Bill Presson

As if I needed more of a reason to never, ever let a client add these monstrosities to a plan.

Ascensus is correct.

1. Does the plan limit the number of in-service distributions? If not, why would it be excessive? 2. Does the participant pay a distribution fee each time? If so, might want to have a discussion with them to understand the consequences.

I'm a pretty big fan of autoenrollment. I'm not a big fan of auto escalation. I encourage clients to implement auto enrollment at 10% (requiring no subsequent escalation). It usually solves the problem of getting the forms back timely.

The plan document outlines the definition of compensation. I would hope that definition would be identical between the two plans.

Asking for modern software for a 412(e)(3) strikes me as ironic.

I would do them separately. Why would you include a timely filing with a late filing. Perhaps you extend 2023 and file it in October. But go ahead and submit the two late ones as soon as you can. https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers

I see that now, but I've got to process that. I may stand corrected.

You can’t retroactively amend a SH match formula. I would do the amendment for both items effective 1/1/25.

Ask the sister for the info or her help in getting this done.

I will be so glad when these silly forms can be done electronically. What a PITA they've been just the last few years.

The document should outline if there are exceptions to the last day rule for retirement, death, and disability.

Always do the right thing. In addition, be willing to help the client (or the accountant) solve their problem but never let their problem become your problem.

I recommend speaking with your CPA or financial planner.

Once money is rolled into the plan, it’s rollover money and it doesn’t matter what it was in the other plan. Our plans (almost) always allow participants to take a distribution of rollover money at any time. Read the document and it will tell you.

You need to ask the IRA custodian what they do. But I still think you fix the problem and avoid how things are reported later on.

You need to have it fixed now and not wait for some distribution later.

It’s a plan document issue. Read the document and you’ll have your answer.

Loans only have to meet the 50% criterion at issue. After that, it’s irrelevant.

And I would assume it resides with the employer until the "negotiation" is resolved with Voya.

i get this strategy, I'm just questioning the age at which it's being done.

No, ma’am. He paid tax on the conversion but he didn’t take a distribution based on the 12/31 balance. So he still has to do that. I’m a little baffled at the tax strategy of someone taking RMDs doing a Roth conversion, but that’s not my call.

I’m not where I can look up a bunch of stuff, but related to item #1, I can’t imagine anyone agreeing to benefits and wages as part of a collective bargaining agreement and not knowing exactly what that agreement said and where a copy was kept. What a stupid way to run a business.

But to get that waiver, the distribution has to be a taxable distribution. If the money is rolled to an IRA, the exemption is lost. Might need to be a lump sum distribution (as opposed to partial) but I’m not where I can look that up.

Compensation limit is based on the number in effect for when the plan year begins. 415 limit is based on the number in effect for when the plan year ends.