Nancy D

Thanks Below Ground. Yes we'll correct on deferrals, pre tax as that will cover it. The match calculation isn't affected as it is capped and even with reduction, deferrals are well over the maximum allowed for match. Appreciate your help!

BG5150, that's what I was thinking, but it seemed too easy. Thanks for responding. 401_noob - Thanks, I've reached out to the vendor and we'll send them a correction form even with a zero balance, they'll send a letter to participant and their tax team will decide on corrected 1099-R if necessary. Thanks much!

Hi all, I have a 401k plan where participant terminated employment in early 2018 and received a taxable distribution in 2018. His pre tax deferral, Roth contribution and match exceeded his compensation for the year resulting in 415 issue. In looking at EPCRS per our VS in 415 excess situation, it seems the correction is to distribute the funds plus earnings to him. We already did this. Client wants to self correct since the total excess is under $100. Am I missing something, Is there anything we need to do other than document? Thanks for any help!

Thank you so much Tom and CuseFan. That was my thought, but sometimes my thoughts are wonky. Appreciate the help..

Hi all. Company A acquires Company B, Company B's 401(k) plan merged into Company A's plan as of 1/1/18. In looking at HCES for 2018 Plan Year, do 5% owners of company B now employed by Company A with no ownership in Company A count as HCES? What about employees earnings $120,000 or more in Company B in 2017? Any help would be greatly appreciated. Thank you

Thank you both for your help!

Hi, We do 5500s for some of our Health and Welfare clients. I have a plan where the number of employees benefitting under the H & W programs as of the beginning of the plan year is 80. Prior year we had over 100 on the first day of the plan year and filed the 5500. Am I correct that no 5500 is necessary for current year since number of employees benefitting on first day of year is under 100? Thanks for any help.

You're right ESOP Guy, I was inconsistent. The provision of 2 outstanding loans at a time is stated in the Adoption Agreement. Thanks

Hi, Hoping for some wisdom. Plan has loan policy saying a participant may only have 2 outstanding loans at a time with the stipulation that one of the loans has to be a primary residence loan. Sponsor is not involved in loan process having delegated all things loan related to vendor. In 2016 vendor issued second loans to 3 participants that were not residential loans. Sponsor would prefer not to ask participants to repay the second loan, though would be open to a refinance of the first loan if possible. My only other thought is to retroactively amend loan provisions, but I believe this means going through VCP as this situation doesn't meet self-correction by plan amendment. Thank you in advance for any thoughts.

Thanks RatherBeGolfing.

Thanks ESOP Guy. I appreciate your help!

Hi all, We took over administration of a plan in late 2016, prior TPA doing 2016 administration. This TPA listed all plan investments as "Mutual Funds" both on Schedule H and on Schedule of Assets for line 4i. Auditor has correctly identified all assets as Pooled Separate Accounts. Should 5500 for 2016 be filed showing correct information at 2016 Year end ( all assets in Mutual Fund at beginning of year and PSA at end of year)? Do amended returns need to be filed for prior years? Should I get a life and stop worrying about things like this? Thanks for any help.

Thanks for all your help

Hi, I can prepare accurate 5500s back to 2009, but would be creative with earnings prior to 2008. If I read your answer correctly, that shouldn't be a problem? Thank you so much for your help.

I like the way you think! Contributions were made into participant accounts in name of 403(b) plan. Not sure how vendor set up accounts without a document. A Participant is terminating and wants to roll to IRA. Employees have been told there was a 403(b) plan in place.