TPApril

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

Larry - I'm surprised you are surprised at anything you see these days ;).

Distribution requested at $1,000 Related Fees are $100 Would the 20% withholding apply to $1,000 or $900? (So would 1099-R reflect a $900 or $1,000 distribution?)

What with a current downturn in the market, how long can a plan sponsor wait to distribute assets, having received completed distribution forms, including 30-day waiver? (for a pooled account)

Revisiting this discussion of TDI pay and W-2 pay and treatment or not as eligible compensation. plan Definition of Compensation is simply W-2 Plan Sponsor used to receive TDI payments from insurance carrier and run them through payroll, so it would show up on employer W-2 Now the insurance carrier pays TDI directly and issues their own W-2. Based on plan definition (with no embellishment beyond including 401k and 125), would TDI be included in both cases for plan compensation?

Plan was signed 6/1, with effective date 1/1, but 401(k) effective 7/1. Since plan started mid-year, actual 401(k) and safe harbor match are based on compensation from 7/1. Plan defines compensation for all purposes to be full year compensation. This leads to two initial questions: If 401(k) wasn't even available for the earlier period, is it possible to use full year compensation? this would apply equally along the way to new participants who enter mid-year Nice thing for those receiving contributions is they would be receiving greater contributions with full year compensation. Thank you

Previously this thread discussed when a participant is assigned to a group for allocation purposes. Circumstances were that they were already assigned, but the testing didn't pass, so an 11(g) amendment had to be adopted. Question now is: are there time restriction as to when to assign a participant to a group? ie prior to end of plan year?

Plan eligibility for 401k and match is at hire. Plan will match 100% of the first 6% of 401k. Plan wants to set up traditional auto enrollment at 3%. No safe harbors in this plan. Does that sound funny?

as usual, plan sponsor is looking for ways to encourage terminated participants to take their distributions.

Plan has a pooled account. Would there be a concern with placing terminated participants into a separate pooled account that just contains say a Money Market fund?

okay, I'm confusing myself here. Sample nonprofit has a fiscal year starting 7/1. Their 401(k) [not 403(b)] plan year is calendar year. The deadline then for depositing employer contributions would be based on fiscal year, ie 10.5 months after 6/30, or 4/15 of the year after the year it ends. I think an example would work better: Plan year ends 12/31/19 Fiscal year that this plan year ends within ends 6/30/20 10.5 months after that is 4/15/21. Is this the technical deadline for employer contributions for such a 12/31/19 plan year?

for clarification on running the ACP Test on match in excess of 6% - consider this formula, 401(k) is matched 100% up to 8% comp. ADP Safe harbor is met. Since ACP Safe harbor is not met, testing on that additional 2%. does this mean the numerator only includes matches from 6% - 8% (ie up to 2% per participant). In practice I'd imagine this doesn't tend to pass, considering that it would seem that HCE's would predominantly benefit from the additional match? Perhaps a 133% match on first 6%?

In situations like this where it seems there are no HCE's and you don't anticipate there being HCE's, I'm curious if there is a tendency to design the plan as a safe-harbor or not, particularly if the board wants employer contributions to be fully vested?

Sorry! SIMPLE plan termination.

Curious if disaster relief applies to other things, in particular notices. We have a notice due by this Saturday, but due to the fires and power outages in CA, the notice may not get distributed in time.

I'm just curious about something. One-person plan has a plan document prepared by prior TPA using one of the national vendor's volume submitters. It is not the TPA's own document. It is also not the vendor we use. Looking to control costs, wondering about preparing the H/S amendment only, rather than restate the plan document, think that works?

Here we are on 10-15, 1-person MP plan has not provided contribution info, so assuming no contrib was made by 9-15. We don't even know the required contribution amount. I think this is what to do: If no contribution amount provided - Cannot file 5500EZ. It will be late, will need to pay a penalty through the late EZ program, and file 5330. If contribution amount provided, but not made by 9-15 - Prepare 5500EZ for signing. Will need to show outstanding unpaid amt of contribution. Will need to file 5330. Assuming those are correct steps, an extension for 5330 was not requested. Curious what other practitioners have done in this situation?