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401_noob

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  1. 401_noob
    To clarify the above response, if matching contributions treated as an excess aggregate contribution are partially vested, the nonvested portion (including all allocable earnings on that portion) are forfeited instead of distributed.
  2. 401_noob
    The HCE would only forfeit their entire portion of the excess aggregate contribution if they are 0% vested in the ER match source. Hope this helps!
  3. 401_noob
    In addition to what Karonline provided above, here is the IRS' new method for correcting deferral errors. https://www.irs.gov/retirement-plans/new-methods-for-correcting-elective-deferral-errors Under the new method the Employer may or may not have to make the QNEC depending on how quickly they re-implement your pre-tax elections & provide you the notice described in Appendix A of Rev Proc 2015-28, but you should still get a matching contribution equal to the match that would have been received had your pre-tax deferral been withheld.
  4. 401_noob
    Thank you both for your input and for the tip about the ASPPA exam. That will be one question that I will not get wrong!!
  5. 401_noob
    Good morning, I was wondering what other practitioners are doing regarding the calculation of the excise tax for failing to correct ADP/ACP failure prior to the 2 1/2 month deadline. The EOB says that the 10% tax is calculated on the excess deferral or excess aggregate contributions prior to the G/L adjustment, but the 5500 Preparer's Manual says that the tax is calculated after the earnings adjustment. So are your calculating the tax before or after the G/L adjustment? Thanks in advance!
  6. 401_noob
    Hey Y'all! Quick question for my fellow practitioners. I am studying the DC-2 book to eventually get my QKA and I came across a sentence saying that corrective distributions (ADP & ACP corrections) are subject to 10% withholding unless the participant completes a Form W-4P. I was wondering who all was practicing this? I don't recall ever seeing a corrective distribution with any withholding applied in my short tenure. Thanks in advance!!
  7. 401_noob
    Maybe that is just for SH Matching contributions now that I think about it... but if it is good enough for a SH match, why wouldn't it be good enough for a discretionary match?
  8. 401_noob
    When was the match deposited because I thought that if a match is allocated on a pay period basis then it has to be deposited by the end of the following quarter?
  9. 401_noob
    Thank you both for your input!!
  10. 401_noob
    Greetings friends! I have a question regarding the attribution from a grantor trust to the beneficiaries of the Trust. The EOB says that if a trust has an ownership interest in another organization, that interest is attributed to the beneficiaries in the trust who have a 5% or more actuarial interest in the trust, in proportion to each beneficiary's actuarial interest. What is actuarial interest and how is it determined? I found in S. Derrin Watson's Who's the Employer Q&A column, question 167- https://benefitslink.com/cgi-bin/qa.cgi?db=qa_who_is_employer&n=167, that it is determined according to IRS actuarial tables, but what table and how? Any help would be appreciated!! Thanks in advance!
  11. 401_noob
    Or FAB 2008-04 Q41 https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/2008-04
  12. 401_noob
    I suspected that it would be an operational error at the very least. Thank you both for your input!
  13. 401_noob
    I have a question related to this topic. If the AA says that the mandatory distribution will occur in the next plan year quarter following severance from employment, does that mean that the Plan only has a three month window to process the mandatory distribution? For example, if the participant terminates 6/15/17, does the Plan only have from 7/1/17-9/30/17 to process the mandatory distribution after providing them with the necessary notice(s)? What happens if it isn't processed by 9/30, can it be processed at a later date?
  14. 401_noob
    FWIW, this is what the EOB says: Part G., Distributing too much Suppose the plan distributes more than is required to correct the ADP test or ACP test? An overpayment is an operational violation of the terms of the plan and can be a potentially disqualifying event. The plan should take reasonable steps to get repayment of the overpayment. The HCE could remit the excess payment back to the plan or might work out an arrangement to have the overpayment withheld from his next paycheck. Relief under the IRS' Employee Plans Compliance Resolution System (EPCRS) is available. EPCRS is explained in Part B of Section VI of Chapter 15.
  15. 401_noob
    How could the SH be effective Jan 1 if they didn't distribute the SH Notice?
  16. 401_noob
    Tom Poje answered the first question in this thread: Hope that helps!!
  17. 401_noob
    well Belgarath answered my question as i was typing...
  18. 401_noob
    I thought that ERISA 204(h) only applied to Pension Plans.
  19. 401_noob
    Here is an old thread that may be useful:
  20. 401_noob
    Wouldn't it depend on whether the Plan terminated with or without cause since one of the requirements of being a Safe Harbor is that it has to be in place for 12 months? I am assuming that you are relying on the SH to get a TH pass since you mentioned that the only contributions have been/will be deferrals and SH match. Hope that there aren't any forfeitures.
  21. 401_noob
    I thought that a 401(k) plan could only be deemed frozen if it applied for a determination letter after terminating and the process took longer than the 12 month period to pay out assets. Are there other instances in which a 401(k) plan can freeze?
  22. 401_noob
    Do you know if it is possible to retroactively change the Plan termination date? For example if a sponsor terminated a plan effective 8/31/16, could they now say that the Plan is terminated effective 12/31/16? I am not aware of any provision, but perhaps someone here is. I do know that choosing the effective date is a settlor function, but i don't know if that means that it can be changed. Thanks!
  23. 401_noob
    I've always known it to be a requirement for the SAR. This link has an explanation beginning on the very bottom of the left hand side and going over to the top right hand side on the first page. It explains that Except with respect to qualifying employer securities, participant loans and qualifying self-directed accounts, the name of each regulated financial institution holding (or issuing) qualifying plan assets and the amount of such assets reported by the institution as of the end of the plan year; http://www.asppa.org/Portals/2/PDFs/Board of Directors/00-38.pdf
  24. 401_noob
    So i just read § 2520.104-46 and it didn't describe non-qualifying assets, but it did say that ER securities, as defined in §407d-5 are qualified assets. (ii) For purposes of paragraph (b)(1), the term “qualifying plan assets” means: (A) Qualifying employer securities, as defined in section 407(d)(5) of the Act and the regulations issued thereunder;
  25. 401_noob
    For what its worth, FAB 2008-04 says that non-qualifying assets which require the additional 100% bonding are described in 29 C.F.R. § 2520.104-46. It goes on to provide this FAQ link: https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/faqs/faq_auditwaiver.pdf
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