MarZDoates

I am not sure how to interpret the VCP fee chart. The plan has 52 participants. There is only 1 participant affected. More than 5% owner, still working, age 80. Plan has never distributed any RMDs. Is the fee $2,500 PLUS $500 for the 401(a)(9) failure? Or is it just $500?

Thanks for the input!

Company A is purchasing the assets of Company B. Company B's employees will be employed by Company A and be eligible to participate in Company A's 401(k) Plan. Company B's plan currently permits loans. I understand that loans can be rolled from one plan to another. However Company A's plan currently does not permit loans. Can Company A amend their plan to allow participant loans only for those employees coming over as part of the acquision? They do not want to permit new loans to anyone. Thanks.

How is the RMD determined when the account contains designated Roth contributions? I understand that you use the entire account balance to determine the amount. But is it withdrawn pro rata from pre tax/Roth funds? Or is it the participant's choice? Thanks

Thanks!

Is a Money Pruchase Plan subject to the minimum funding requirements? (Line 12) I am thinking yes. Thanks.

Thanks Tom. I had better hustle so I can be prepared for the quiz!

Do you still have to compute allocable income on distributions of excess deferrals?

No. I just made up numbers as an example.

Participant has terminated employment and has incurred five one year breaks in service, but has not taken a distribution. Not fully vested. Document says forfeiture occurs: the earlier of a forfeiture break (the last day of the vesting computaton period in which the participant first incurs a forfeiture break in service) or cash out. If the forfeiture break occurs on 12/31/14, do we forfeit an amount based on the value on that date? Or would it be based on the current value? Example: Value on 12/31/14 is $100,000. Forfeiture is 80% or $80,000. Value as of today $105,000 times 80% is $84,000. If the actual forfeiture transaction occurs today, do we forfeit $80,000 or $84,000? Thank you.

I meant to say 5500-SF. Sorry! Brain not functioning correctly today. Thanks for the reply.

Has anyone had this happen: Form 5500 EZ efile confirmation says: Date Type of Activity 10/15/14 Transmitted to FD (I have a submission number) 10/16/14 Accepted by FD on 10/16/14 If so, was the filing consdered late? (Calendar year plan on extension.) Thank you.

Our firm sponsors a prototye document for use by our clients. Required interim amendments are typically adopted at the document sponsor level. Is it correct that if we are a VS document sponsor, interim amendments must be adopted by each plan sponsor (versus at the document sponsor level)? Or has that changed? Thank you.

I have very limited knowledge of DB plans. Assume participant is married and spouse is beneficiary. I understand that the monthly benefit payment amount is reduced if a participant elects a contingent annuity versus life only annuity. What happens if the participant's spouse pre-deceases the participant? Does the monthly amount remain the same? Or is it adjusted upward for the rest of the participant's life? Thanks

Hee hee!!

Plan elects to use the top paid group to define HCEs. I am starting with 27 employees. I am rounding down to determine that we would count 5 employees in the top paid group. Comp in descending order from look back year: EE 1 $600,000 (also a more than 5% owner) EE 2 $500,000 (also a more than 5% owner) EE 3 $452,000 (also a more than 5% owner) EE 4 $400,000 (not an owner) EE 5 $350,000 (not an owner) EE 26 $24,700 (more than 5% owner) Many many HCEs do I have? We are having a disagreement in our office. I think 6 (emloyees 1 thru 5) plus ee 26 since more than 5% owner. Collegue says 5 , including the lower paid more than 5% owner. Are we confusing 5 in the top paid group with 5 HCEs? Thank you!

Yes, that was my question. Thank you!

Does the 401(a)(17) compensation limit apply when determining the top paid group of employees (for HCE definition)? Thanks.

No...just one plan.

They did remit using the EIN of the corporation. I wondered if that would be the case. Thanks for the responses.

Does anyone know if the employer's payroll tax liability and 945 tax liability are combined for purposes of the timing of depositing form 945 tax? Client remits payroll taxes semi weekly. In looking at the instructions for the 945, it says that if tax liability reported on the prior year's 945 is less than $50,000, the employer is a monthly tax depositer. Client received a penalty notice for not paying 945 tax timely. Amount of 945 liability in 2012 was 0. 945 Tax for 2013 was $3,000. Tax liability date was 3/14/13. Tax was remitted on 4/12/13 through EFTPS. Thank you.

To my knowledge, the plan document was not amended. Crud.

NON safe harbor 401(k) Plan. Document says match is discretionary; however, match is limited to deferrals up to 6%. Additional limit of 4% of comp applies. Document further states that limits are applied based on the plan year (i.e. "true up" applies). Employer stopped their match mid year. Would this negate the "true up"? If I look at match rates for the plan year, they are not "uniform". However this would make sense if someone terminated employment before the match was stopped. (i.e. they received a match of 100% up to deferrals of 3% of pay). Others who continued to defer would not receive the same rate. Does it matter that the match percentages are not uniform as long as the ACP test passes? I am sooo confused!

Plan sponsor let one NHCE enter the plan prior to meeting the plan's service requirement in error. If they adopt a retroactive amendment to let this one person in, do they also have to provide an SMM to all participants?

Thank you. That's exactly what I was wanting to know!!!