TPApril

Participant defaults loan on 3/31 Participant turns 59 1/2 on 7/1 1099-R is issued after end of the year Early distribution penalty?

well, 'final' comp has been updated again. remaining safe harbor amount is just under $500. former recordkeeper will not make it easy to reopen account for this (owner's account is elsewhere) paperwork and original final distribution are over 180 days ago. based on your comments, perhaps the following solution: resend distribution paperwork pay check from prior owner to ira (will not reflect as coming from a plan) create 1099-r from plan if ira cannot accept, then I guess paying directly to participant with 20% withholding and 1099-R (highlighting how it can be deposited into IRA)

2 person plan - owner and nhce - terminated early last year due to business closure and all final comp was provided for safe harbor contribution which was deposited, and nhce account liquidated. owner account still exists so the plan itself still has assets. with the close of the year, accountant has determined there was additional pay that did not receive the s/h contribution. with no account to deposit to, what would the best way be to make up the s/h contribution of about $50?

David - good questions. In response company in liquidation effective mid-year. There is no more company period. Because it ended operations mid year, there were benefits offered for part of the current plan year that is subject to a 'future 5500'.

Company has gone bankrupt. They sponsor a fully insured Wrap Plan. Fees for most recent 5500 will not be paid. Is there any reason to file future 5500's and who assumes responsibility?

I'm curious how this is being handled today?

So alternatively, the loan feature can be removed mid year? (even with outstanding loans (to NHCE's only))

Takeover MP plan allows participants to either self direct in brokerage accounts, or choose the pooled account, no combination thereof. Participants in pooled account receive annual accrued statements only. Should they be receiving quarterly statements with updated balances?

I'm so sorry I misstated the circumstances. This is not a control group after all but rather an affiliated service group.

There exists a control group of a staff plan who receive safe harbor contributions and individual Partner plans who contribute on an xtested basis, but do not receive a safe harbor; all plans tested together. There is a new Partner. She would like to start her own plan on 11/1. Although her plan will not have a safe harbor feature, does the staff plan limit her ability to start 401(k) for herself on 11/1? She has never been a participant of any of the involved plans. Edit after receiving 2 responses below - this is not a control group, but an affiliated service group.

Company files its 5500s appropriately for 5 different benefits on separate 5500's. They are consolidating and creating a wrap plan document effective beginning of current year, with brand new plan number. None of the current 'plans' have an existing ERISA plan document. In addition to the resolution adopting the new plan and wrap plan document, do other plans which will be filing 'Final' 5500's need plan termination resolutions, given that there has never been a plan document to begin with?

I'm not familiar with using Forfeitures from one Source to offset contributions from another Source, even if both Sources are Employer contributions

ok now I get it, Plan Sponsor's intention was to use the PS forf to fund the Match

oops, I meant the invoice is far smaller than the remaining forfeitures

We haven't presented the circumstances yet though we anticipate the original idea of the contribution equalling the 12/31 forfeiture balance. New account and just trying to review options 1st.

Next year's invoice will still leave a significant balance so just as well not issue it. I find the plan doc so limited. This is what it says: 11.09. Application of Forfeitures. Any forfeitures occurring during a Plan Year shall be applied to reduce the contributions of the Employer. Notwithstanding any other provision of the Plan to the contrary, forfeitures shall first be used to pay administrative expenses under the Plan, if so directed by the Employer. To the extent that forfeitures are not used to reduce administrative expenses under the Plan, as directed by the Employer, forfeitures will be applied in accordance with this Section 11.09.

Called up IRS on this. They said to fax a request with the 5558 asking for the PN to be changed, and to file on the correct PN

The Fidelity VS plan doc really provides minimal guidance on the treatment of Forfeitures.

Plan Doc says profit sharing forfeitures are to be used to pay expenses, or reduce employer contributions. Plan Sponsor declared $0 profit sharing contribution for last year, but there remains a balance after payment of fees. Makes me uncomfortable but can that balance remain sitting in the forfeiture account until a contribution is declared? Perhaps a contribution for that amount should be declared for 12/31 of last year equal to the forf account balance at that date? With no actual deposit occuring, would there be any affect on Plan Sponsor's non-retirement plan accounting?

Small dividend check under $25 deposited into 401(k) trust instead of non-retirement account. Minor, we think, but goal is to correct. Recommended approach - leave in plan, treat as current year contribution, and have plan sponsor write same amount into his other account from his personal checking Plan sponsor's preference - withdraw amount and transfer directly into correct account Just contemplating best approach.

yes, thanks! I'm thinking may be more advisable though to delay start of Roth feature (along w/in plan Roth rollovers) from plan year start 10/1 to next 1/1 to allow time for updated safe harbor notice and enrollment

9/30 plan year for safe harbor (3% ER) plan recently sent out their safe harbor notice. they are also in the process of restating the plan document in full, not yet completed, but to be signed prior to 10/1. One change is they are adding in a Roth feature. not sure if a supplemental safe harbor notice is necessary, particularly since the safe harbor is nonelective, rather than a match

Situation at hand - first time filer for welfare plan filed extension but has not yet filed. Lo & behold, it's not a first time filer as we learned that a 5500 was filed '4R' ten years ago, but under a different Plan Number. Therefore current extension had the right name, but wrong plan number. File under which plan number? As reflected on 5558, but might appear as if no extension filed As reflected on last 5500, but might appear as if no extension filed

that's a good question. because I wasn't thinking? I also wasn't thinking of top heavy minimum requirements...

So they are excluded from the x testing completely then?