TPApril

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?

Company A owns Company B Both companies run separately and have different EIN's. Company A wants to offer one plan covering all employees equally in both plans. Single or multiple employer?

So seems to be acceptable to shorten eligibility and then go back to original one before anyone new reaches 6 months?

At the risk of distracting from my inquiry, may I inquire what happened to Blinky?

somewhat related to this post of 15+ years ago.... 401(k) safe harbor match (small) plan has 1 yr eligibility/dual entry dates. New HR administrator hired and enters new participants 6-months early, on 1/1 instead of waiting for 7/1, contributing 401k and match along the way. Contemplating fixes such as: Amend eligibility to 6-month/dual entry for the year. Amend plan after 7/1 but before next 1/1 to go back to 1-year eligibility but then, it's a safe harbor plan...

So there is no requirement then to provide the total amount of the checks received by the consultant directly to Sponsor (as opposed to recordkeeper's annual Schedule A information)?

I guess this is somewhat of a basic question - are TPA's required to provide the following on an annual basis: - The actual amount of revenue sharing/TPA compensation received - The actual amount of such revenue sharing credited (or not credited) back to the plan's billing If so, is it sufficient to provide such information in the billing, or would it be part of the annual 408b2 disclosure

Plan Sponsor normally charges annual administrative fees to all plan participants. Client has changed tpa. Can same plan sponsor charge the following fees to participants: Plan Document restatement by new tpa when the restatement is not a required restatement but just from changing tpa 'Transfer fee' by old tpa for providing participant data to new tpa

Pre-SECURE Act rule inquiry (based on a fictitious couple): participant dies at age 90 (after starting RMD's). surviving spouse who is the sole designated beneficiary is age 99 in year of death. ULT factor in year of death for participant is 11.4 SLT factor in year after death for surviving spouse is 2.9 So factor in year after death is max(11.4-1, 2.9) or 10.4, which is then subracted by 1 each year thereafter?

Thank you for that link. I'm just trying to find ways for this small business to not terminate their plan. Currently, due to pandemic, the company has zero income and has terminated (not furloughed) all NHCE non family employees. There is no way they will pay for a VCP.

Due to current economic hardships, plan sponsor would like to not make safe harbor contributions for the HCE's (all family member owners) for the prior plan year. Is this actually possible? They'd also like to stop current year to date safe harbor contributions to themselves.

CB - so, consider the owner who has been taking RMD's. For clarification for 2020, under CARES: 1. They take a distribution: Plan purposes: They must take a distribution per the plan so they are following plan provisions. No amendment needed. Tax purposes: They are allowed to roll it over. 2. They do not take a distribution: Plan purposes: They are violating the plan and the plan would have to be amended. Tax purposes: no worries since no RMD required for 2020. If I'm understanding correctly, the CARES act is making RMD's harder for 2020.

There seems to be completely different interpretations about how to treat RMD's for 2020. Disregarding distributions paid out prior to 3/27/20 for now: Are RMD's waived period for 2020? If so, a plan must have some other form of an inservice distribution feature to allow for a payment to be made if so desired? If not, a plan would need to be amended to allow for the inservice distribution if so desired. Otherwise, no amendment is required because there is no option to apply or not to apply the 2020 RMD waiver, like the distribution/loan provisions that allow a plan to pay up to $100,000. Am I on the right track here?

I guess I should phrase my question differently - a small tpa firm with one main owner and the rest administrators/actuaries/etc.

Less than 5 employees. Yes, context is always helpful :).

Im curious what other smaller tpa firms (<5 ees) set up for business continuity plans? Customers are starting to ask. If looking to share thoughts more privately, dont hesitate to msg me directly. all thoughts appreciated!

RatherBeGolfing, Lou S, Larry Starr: Thank you. No I'm not a fiduciary, just trying to bounce around ideas on how to approach this. Many of said clients have their plan docs provided by TPA so no ERISA attorney at hand to easily question. Yes Larry I mean 'valuation' and based on early work experience office terminology have frequently incorrectly interchanged the terms. Larry: because you put that wording on your distribution forms, and not on participant statements, is it appropriate to hand out 12/31 participants statements along with distribution forms package without more explicitly stating that there may be a 3/31/20 valuation?

Just curious ---- for old school plans that have all accounts in a pooled trust, no participants can make elections, they get one annual statement. As we send these out, I'm curious if others are sending out statements as related to the current (and quite large) decrease in market value. As it is we intend to communicate to clients that we recommend a 3-31-20 special allocation for new distributions, and we will need to communicate something to participants.

SEP intended to end 12/31. Next day, 1/1, new 401(k) effective. Any issues with a SEP contribution made for prior year after plan year end in the same year that th 401(k) plan started up?

ESOP Guy - great question for clarification. instead of saying value updated for g/l through current, I should have said last valuation date. Payee received 12/31/19 values, took their time to send in forms, and is now demanding that cash amount be distributed. Sounds like plan is going to insist on an updated valuation anyway but it was a testy divorce so they are contemplating how to minimize issues.

Larry - I'm going to sound quite uninformed here, but may I ask why?

Background: Currently stock market is going through an upheaval QDRO is defined as a cash value at a certain date, to be adjusted through current for g/l Distributable amount as of most recent year end was sent to payee, forms signed and returned and waiting for distribution Plan allows for in-kind distributions Participant has asked if dollar amount as defined in QDRO can be converted to equivalent shares for distribution