TPApril

11/1 - One of two named trustees terminates employment with Plan Sponsor 12/1 - Company informs us they have changed trustees Questions: Can change in trustee amendment be backdated to 11/1? Does outgoing trustee who is no longer employed have to sign the change in trustee amendment? (last time this was done ten years ago the outgoing trustee signed).

RBG - That's what I believe. The inquiry here though is not about plan coverage, but about litigation and bankruptcy exposure to wife's business.

Not my best topic, I may have my terms wrong. Husband and wife each own their own separate companies. Wife provides accounting services for husband's business, but does not take a paycheck. Here business is not accounting, it's just that she's the one who's good at numbers. She signs off on documents. Does this make these two companies one control group, or attribute some kind of joint ownership?

I believe the answer to this situation is no, but thought I'd run this question on here: Background: Medical Group, each doctor has own plan. Staff is in a PEO Plan. All provisions and investment options are similar to this longstanding setup that the doctors prefer, and cross testing is run including all of the above. One individual doctor is asking if she can have a Cash Balance Plan.

I could be totally off on this, but... As related to the SECURE Act for >70.5 in 2020: EE terminates in 2020, actuarial adjustment is from 70.5 to current age (75) EE terminates in 2021, actuarial adjustment is from 72 to current age, and therefore may actually be smaller than if terminated in 2020, simply due to SECURE Act age change rule? (no lump sums applicable to plan in question).

Defined Benefit Pension Plan non-owner participant is age 75 and terminates on 12/31 Suddenly I'm confused if there is an RMD requirement for year of termination (due by 4/1 of next yr) or if pension payments can simply begin 1/1 of subsequent yr?

as we approach restating plan docs, curious if there are thoughts about merging existing 401(k) and separate Money Purchase plans by the same sponsor? My initial reaction for long standing plans is to keep them separate. Though certain fees would be larger as applied to two plans, merging them might be complicated and risk prone.

Lou - first off, thank you for your time. The Partner has found a govt opportunity so is dissolving his practice. The firm has many partners and there is no effect on the plan which will be amended to change trustees to add another partner. As you point out, based on signficant account balance, participant cannot be forced out, but curious about legal circumstances of retaining balance in the plan when the ALC is dissolved. Your last point - I think the reason he wants to retain his balance is uncertainty over the new position in the long term.

General Partnership with individual ALC's and the main company's employees within a single PS plan. One of the member ALC's is terminating his relationship with the firm and leaving practice but would like to leave his account within the plan. I'm not sure if that is possible without having a formal entity anymore?

Vesting is not an issue. But yes, all reasons in favor of TPA's over CPA's administering plans. Ken - part of the point of my question is it is either: 1. Impossible to back to accurately determine specific balances, or 2. It could be possible, but would be quite costly to the Plan Sponsor.

Takeover 401k PS plan - never had a TPA apparently. There has never been tracking of balances by money source (401k & PS only). Terminated participant wants to take a full distribution. For tax purposes upon distribution only, does it matter that there are no defined balances between sources?

All I can see is fog today. Employee enters calendar year plan on 7/1. 401(k) limit remains the max (based on age) as long as the pay supports it within the partial year of participation 7/1-12/31 PS limit - I believe it also remains the max as long as the pay supports it within the partial year of participation? They Comp Limit would also not be prorated in the participation period. it's just when there is a short fiscal year that Comp and 415 are prorated? Just too foggy today to recall.

Is Blinky OK?

Per CPA of a married couple's plan, for self-employed, 415 contribution limit is apparently based on 'Total Income'. Total Income includes Wages and items on Schedule E such as rental and passthrough, as well as Schedule D for cap gains. The amount that was contributed for the plan exceeded what was determined to be Wages. Self-Employment tax was based on the full Total Income, can contributions as well? I hadn't seen that before. In this case it exceeds what was assigned as Wages.

not sure what you mean?

Doctors' group has one main 401(k) plan for staff and each doctor has separate plan (due to historically having separate plans even though plan provisions and investment opportunities presently mimic the main plan). Eligibility requires 1 yr of svc. I'm wondering - can a doctor start their own plan in the year of hire and make contributions to that plan even though they would not have been eligible to make contributions in the main plan?

Unclear from DFVC FAQ: when paying DFVC fee electronically online, is there a requirement to also submit pdf's of the applicable 5500's electronically, mail in paper forms, or no such requirement? Also, no response from hotline so asking the question here.

Wondering if any other plan has received an approval notice for a 5558 filed for a 6/30/19 plan year, but the notice approves it for the 12/31/19 plan year? Nothing new that the approval notice arrived 7 months after filing 5558 and 4 months after filing 5500.

per Secure Act, safe harbor nonelective plans no longer need to provide the annual safe harbor notice every year. So, for plan that provided notice in 2018 for 2019, no notice will be provided in 2019 for 2020. Question is - does that make the safe harbor nonelective contribution optional because no notice was provided that it is indeed being contributed? Or am I totally offbase here.?

Terminated employees who meet certain requirements are given a stipend to be used to purchase their own medical coverage from one of several designated insurance providers. (if one provider is more expensive ee covers the difference). They are then treated as being within the same group by the provider. At what point is it determined that this is a group plan subject to erisa?

W-2. It appears their W-2 indicates amounts were withheld from pay. Thanks! Okay, so we are nearly 18 months after end of plan year. Gotta figure out which 5330 Schedule.

Small plan, 20 ee's. Just discovered that expected accrued deposit of 401(k) (for owners only) at beginning of prior yr do not match their 5500 as well as personal and company taxes. contemplating 2 options: Amend all taxes and 5500 to match actual deposit Deposit the 401(k) amount (~5000 in total), over a year later

Howabout Form 5558 due date? Considering that a 5500 would be due on a Monday, say the 31st is a Sunday, can the 5558 be mailed the first business day thereafter?

It's a startup plan, no existing document. Intent is to include the two companies with common ownership. I guess you've answered my question, the second company would have to formally adopt the plan sponsored by the company that owns the second company.

Thanks Lou. So no need then for a different EIN to formally adopt the plan?