Earl

Thanks. It is not going to an IRA. It's just an internal conversion. I think that's what threw me off.

A single participant plan has option for voluntary non-ded EE contributions. Guy makes first and immediately converts to Roth. So non-taxable event. Is a 1099 required? Code G with taxable amount = $0? thank you

You are correct, no anything in 2014 other than IRA rollover(s) into 401k plan. The 2014 rollover would not come from the SIMPLE. SIMPLE would continue for 2014 unchanged. 2015 rollovers at participant election heeding the SIMPLE 2 year rule when 401k contributions would start. Thank you very much.

I understand the SIMPLE must be the only plan of the employer for the year. But not sure what that means. I have a potential new client who has a SIMPLE for 2014. Can he establish a 401k in 2014 making no contributions for 2014 but accept rollovers? He wants to take advantage of the increased investment flexibility with no custodian. Thanks!

Thanks. That makes sense and is very helpful. I appreciate it.

I break a plan into 2 and both satisfy min coverage. Plan componant 1 to be cross tested, Plan componant 2 to be allocation based tested. When testing Plan 1 do I include participants of Plan 2 as "zeros" in the cross testing? Maybe only in the AB%T? Thank you

Took them about 5 weeks and they said "covered."

I just realized, I think, this applies to Single person 401ks also. Am I wrong here? W-2 Wages $52,000 401k $23,000 PS $13,000 Vol Non-Ded EE Cont $16,000 (& convert to Roth) $52,000 = 415 limit

each benefit structure must pass coverage (or have a pass as with your PS scenario)

I know, right? Sounds too good to be true but I can't find a problem with it yet.

Ability to convert once in the plan is not the question, but thanks. The question is would there be any limit on the vol EE contribution? Could someone with no employees and $52,000 of wages make a $52,000 after-tax contribution and immediately convert it, effectively making a $52,000 Roth contribution for 2014. (Plus make a $5,500 catch up, for a total Roth "addition" of $57,500 for 2014.) Seems like 415 is the only limit to be concerned with. Where do you see that voluntary EE contributions must be payroll withholding? I don't see that anywhere. (Problem is I can't find much of anything on them anywhere. But this seems like a pretty good opportunity for someone outlined at the top.)

Guy, age 55, makes a lot of money. Guy has no employees. Guy has a DB & DC Plans. Funding for max benefit so 2014 DB contribution is more than 25% of pay. In DC Plan, guy makes full 2014 401k of $23,000. In DC Plan, guy makes full 6% 2014 company contribution of $15,600 based upon W-2 of $260,000 or more. Total DC Account Addition is $38,600. 415 Limit is $57,500 so he is $18,900 short of the maximum Account Addition. Question: Can the guy make a $18,900 “After-Tax Employee Voluntary Contribution” since ACP test is n/a? Is this contribution type part of the 402g limit? I think "no." Idea is that he could immediately in-plan convert 100% of that money type to a Roth Account. How do you make After-Tax Employee Voluntary Contribution? Do you just write a personal check to the plan? Is there a deadline (do you have to do by Dec 31/plan year end)? Thanks

Would a plan of a CFP (Certified Financial Planner) be covered by the PBGC? Seems to fit the list in ERISA § 4021(c )(2)(B) but not explicitly. Any opinions or experiences? Thank you

if anyone is interested, cleint forwarded letter from DOL (with a real signature): Based upon our review of the Plan's recently filed From 5500 Annual Return/Report, it appears that the Plan's fiduciaries and other persons who handle plan assets may have failed to obtain a fidelity bond that meets the minimum requirements of the statute..... ................ In our experience, many plan administrators who indicate on their Plan's 5500 that no bond has been obtained have done so in error. if the bonding question on your plan's From 5500 was incorrectly answered, you should review your 5500 and file a corrected form. if a bond is required, but has not been obtained, you should take immediate steps to bring the plans fiduciaries and those handling plan assets into compliance with ERISA 412.

Client told me that they received: IRS Notice of Insufficient ERISA Bond for 401k Profit Sharing Plan Ever heard of such a thing? I don't have the notice yet. Maybe its a marketing piece since if was the first year and the 5500 showed no bond in place?

if the 403b plan excludes employees who are eligible for the 401k plan does the 401k plan have to have immediate entry so that the 403b is no violating the universal eligibility requirement? Or put another way, if the 403b excludes people eligible for the 401k but the 401k has a 1 year of service (and 1/4ly entry) participation requirement, have I found a problem? Thanks

Effectively it is a roth contribution

sorry, I don't understand

owner wants to borrow Roth money with high rate of interest. thoughts on max rate that could be charged?

Agreed. DFVC was my intended refernce.

I see that late deferral deposits requires an EPCRS filing. Is that true of late loan deposits also?

Yes, but the question is what are the rates of match. Is it tied to the "10 years of service = 10% of pay" or is the rate of match as a percent of deferrals tested? The match for the HCEs in the 10 yr group is all 10% of pay but as a percent of deferrals it is 200% 200% 175% 114% 100% 80% 60% 53% Thanks

So I would see what this does in terms of creating a rate of match for each HCE and BRF test it? Tier 3 is a 10% of pay contribution if you defer 5% of pay (200%). I see references to extra testing if the match is more than 100% of the deferral but I can't understand it. Any clarification you could offer on that? Thank you

Taking over a plan and find a match design that I think is not really a match. There are 3 service levels. One is: If you have over 10 years of service and you defer at least 5% of pay you get (what they call) a match contribution of 10% of pay. So if you defer 5% or 6% or 7% up to the dollar limit, you get 10% of pay. It seems to me that the "match" is really a non-elective contribution because it is not calculated with respect to the deferral. Each person's match is (potentially) a different percent of the deferral. Am I correct that this is a problem or do I just have to figure out the rate of match each year for each HCE and BRF test each rate of match? Thanks

On Jan 1, 2012 EE (HCE or not) had right to defer $17,000 for 2012. Feb 15th you want to impose a limit for 2012? I think there is a cutback problem there.