Bill Presson

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.

If you were amending anything OTHER than the EIN or Plan number, it probably wouldn’t be an issue. But those things can cause issues because if you filed a return without the proper identification, did you really file timely? It’s going to take additional correspondence and work to fix but should be resolved. Just not quickly.

I would recommend everyone lawyer up and walk away like a dealer at a blackjack table.

I said “would have” and meant “should have.” It’s a shame they didn’t fix it.

Peter, but the issue isn't that the money went missing. The issue is the check never got cashed. The RK shouldn't have accounted for an uncashed check for 5 years. They would have cleaned it up and forced it to an IRA long ago.

No. Deposit now and deduct in the next year.

I think the RK should have done something about an uncashed check before 5 years. WTH? They should send it to one of the force out IRA places and waive any of their fees since they got the float for 5 years.

The ones I've seen (and it's not a ton) create funds (like a mutual fund) where Acme will pony up a large percentage, but several other people/entities will also contribute to the fund to make the purchase. That fund may own only one business or may own more than one. So, if they own more than one business in a single fund, THAT fund will likely be a controlled group. But probably not across multiple investment funds. I would still have an ERISA attorney earn her pay in deciphering. (This last sentence is advice to everyone.)

I don’t work in this area but doesn’t the rabbi trust protect the assets from use by the employer for any purpose other than paying benefits? If so, wouldn’t transferring the assets to an employer account risk diversion? If I’m accurate on that, I would definitely recommend avoiding moving the money to an employer account.