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.

Hi, I have a 403(b) plan that started making employer contributions in 2001. Never had a plan document, never filed 5500s. One participant for fifteen years, then two participants for a couple of years. I can deal with document issue. My question is, do I have to start filing 5500s back to 2001? I believe the answer is yes. Neither vendor nor participant can provide statements for the account prior to 2008. Would you file knowing what you know, i.e. the amount of contributions, pro rate earnings? I'll be filing under the DFVC program. Any help/ suggestions would be greatly appreciated. Thanks,

Thanks buckaroo...

Thanks duckthing. That's what every fiber of my being was saying too. I appreciate your taking the time to answer.

Thanks Buckaroo, I guess it's hard for me to believe that under 414 (s) an alternate definition of compensation that would allow compensation excluded over a dollar limit passes muster. I am thinking it is too easy a solution to my problem.

Hi, I have a plan that looks like it will fail 414(s), it excludes bonuses and one NHCE gets a bonus of about 43% of her compensation. ( comp is $20,000 and bonus is $15,000). HCEs are all owners and earn about $20,000. I am thinking that if I have a definition of compensation that excludes compensation in excess of $20,000 that will solve my problem. I read in 1.414(s)1(d)(2)(iii) that ... " a definition of Compensation is not unreasonable merely because it excludes all compensation in excess of a specified dollar amount" Am I missing something? Thanks for any guidance you can offer....

Thanks for your responses, sorry for delay have been out of office. Mbozek, you are right that's what we have found is that the insurance companies do not let us assess a fee. The plan does allow for distribution of de minimus amounts, but we are finding insurance companies will not honor that provision as it is not part of the individual contracts. We have tried telling the participants they must take a distribution, but when they contact the insurance companies they are told they don't have to. Flyboyjohn, thanks to you too. My kneejerk was no you can't do that, but then I thought if it is outside of the plan??? Spin off is a good idea, I'll pursue that option. I really do appreciate your help. NancyD

Hi group, I'm a TPA of a 403(b) plan with multiple vendors and many terminated participants with account balances. Some of the participants are in individual contracts and it is a challenge to work with the vendors to pay those terminated participants with balances under $5K. Sponsor is wondering if they offer some type of incentive to terminated participants who take a distribution ( $100 gift card or the like). Wondering what your thoughts are?? Thank you for any help/guidance you can give...

Thank you FlyboyJohn, That is what it looked like to me, but it seemed too easy! Thanks for your help!

Hi, I am working on late 5500s for a client ( 100 plus covered) with a self insured health plan and insured LTD plan. My question has to do with what schedules are required for the health plan. We received Schedule A information from the claims Administrator for the Health Plan, but since there is no insurance carrier, I am thinking no Schedule A is necessary. The broker received commissions in excess of $5K do those get reported on Schedule C? In my reading of the instructions many times, it looks as if no schedule H or G is required. I appreciate any help as I keep rereading the instructions and end up more and more confused.... Thanks,

Hi all, We are a TPA getting into COBRA administration. Does anyone have any information on software programs to help with administration? Any tips or feedback, pro and con on software would be greatly appreciated. Thanks for any help!