming the anniversary date is later in the year than the effective date of the change. Or do I have this all wrong? Thanks for your help!

Even though the only people impacted by Auto Enrollment would be employees hired on some future date...employees who never received the original Notice anyway?

A calendar year plan (12/31 PYE) has paid the Basic Safe Harbor Match for a few years. Very recently the decision was made to implement auto enrollment; it will only be applied to employees hired on or after the amendment's effective date. Since there's not enough time to process an amendment and distribute ACA notices for a 1/1 effective date, the auto enroll would need to be implemented at some other time...probably February 1. But can a Safe Harbor plan do this?

The distribution has now been processed from the Roth source; RMD was deducted and a check mailed, with the remainder rolled to the Roth IRA. Do regs allow the RMD to be re-characterized as having come from the pretax source, and that amount of Roth dollars restored to the account?

Yes, RMD rules don not apply to IRA...that's why he makes Roth deferrals and then rolls those dollars to his Roth IRA, The Roth dollars are never in his plan account on January 1, so he never has RMD based on them.

Owner of the company is well beyond 70½. Each year he makes a large Roth deferral into 401k plan and immediately rolls the full Roth balance to his Roth IRA. He has a small pretax balance that remains in the plan from year to year; his RMD is based on that alone, since each January 1 it is the only balance in his account. When the rollover is processed, most of the Roth balance does go the Roth IRA, but the RMD for the year is deducted (from the Roth balance) and a check sent to him. The pretax balance that remains would have been much more than enough from which to take RMD later in the year. Do regs require that his first distribution(s) in a year be treated as RMD, until RMD is satisfied? Thanks

Anybody?

A 401(k) plan participant took a plan loan in 2005 and another in 2008. Later in 2008 he terminated employment. The plan's TPA did not advise sponsor to deem either loan. Very recently, in course of the plan's annual audit (first audit of the plan by firm), the loans were found and now need to be dealt with. Can the sponsor apply for a VCP under EPCRS to 1) deem the older loan so that it is taxable in 2011 instead of 2008, and 2) permit the participant to pay back the newer loan with accrued interest (it's still within its five-year window). I believe that such relief is ordinarily available (assuming that IRS consents to it, based on facts and circumstances), but a few have told that it isn't available in this case because the participant is terminated. I haven't found any mention of termination being a fatcor, but want to be sure. Thanks for any help or insight you can provide.

Employee made deferrals in 2010 before being eligible to do so, but the mistake wasn't discovered until 2011. The deferrals and match will be moved to suspense/forfeiture account. Employee will be made whole through payroll outside of the plan, but in which year will those reimbursed dollars be taxable---2010 or 2011?