Scuba 401

participant who took a cares act distribution is deceased. Can his beneficiary repay the distribution?

is the determining factor if its a conduit trust you can make the payments directly to an IRA vs accumulation trust you make the payments directly to the trust?

might be a silly question but the participant dies with a trust as beneficiary the check is payable to jack smith as trustee of the john doe trust fbo jane doe IRA does the trustee take the check and deposit in the trust or can an IRA be opened and that check be deposited directly?

that is interesting. might need an interim amendment for that as our cycle 3 document was probably already in review.

so SECURE act eliminated the notice requirement for SHNE plans. our plan document requires a plan amendment. does the amendment need to be done if they are making the contribution and can it be adopted by March 15? edit: well the plan document says needs to be adopted 30 days before the end of the plan year.

investment advisor who manages some assets on a discretionary basis and some assets on a non discretionary basis. purchased an ERISA Bond as fiduciary who "handles assets" for the discretionary group of plans. Subsequently it is determined the RIA has custody of all the plan assets it manages by virtue of its ability to authorize and initiate third party distributions and payments. the question - is custody for this reason comparable to handling assets under ERISA?

how did you deal with the controlled group issue? do all members of controlled group need to be in the simple?

well its the same case. there are two issues. i am going to check the document. my understanding is the IRS SIMPLE document automatically includes controlled group members. is that wrong?

client started a 401(k) in the same year they also had a SIMPLE IRA and also excluded employees who were with a related employer (controlled group). VCP says basically for the first issue you just file the vcp and ask the IRS to allow the contributions to stay in the plan. However you also have to deal with the people you excluded and make a corrective contribution. Would IRS want you to make a corrective contribution for the improperly excluded employees to a plan the employer shouldn't have had?

Peter, where does this quote come from? also what if the person is not a fiduciary so just a record keeper or TPA?

so following bill presson might be the way to go? no plan assets being paid.

practical maybe but is there legal authority that says you can't do this?

no. he would be a 3(21) so no discretion. not the Plan Administrator.

what does not otherwise a fiduciary mean? lets say for example he is an investment advisor so he would be a 3(21) non discretionary fiduciary. is that what you mean by otherwise a fiduciary? i think maybe it would be a problem if the RIA/TPA was a plan fiduciary already and by hiring itself it was causing itself to receive additional compensation.

client started a 401(k) in the same year and also excluded employees from a member of a controlled group. VCP says basically for the first issue you just file the vcp and ask the IRS to allow the contributions to stay in the plan. However you also have to deal with the people you excluded and make a corrective contribution. Would IRS want you to make a corrective contribution for the improperly excluded employees to a plan the employer shouldn't have had?