TPApril

For final payroll of the year, owner increased 401(k) and maximized catchup capabilities - deposit was made. Payroll company would not in turn honor that deposit because the plan sponsor was not configured in their system to allow for catchup. They proceeded with they payroll they wanted. We are at a stalemate. Payroll company telling owner to withdraw that amount but we are saying no. Think it would be fine to submit to tax preparer actual contributions which do not match the W-2? (not looking for commentaries on payroll companies, just trying to describe situation)

Okay, I think I get it, which means i incorrectly described my original question. Case at hand is not ASG but rather LLC where each Partner sponsors their own plan. This would effectively be treated as the LLC sponsoring multiple one-person plans. So in this case, all individual plans must file if the sum of the whole exceed $250K.

What is an example of one-person plans maintained by the same employer? I've just never had accounts such as that.

Thought I'd repost my question as my timing may have been off right before the holiday weekend. Or perhaps it's obvious? Sometimes you just never know.

Multiple Doctors in affiliated service group arrangement, each with their own plan, filing 5500-EZ's. Doctors are tested with staff plan New doctor starts up her own plan. Is there a reason she needs to file 5500-EZ as long as her balance is under $250,000?

I know it's been awhile, but I'm curious whatever happened?

Should the Plan recognizes its responsibility of the RMD for 2016, and issue 2 1099-R's, is it possible the participant will receive 2 1099-R's for the taxable amount, one from the IRA as well? Or is that responsibility satisfied by a letter stating the taxability, and then the recordkeeper could more easily issue the 1099-R for exactly what happened on its end, with the IRA issuing its 1099-R?

Would you suggest that simply the RMD amount would be withdrawn from the IRA, or would you increase with earnings through date of withdrawal since the earnings would not have been included in the IRA to begin with?

Assuming though the employee in question terminated in 2016, and since the distribution was fully rolled over, is it a plan responsibility for there to be an RMD for 2016 even though RBD is 4/1/17 ie is James' proposed solution the correct approach?

Borrower is 50 not taking any loan or distribution from the plan .

Is this new - mortgage companies are now requiring plan documents to help secure a residential mortgage loan that has nothing to do with the 401(k) plan itself? Initially tpa just provided the section on distributions because they wanted to know the availability of funds but they have come back to request the document in full.

I'm seeing a similar 403b loan situation in which the trust itself shows no actual withdrawal of the loan, though an equal amount of the loan is transferred into the cash account. However, interest on the loan is paid back to the participant. Question here though are the 5500 implications - I'm thinking such loans are not necessarily shown on the Schedule H because the amount is shown as a cash asset.

It's late Friday in the heat of extended 5500 season, so perhaps I'm not thinking straight...just need to bounce this off someone. Situation: Xtested Plan; highest rate to HCE = 20% NHCE's receive 10% Comp counted from date of entry Conclusions: Therefore all NHCE's receiving an allocation must receive at least 5% since 1/3 of 20% > 5%. At 10% that's all fine except for new participants. Is it correct that they must receive at least 5% of full year comp? Where I'm fuzzy is if there is some 1/3% test we can apply to each participant?

Employer with many drivers provides access to counseling for alcohol issues by means of an Employee Assistance Program. But rather than offering the EAP in the standard manner, they pay for it on a per use basis with HR approval, without promoting it company wide, though in theory anyone from the company can request approval. Think this would this be considered an ERISA benefit?

Plan sponsor wants to end one welfare plan on 12/31 and merge it with another existing plan on 1/1 (the next day). For 5500 purposes this would mean a terminated plan is ending the plan year with participants. What is the general best practice way to do this? My preference would be to terminate and merge them on 1/1. Bonus question - can a welfare plan be terminated on 12/31 with the resolution being signed the following calendar year?

I might suggest that welfare benefit plan 5500 work would also include plan document and spd design and preparation. Don't make the mistake of 'it's a scaled down 5500, how hard can it be?' just because on the surface it looks easy to fill in Schedule A information.

Wrap plan document incorporates all benefits offered by employer which are subject to ERISA. It never references any benefit type or provider, all of which are mentioned in the SPD. If Employer makes a change in benefits, when is it subject to a plan amendment & SMM if there is no actual change to be made to the Wrap Plan Document? Sample situations are: Change in carrier Removal of benefit Change of benefit from ER sponsored to voluntary Change in portion paid for by ER The SPD will need to be updated for any of these.

Assuming as per your quote, a 2013 terminee was not reported in 2013 and it appears no 8955-ssa was filed for 2014 at all, would you file a late 2014 form, or just file them on a 2015 form and move on?

Professional partnership firm with money purchase pension plan. One of the partners no longer has ownership in the firm, but is now a nonequity partner with his own MP plan that is tested together on a control group basis with the main plan. Are there compliance issues for the main plan if the one separate nonequity partner either does not deposit his contribution or take his RMD?

Can a 5500 filing be taken back? Company filed in 2014 for fully insured welfare plan but count was actually under 100, no filing actually necessary. (for lack of knowing an answer to that question, filing is being amended with code 4R to reflect no 2015 filing)

Plan sponsor is setting up a wrap plan document eff 1/1, but some of the benefits are not expected to exceed 100 covered ee's until the following year. Rather than report on the 5500 for all benefits, they'd like to design the wrap plan to include 3 given benefits the first year and additional benefits the next year. Is there reason why not?

somewhat related but different question: Partners in self directed DC plan. One partner has investment in an LLC. when the LLC needs signatures for legal related items as regards to the holding, do all of the Trustees of the plan actually have to sign the document or can it be just the participant holding the investment?

So ultimately, anyone who received either a safe harbor match or prevailing wage contributions, you made sure that, after summing up the s/h match and p/w contributions, they received up to 5% towards meeting the gateway minimum? If they were already at 5%, they did not receive anything, and thus your owners were able to contribute minimally to non-owners.

Towanda - did you conclude that anyone who received Prevailing Wage contributions must receive the minimum gateway ( p/w contributions do not reach the min gateway threshold)?

Similar situation as original post, but with years reversed: Plan year ends 9/30/15, Fiscal year ends 12/31/15. So I'm thinking then they have until 9/15/16 to make the contribution for the 9/30/15 plan year when the company has filed an extension on their taxes?