JKW

I have a participant that is on leave and the document allows the loan payments to be on hold for up to 12 months. Occasionally the participant has a paycheck due to working for a job for one day - thus generating a paycheck. Since the paycheck is small it takes out his percentage of 401k contribution, but does not take out the loan payment? Is there an issue with this? Should the deferral not come out either? Thoughts.

Thank you austin3515.

A plan had a missed deferral opportunity - which they corrected with the 50%,etc. There is a lost earnings amount of approx. $50. Is it ok if they plan takes is from the forfeiture account? I think not but I am seeing conflicting info. Their document states forfeitures can be used to offset plan expenses and reduce employer contributions. Thoughts?

Thanks to all.

Besides the typical checking of prior addresses, checking with beneficiaries on file, Google and social media searches, what are people using to find participants now that the letter forwarding is discontinued? Has anyone used an online service such as - Intelius?

yes - he is updating those too.

A company let a participant borrow $ and now the participant left the company. The participant is willing to sign over part of their 401k back to the company. For example they would take a distribution that was taxable to them, but make the Company the Payee. If there is signature guaranteed distribution request - is this ok? Any guidance would be appreciated.

Hello. I have a plan participant who is undergoing treatment for cancer and wants to give her husband authority to sign off on any distributions they may need from her 401k if she because unable to sign. From what my document provider states, they can use a power of attorney. Anything else I should be concerned with?

I have a company that does a monthly match. After the quarter they noticed that a couple people did not receive their full match and they deposited the additional funds. Is there any requirement for calculating lost earning b/c typically the match would have been made monthly if not for the payroll error?

Did they happen to say what proper back up included?

In regards to a participant obtaining a loan for the purchase of a home, is an email or letter from the participant stating that the loan will be used for a home loan enough documentation. I do not see any IRS language that defines what the documentation has to be. Thanks.

thanks.

A participant erroneously received a check in 2013, which had 401k withholding. The check was canceled, but the 401k contribution and match was submitted to the plan. Therefore the participant now has an extra contribution for 401k deferral and match in their account. Is it best to just move this money to the forfeiture account rather than send it back to the plan?

I recently took over a plan and while reviewing their loans, I discovered two loans were done by the prior recordkeeper as weekly repayments, the plan has a bi-weekly payroll. Therefore the weekly payment amounts were set up but paid only bi-weekly. Loan #1 should have been paid up already - it has a very small balance left - $250. The 2nd loan still has a significant balance (8,000) and is supposed to be paid up by 2015 - but right now won't pay until almost 2020. I think the loan that is due in 2015, can be paid back now and then the participant can take out a new loan with the correct amortization schedule. Is there thing else that needs to be done for this? In regards to the loan that is technically in default, any advice on this?

I have a participant who has an outstanding loan and they just switch from full-time to per diem. Since they will not be able to make the scheduled loan payments according to the amortization schedule, just wondering how other people handle this. Any advice?

Thank you for the guidance.

I have a similar question - for a plan that didn't file their 2012 5500 (it was their 1st year) - is it better to file late or go through DFVC? Suggestions?

A plan needs to fund a missed deferral opportunity and earnings - can the forfeiture account be used for this?

I have a 9/30/12 401k plan that just finished up their audit and 5500 for that plan year. The plan converted to us in Sept of 2012. The plan makes monthly non-elective safe harbor contributions. During the audit it was discovered that the plan did not make their Aug 2012 contribution. Lost earnings are being deposited into the participants involved. Does a 5330 need to be completed also?

It was a NHCE, he missed the 7/1/12 entry date by a few days and the plan erroneously let him in. So from reading above if we do the plan amendment to include the participant - do we still have to submit the amendment for a determination letter?

Thanks all for the information. Very Helpful.

A participant was terminated but they administrator continued to send in two payroll deposits that were not actually deducted from the participant since they did not have a check. So there is about $120 in employee deferral and 120 in safe harbor match that the participant was not eligible for. Whats the best way to correct this? It all happened in 2013. Thanks.

I have a plan that allowed a participant to join the plan in 2012 but the participant was not eligible until 1/1/2013. The participant deferred and received safe harbor match during the 2012 plan year. What is the best way to correct this? Can we forfeit the deferral and sh amount? And the plan will pay the deferred amount to the participant?

Thanks so much.

I have a participant who wants to start taking a monthly distribution from his 401k to cover his RMD for 2013. The participant is not 70.5 until July. Is their any issue with starting the RMD earlier than 70.5 or no because he will be 70.5 during the plan year?