coleboy

LOL...thank you. So the employees still have the choice of rolling it into the new 401k plan even though the MPP has the QJSA? Does the QJSA not matter because the plan is terminating?

While working on the year-end for a new safe harbor 401k, the census and salary information that we received form the payroll company reflected some employees with "On Call" and "Prevailing Wage" Earnings. Our document uses W-2 earnings as the definition of comp. Not sure what "on call" earnings are but the prevailing wage, I believe, is under the Davis Bacon Act. Should this have been addressed when setting up the plan? Do we just ignore the prevailing wage and only use their W-2 earnings?

A potential client currently has a money purchase plan. They want to start up a new 401k plan. They plan on terminating the money purchase plan. Can the participants choose to roll over their MPP money into the new 401k plan? Or can they only roll it into an IRA?

Our client is an LLC taxed as a partnership. There are 4 partners ( all family members). We received their copies of their K-1's. All 4 reflected the same amount of earnings in Box 14. A= $321,347. C=$658,390. Is this normal? Do I use the same amount to for everyone? Or do I divide those numbers by 4 to get the individual earnings for them? Also, would I add A & C together? Thank you!

So, he will receive a match on the deferrals that he never made? Does it go in as a match? Or as a QNEC?

A client missed starting an employee's deferrals and discovered the error less than 3 months later. The plan has a match. I understand that, being 3 months or less, no QNEC is needed but what about the match. Does anything need to be done about the missed match?

Client has failed their ADP test. Test was completed and client and participants were notified right on 3/15/17. Refunds were also requested on 3/16/17. Will they still be subject to the 20% penalty since this all happened on 3/15?

And her earned income is calculated from her k-1 earnings, correct?

Our document uses W-2 income. Working within a payroll company, we get to see all the bits and pieces of compensation. Should shareholders health insurance(SHI) and auto reimbursement be included in the W-2 income for compensation purposes?

One of our clients is a LLC Partnership. One of the partners takes a draw each pay period from which 401k deferrals are taken but no match is done. It's now year-end. Is the match determined using the total draw income or will it be calculated based on her K-1 earnings?

I was given a new 401(k) plan to administer for a small business consisting of only a few employees. Immediately after the plan was made "active", the owner rolled over some money into the plan. She has since taken 2 loans out against this rollover money. She is not making any contributions and no one else has signed up for the plan. This is the 2nd plan that I have where the owner rolls money into it for the sake of being able to take out a loan. Again, no other employees are contributing to it. Is this legal?

Hi, So is everyone saying that if a plan allows for in-service distributions regardless of age, a participant can choose to pay it back within 60 days?

Thank you BG5150!

Hi, Form 5500 is done on a cash basis. Profit share contribution isn't done until after year -end. Can client still claim the profit share deduction on his 2017 corporate return even though the Form 5500 won't show it until 2018?

Ok, the client is basing his corrections off Rev. 2013-12 that goes with the 50% correction. I feel that the Rev. Proc. 2015-28 is the one that should be used as it's the most recent. The client is going by the example which, to me, is outdated especially when they're using 2006 salaries in the example. So which Rev. Proc. should prevail?

My sentiments exactly. I had to ask since my boss owns a payroll company. Thank you!

Client pays employees commissions out of which comes the elected 401k deferrals. It was discovered at year-end that deferrals were never taken out of those commissions. Two questions, under the Revenue Procedure 2015-28, would the QNEC be 50% or 25% of the missed deferral since it was discovered at the end of the plan year? Secondly, the payroll company has said that they might be able to re-do the W-2's of the employees involved if the employees wanted to make up the difference between the client's QNEC and the amount of the deferral that was missed. That would involve the employee actually giving back some of the money that he earned. Please advise. Thank you!

Yes, the default investment is the money market.

Safe harbor plan with a 3% SHNEC. 3 month eligibility. Definition of compensation is shown as follows: 16. Pay Before Participation [ X ] Exclude pay earned before participation in the Plan from definition of Compensation for the following purposes: a. [ ] Matching Contributions b. [ X ] Non-Elective Contributions NOTE: If selected, Compensation shall include only that compensation which is actually paid to the Participant during that part of the Plan Year the Participant is eligible to participate in the Plan. If not selected, Compensation shall include that compensation which is actually paid to the Participant during the period specified in A.13b. To calculate the SHNEC do I use the whole year's compensation for someone who enters during the year or do I base it on the above election?

Thank you! I was looking at the ASPPA RPF certificate course to start. Looks like it's a prerequisite to their our courses leading to designations. I see that they offer 50% if i sign them up for all 6 topics at once. However their match seems a little off! They are $155 a piece but their 50% discount comes to $480 instead of the $465!

Thank you everyone! As usual you've been a big help. I don;t see too many clients putting in a profit share anymore.

Do I just allocate the remainder to the non-HCE's on a pro-rata basis as well?

Plan as a pro-rata formula for profit share. CPA tells client to put in $100,000 for profit share. However, HCE maxes out at the $54,000 limit so only $60,000 of the amount is allocated. Client is not happy. Boss tells me to "make it happen." Can the remaining $40,000 then be allocated to the non-HCE's?

I am looking into training and development courses for 2 employees. One has no 401k experience and the other has some basic knowledge. I know there's a few different organizations out there that offer courses. Right now I'm looking for one that offers the basic ABC's of 401k administration. Any suggestions?

Employee signed up for 401k in June 2016. The appropriate deferral amounts were taken out of his paychecks. However, the funds that he selected were not set up. Hence, his contributions were just going into the default money market account, A year and a half later, he just notices this. What correction must be done to make the account whole? Apparently the client had just notified the payroll company to start the deductions but never sent the enrollment form to the recordkeeper to set up the chosen fund allocations. Thank you!