TPApril

I'm just curious what large plan sponsors do when it comes time to provide an updated SPD, or the SPD for a new FSA provider. Since electronic distribution remains opt-in for welfare benefits, do most plans print them out?

So Bob, would you recommend to the client that it not be included on the 5500 then?

Due to set of unusual circumstances, small plan Plan Sponsor that always deposits 401(k) contributions on time, deposited the sum total of $150 for 3 participants one day late (ie 8 business days after withheld). Report on 5500?

I was just curious what other TPA's might do regards to maintaining data for former clients. When do you delete it? Do you provide terms of deletion in your service agreement? What about long standing clients whose agreements never referenced a deletion policy?

this is not a life changing question, more of a curiosity. So 5500 deadline falls on a weekend and so is actually due 8/2. Would that make filers (without an extension) have an SAR due date of 10/2 instead of 9/30?

Medical Insurance company offers Vision as an option through its benefits, which itself is provided by a separate Vision insurance company. Some groups will buy the Vision directly from the Vision company, others will bundle it with the medical insurance. For those that bundle it, premiums, commissions etc are included in the medical company's provided Schedule A ltrs. That's all fine. The medical insurance company itself prepares its 5500. They do not include a Schedule A for their own medical benefits for its employees. They include a Schedule A for the Vision that they purchase from the Vision insurance company. Now, they are switching internally how they purchase their own Vision - they are now including it in the bundled option for themselves. So, the question - would it still require a separate Schedule A letter? Vision company does not want to provide one because of the extra accounting etc. but medical insurance company can run the accounting for themselves.

Sometimes I gotta ask a question that seems obvious but who knows... Are there options for types of pay to consider as eligible pay for a one-person S-Corp other than W-2 pay? Looking at the Plan Doc is not an option as plan is being set up right now.

One owner has two entities, currently no employees. Can he have different plans for each one and contribute the maximum to each? One currently has a SEP the other is starting up a new 401k PS plan.

I can't say I follow this. Situation in question: Participant dies at 64. Spouse is beneficiary. Participant would have reached RMD age 72 this year. Is factor based on surviving spouse age this year?

The recently e-disclosure rules do not seem to apply to Health & Welfare plans. So providing SPD's, SAR's rely on the old method?

Owner does not want to complete beneficiary form because his spouse is his primary beneficiary and he has completed estate planning that his children are contingent for all accounts. Am I correct that a plan specific form needs to be completed so that the children would be considered contingent, otherwise should spouse predecease or owner & spouse die simultaneously, the plan's benefits will go to the estate rather than to the children?

Very helpful thank you.

I can't say I know what it means to be 'legally separated' as opposed to simply separated or divorced, but can medical benefits be denied to a legally separated spouse?

Lou - keeping me on my toes. Owner of both companies that are both in medical fields. No other employees or owners. Yes a control group, I was thinking you meant with anyone other than the owner.

100% ownership of both, no control group or asg I'm aware of.

Entrepreneur has two separate businesses, no employees. Is he able to sponsor multiple plans on his own behalf, each with their own limits?

Participant (non owner) over RMD Age, on workers comp so not formally terminated, and requests eligible in service distribution. With no distributable event, would part of this distribution be treated as an RMD at time of distribution? If not, say participant formally terminates later in the year but there is no more account balance - in that case send a letter and issue 1099-R for RMD amount?

With main question resolved, related topic, hope you don't mind I post it here. Doctor 'employs' one full time doctor, but pays him as an IC. Doctor wants to start a new 401k plan. Instead of excluding this IC completely, Dr. wants to pay enough W-2 to cover contributions, and the rest to be paid under guise of IC. Not sure yet what to make of this, or whether to count all pay which may or may not make the IC doctor an HCE. Trying to think about the implications...

1. It's my understanding company cannot have both SEP and 401(k) plan in same year (defined for this question as calendar year). If no contribution has been made for current year in the SEP, can it be terminated as of end of last year and the 401(k) plan then started mid year? Or would the 401(k) have to wait until the next year? Understood that the PS plan can start up this year since last SEP contribution was for last year. 2. As we know, under SECURE Act, plans can now be started up prior to tax returns filed the next year. Is there any kind of exception here where an SEP has not been terminated yet, but no contribution has been made for the prior year, so that the PS plan can actually start up and be effective for the prior year? Otherwise, this provision doesn't particularly benefit employers with SEPs.

for clarification I'm talking about ongoing active plans.

Seeing as how SAR's are distributed many months after the end of the plan year, to what extent do Plan Sponsors need to provide the SAR in the following instances: 1 - retirement plan where the terminated vested participant has zeroed out their account since the plan year end. 2 - health and welfare plan COBRA participant who is no longer on COBRA

But the Plan Doc references an employee who incurs a Separation of Service prior to satisfying the eligibiliity requirements. This employee did not.

Of course, 'what does the plan document say' is our version of 'did you restart your phone or reboot your computer'? Doc does not say directly but implies simply enough that eligibility was not met so therefore does not enter plan upon rehire/entry date if later. However seems to imply a switch to measuring service by plan year for a rehire.

Participant works over one year and 1000 hours in that year, but terminates prior to reaching age 21 so never becomes eligible to enter the plan. That former employee is then rehired after age 21. would that employee enter plan immediately?

Employee participated in 2 different company plans and ultimately exceeded 402(g) limit for the prior year. Excess deferral was distributed prior to 4/15 of the next year. Are there one or two 1099-R's reported? If there is one, I believe it is in year of distribution with Code P (referring to prior year). If there are two, in addition to the one above, one for the prior year with Code 8? Alternatively, is the W-2 corrected? Or as I believe, there is just one 1099-R issued for current year and in this case, employee provides tax preparer with letter describing the excess deferral distribution.