thepensionmaven

I would hope you have staff to do. Can I get a copy?

Does anyone have a copy of the RevProc wherein the Table of Contents contains actual page numbers rather "P ." for the page numbers?

My software is coming up with "401(a)(4) Failed; both the gateway as well as the ABPT passed. How is this not passing 401(a)(4)

Quoting Justanotheradmin from above, "If part of a 401(k) plan - they are not Roth IRA conversions, they are Roth conversions within the retirement plan. The participant makes an election (usually similar to filling out and signing a distribution form) requesting the conversion of plan money from non-Roth to Roth. Yes, there still might 415 excess, and an ACP failure. Those are completely separate from the conversion request. " Of course the client would not know, the broker, who is fairly knowledgeable (?) about these, is saying the contributions were either voluntary, they paid the tax and then converted to Roth rollover. They could possibly have rolled over some IRA $, paid tax on it and then converted to Roth; and coded incorrectly when submitted. In which case, these would be rollovers and not contributions? I am obviously a newbie, not having worked with in-plan conversions at all.

The broker is telling me the "voluntary" contributions could be Post Tax contributions to perform Roth IRA Conversions. That being the case, there is no excess? I have never dealt with Roth conversions, but the plan does allow.

Three owners, only two contribute voluntary; 5 other HCEs, not contributing and 7 NHCEs not contributing. Therefore ACP passed. BTW, 6.06(4) speak of making the plan whole by replacement of the funds. How does this apply to the above?

Dual entry, SHNE with profit sharing. for initial year of participation, compensation based on w-2 from date of entry. In reading the EOB, compensation must be based on full years' W-2?

Three owners, only two made voluntary contriubtions.

A 1099 "employee" has been with a client for 7 years and is now a W-2 employee. Eligibility 21/12 months with entry the 1st of the month following. Must this guy wait 12 months, as technically he was not an employee priorly? Or, maybe he was, but the client treated him as 1099 as a way to keep him from being an employee?

What about allocating as an additional employer contribution, only for the NHCEs?

We have a safe harbor 401(k) with employee, SHNE and EE voluntary contributions. Of course the owners are the only participants who did the voluntary contribution ACP tests have been met; however, each owner seems to have over-shot the maximum $61K 415 limit. I suppose that if the excess was contributed in 2019, all is OK; but what if not???

And they both pass, both are new comp formula, 410(b) as well as 401(a)(4) passed separately as well as combined. I have received SO many conflicting opinions from other TPAs, this IS a controlled group/ASG, this is NOT a controlled group/ASG. I'm going with Mike. TX.

This looks to be an ASG, would not both plans have to offer the 401K option and likewise do the SHNE if one employers' plan does? And amend that plan to a SHNE 401K?

Husband and spouse own one company 50/50; their two sons own another company 50/50. Technically the companies are related - both companies are in the same industry, but perform different functions within the industry. Some employees work for both companies. Both companies sponsor separate profit sharing plans. One of the sons in his company defers, so the plan was amended to SHNE. The son is also an employee and participant in the other plan and no one in that plan defers. Doesn't this plan have to be amended to a SHNE plan?

Pardon my senior moment, but we recently took over a new comparability profit sharing plan (no 401K option) with a 1,000 hour/last day contribution req't. Two participants terminated in 2017 with >500 hrs, but <1,000. The previous TPA had given these two participants a contribution for 2017. Is this correct?

Or did you mean IV, as in IntraVenus?

My cause for concern, being proactive in determining an IRS or DOL position upon audit, is that either or both agencies might see this as a participant using his account as a savings account and the Trustee may not have advised the participant as such. The loan is not over limits and, so far, the hardships have met the safe harbor requirements

We have a participant in a 401(k) plan that took a plan loan in 2017 and two (2) hardship distributions two months apart in 2018. He is repaying the loan, and now wants another hardship distribution, which he does not qualify for. The total sum taken from his account is over $200,000. Question, if the plan were to be audited, would not the IRS consider this a breach of fiduciary duty to have signed off on these distributions?

A terminated participant has a vested account balance of less than $1,000. Per the terms of the plan will make a mandatory distribution of account balances that are $1,000 or less. The distribution will be made as soon as administratively feasible. The vested amount is >$200, must the participant sign an election form?

Client received two 1099Rs 2018 for one excess contribution plus earnings, as follows: One 1099R shows the excess plus earnings both as gross and taxable The other is blank in box 1 and $0 taxable. Have not seen this before.

My client is a PLLC, taxed as a sole prop. His total contribution of $55,000 goes on his 1040. Participant accounts are in group annuity contracts with buckets for employee, employer safe harbor and employer profit sharing. He apparently overshot his $18,500 by $3,200. Since he does not get a W-2, accountant wants to know if the $3,200 would be able to be considered as SH, assuming the fund holder made aware there was some sort of bookkeeping error on how the contribution was coded into their system.

So, in essence, what would the proper language look like?

We had exactly the same situation in 2015 and were advised at that time to make a new plan effective the first day of the month after the client was not a member of the MEP, (5/1/15) created a short plan year (5/1/15-12/31/15) and did all testing an calculation of the SHNE on an annual basis using full W-2 for 2015. Thread is in here somewhere.

Agree with Bob the Swimmer.

Suppose a participant terminated employment prior to NRD, is now well over NRD at this time,and can not be found, client has attpted to locate. Do he need to do a search each year? How would the RMD be paid? Beneficiaries have been attempted to be located to no avail. Participant shown on valuation as term vested.