MGOAdmin
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Everything posted by MGOAdmin
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In a 401k plan, I know you are allowed to charge the participant a fee directly for taking a distribution. Are we also permitted to also charge the participant of a defined benefit plan a fee as well, or if a fee is to be charged, does it have to be charged to the plan? Thanks for your thoughts. -
I have a cash balance plan with only a husband and wife (they have no employees). Since there are no NHCEs, does that plan still have to be 100% funded in order for one of them to take a distribution?
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We have decided just to change it for 2016. Thanks for all the input.
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There really are not that many people this will affect, and maybe not any if they don't hire anyone after July 1. Thanks for the input!
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We are only changing what "was promised" for people that haven't been hired yet, therefore they were never promised anything. I am going back on forth on it.
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A client has a safe harbor plan. The current eligibilty is immedite but they would like to switch to 6 months. Can we amend the plan for 2015 and have it be effective 7/1/15 so it does not affect any current employees? I know you "can't" amend a safe harbor plan, but since we are not reducing or suspending the contribution, I was thinking we could do it.
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What if this is a corrective amendment? What if i failed coverage and needed to amend to bring one more employee in, wouldn't that be discretionary? What if a corrective amendment is discretionary, and the corrective amendments are necessary to pass coverage?
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Can you amend a plan after the year end to ellect out of using top-paid group to just using normal HCE rules?
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A safe harbor profit sharing plan excludes part-time employees using the following language: "Part-time Employees not scheduled to work 1000 hours in a 12 month period, except that if such a Part-time Employee does work 1000 hours in a 12 month period, then such Employee shall become an Eligible Employee." If an eligible employee (worked 1000 hours) terminates in 2013, then in 2014 is re-hired as a part-time employee and does not work 1000 hours - is that employee still eligible for the safe habor 3%? If the plan document didn't define "part-time" emplyees this way and just used a job class like "office staff", would that make a difference? For instance if the plan excluded only "office staff", and if the eligible employee was not an "office staff" before termination but then hired as "office staff", could we exclude them?
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I have a Cash Balance Plan year of 1/1 - 12/31. Am I able to amend the plan this month adjusting the crediting rate to the market rate of return prospectively (for March thru Dec.)?
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I have a Cash Balance plan (not covered by PBGC) that is terminated an currently underfunded. 1. There is an emeployee that used to be an HCE, but is no longer an HCE - can we reduce this employee's benefit (pro rata) based on account balance? 2. Do we need to have the owners sign waivers to reduce their benefit? 3. Are we allowed to just reduce all participants benefits pro-rata?
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Are you able to roll money out of a qualified 457 plan into an IRA , even if the 457 plan is not related to a goverment but to a non-profit? I found some language that rollovers are only permitted for 457 plans under a state or local govemnment but not a non-profit.
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I just want to confrim that a partner hired in late 2013 (did not reach $115k in wages) would not be considered HCE in 2015 if they received gauranteed payments in 2014 over $115k. This partner is entiitled to less than 5% of the company profits and capital.
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So you either look at just the voting stock or you consider all of the stock. What happens if by using just the voting stock it is controlled, but using all the stock is not, or vice versa? if it is controlled using one of the options, does that mean it is controlled?
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How are voting shares and non-voting shares treated when figuring out controlled group issues. Are only the voting shares considered? Are the total shares combined for consideration? Do you compare all the voting shares seperately from the non-voting shares? Any help on this would be appreciated.
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Say you have a safe harbor match plan and you no longer wish to be safe harbor. When is the ealriest you can amend to not be safe harbor? Do you have to give the employees a certain amount of days notice? In this case, the client wishes to implement a regular match as soon as possible. thanks
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What happens if a company only has 2 employees (both Highly Compensated). and the Cash Balance plan covers both employees, however employee "A" is at the 415 max? Are there coverage issues since the in the current year only employee "B" is receiving a benefit? Is employee "A" still considered to the benefiting even though he is not getting an allocation? If Company ABC has a CB plan, terminates the plan, then starts a new plan, I know the 415 Limit is based on combination of the plans but what about years of participation as it relates to 415? For example, if emplyee "A" had 3 years of participation in the first plan, does he start with 3 years in the new plan or does it start all over? My assumption is the past service counts (since the limit is based on the 2 plan) but I want to make sure.
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I have a potencial client that would like to start a plan for 2014. If the two owners they maximize their profit sharing (52,000), do I need to factor that in when calculatin Top-Heavy status or 2015 since it won't be deposited until next year. I know we add back 401k receivables. I know the plan will be TH in 2015 for 2016 but I wasn't sure if it will be TH in 2014 for 2015. thanks
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If I want to write the plan document so that it gives the Owner's the maximum lump sum under 415, do I need to include how that is calculated. Basically, we want the owner's to get the max each year without having to amend each year. Is there a better way to write it so they owner's get the maximum allocation? Thanks for your input.
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That's what i thought but I wasn't sure. Thanks!
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Are corrective amendments permited with a safe harbor plan? I know you can't amend a safe harbor plan (expecially after year end) but what if you have a situation where you need to - does that take you out of safe harbor?
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That was my concern. Sine interest is not required, it appears to be additional employer contributions. I guess the easiest solution is to just give interest on the elective deferrals. So instead of giving 10% on both, maybe give 20% on the deferrals. The market did so well this year, that I think I could substantiate the interest.
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Can an employer contribute lost earnigs on match contributions even if they match contributions were made be the end of the year but not on the payroll date? I have a client that made late deferral deposits and as a benefit to the employees they want to contribute not only lost earnings on the late 401k deferrals but also on the match. Is there any issue with this?
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I agree, I think that it is a CG. Thanks for all your input!
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The above section makes me think they are not related since the wife owns 0%,