Bill Presson

My former employer (an accounting firm) had interns all the time. Our plan excluded interns as a class, but obviously brought them in if they worked a year. It was rare for that to happen, but we did have the occasional intern that would work multiple tax or audit seasons and then have to enter the plan. It was looked at a couple of times by the IRS over the 12+ years I was there (and responsible for it's operation) and the intern exclusion was never an issue. YMMV.

Be prepared for push back from the DOL. I don't think they are just going to accept it.

No cite, but I've never seen it offset the match.

It's also possible there was some kind of entity acquisition and prior service credit was granted that the OP doesn't mention or know about.

Sounds like Mass Mutual and the employer need to have a discussion and get on the same page.

I would also be interested in how the 5500 compares to the participant accounts (assuming it's a DC plan).

I have it specifically to be able to have power of attorney for my clients since I'm not an attorney, CPA, enrolled actuary or enrolled agent.

Long thread on this a few months ago:

Have the recordkeeper transfer the money to the QDIA and correct the earnings.

Agreed.

I'm not. But Carol Cochran with ABG Southwest is very familiar. Here's their website: http://www.abgsw.com/ Not sure if she would help, but she's a pretty nice person. Might be worth reaching out. You can see on their website that Tribal Services is one of their specialties. Tell her I said hello.

As long as you're not late in filing the 1099s electronically, it's not really your problem.

There are no regulations that prohibit starting a new 401(k) and merging the two plans. But what are you trying to accomplish with a "solo 401(k)"? Because I think a 401(k) that only has a single employee (assuming the owner) pretty much is a solo 401(k).

John, the confusion is coming from about 95% of people writing that they've discovered a miracle. Search "backdoor roth 401(k)" for a sampling.

Agree 100% with the previous posts.

Agree with kcbirm. I would be curious if anyone can even come up with a scenario where a tax exempt trust/plan would pay a participant's taxes. Edited to add: if the policy is being liquidated and the value distributed, then there isn't a >distribution of insurance". It's just a distribution.

Thanks for the contributions!!

Austin, well they CAN do it differently, because they're deducting it correctly on our payroll. They do the payroll, but not our plan. We have a 125 plan as well. I just looked at my most recent pay stub.

Yes. And I think it begs the question as to why the sponsor wants to do this. On the face, it makes no sense.

We've recommended that to our clients for a number of years and never had any issues on IRS audit or DOL investigation. Your mileage may vary.

Agreed.

I would prefer the default to be "no emails" and I could turn it on if I wanted. I really don't need an email for every single post in every single thread.

I think it's strictly a payroll error. I'm pretty surprised the employee didn't notice it. The payroll company should advise on the best way to correct.

That's what I needed!!! Thanks!

I'm guessing you've saved the options. But they aren't on the main menu. They are in the custom streams location that I describe above.