seatpa

How long do you retain plan records for terminated clients? We have no contractual obligation to our clients to retain any records, but we do feel it is prudent to keep the records for a period of time. If there's an audit, we want to be able to defend anything we've done. I am so sick of the boxes of paper from these former clients and I want to get rid of as much of it as possible. So, how long are you keeping these records?

I am wondering if anyone knows of a "best practices" type of resource for operating multiemployer DC plans. I've kind of been dumped in the middle of managing a multiemployer DC practice that needs some modernization, and I don't know where to begin! Any help is appreciated.

I *think* I have the correct answer to this one, but I thought I'd put it out there for others' input. I may bring in an ERISA attorney for a final determination, if I can talk the business owners into spending the money (they are a bit tight fisted). We have two individuals, Frank and Joe. Frank and Joe are financial advisors. Frank 100% owns Frank LLC. Joe 100% owns Joe LLC. Frank LLC and Joe LLC each own 50% of S-Corp financial advisory firm ABC. The bulk of Frank and Joe's business and income come from ABC. I have no doubt that this is an ASG. Frank LLC also owns 100% of another S-corp firm XYZ. Frank LLC and XYZ are obviously a controlled group. However, ABC and XYZ have no real business relationship. Joe LLC also owns 80% of another S-corp firm, LMNOP. Most of LMNOP's clients are also clients of Joe LLC/ABC. LMNOP performs a different type of busines service from ABC, but Joe LLC/ABC often tries to sell LMNOP's services to its clients. LMNOP and ABC do not perform services for each other or collect any revenue from each other. The groups here are: Joe LLC and LMNOP are a controlled group. Frank LLC and XYZ are a controlled group. Joe LLC, Frank LLC and ABC are an affiliated service group. Thoughts?

Right. I can't aggregate the plans for 401k or 401m because of the safe harbor issue. I know I could aggregate for nonelective, but they haven't ever made (and do not intend to make) nonelective contributions, so it's moot. ETA: The owners never show up in the census data for company B's plan, but they are not excluded from participating. Presumably, the could participate if they wanted to participate.

Yup, that's my conclusion as well. You have made me feel a lot less crazy. I've just never run into something like this before. I've run into a few situations where there was an unknown controlled group issue, but never something like this where the TPA (a big, well-known name) administered both plans. I just kept looking through the files and going, no, no, no, no, wtf??? Ha. I feel for my client.

I'm pretty sure the answer to my question is, "No, you're not missing anything", but this situation is odd and making me wonder if I missed the boat. Two brothers each own 50% of Company A. There are no other owners. Company A has a safe harbor match 401k. The owners participate in the plan. There are 4 HCEs (including the 2 owners) and around 5 other eligible NHCEs. The same two brothers also each own 50% of Company B. There are no other owners. Company B has a seperate 401k that is NOT safe harbor. The owners do not participate in this plan. There are no HCE's and around 50 eligible NHCEs. (The two businesses are also in the same industry and frequently operate together on various projects.) The plans have always been operated completely independently of each other, as if the other plan/company didn't exist. But they are a obviously a controlled group. The plans can't be aggregated for testing because one is safe harbor and one is not. Company A's plan is completely blowing it's nondiscrim testing every year (for at least the last 5 years). Did their prior TPA screw up, or am I missing something? Any thoughts?

Our firm does DC plans exclusively at the moment. We are considering finding an actuary to back office DB plans, particularly cash balance or db/dc combo plans. I'm wondering if anyone here does this and has any thoughts or experiences? I know a lot of TPA firms do it. Just to be clear, I am not sending anything to India. If we do it, we'll look for a US-based actuary, preferably someone local.