Bill Presson

An owner can pay himself on whatever schedule he desires.

And understand that a freeze doesn’t mean there won’t be any contribution due. It will still depend on the investments and overall funding level.

1099 is for the year in which the distribution occurs. He’ll get two distributions in 2025. One or two 1099s depending on how y’all produce them. Age used for the 2024 RMD paid by 4/1/25 is the 2024 age.

@Peter Gulia tagging him so he's more likely to see this.

Every plan document I've ever seen outlines what happens if there is no beneficiary. So, the Plan Administrator would follow that guidance and pay whomever it states to pay. Where it goes from there is likely covered by other laws and regulations.

Did they buy the stock or assets of the acquired company?

Without researching, didn’t this get expanded during the COVID shutdown and people accepted this for multiple years?

So it was a wire and not a check? This is odd and, while I believe you are saying what you have been told, I don’t believe “did not inform the plan sponsor of any issues/delays” at all. The sponsor is not being upfront OR their spam filter is too tight.

Why are you having to cross test an integrated profit sharing allocation?

The first computer I used in the workforce after graduating college in 1983 was a Wang (maybe a 2200) with an 8" floppy drive that we used to save some Basic programs we wrote to show some illustrations to clients. Fun stuff.

Wonder if I have a copy of Foxbase sitting around? Have you upgraded to the 3.5 inch diskettes? I think there’s 23 of them. 😇

I’m very confused by your dates. They enter the plan in June 2024. They work 1000 hours in calendar/plan year 2024. Why is the 2024 match getting deposited in January 2026?

Jak, I'm not an IRA expert by any means. However, if the beneficiary inherits the IRA and pays all the taxes, it's just after-tax cash at that point, right? How would they contribute to a Roth other than by the regular contribution rules. There's no "rollover" to do because it's not an IRA anymore.

The only things you can adopt with a retroactive amendment date is for something that is within the remedial amendment period. But the op is essentially describing a discretionary restatement so I think it’s stuck with 2025.

1. Could take an in-service distribution, if available. 2. The one challenging is likely an insurance agent that "has always done it that way".

Can't restate a plan retroactively. You can only adopt a new plan retroactively. So, you're using the other document for 2024.

This is wallowing in prohibited transaction issues and I strongly advise you to wait on the ERISA attorney.

It sucks but it happens. Two fixes 1. Refund the money to the participant in 2025 and issue a 1099r. Do not change the w-2. 2. Adopt an early entry amendment under the EPCRS self correction program and document the issue and the fix. This would leave the money in the plan.

More like "rathernotbereading" now, amirite? 😇

Kent, TLDR because Dave and Ms Lois don't pay me enough to read and answer or even figure out what the question is.

FAs can completely freeze accounts so no dividends or interest hits the account. I don’t know how it’s done but I know it can be done. So get them to acknowledge they’ve done it and explain the costs of an additional report, filing, and 1099s have to be done.

I think a public flogging of the financial advisor would be appropriate. This kind of stuff just frosts my behind.

This doesn’t sound like a mistake of fact or an erroneous deposit. This sounds like the new guy doesn’t like what some participants got in prior years. Too bad, so sad as far as I’m concerned.

Agreed.

Looking at the Rev. Rul. describes a plan where everyone has a life insurance policy but some that are provided are of different types with different types of options available for participants that might be interested in buying the policies out of the plan. I'm not aware of this having any applicability to a plan where the initial purchase of the insurance policy was done at the request and option of the participant. Plus the other things I said. 😇