Scuba 401

now i am confused. i have a case similar to the OP's. the terminated participants RMD is due april 1, 2018. if he takes a distribution this year in 2017 can he rollover everything in his account except the RMD and take that next year in 2018 or if he decides to do a rollover in 2017 must the RMD be first?

if a safe harbor nonelective plan allows after-tax but does not have a match, does it have to pass the ACP test?

ok so now another question - i have been receiving negative consent documents from so providers concerning the sophisticated fiduciary exception. are there any documents that need to go out to clients during the transition period if you have always been a fiduciary to the plan and accepted fiduciary status in your service agreement and aren't changing anything in connection with the rule?

it seems to me there is nothing left to do. you already got a 1099 and paid the tax.

does anyone think or know whether the fiduciary rule includes a duty to monitor IRA service providers that might take rollovers from plan participants? I am having a disagreement with a colleague. i say there is no duty to monitor IRA advisors who deal with participants.

so i was asked the question- what are the consequences of the failure to issue 1099-R for the P,S. 58 costs. My thinking is it is the same as the failure to issue any other 1099-R. a reporting failure which according to the ERISA outlines is $250 penalty per incident. I saw an older thread on here that said it was optional and that if the participant didnt pay the tax on the P.S. 58 the entire death benefit would be taxable. I don't agree with that answer . the code is pretty clear that the tax on the P.S. 58 cost must be paid.

seems like it would be an impossible task for the plan sponsor to constantly evaluate so many providers. not that that should make a difference because they are the ones allowing this type of design.

do you know of any clients of yours or anybody else that allows an open architecture brokerage (participants choice of broker) window? the consultant i am talking to says quite a few smaller plans do this.

do you think it is a plan sponsors responsibility or duty as fiduciary to monitor the reasonableness of fees and services for a brokerage window provider? now take it one step further, accounting and administrative issues aside, lets say the sponsor allows participants to do business with whatever broker they want to. do they still have the fiduciary duty to monitor the reasonableness of each broker chosen by participants and does it matter that it is the participants making the choice?

so getting by the minimum issue and the fact that it would only be available to accredited investors which i think makes it discriminatory, can the sponsor just allow each participant to open a brokerage account and buy whatever they want. then the owner can have his hedge fund.

he wants to invest his 401(k) money in the fund. do you see any reason why everyone can't have their own brokerage account.

Could the client get around this by allowing all participants to invest with any broker they want and the owner invests in the hedge fund? Basically an SDBA for all participants with a small fee to avoid the problem brought up in one of the earlier posts.

client would like to set up an LLC for the sole purpose of investing in an alternative investment for the plan. he would allow participants to invest in the alternative investment through the LLC? what are the main issues?

hard to believe that thread is 18 years old. i guess i am getting old.

this older thread really confuses me https://benefitslink.com/boards/index.php?/topic/4558-is-a-self-directed-brokerage-investment-option-that-requires-a-minimum/ CCH also says that a limit set by the investment company would not be discriminatory. frankly it makes no sense to me. also tom's post indicates the minimum can make it discriminatory.

OK, but look at it from a different perspective. Let's say for arguments sake, all the plan participants meet the limit but none of them take advantage of the investment. Utilization per Sal's book isnt relevant as long as it is adequately communicated.

I thought so, but it doesnt make sense to me. Why wouldn't it be an issue with any fund choice that only one HCE purchases?

This one has me going in circles. If the plan has a high limit investment which is offered to all participants, but and only one HCE takes advantage, does it fail the 410(b) component of the RBF test?

can we set up a plan for a company located in the US VI? i know PR is complicated but for some reason thought maybe the rules were different for USVI.

could the contribution be funded after the date of the merger?

one additional question - who would be responsible for funding the outstanding safe harbor contribution if the two plans are merged? it is an asset sale.

if SH plan is terminating mid year now should 2016 and 2017 contributions be made prior to termination? or stated another way can you terminate a safe harbor plan where the employer still hasn't funded?

company A and B were part of the same controlled group and had one plan which has last day requirement. company B splits off from A and establishes its own plan effective april 1 and mirrors all provisions. company A does not want to fund matching contribution to those employees that went over to the Plan B because of the last day rule. company B plan document credits prior service for vesting eligiblity and contribution allocation. company B wants to fund the matching contribution to those employees that deferred in the controlled group plan prior the spinoff and they want to give the match for the entire year. can they do this? document credits service with company A for contribution allocation eligibility and vesting. my feeling is the plan has a discretionary match so they can just say we are matching compensation deferred to all employees during the plan year or they can add specific language to that effect.

this one has stumped the board...

does incidental benefit rule apply if the plan sponsor rolls cash into profit sharing plan and purchases insurance from rollover money?