GrammieMame

A 401(k) Plan that is top heavy. The two owners are the only participants because their 3 other eligible employees have waived participation in the Plan prior to becoming eligible. Does the employer have to give them a top heavy contribution?

Re: Non-electing church plan. The church is hiring someone to do repairs on the church. They want to make him an employee because of liability and workman's comp issues, but they don't want to give him an employer contribution if he is still there a year from hire. The only contribution the church makes is an employer contribution of 12% of pay once an employee has been there for a year. No salary deferral or match. If he is still there after a year, can they exclude him from the employer contribution?

I guess what I'm looking for is something that says that the 1099 has to be issued to the participant who actually received the money. So far, I can't find anything to that effect.

Client with 2 participant 401(k) Plan where investment company issues 1099's for distributions. Contracts are owned by Trustee, xyz 401(k) Plan. A participant took a distribution during 2014; the 1099 shows the distribution to the Trustee of the Plan rather than the participant. CPA says he needs a 1099 showing distribution to the participant. Investment company insists that the only 1099 they will issue shows distribution to Trustee, xyz 401(k) retirement plan. What to do, please?

Still trying to figure it out. For now, let's not consider the fact that the balance went down. At the end of 2012, she had made all her payments on time and her outstanding principal was actually $33,919.34. So is that the amount that's in default? Is that the amount, plus interest, that should have been reported on the 1099 as her deemed distribution?

So should the deemed distribution should have been the outstanding principal remaining after the last timely payment in 2012? I thought the deemed distribution date was the end of the cure period provided in the loan program, which would have been June 2013

At the end of 2012, a plan participant with a $50,000 loan had outstanding principal of $34,702 and all loan payments had been made as required. In 2013, no loan payments were made. At the time of the default (June 2013) her outstanding principal was $29,927. This amount, plus interest, resulted in a deemed distribution of $31,228 which was reported as taxable income on her 2013 1099-R. Assuming I did the interest calculation correctly, was the deemed distribution based on her June 2013 outstanding principal the correct amount? She does not plan on making further loan payments. I understand that the loan should still be part of the plan assets. What amount should be used? Should it be the $34,701 at the end of 2012 (paid up amount), or the $29,112.87 that remained as the principal outstanding after the deemed distribution date of June 2013? Any help would be appreciated.

What they are not allowing is any new participant to be enrolled to use their product. Existing participants can invest in either variable or fixed. To make it even worse, they cut off paying commissions on any deposits.

We have about a dozen small 401(k)'s. Recently the holder of the assets (life insurance company) issued a statement that we could no longer enroll new plan participants in their products. This leaves us in an impossible position since it is very difficult to find a company that would take only a couple of new 401(k) participants. The current participants can still put their money into the existing products and aren't interested in making a changing, since they are still getting a decent return on a fixed product. We are at a loss as to what to do with new participants; I'm wondering if anyone has run across a similar situation or has any suggestions.

Single employee (owner) profit sharing plan. Does he need an ERISA bond?

401(k) Safe Harbor Plan. Employee has participant directed salary deferral and safe harbor match accounts and an employer directed pooled account holding employer contributions. Due to a clerical error, the employee was overpaid from the ER account by $500. In his annual statement, his total account value is positive but the employer contribution account is -$500. We are sure the employee would not agree to repay the $500. Could the money be repaid as a deduction from his pay? How about transferring $500 from his safe harbor match account to the pooled employer contribution account so that he would have a $0 balance in his employer account rather than a negative balance?

Would a plan year beginning 10/1/2011 be subject to the 2011 or 2012 limitations

Employee has done salary deferrals throughout 2010 and employer has matched the deferrals (formula of 100% up to 4% of pay). Employee has $52,000 in wages and $16,500 in deferrals. The safe harbor formula match is $2080 (4% of $52,000). However, the employer has contributed a match of $9,202, resulting in an excess match of $7,122. What do I do with the excess match?

Kicking this up, hoping someone will answer. I have the exact same question

ugust 27, 2009; the actual deposit was made on 9/15/2009. The interest of $3.00 will be paid August 15 2010. What should be entered as "amount involved in prohibited transaction" in schedule C? I'm thinkiing that only the $3 interest is the "amount involved..." which results in an "initial tax on prohibited transaction" of $0. If this is correct, should we file the 5330 anyhow? Because of client's fiscal year, the 56330 was due May 2010 so now it's late. Do I need to do anything extra about that?