Bill Presson

Also, what if the owner did an inservice distribution the year before the termination and filing? You probably wouldn’t think twice about it. Just make sure you have documentation of the bankruptcy and $0 assets. Might be worth completing distribution forms rolling the $0 to an IRA just in case anything shows up in a year or two.

Participants may have the ability to make trades in accounts but they aren’t the “owner” of the account, the trustees are. The trustees have the ability to liquidate whatever account they want. If they haven’t done so, it’s on them.

Are you saying that (in your example), the QACA contribution for 2025 has a 2 year vesting schedule and the QACA contribution for 2026 has a separate 2 year vesting schedule? Because if you are, that’s wrong and vesting like that hasn’t been allowed since the 80’s.

I agree with every word of this except “sorry.”

1. You need an atty not us. 2. I’m not an expert but I’m pretty sure a QDRO isn’t required to be used to split an IRA.

Assuming it’s a PS source failure, usually it’s an -11g amendment OR the plan document has specific methods the plan has to follow.

I’m never surprised if a DRO is kicked back once. I’m always surprised if the drafting party causes one to get kicked back twice.

Of course and I don't have any issue with it. Just pointing out that FTW aren't sitting around for a month before going to the Treasury Dept.

😂

Not to defend Nationwide or your credit union, but federal taxes withheld have to be deposited pretty rapidly. Roughly speaking, if an entity had more than $50,000 withheld in 2022, they are a semiweekly depositor in 2024. Pretty sure Nationwide would hit that standard. So they're depositing all withholdings with the IRS twice a week.

Agree with Cuse. This might be helpful. https://www.napa-net.org/news-info/daily-news/case-week-qualified-separate-line-business

I would still recommend meeting the tax deduction rules for the IRS.

I’m not so sure. Even if it’s w-2 wages, an owner only plan isn’t subject to Title 1 of ERISA and that’s what drives the DOL.

https://www.irs.gov/retirement-plans/self-employed-individuals-calculating-your-own-retirement-plan-contribution-and-deduction

Best of luck, Ms Lisa!

Ms Lisa, you're wasting your time unless you get a lawyer. Find one in your area (nearest big city) that is familiar with ERISA QDROs.

Interesting: https://benefitslink.com/boards/topic/52525-merger-of-safe-harbor-plan-to-non-safe-harbor/

Controlled group attribution falls under Section 1563. For that an adult child’s interest is attributed to the parent only if the parent owns MORE than 50%. Same issue in reverse. So they need to be careful that the dad never add any ownership.

Well I would think they have to make the final contribution so everything else is moot.

Don’t try to fight the bank, just move the money. It’s not worth the risk.

Generally, not for profit entities refer to a retirement plan that is exclusively employer funded as a 401(a) plan. The employee funded plan is 401(k) or 403(b). With that said, an employer funded plan under 401(a) may have a one year wait for eligibility (pretty typical) but employee enrollment isn’t required. About the only thing a participant needs to do is complete a beneficiary form. But not doing that doesn’t keep one out of the plan. Whole thing seems a bit off kilter to me.

How/why are you making a contribution after the final distribution is completed for the plan? Doesn’t that make the final distribution NOT the final distribution?

Typically the admin software you use will have a 5500 module that you have to purchase. Seems like a lot of effort for a single client.

Agree with the above. You also should have had an attorney and CPA involved either the initial agreement and the acquisition agreement. Seems like those were big misses.

That’s a good start. ASPPA has several worthwhile designations to consider and pursue.