Soundbc1

Thanks for confirming my understanding.

A 401k plan owns company stock, in fact owns 95% of the company stock. One participant has more that 5% of the company stock within his account balance, no company stock outside plan. Is he a more than 5% own of the company? Thanks,

In my many years of practice, I have never ran across this question: Can a plan have an "inservice rollover" provision for any reason? No age restrictions or years of service provision. I have never seen this in a pre-approved plan document. Several internet providers are saying this is possible and we know how reliable the internet is. Could it be done with an IDP?

I use the Efast system directly and get the same "warning". I go ahead and sign, then submit. It then wants to know if you want to submit anyway. I hit submit. I checked "filings recieved" and it shows the DOL got it.

Could there be an amendment effective 2015 hiding out there? I could be naïve in my old age, but it is hard to imagine there are still "bad" TPAs. On second thought, I worked for a bundled provider 7 years ago, I pointed out what they were allowing in a plan I reviewed was an operational failure. They acknowledged it was, but they didn't want to change because "it might upset the client" and the bundled provider had been doing it wrong for years. I stuck around for about 3 more weeks and started my own firm.

Reminds me of the CPA, who got caught back dating documents, way back during the TRA '86 restatements. He was fined $200K and barred from ever working on qualified plans. He was having his clients back date the previous document (DEFRA). He needed to submit the old docs to the IRS, along with the TRA documents. The problem was the old documents were printed on a laser printer, "when the laser printer hadn't yet been invented".

As far as I can tell the responsibility is on the service providers to document they discussed/ determined it was in the best interest of the participant to roll to an IRA. The plan sponsor would not have the necessary information to make determinations if the IRA service provider was acting in the best interest of the participant. The participant would need to hand over personal/private information to the plan that the plan sponsor/trustee has no right to demand.

Just musing before going in to a meeting. Under the new DoL Fiduciary rules, wouldn't a promoter of a ROBS plan become a fiduciary under the new rules? They are being paid a fee and recommending the client move funds from and IRA to a qualified plan for the purpose of purchasing employer stock. I got to go.

These are low paid individuals, I suggested they may want to go to "legal services" to start the process for a legal separation. Thanks Have a great weekend

Have a new 401(k) plan and am doing enrollments. This question came up twice: Both employee are separated from spouse (not a legal separation), they have not spoken in 4 years, one only knows the general where abouts, the other knows the spouse is in prison (domestic violence, etc). Neither wants to contact with ex. Suggestions on how to name someone else as primary beneficiary?

Yes

I have used click2mail.com in the past to mail postcards. I think they are affliated with the USPS.

This was common in the 80s and 90s with professionals. You can still file a 5500-EZ. Investments do not determine if it is subject to ERISA, so since not subject to ERISA, they can file the EZ.

I am surprised that no one came back to correct me or agree with me regarding the trust issue. As for the top heavy, I would say it differently, excess only plans brought in to existence top heavy rules, which is slightly different.

It has been awhile since I looked, but for a plan to be qualified, under 401(a), doesn't it have to have a valid trust? Back in the day, early 80s and before, when a plan was set up the trustee would immediately put $100 in the plan to ensure there was a valid trust. Then in the late 80s, the IRS ruled that the deposit wasn't needed, the receivable contribution was enough to ensure the trust was valid. So if no valid trust, no qualified plan for 2016, would be my opinion. Now I haven't read all of 401(a) in a decade, so my memory could be wrong. P.S. - Writing this I realize I have been in this business too long. Am I the only one that remembers, Excess Only plans for professionals?

Mike - I enjoy your to the point replies. Keep it up. Mahalo (may give you an idea where my vacation will be)

I am getting ready for vacation and the brain is elsewhere. Client has a non-complicated profit sharing plan that the attorney put on an individually designed plan document. It is coming up on the end of the 5 year cycle to restate. It doesn't need to be on a IDP and want to save this client money. Can we just do the restatement onto a pre-approved document now?

As Bill and rcline46 pointed out, look for definition of "limitation year", you'll need to know that to also determine if you pro-rate 415 and compensation limit. It will usually be defined as "plan year", "calendar year", or "twelve month period beginning _______"

Jane - I use ft williiam. The document is flexible, software easy to use and the customer service is good. I have used them since 2005. I have also used relius (Corbel), PPA (relius) and datair. These are good but I like ft William overall.

Back in the late '80s, the IRS had a notice out stating that while it was preferable to get a separate EIN for the trust, you could use the companies EIN as long as the investment was titled correctly. The second firm I worked for went crazy with EINs, the Plan Spomsor had an EIN, the trust had an EIN and the "Administrative Committee" had an EIN.

Thanks for the ears, I just wanted to vent before I "let it go". In 30 years, I had never been shown the door with a 4 letter word. There were many "signs" before that I wasn't going to accept her as a client.

To begin with I want you to know that for the last 48 hours I have been in an ER room with my daughter, so my attitude is bad. I have had 1 1/2 hours of sleep. (She is now fine.) I had a prospect for a DB plan (she presently has a solo 401(k) plan) because she wants to put away more. I can design a DB plan for her to put away 192% of compensation. When I asked her for her earnings (W-2) and what she was contributing to her 401(k) plan, her answers first showed she was contributing more than 415 limits and, of course her CPA was deducting more than 25% of eligible compensation for the employer portion. When I pointed this out, she said her CPA of 25 years set up the plan and for me to "F" off. I replied "Merry Christmas" I feel vindictive, is there a way to let the IRS know and get her plan audited? She is cheating on her taxes and we all pay for it. I really just want to vent. Thx for your time.

ETA - Yes there are multiple combinations of deferral, profit sharing and wages, I think you miss the point the CPA is making. He appears to want to minimize the amount of taxes, including FICA, thereby retaining maximum earnings. They should find a wage were he will be able to put $25,000 in to the plan with minimizing all taxes. The CPA should have all the information to determine that. Forgive any misspellings, my glasses are in the car. Happy holidays!!!

Agree with Austin. There was never a plan, without a valid trust.