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We were asked to run a qualified plan proposal for a company in the farming industry. The business has 3 equal owners, and other than the owners all of the employees are classified as H2A employees. Apparently over the course of the year some of the H2A employees work more than 1000 hours. I was told they return "home" and many come back the following year to work again. Are H2A employees an excludable class of employees for coverage purposes, similar to non-resident aliens?

When considering controlled group or affiliated service group issues with respect to a US corporation, is it true that one cannot simply disregard a foreign business owned by that US corp? If that foreign entity employed US citizens?

Mine was shorter. DB tech sppt was way harder than DC. - Joking :)

I remember working at Pentabs in 1992..................barely :)

Mike, this plan has an unusual fact pattern. Of 8 total HCE's, 4 are children of the owners and under 30 years old. They get a very small CB contribution but I'm trying to get them some PS. Due to their age their benefits basis EBAR is much larger than the contributions basis EBAR, and the ABT fails on a benefits basis but passes on an equivalent contributions basis. The kids and some NHCE's are going to be a component plan for testing. The plan as a whole and each component plan passes the ratio percentage test. Thanks for your help. Tom, thanks for the cite!

A CB/DC plan passes coverage using the ratio percentage test. For my 401(a)(4) testing, some rate groups are less than 70%, so for rate group testing I need the average benefits test to pass. Can the average benefits test pass on an equivalent contributions basis, while the a4 rate group testing is being done on a benefits basis?

The assets have not been distributed. I should have included that fact in my original post. Thank you!

Calendar year DB plan. Plan termination date = 9/30/17. The final due date for the 2017 MRC changes to 8.5 months from 9/30/17. The 2017 5500 filing due date does not change, correct?

DB plan NRA is 62 & 5 YOP. The plan sponsor wants to amend to add an in-service distribution provision upon reaching NRA. My question is: Does the law allow the in-service distribution to be mandatory upon reaching 62 or NRA?

Thanks!

Can an HCE Top 20 election in a volume submitter document be amended out any time before year end?

The plan covers 3 owners and 3 spouses. There are no other employees. Each owner has 33.33% ownership.

I was told that the 2016 SEP contribution (deposited in 2017, I think) exceeded the allowable limit so the "excess" is being applied as a 2017 contribution.

Company has an IRS Model SEP and wants to start a new CB plan. Can they start the CB plan for 2017? Does it matter if any SEP contributions have been made yet for 2017? If they cannot start the CB plan under the current situation, can they terminate the SEP before year end and then adopt the CB plan before 12/31/17. Is there any way that they can start the CB plan for 2017 and be in compliance? I was under the belief that if the IRS Model SEP existed at any time during 2017 then they cannot start a qualified plan, but I have never faced this situation in actual practice.

I have done some more research and that "separate employer treatment" is consistent with what I am reading for a PEO that is multiple employer plan, which this is. Thank you.

I have no experience (yet) with PEO's. Doctor participates in a PEO 401(k)/PS plan. Doctor wants to start a CB plan only for her business. I think that is OK so far? To pass a4 CB plan needs a PS combo. How do I handle the PEO K and PS contributions for a4 testing? The PEO PS provisions are individual classifications and no allocation conditions, so I guess they should be able to contribute what is needed for these people, if I can use it. Is it just like it was a single employer PS/k plan for a4 purposes? Or, should the doctor just start both a CB plan and a PS plan?

They are showing compensation for each spouse as "guaranteed payments" from the LLC. It may really be W-2 but that is not the way they are showing it on the spreadsheet.

Running a CB proposal for a LLC taxed as a partnership. 3 partners, each with 1/3rd ownership. Each partner's spouse is listed as having guaranteed payments of $200,000 in 2016. Assuming that this is not really W-2, is there any legitimate reason a spouse could have guaranteed payments?

Congrats Mike - and thank you for always being very helpful!

Is an H2A agricultural employee an excludable employee for qualified plan purposes? So far, all I know is that these employees work 9 months per year in the US. Are there other questions that need to be asked and answered in order to determine if they need to be included for coverage testing? Thanks.

That is the conclusion I came to in order to be safe - live with the current provisions for 2017 and amend for 2018. I really appreciate all the input. It is a very interesting discussion. Thanks.

401(k) Plan with no safe harbor provisions. Current NEC PS allocation is an integrated allocation. Participants employed at the end of the year have a 0 hours service requirement. Participants that are not employed at the end of the year have a 500 hours of service requirement. As of today no participant has terminated employment in 2017 with greater than 500 hours. Can the plan sponsor do an amendment now to change the allocation formula to individual classes?

Thanks to both.

A defined benefit plan retiree was receiving monthly payments on a life annuity. The checks issued since January 2016 remain uncashed. The plan sponsor has now determined that the participant died in December of 2016. I think it is not a problem to stop payment on the checks issued after December 2016, but what do they do about the uncashed checks from before the date of death?

I am wondering whether 35 years is required because of the excess piece.