Bill Presson

Just to add to what Paul said - you will never get an in-kind transfer from one RK to another. All the shares are held in omnibus accounts.

Has to take it this year when the plan terminates.

I got the same EA email and am a little concerned. Just seems weird.

Peter, just because the document says everyone is in their own group, it’s incredibly rare to actually have to test more than a handful of groups. For example, everyone that is employed on the February date would likely be in the same group for testing. The plan definition just provides flexibility on how they are grouped.

Agree with justanotheradmin with one caveat: if the plan is top heavy, anyone employed on 12/31 will likely have to get a contribution whether they are employed in February or not.

Also remember that limit only applies if the cash balance plan is NOT subject to the PBGC.

Any way to amend the trust so that a single trust holds both plans assets rather than moving dollars? I would have legal counsel opine because I don’t know that it can be done after the fact. But we do know it can exist.

Removing the participating employer on the transaction date is fairly easily done. I can’t imagine “removing” the participants as of the transaction date. It’s either a distribution or a spinoff and that will all likely take way more time.

Happy Holidays from Alabama everyone!!

Did any key employees do salary deferrals? That will trigger top heavy minimums.

Congratulations! I know it’s eventually going to happen to me but I’m fighting it right now. 😇 Hope you get to enjoy it for a long time!

Happy Thanksgiving to all my BenefitsLink cohorts! We’re closed for the week (but I did help a few clients with some amendments—don’t tell on me), so this is a week to recharge. Hope everyone enjoys family, food, and football!

Derrin, I’m so very grateful for everything you’ve done for the retirement community and, especially for me. Without you (and Doug Jolley), I can’t imagine having survived the early difficulties in what became my career. Starting my own business way before it was rational to do so, I leaned rather heavily on PIX just to keep my head above water. Thank you, though that is woefully inadequate.

1. Why do you want to do this? 2. Are you thinking you can do a discretionary match only for the HCEs?

Also, you can just restate a MPPP as a PS or 401(k) plan. Why create a new plan and merge?

If it’s an asset sale, the plan can continue as long as the employer wants it to continue.

File under DFVC and lay the penalty OR just reduce your fees by the same and have the client pay it. As long as you don’t have a letter from the DOL, you’re good.

It doesn’t say “first” or “up until”. You’re adding those things. Things generally happen in order. let’s say someone makes $2,350,000 per year and defers 1% of pay each paycheck monthly. The match formula is 100% up to 5% of pay. The person would defer $1,958.33 each paycheck and receive a match of the same. Again assuming the document is not written stupidly, that would continue during the year. The payroll would need to be setup so that deferrals stop when reaching the 402(g) limit (not the comp limit). It would also need to be setup to stop the match when it reaches $17,500 because that is 5% of $350,000 and the maximum allowable match. At the end, the $350,000 comp limit is applied. But it’s not required to be the first $350,000 earned.

Unless the plan is written poorly, the a17 limit is just applied when tested at the end of the year. Also, the 402g limit is likely to put the cap on any match far ahead of a compensation limit.

I question whether it is possible for a plan to fail coverage the way you have described. Show the numbers for the test.

A SIMPLE IRA has to be the only plan sponsored by the employer. https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-simple-ira-plans

EZ late filer penalty cap is 3x$500

Correct the address.

Ken is right. It would be much easier to never rehire a terminated participant.

A SIMPLE IRA has to be the exclusive plan for the employer (which equals both entities), so I don’t see any of these examples working.