Mr Bagwell
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Match formula calculation for Excel
Mr Bagwell replied to Mr Bagwell's topic in Computers and Other Technology
Thanks Bri. -
Match formula calculation for Excel
Mr Bagwell replied to Mr Bagwell's topic in Computers and Other Technology
Mike, This gets me close enough for a game of horseshoes. Just rounding differences from my very long process. Thanks -
Match formula calculation for Excel
Mr Bagwell replied to Mr Bagwell's topic in Computers and Other Technology
XTitan, Thanks for the info. The formula returns 5%. Should this be comparing against compensation? -
Could someone write me a match formula for the following? Match formula is as follows: 100% of first 4, 33.34% of next 3. So if you put in 7% deferrals, you get 5% match The last 3%.... payroll calcs it 33.34% for 5, 33.34% for 6, 33.34 for 7%... I know, a little different than what you might expect. I'm proficient in excel, just not that proficient on the if/then statements. Thanks
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The example in the EOB 2013 version, says these words about use of rollover vehicle to make repayment. "Clara withdraws $6,000 from the recipient plan of the rollover and rolls over that amount to the profit sharing plan to make her payment." Emphasis mine. With that said, the Roth IRA to 401k is out. Luke has the same thoughts above. I may have changed my mind about this statement. I am holding my judgment for now. The employee can repay the pretax dollars from the rollover IRA, no problem. Sorry, this is going to get weirder... 15k on the line. You know the employee is going to ask..... Could the employee repay the Roth distribution via a personal check and we start the Roth basis first year at 2018? I just don't see how the employee would get the benefit of the Roth first year back from 2010.
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I wouldn't think that buy back restoration would be a rollover.
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The 5 year clock is part of the issue too. I'm using the term 'buy back' for the restoration process.
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It is the same Roth money from a Roth IRA.
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Did anyone have any thoughts on this topic? Thanks
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Two Buy Backs in one year..... yikes. Never experience one, yet two in 3 months.... An employee deferred Roth to a 401k prior to us. He also had pre tax monies. Said employee terminated and rolled Roth dollars to a Roth IRA. Rolled pretax dollars to IRA. $15k in forfeitures at time of distributions. Employee wants to restore his dollars to get the forfeitures back. What are your thoughts on Roth buy-back? Specifically, the Roth start year. I see you can't Roll a Roth IRA to 401k. But we aren't talking about a Rolling back.... The Roth start year starts over when Roth from 401k goes to Roth IRA..... probably why you can't roll Roth IRA to 401k..... And then there is the IRA provider (E-trade). If the Roth can be brought back into the plan. How would you handle the Roth start year situation?
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Look up Rev Proc 2016-51. It's even newer yet.
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Uh, no! This is not an acceptable practice.
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Only eligible compensation. You will need to get the eligible compensation from the employer. Often times the employer will only give full year compensation and you have to be on your game and look for those that enter part year.
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Thanks, Tom. That's a much more precise answer than my ramblings.
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A NHCE participant was proactive for 2017 and realized his deferrals into two unrelated plans were over the 402g limit and requested a distribution of the excess. The distribution was done from the currently employed plan that we administrate. From the 401k Plan Fix It Guide: Excess deferrals distributed to highly compensated employees are included in the Actual Deferral Percentage (ADP) test in the year the amounts were deferred. Excess deferrals distributed to nonhighly compensated employees aren't included in the ADP test if all deferrals were made with one employer. (Emphasis mine) Just so I am doing this correctly, the overage stays in the ADP total for the year because of the unrelated plans? I guess that makes sense... the employee could manipulate the two unrelated plans if they were devious.
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Jean, I would take Bird's recommendation above. Make this a safe harbor non-elective plan excluding HCE's from contribution asap. The only two real concerns are a potential NHCE employee that is going to be owed a 3% safe harbor contribution, and if a profit sharing is done, making sure you don't miss TH requirements. I wouldn't do a SH Match plan right away. It doesn't solve TH requirements if profit sharing is made.
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Yep. I'd guess the HCE's will be KEY... or at least most of them. If and when they hire a NHCE, the plan will most likely by Top Heavy. That has it's own challenges. And then they will be hampered by the ADP test.
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I can trick the system by putting a 6,000 catch up contribution amount into 2016. This entry would get him to 60,000 for 415. Would you be comfortable with that?
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I am still stumped on this topic. Based on Tom's comments above and the research I have done, it appears that the employee could get to 54,000, the 415 limit at the 9/30/2017 PYE. The piece I am stumped on is how to make Relius accept the 6,000 Catch-up for 9/30/2017 PYE. If I put in a 6,000 adjustment to 2017, the total at the end of calendar year 2017 would be 12,000. I don't like that. I could put in a 12/31/2016 adjustment to Relius and show 6,000 in Catch-up in 2016 and then I could get to 54,000 for the employee. But that looks weird too..... because employee did not become age 50 in 2016. It's not an audited plan, and could explain the adjustment if needed, but..... I have attached a spreadsheet of the deferrals for 2016, 2017, and the 9/30/2017 plan year for reference. Thanks for the help. Catch-up Scenario.xlsx
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Distribution Buy Back or Restoration
Mr Bagwell replied to Mr Bagwell's topic in Distributions and Loans, Other than QDROs
Thanks, Grinch! -
Distribution Buy Back or Restoration
Mr Bagwell replied to Mr Bagwell's topic in Distributions and Loans, Other than QDROs
I could not find the subject in the ERISA Outline book. I looked under Distributions, but to no avail..... Can I get guidance on the section? Thanks -
Distribution Buy Back or Restoration
Mr Bagwell replied to Mr Bagwell's topic in Distributions and Loans, Other than QDROs
Thanks ESOP. This is weird.... and you don't see a lot of these to file away in the permanent file. Our team of 7 has seen one restoration in all our experience....lol. The Plan says The Plan Administrator will account for a Participant's restored balance by treating the Account as consisting of the same Contribution Types and amounts as existed on the date of the Cash-Out Distribution. Does this mean that Pretax goes back to Pretax and Profit Sharing back to Profit Sharing? But, basis tracking has been thrown around many times when reading the boards about the subject. If we have to go the after-tax route and basis tracking, we would have to track the combined amount of original pretax and profit sharing. Correct? -
We have an employee that took a cash distribution early in 2017. Employee has since been rehired and wants to restore her account as there was enough non vested monies forfeited to warrant the restoration. I'm all good with the employee sending back the entire amount and us restoring her account. No real problem there. My question is really for me as I am curious. What about the 20% withholding already done on the cash out? A 1099-R will be sent on the cash out. How does the employee rectify or "get back" the withholding? I'd assume at tax filing of her 2017 taxes, but I don't know. Maybe she doesn't get the taxes "back"... Just curious.
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I think this is the magic I was looking for. He will not exceed the $18,000 in 1/1 to 9/30 plan year. He will exceed the 18,000 in 10/1 to 12/31, which would be for PYE 9/30/2018. From what you are saying I could not max him to 60,000 415 limit for plan year end 9/30/2017 because his catch up for 2017 will actually be in the 9/30/2018 PYE. Please correct me if I said that wrong or if clarification needs to be done for the next guy down the line......
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Question about off calendar plan year and catch up. Little different twist than the usual how much question. Plan year end 9/30/2017. HCE employee turns 50 in 2017. Employee is on pace to defer 24,000 in calendar year 2017. The catch up money would be in the 10/1/2017 to 12/31/2017 time frame. I am calculating a cross tested contribution for the 9/30/2017. The employee would not get the benefit of the 6,000 catch up at the plan year 2016 (9/30/2017 PYE) time frame would he? Or to say another way, does the employee get the catch up benefit for 2017 at the 9/30/2018 PYE? I need some clarification because I want to get this right at the get go.