DP

Thank you, GMK.

I'm opening up this topic again. What if the spouse is not a participant in this plan, but she wants to keep her deceased spouse's assets in this plan? Is there a problem with that? Would the account be retitled in her name so she can use her RBD? The deceased participant is 90 and the spouse is 88.

Thank you! Very good information to pass on to the Plan Sponsors.

The plan allows the participant to choose. Even though this option is available to all participants, only a few of the HCE's (usually the Plan Trustees) take advantage of using a self-directed account.

I now have had two different Plan Sponsors tell me today that their financial advisor said all plan assets have to be under one financial advisor. Both of these Plan Sponsors use Edward Jones' brokers as their investment advisor.

I have a 401k plan where several of the participants have their balances in self-directed brokerage accounts using various brokers. One of the HCE's was told recently by his broker, that all 401k plan assets now have to be under the same financial advisor. Was that part of the new Fiduciary ruling?

I have a calendar year plan with a 3% SHNE contribution. A participant terminated in February 2016 so she will be entitled to a 2016 SHNE contribution. She will be working very infrequently as a fill-in employee. The plan sponsor is asking if she can go ahead with a distribution for this participant. The plan allows for distributions immediately after termination. Should she be paid out or not?

401k plan had a partial termination in 2011. Participants affected were made 100% vested. In 2012 one of the terminated participants was rehired. If she had not been a part of the partial termination, she would only be 40% vested. I assume with her rehire, she will pick back up on the vesting schedule and not continue to be 100% vested? Thanks.

This is new to me. How can I determine if they have an affiliated service group? Is there a hard and fast rule? Thanks.

I have a medical practice with 2 shareholders - each 50%. Both of these shareholders each own 25% of another medical practice. Are there any issues with a controlled group here? I want to say no ... but need a second opinion.

Two of my clients have received IRS notices for their 2010 Form 945 saying the amount reported on the 945 does not match what was reported on the 1099R. On both of these clients, what I reported on the 945 matches what was reported on the 1099R. Evidently something was processed incorrectly in the IRS system. Has anyone else received any of these 2010 notices?

I have a small PS/401k plan getting ready to undergo an IRS audit. The plan document was prepared by Morgan Stanley Smith Barney (MSSB) and our TPA firm does the recordkeeping. The local MSSB broker who handled the EGTRRA restatement recently switched brokerage firms, and another branch office of MSSB took over. No one in the takeover MSSB office can find the EGTRRA document or any amendments. I know that the EGTRRA restatement was done since I have a draft copy of the restatement with changes marked on it. Any ideas on how the IRS will react to the client not having the current documents?

Thanks for all your comments. To ward off any future problems, I told the rehired participant that the distribution would have to be paid back in a lump sum.

A formerly terminated participant has been rehired within two years of her termination. She had received a distribution of her vested account balance. I sent her a notice about repaying her distributed amount within five years of rehire so her forfeitures could be restored. She is asking if she can pay back her distributed amount over time with payroll deduction. I've been trying to think this through to see if it would be feasible. I realize the deduction should come from her check "after tax". I would not restore her forfeited balance until her entire distributed amount was paid back. What if she were to terminate her employment again before the entire amount was paid back? How would the partially paid back amount be classified? Should her paid back amounts be held in a suspense account until she pays it in full? The more I think about this, the more potential problems I see. Maybe I should just tell her that payroll deduction is not an option?? I appreciate any input!

I have a calendar year medical practice (Co. A) with a SH PS 401k plan. Co A is merging into another larger practice (Co B) in June 2011. Co A's PS/401k plan is being terminated 5/28/11. Co B has a PS/401k plan. The doctor/shareholders in Co. A always max out on their PS/401k contributions each year. Can they maximize their contribution in Co A's plan for the short year 1/1/11 - 5/28/11 and then receive an additional contribution in Co B's 2011 plan? The Co A shareholders will be minority shareholders in Co B. I understand they can only defer $16,500 in 401k between the two plans for 2011, but can they double up on their PS contribution? Or does it depend on their ownership percentage in Co. B? Thanks.