TPApril

On the $200 contribution or less exclusion - at what point is it determined that an eligible employee working over 20 hours per week but making $0 in 403(b) deferrals can be excluded for 5500 count purposes? Can it be after the end of the plan year? Plan in question has 65 participants with account balances but 200 employees working over 20 hours per week.

My understanding is that it was merged into the other Corporate plan, but documentation has not been provided to me. Would 'final' 2014 5500 then have 0 BOY participants and 0 EOY? To add to that, since no extension filed there would be a late penalty. (not currently my client)

12/31/13 - Local division files their medical plan 5500 with 1000 participants. 1/1/14 - Corporate office assumes the Medical plan and considers it part of their own welfare benefit plan Seems to me that 2013 was a Final filing, but there were over 0 participants. How would we close it out?

tpa on this particular account is new and was thinking this type of situation of family 'employees' may have happened in other cases. tpa does not as of yet have any actual full census data. intent on here was to get a general idea on how to approach what it all means in terms of plan qualification, correction, potential distribution. Initial plan is to advise plan sponsor to obtain and consult counsel with these questions.

Writing as I think... Apparently the relatives never actually worked for the company, but yes they received pay for which they now have 401(k), safe harbor and profit sharing account balances. What happened on their personal tax forms I have no idea. Can they be vested if they never actually worked any hours (at least in the ps accounts)? Considering that one of the crimes convicted was paying these salaries, I don't know what happens from the IRS perspective with that money, and if it ultimately trickles down to the plan. If family members were never actually employed, then are they now considered terminated which means they can make a distribution request? Plan Administrators want to protect the plan and are wondering if they can not make such payment in the meantime, but under what legal grounds. It appears with the current internal turmoil of trying to keep the company afloat, they have limited resources and have not engaged an attorney at this time for such benefit plan issues.

Owner of a company with a large 401k plan was just convicted of many counts, including paying phony compensation to brother/sister/parents/uncle/daughter/cousins etc., many of whom never worked, or apparently never worked legitimate hours. I'm not even sure where to begin to tackle this, but initially my question is, what does this mean for contributions tied to such phony compensation and how far back would we have to track this and take action. Also, what if owner appeals would this all be on hold? It appears plan administrators are looking out for best interest of the plan.

It's not completely clear to me that you need to continue to file Form 5500 (or SF) in this case due to having >1 ee at boy but only 1 at eoy (ignoring spouse issues for this post). In a sense I thought the spirit of the EZ was that personal assets of 1 person did not have to be made public information, which would be so if only 1 person is a participant at eoy. Now if plan qualifies to file 5500-SF would seem can submit as one-person plan, but in this case if a standard 5500 is filed it would be public. Looking for confirmation that in this situation EZ can be filed.

401(k) safe harbor plan requires 1 year eligibility, Prevailing wage contributions are included in the plan, which by default means immediate eligibility for that portion, Question-for the Average Benefits Percentage Test, do these ee's who are only eligible for prevailing wage contributions have to be included? Creates a lot of zeroes for the NHCE's.

Question edited and updated on 7/15/16: In the spirit of this thread as related to prevailing wage plans and cross-testing, here's a question - Plan consists of 401k, safe harbor 3%, ps, prevailing wage. Prevailing wage is immediate eligibility, 401(k) 1 yr, profit sharing is 2 yr wait Question is about participants with less than 1 yr who receive only prevailing wage contributions - must they meet the min gateway requirements?

I am just curious if benefit plans (retirement or health & welfare) are ever penalized for filing inaccurate information (as opposed to issues related to filing late or incomplete)? examples: bad employee counts on main form or Schedule A used wrong date for asset totals wrong outstanding year end loan amount recorded expenses in the wrong field etc. etc. if so how much are such penalties?

non profit company that files Form 990 as 501c3 did not submit 5558 to extend their medical plan 5500. question is, is there such a thing as an extension on form 990 that would allow said company to check off 'automatic extension' and not file under dfvc? (case in question would be due 4/15/15)

Related to this thread, but different circumstances: Company has 2 DC plans - 401K in one and other DC money with annuity requirement. Company would like to terminate the second plan and retain only the 401K plan and have everybody take their money out of the 2nd plan period. Not interested in rollovers. Is there any reason they can't do that while there is an existing ongoing plan?

Howbout a husband/wife with 1 employee who terminates and withdraws during the year. Current bond expires during year, but after distribution date. Need to renew? Can 5500-SF show fidelity bond in effect at BOY but not at EOY? Will be filing EZ next yr.

This isn't particularly a 5500 question, but it is directly related to determining what to fill in on the 5500, specifically for Business Code. Non profit's main business is community service. To fund this service, they created a taxable entity/subsidiary which employs the bulk of the employee population at a restaurant. Question is which one takes precedence for Business Code - restaurant or non profit (813000)?

2 members of control group share benefits but have their own Life Insurance benefit plans 1 member is > 100 1 member is < 100 it seems from instructions they would file separate 5500's because of the separate Life Insurance benefits. However, since one member company is < 100 ee's, is it fair to say they do not have to file?

any thoughts?

yes, jpod that's exactly the circumstances, but i'm getting the feeling that there are limitations as to how to do that from within the plan.

Husband/wife 2-person DC plan w/QJSA provisions being restated. Wife has early alzheimers. They are in agreement they want to set up beneficiaries so that if husband predeceases wife, so that wife now has her account, and her husband's account as beneficiary in the plan, no future husband could ultimately end up with both wife and husband's accounts, rather than the children. How would this be approached?

Trying to understand at what point a wrapped plan becomes a a 'group health plan' subject to hipaa privacy rules to the extent that the plan needs to adopt a formal privacy policy. If there is such a need to what extent do plan administrators develop such a policy and hand out notices (annually?) to employees?

ok, so restating in 2014, can the effective date of the restated ppa document be 1/1/14, even though the restatement period begins later?

thanks! the sponsor at hand simply wants to repeat the standard basic safe harbor match for its discretionary match, which meets those conditions.

many years later on this thread, and i have a question, which I don't even know if it makes sense: safe harbor plan makes the adp safe harbor basic matching contribution. can they in addition make an acp safe harbor match which is essential the same exact match as the adp safe harbor match, essentially resulting in combined match up to 8%, all based on up to 6% of compensation?

One-person plan is going to terminate in 2014. Up to date on all amendments, but should they do the PPA restatement?

Thanks Bill for sharing. That letter is gobbledygook. I for one appreciate being treated as a professional and being told upfront whatever it is that happened. Not some marketingese.

I am noticing a handful of 5500 filings filed on 10/16/14. Not a lot, but more than i'd expect. Was there a similar breakdown of transmissions this year? Even if not, how long generally do they wait for a DFVC submission before sending out letters?