Bill Presson

Typically the merger of plans is based on the transaction date of the sponsors of the two plans. I’ve never seen plan custodians (RKs or BDs) able to make a merger/transfer of assets happen on that date. Maybe you have. Just not the world I’ve inhabited. So having the plans merge on X date and the assets transferring within a reasonable period after that just hasn’t been a huge issue.

Also, people often miss that the after-tax money has to be deposited within 30 days after the end of the plan year to count for 415 limits.

Typically one would remain the sponsor of the current plan and the other would spin off into its own plan. The spin off would likely be a short plan year unless crafted carefully at 1/1. But that’s just the way I would have done it.

Why/how is she eligible to be forced out?

FWIW, and I understand this isn’t helpful, I despise everything about this rule; especially the application of the unique compensation amount.

Peter, there is no limit to what a participant may perceive.

Also wondering if they have heard about making donations to not for profits from IRAs to eliminate RMDs. I get questions every year about doing that from the retirement plan.

I agree with David but good merger amendments/resolutions will specify that the assets in the old plan are part of the surviving plan as of the merger date.

Can’t amend the allocation retroactively. What you can do is start a new PS only plan retroactively with the allocation method you want. Then merge that plan and the 401(k) in 2025, if you want. Or keep it as a stand alone PS. We’ve done it both ways.

Bumping this thread because this is the exact question for which I cannot find an answer. I think that having the limitation year overlap the 12 month "time out" period could/should/would violate the successor plan issue. But, for the life of me, I can't find an actual answer on this.

I’m not sure what is being asked anymore.

If they have met their required beginning date, then, yes, they have to take their RMD before distributing the rest of their account.

How is that a failure under 414s?

No, you’re not correct. Take a look at this Ferenczy Flash

I don’t see any issue with this as long as the plan isn’t paying for your work. 😇

People here are very helpful, but I don’t think anyone will do this calculation without ALL the information nor for free. You or the client need to hire an actuary to do this properly. If you’re not happy with the one you have now, find another. Don’t try to do this on the cheap.

Frankly, I would allow rollovers to all employees since the service eligibility is so short.

I would also recommend either eliminating loans OR allowing loans for any reason. Other choices baffle me.

You’re welcome! 😂😇

Is the owner the final one with the balance? If not, no EZ.

Correct.

Looks to me like they gave you the reason and I would presume her beneficiary gets the benefits.

The deductible limit is 25% of pay. But the 415 limit is 100% of pay. Is the participant 50 or older?

I got a couple requests but told the auditors I was really busy and maybe @jeanh could do a few. 😇😂

Ms Jenny, my only free advice is to arrange to sell the property to an unrelated individual as soon as possible. You’re 78 and your long term investing days are over.