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?

Facts: A is a minority shareholder - 1% of a company B. A Runs a TPA/service provider and wants to provide services to Company B's retirement plan. does this fall under the standard service provider exception?

does anyone recall whether there was any general relief concerning the timing of notices such as the safe harbor notice. i recall something general coming out in the beginning of the pandemic. EDIT: Ok i found it. it wan an EBSA extension for title I notices. i do not think that applies to safe harbor notices.

Not innocent. he created the plans for the sole purpose of taking the rollover. i wouldn't say he didn't intend for the plan to be qualified. i would say that the plan probably isn't qualified. we are assuming for arguments sake the IRS disqualifies the plan to get a worse case scenerio

this case involves a rollover to a qualified plan. we think the plan was never qualified and therefore the rollover was improper. i am thinking the tax consequences would be the entire rollover would be taxable and also subject to the 6% excess contributions excise tax. anyone have any thoughts? as a side note i wonder if the IRS would allow the TP to back out the rollover and roll it into an IRA which and them allow him to start taking RMD's and maybe pay the 6% excise tax for the years the contribution was in the plan.

my research indicates the IRS can force you to correct all years but in a disqualification situation can't collect taxes for closed years. i guess i was wondering if a plan was not qualified due to its operation whether the SOL applies. i think the answer is yes but still a little confused by it.

when is a plan actually considered disqualified? does the IRS have to formerly disqualify before it is considered disqualified? i know the IRS can reach back to open years but was wondering how the SOL applies to plans that might not be qualified due to failures (but not formerly disqualified by the IRS)

is there anything in the guidance about outstanding loans that are not current. i know loans that are current can be suspended under CARES. can loans that were not current benefit from suspension?

if it is just the earnings on the roth that would be taxable isn't it the same if it you used pre tax money? meaning you only have to pay tax once either way.

its terrible. i hate when i get questions. what does TTC stand for?

I never deal with this issue. can the plan purchase life insurance with Roth 401(k) deferrals? everything i read says premiums are purchased with pre-tax dollars and PS 58 costs are taxable each year. what would happen if you used Roth? would you still have to pay PS 58 costs?