Bill Presson

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. 😇

Understood. We appreciate all the SDBA plans we get because you don't do them. 😇

Family/divorce attorney hopefully with some retirement experience. The first call I would suggest is to the person that handled your side of the divorce and ask him/her about the domestic relations order. It should have been handled then.

That would make me hesitate and probably use Bri's strategy of a new PS plan and then merge.

Depends on the size of the client of course. We usually would only do SDBAs for everyone if the client was smaller than 10 participants. Pooled plans can be much larger.

MizKae, I think you can contact an attorney and do any inquiry you like. And I’m no expert on governmental plans. But you said you got divorced in 2016. What spousal rights did you have in 2020? With that said, maybe you should have submitted a domestic relations order after the divorce. But you’ll need legal help for that.

I don’t agree with this. We have lots of clients using a single brokerage account per person with multiple sources. We track all of them in our system despite different vesting schedules and distribution timing. It’s not really different than having a single pooled investment with the same things. These kinds of plans have existed for a lot of years before daily valuation services were created. ETA: "not" above

I’m not a fan of different accounts for each source. The only exception I would concede is maybe Roth money.

If the transaction happened in 2023, your 410b6c transition period ended last December. Will each plan pass coverage, etc in 2025 on their own?

I think that ship might have already sailed.

Larry Starr AND Jim Norman in the same current thread? It's a post-Festivus miracle!

You can exclude Company B because they are all HCEs. You can always exclude HCEs without failing coverage. Again, make sure the document reads correctly. In some documents, you have to choose to exclude compensation from a related employer whether or not it has adopted the plan as a participating employer. Now if Company B had a plan and was trying to exclude Company A, THEN you would fail the coverage test.

Yes, it's a controlled group. As to counting the compensation, it depends on whether Company B is a participating employer in the plan AND how the document reads.

Maybe. I think it depends on the eligibility requirement. If you use 21/1 with semi annual entry, most people will have two years of service before entering the plan.

If elected in the AA, the QACA SH (match or nonelective) can have a vesting schedule attached.

Well, the accountant should do these 6 as well. But if they won’t MT likely will.

I don’t understand what you mean the owners are going to do. Seems off. But if you’re asking about an amendment to terminate and bring the plan up to date with all legislation, yes. And an SMM is required as well.

If the money left the plan and went to rollover IRAs, someone needs to generate a 1099. Who did the 1099s for all the rest of the participants? They would likely do these 6 as well.

I’m not aware of anything that changes the distributable characteristics of the money source due to a Roth conversion. Someone needs to cite a source.

Then seems like 2 and 1 to me.

If they both have money in the plan and are both still employed, it’s 2 and 2.