Bri

If your taxes were on extension, you might be able to rely on that extension to also extend the 5500 deadline. In that case you could tell the IRS you neglected to check that box on the 5500. (But it's gotta be true, of course!)

Isn't it "in the year you turn 55", rather? Similar to catchups before your 50th birthday..... Ah, indeed, my Sal book says: IRS Notice 87-13, A-20

Sometimes I like to throw around legal terms randomly if they feel even slightly relevant, and see if those more in the know can take it from there, and the one popping to mind is "constructive receipt". (In terms of when does B or C count as being paid...) Realizing, of course, that might not help.

sounds right to me, no 10% penalty.

Daily rather than annual coverage testing perhaps?

Start the deferrals January 1 and park them in a plan checking account until you can transfer the assets to the new custodian. Have the self-direction effective 2/1 instead.

I'd be surprised if there wasn't *something* but I suppose the Plan Sponsor could adopt an amendment addressing it as they wish then.

They do have to clear their minimum funding requirement for the year determined as of the valuation date, which could be changing as a result of the termination. If they do that, then the plan document itself may address what occurs in a termination with insufficient assets. (Possibly the plan says to pro-rate, or perhaps if one of them is the majority owner then that person alone forgoes receipt.)

Oh I gotcha - I misread that the rule of parity provided there was from a Basic Plan Document (illustrating what "could" be chosen) as opposed to being the actual text of a document (so inserted as a result of an election to include said provision), one not coordinated on an adoption agreement.

My web browser (Safari on my non-work laptop) tells me "The password for your 'benefitslink.com' account has appeared in a data leak, putting your account at high risk of compromise." I'm not super worried because A) I don't use the password for anywhere else B) I've used the same password since 2000 with no issues C) You'd have to put forth at least some effort in digging to figure out who I am from my profile D) Who would want to come on here and pretend to be me anyway? Being me is not a profitable endeavor. But anyway, seeing the message today for the first time was a bit surprising.

Aren't 2017-2021 5 Breaks, though?

Plan document might have a section regarding folks with 5 consecutive breaks in service for eligibility purposes such that the person gets treated as a rehire. But your document may vary on that.

Wasn't that option officially kiboshed a few years ago, with a default IRA the alternative?

Ooh, just in time for everyone's 2 hours of Ethics CE for the year! "The fact that you're even asking...."

One thought I had was to double-check your plan document to see if it has any leeway on the HCEs, like if the plan says the sponsor may make an additional SH for the HCEs up to the same level the NHCEs are getting.

I threw a comment out on the regulations site pointing that out - A missed deferral from March won't get caught until year-end work starts 10 months later, especially if it's a 5 salaried person company where the 401(k) total every week is the exact same $1,200 so that you can't easily match up your bank records, either, if one week is missing.

It's right in the regulations, A-11 (ii) Option for different section 204(h) notices. If a section 204(h) amendment affects different classes of applicable individuals differently, the plan administrator may provide to differently affected classes of applicable individuals a section 204(h) notice appropriate to those individuals. Such section 204(h) notice may omit information that does not apply to the applicable individuals to whom it is furnished, but must identify the class or classes of applicable individuals to whom it is provided.

Yes, attributed stock counts.

hey, if she was living out of her car..... (How far has the IRS ruled, relative to what constitutes a principal residence along those lines? Can a principal residence be a van down by the river?)

Isn't the 180 days technically measured from the date the participant gets the 402(f) notice?

I'm mildly curious as to who authorized the payment of the plan expense from the forfeiture account, acknowledging it may have already been built into the service contract for the recordkeeper.

Amend the plan before those people enter on 1/1, and those folks can be subject to the new schedule.

Without a QDRO, is there any other sort of distributable event allowing the participant's distribution to be paid from the plan (and now we're talking PAID rather than TRANSFERRED to the alternate payee) ?

Nuclear war is a concern that never use forfeiture account. Huh? 🤪 Seriously though, if your concern is a plan never using its forfeiture account, then I bet it's failing to follow the terms of its written document. The document should say when/how to use them. (Including an emphasis on when.) So yes, there should be concerns - if the plan was supposed to allocate its forfeitures, then numerous participants don't have the full amount in their accounts as they should. Or perhaps the company took a deduction for a contribution which was supposed to be offset by the forfeitures. Anything they didn't do right is something the IRS certainly would scrutinize upon examination.

but zero current HCEs would be covered, so no big deal if a handful of now-they're-NHCEs don't benefit.....