Bill Presson

2009-82 isn't the CARES Act, so I'm not worried about that. And Robert is lumping it all together, so I'm not sure it's specific. Haven't seen the ERIC info other than what you posted.

Our interpretation is that all RMDs are waived for 2020 and it is not optional.

You can go to your employer or to an attorney or to the DOL at this point and ask for help. But I don't have a lot of sympathy for someone that goes 5 years and doesn't look at a paycheck or question a w-2 or ask to see a statement or doesn't go online. It's incomprehensible to me to go that long.

I thought he gave you a lot of good information and advice.

Agree with shERPA. Don't care about the ADP testing if we can get TH relief.

Ray, on the service credits, I meant for eligibility as well as vesting. We do have an employee in Mandeville and I work with a big advisor in that area. Don't get there as often as I would like.

Can still do the same thing even in an asset sale. I would assume all the B employees would go to work on A's payroll. Might need to look a providing appropriate service credits.

They can just amend the plan and become the sponsoring employer. Might change the plan name, but not sure it's required. As to the tax id, if you're referring to the EIN of the sponsor, then it would change in this scenario. If you're referring to the tax id of the plan, it wouldn't.

This has come up a time or two on other threads (I brought it up as well) and the consensus seems to be that the definition will be expanded to include this. But nothing formal that I've seen yet. WCP

Several of us across multiple firms were discussing this a few days ago and the majority were going to use Code 2 (it was not a consensus) since that specifically says the distribution qualifies for an exception to the 10% penalty. We know the CARES Act withdrawal does qualify. Code 1 says there is no known exception and I don't think that's correct. We also think it's likely that the IRS will issue a specific code. But that doesn't help the providers that send the 1099 with the check.

Additional question on "qualified individuals" - i was a little surprised to see that an economic hardship because of a loss of job by a spouse isn't also included. Am I missing something? WCP

I'm going to go out on a limb here though and suggest that the OP wants the real estate agent to participate in a 401(k) plan other than setting up their own (as Larry points out). I think that may be the issue.

BG, are you meaning second paragraph? Because Cynch says HCEs are excluded from match but owners are getting a match.

Not yet. It's part of the discussion that the ARA is having with the IRS.

I've only ever heard it as meaning "enlarged prostate." ?

I just know there are issues and it's been asked on here a lot. Will the RK even issue the check?

?

I don't think so. But if he can wait a few days, the legislation currently being worked on increases the amount to $100k or 100% of the account. But it's not done yet.

I can't see us getting involved without an ERISA attorney being included. We want to help a client do everything possible to keep a plan in (or return it to) compliance. But don't ever let the client's liability become your liability.

Of course. A final 5500 is just a 5500. The due date is 7 months after the end of the plan year (date last assets were distributed) and the extension would be 2.5 months after that.

https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers Updated FAQ on the Notice

I would think it's an issue for the outside asset company that processes everything for you.

What was the actual transaction? Did XYZ buy the stock or the assets? How did XYZ take over as plan sponsor? Was an amendment done? What else did the amendment say? Did the plan year change? Or did it remain the same?

Thanks. I'm betting we'll all be very familiar with these rules in the next few months. WCP

My interpretation of the transition rule is that you leave each plan alone in order to utilize the transition period. If you amend the plan to change the definition of HCE, I do think it eliminates the protection. Perhaps I'm too conservative on this as well, but I think the mutual fund company is wrong.