jkharvey

Back when we filed extensions for the 6/30/2016 PYE Form 5500, we didn't think carefully about the date and we used 4/15/2017 as the requested extension date. Since that falls on a Saturday with Monday as Emancipation Day holiday in DC, are we ok to file on 4/18 or does the F5558 lock us into 4/15?

The administrative expenses of the employer's cash balance plan were paid in 2016 by the profit sharing plan. Does this create any PT issues or any other problems? The receivable is being repaid.

The employer has an ACA. They changed payroll providers and for two payrolls the wrong definition of compensation was used when computing the elective deferrals. The payroll company did not properly take deferrals from the overtime compensation. I know this is a missed deferral opportunity correction, but would it fall under the ACA rules or the non-ACA rules? I'm referring to the correction methods in the Revenue Procedure 2015-28. I question it becuase the error wasn't directly related to the implementation of a new enrollee for ACA purposes.

401k plan provides for 90 day eligibility to enter the deferral portion of the plan. The plan later amends to 1 year of service. The people who came in because they had met 90 days, but never do work 1 year of service, are they no longer allowed to defer?

A participant terminates in one plan year and receives a distribution of their account balance early in the subsequent year. After the valuation is completed for year of termination an additional contribution is deposited for that participant. What is the rule for determining if this additional contribution can be cashed out or must be combined with the original amount distributed to determine if the $1,000 has been exceeded?

If the employer decided to return the deferrals for ineligible participants and a match amount (SH Match) is involved, would it be permissible to use those match amounts to fund either future SH match or any receivable still due for SH Match? I know that forfeitures may not be used to fund SH match, but these aren't true forfeitures in the sense that a participant was never vested in the amounts. thank you

Tom, When you have a Plan Sponsor select the option not to include Roth Elective Deferrals in Match Employee Contributions, are those particular participants not included then in coverage testing as "benefitting"?

We have an employer that wants to match on pretax deferrals only and not on Roth. I don't know how many participants would actually make Roth deferrals without a match, but if they did, how would this be tested? I know about document issues and the ADP/ACP test. My questions are coverage and BRF. Would this be considered a BRF to be tested separately as a separate rate of match? Since the participants have the ability to choose the Roth that isn't receiving a match, does that change the BRF issue? Thank you

When computing the maximum loan allowed for a participant loan the account balance to use for the 50%, is the loan balance included or not? Our document and loan policy don't specifically address this and I've looked at the regs, but maybe i'm missing it. Thanks

Is a publicly traded partnership considered Eligible Plan Assets for 5500 purposes?

Brother Sister group exists between our Plan Sponsor and another company. The other company is Canadian. I understand that we would not have to consider any nonresident aliens with non us based income in our coverage testing. I am concerned, however, that if the Canadian company has US employees working for them in the US. I am curious, in practice, how other administrators handle this. Do you ask, as part of the administration work about US employees of the foreign entity? Am i correct that if any do exist, they have to be considered for coverage testing? Thank you

New plan put into place late in 2015 (november) with 401k provisions effective starting 1/1/2016. The owners deferred in 2015. is there a way to return the deferrals since that provision was not yet effective? I don't like simply doing that since it involves HCEs. We are still trying to determine if any of the NHCEs were given an opportunity to defer during the last month of 2015, but declined.

Does the fact that the plan terminated and no more benefits accrue and no one may elect to defer mean that the employees who never deferred would still considered to be "earning or retaining credited service under the plan"?

401k plan terminates during 2015. For purposes of the participants at beginning of year count for 2016 would the employees who were not deferring (they have no account balances) and were counted as "active" in years before the plan terminated because they had ability to defer, still considered "active" for 5500 and audit purposes since they no longer have an ability to defer?

Employer wants to automatically withhold deferral from a quarterly bonus only. Any restrictions on this?

Strange scenario. Employer really goofed and did not withhold from employee pay any elective deferrals for 2014. Participants did complete deferral election forms. The Employer, however, did go ahead and make a deposit of those deferral amounts. We have treated this as missed deferrals under the EPCRS Rev Proc. The amounts deposited are now treated as QNECS. Does this now trigger TH and eliminate the exemption so anyone who did not have a missed deferral and therefore, no qnec, now needs TH minimum? I believe it is "yes", but am hoping for an alternative.

I tried that. No service organizations. thanks.

Two companies are not related in ownership such that a controlled group exists. One company sponsors a SH 401k plan and the other wants to adopt the plan now (June). Permissable for a SH plan?

Cross tested plan. The allocation groups are going to be 1) Any employee who is under 59 and contributes at least 2% in deferrals will receive 2% PS contribution and 2) any employee over 59 will reeive 2% PS contribution irrespective of elective deferral. Other than the general test, is there something wrong with this "formula"? Is it really a match? Is it BRF? Something about it just doesn't feel right. Thanks

Value of Real Estate in plan is 650K. To meet the waiver the bond needs to be at least 650K even though the 412 bonding requirement max is 500k?

Does the sale of timber that is clear cut from land owned by the 401(k) plan present any issues with UBTI or anything else I might be missing?

401k/Profit sharing plan that does not have Annuity as normal form of benefit. A participant that terminates in a prior year (for example 2009) and was properly reported on an SSA receives a partial distribution in 2014. Is that partial payment considered as having "begun receiving benefits" for purposes of reporting them in 2014 as code D?

Along this same topic, what about plan documents? I am a "paper" person, but my boss just asked me why he needs to keep them in paper. I need arguments "for" keeping them. What are your thoughts? What do you do?

Sorry to hijack this thread, but I have a related comment/question. Suppose this design provides for the immediate eligibility to defer, but have to wait 6 months for SH contribution and in 2014 there are no participants who are newly eligible. Each participant in the plan for this plan year has been eligible for Safe harbor for the full year. does the fact that the plan provides for the different eligibility language remove the TH exemption or can we be TH exempt since no one in the current plan year was not receiving the SH match?

The employer made deferral contributions during the year for the 2 partners. Ned of year comes around and the partnership has a net loss, so those "deferrals" that were deposited are returned to the employer. Did these deposits trigger a TH requirement for the plan?