thepensionmaven

WE have just now been informed the a "final return" had been filed for the business' I would assume, therefore that since there is no employer as of that date, there should also be no plan.

Client insurance company agent/investment broker; also has his own pension based on side income. Wants to know if he keeps working and keep getting Social Security as well as insurance company pension, can also keep contributing to his existing pension plan.

I do not see a problem, ASPPA AC has plenty of workshops that offer ethics credit as do their ethics webinar.

I have heard two opposing opinions. When calculating an RMD, is the accrued contribution added to the 12/31 of the previous year's account value?

We administer a SHM 401K. Auto enrollment, default deferral 4% in order to get the 4% SHM. it has come to light that a couple of the eligible employees were not given the opportunity to enroll in 2016. Accountant seems to believe these people are due a QNEC; how is a QNEC determined in such a case? Would the employer in this case be obligated to make the 4% contribution as well as a 4% match?

Plan has over $250,000, initial return. Obviously participants at beginning of year is not "0". Won't this spark an IRS letter or notice??

(Aggregate employee contributions plus aggregate vested match) - previous hardship distributions taken.

I assume aggregate vested matching? TX.

Plan X is a non-safe harbor 401(k) with hardship provision. Safe harbor hardship definition; Plan X elective deferrals plus employer match. Max hardship by definition would be the aggregate employee contributions less any previous hardship amounts; Would aggregate match be included or aggregate vested match???

Some of the employees that meet the 3 months are FT. This just doesn't make sense, or am I missing something here?

OK, still, how can PT employees be excluded with a 3 month service requirement, unless the plan excludes PT/Seasonal employees by class?

TPA had designed a 401(k) with SHM for 2015. Client insisted on a 3 month waiting period for new entrants, but all employed as of effective date were grandfathered. Elapsed time vs. hours worked. Client was told the only way to exclude PT was to have a 12 month service requirement so the plan was re-drafted. Plus, the plan was designed with a default deferral of 4% so they could get the 4% SHM. Safe harbor contribution made for all that met the eligibility, Form 5500 was filed as there were more than 100 participants. I believe another organization was going to buy the company AND compared this plan to theirs. At that point, client realized that the original intent was to exclude part-time and seasonal employees and was told he could do this with the 3 month service; and wants us to go back and redo as he says that some of the employees were truly part-time and seasonal., which would bring the number of participants to less than 100. Q#1, since we are in 2017, I doubt whether we can go back to 2015 to correct. Q#2, what is there to correct, how would the client know when an employee was hired, that he would be part-time? Q#3, since client made the 4% match for people that default deferred 4% to geT the match, how is that handled, as client states they should not have; and in fact, should not be in the plan.

We sent ours out with the PPA restatement.

I agree with ESOP Guy. We use Datair for our documents and utilize the payroll deduction as the means of repayment. Obviously if there is a termination of employment, there would be no new loan. In absence of using this provision, I would check to see if the prior loan payments were timely made, and that there was no previous default. Since the plan would be on the hook if payments not made timely, I wouldn't bother with this.

If the plan provides all comp including Section 125 deferrals, why would you net them out of the compensation??

I still do not see a reason for an amended return, since the Schedule SB was not required in the first place. You would not be amending anything on the 5500-EE that was initially filed.

My question is - why would you file Schedule SB with a 5500-EZ when the instructions specifically state the SB is not to be filed? https://www.irs.gov/instructions/i5500ez/ch01.html#d0e197

Question has come up as to whether a new 401(k) plan, either SH or traditional, can have a plan year off calendar year. SH 3% would be using W-2 for cal year ending w/in plan year. Have never seen a 401(k) off calendar year, but see no reason why not.

Does a frozen profit sharing plan, to which contributions have not been made for several years (and every participant is 100% vested) need an Independent Auditor's Report if there are over 100 participants at the beginning of the year. Plan appears to be frozen for all participants, so I would think there would be no new participants. The question appears to be - ADP did the 5500s for 2015 showing 84 participants as of 1/1/15 with 248 as of 12/31/2015, how does this make sense, given the above.

Suppose we ran the ADP and the tests passed; I assume the 3% would be construed as a profit sharing contribution???

We recently took over a safe harbor non-elective plan. Accountant called to tell me client did not make their 2015 or 2016 safe harbor contribution because "no one told them how much to contribute." Then asks if the plan is "out of compliance". As far as I know, as long as the SH contribution for both years is actually made, and ASAP, there is no issue?

Assume you mean, one year at a time? If the client amends the plan to do the safe harbor match with a "maybe" notice for all future years?

Employer sponsors stand alone safe harbor non-elective, can the plan be amended to safe harbor match the folowing year, assuming all notices are timely given?

Employer terminating 401K 6/30/2017, no employee contributions after that date. Can safe harbor for 2016 be made by 9/15, which is after the termination date w/o jeopardizing the plan term?

New docs we have, MEP agreement we have, prototype we have; From the ASPPA workshop, I don't understand why you think this is a merger or a spin-off. ASPPA session never mentioned anything about a merger. The company started their own plan and rolled over from prior Plan Sponsor's plan. I never heard anything said or the subject of a merger even being brought up at the ASPA conference concerning MEPs. What are we missing here?