TPApril

Looking at process - if there is an excess match deposited in error that has not yet been removed by 12/31, is the ACP test run including that amount, or it is assumed it will be forfeited appropriately since it wasn't correct to begin with and the ACP test is run with the correct match?

Actually, lectures are appreciated - i'm an eternal student... Plan sponsor will not be doing anything in this regard. They have no interest in amending the plan for just 1 person, as they see that as a greater unfairness, and they have no interest in increasing liabilities since as it is they are annually defending the plan's active status.

jpod - there is no benefit in the plan to single participants who die prior to benefit start date. Plan sponsor has no intention to falsify documents. They thought about amending plan until they were informed of an increase in liability of adding such a benefit.

well there is no POA for the single participant. Plan Sponsor in question is trying to find a way to provide a benefit on behalf of a beloved longtime employee.

On the topic of Power of Attorneys - 55 year old single (no children) participant in a DB plan in car accident and is now on critical life support. There is no POA. Her sister has asked how she can be authorized to become an alternate beneficiary to receive benefits the 1st of next month. or have participant elect a 10 yr certain benefit. No issue of any other family member or contesting. I'm not aware that there is a way to provide such a benefit but wondering if there is. If there was, the next question would be what if she dies prior to the benefit start date.

Can non-profit board members be covered by benefits that are offered to employees? Being paid, are they considered employees?

Bill - i have corrected and edited my question to say 'covered ee's'. Thank you for pointing that out. Still hoping for some thoughts though .

I can't say I fully understand my original question of 3 years ago, but here's 2 related questions: 1. Similar to KennyH's question above - there is a control group, two separate companies, but same ownership, so being treated as one control group in one plan. As they are separate companies though, would they be treated as a Single Employer or Multiple Employer? 2. New company effective 2/1/15. As an offshoot of a prior company, they start with > 100 covered ee's. They set as a calendar plan year, and the medical plan goes into effect on 3/1/15. Question is - do they need to file the 5500 for 2015? I cant seem to tell if they started with over 100 covered ee's since the moment there was coverage there were over 100, or since coverage started a month later if they were really 0 at the boy in which case no 5500 until 2016?

Your question is essentially my question. The BPD indicates it is an Annual True Up but the Match doesnt have to be made at any particular time. The longstanding procedure as I understand has been an ongoing trueup every pay period.

mphs77: Yes to your question, the match would continue even when there is no actual 401(k) (ongoing trueup), ok, that makes sense then. thanks.

Facts: -Immediate 401k entry for new hires, 1 yr match entry -Based on % deferral rate election, ee can max out 401k early, but match will continue to be allocated on a payroll basis up to the 3% of pay -New ee maxes out 401k prior to match eligibility, so no actual 401(k) is made after such date Question: 1. Can ee receive a match somehow on a prorated 401k amount (ie 3% of pay since match eligibility)?

401(k) safe harbor top heavy plan terminated on 9-30-2015. Payroll periods end on 9-18-2015 and 10-2-2015. For purposes of contributions including 401(k) are they run through the payroll ending 9-18-2015 (prior to plan term) or should partial pay through 9/30/15 be calculated so as to make all affected contributions?

Related question - employee has given early notice for 3/1 of next year. during enrollment, he has elected the maximum health fsa contribution. knowing that he will only contribute 1/6 of that, are there any options for the employer, or like the thread above, employer must just let it be, knowing ee may take it all out?

in 2010, company filed a 5500 for a fully insured plan with 1 employee. in as much as there were other errors in the 5500 as it was, it simply did not need to be filed. it was also the only year with that insurance company. is there a way to delete it (take it back)? otherwise best approach to amend (correct and add code 4R) and then final?

Chaz: Thank you. So is it correct then it's not clear if there's an SPD requirement either?

Hello, looking for some clarity or clarification if you please. Is there a change related to the ACA in which fully voluntary benefits that have to do with health benefits, paid 100% by employees, but paid as pre-tax premiums are now considered to be 'group health plans' which are treated as ERISA benefits no longer accessible to the voluntary plan safe harbor?

I am curious - what is the general usage these days of using the Consent for Electronic Disclosure for SPD's, SMM's, SAR's?

Understood that 1 person plans can file the SF and mark it as such so that it will not be accessible via efast2. The benefit is to file electronicially. My question is what about a one-person plan that would otherwise not qualify for the SF due to the composition of its assets that are not qualifying plan assets, can they still file SF (not should they, but can they)?

As a one-person (+ spouse) plan exempt from Title I, if there is no PT, could you point me in the direction of the regulations stating that this is prohibited nonetheless? Issues as I see it are loan to spouse and living in the residence that the loan is a mortgage for. I apologize but I've never had to deal with these two circumstances before.

I generally try to leave my emotions out of my postings, but this time I'm stunned. Brand new client finally sends listing of plan investments (2 weeks before 5500 is due) and included is an apparent mortgage loan by the plan to his residence, with the assurance that the loan was made in spouse's name before they were married. That is all the info I have at this time, along with the balance of the loan (no loan docs, date of loan, etc.). Husband/wife are only employees/participants. Trying to figure out what to do.....

Non profit has 403b plan with universal availability Company has contract workers who work < 8 hours/wk (< 500 hrs/yr) For tax purposes unrelated to plan, IRS has determined these contract workers s/b classified as ee's For plan purposes can these contract workers remain contract workers not eligible for the plan under universal availability?

on the same theme (almost 10 years later to the date), cpa has made minor changes to prior year categorization of assets, but no change in grand total. So opening listing of investments does not fully match closing listing from prior 5500, but matches the financial statements report. Any reason to amend prior 5500 as well?

post below related to calendar plan year example: I have understood that although there seems to be no specific mention of effective date of fidelity bond coverage in the Form 5500 instructions, that we use the fidelity bond in effect as of 1/1. In practice, data requests happen after the plan year ends and coverage reported by plan sponsor tends to be as of 12/31. Ability to purchase retroactive coverage is being advertised. When can retroactive be used? Makes me wonder if current coverage, increased after 12/31 but prior to 5500 filing date can be used on prior year's 5500? What date specifically is being looked at for the level of coverage on the 5500 - the 1/1 or the 12/31 level of assets?

For Part I item 2, is it appropriate to report negative amounts, which seem to be less than $5,000. Recordkeeper and service provider are Fidelity who completed the form on their own with an amount about $(100,000)

along similar lines, but a different situation than the beginning of this thread. 2013 Plan Year had $1000 in forfeitures to be allocated first to fees, then to participants. Fees for 2013 totaled $700. There is $300 in outstanding forfeitures that was never allocated. Meanwhile 2014 fees are another $700. Question 1: Can that $300 now be applied to later fees, or should they still be allocated to participants? Question 2: Amounts in example are pretty real. Due to small amount, would that make it okay to apply that forfeiture to current fees, if answer to Question 1 was No? Doing so would be a much less timely process.