coleboy

Hi, Have the 2017 limits officially come out for FSA's, Transit and Parking?

Client is a C corp. Owners are employees who are both enrolled in non-group medical plans. They want to set up an HRA so they can be reimbursed for medicare B, medical supplement and RX plan. This will not be available to employees under age 65. Under age 65 employees are in a group medical plan with no HRA. Is this type of arrangement possible?

I have a participant that wants to roll over money from his former employer's ESOP plan into his new employer's 401k plan. The 401k plan does allow for rollovers. Is this possible? Would he be better off not rolling it over? Thank you.

We have a client who is a non-profit organization. They want to do a profit share allocation based on the following: 1% for less than 1 year of service 3% for 1 to 4 years of service 5% for 5 or more service of service. Is this possible? Would they have to go with an individually designed document? Or would a non-standardized document work? Is this considered a points method allocation? I have never seen one done before. Any thought, opinions, comments are welcomed! Thank you!

I have a plan that started 1/1/2015. It has 1 year of service and 1000 hours for eligibility. It also had open enrollment on 1/1/2015 to allow employees to come in that had worked for another company. My question is regarding the count on the Form 5500. I have informed them that they need an accountant's report since they are a large plan. They are given me push back on it. My counts are as follows: line 5 is 124. 6a(1) 0 6a(2) 115 6b 0 6c 5 6d 120 6g 37 Is there any way around not having to file as a large employer? Thank you.

An employee recently went under the Medex 3 plan and is no longer eligible for the company's HRA plan. She had 2 dependents when she was under the regular Are those 2 dependents still eligible to be in the HRA and under the company's regular health plan? Thank you.

I don't have any details on the SEP but I would think that the money she put in would be considered an employer contribution which should be allocated to other eligible employees. Since SEP's only allow for employer contributions, could she then make an additional employee contribution to the 401k side for herself?

I don't know what the document says as this was just a question posed to me by a broker.

Sponsoring employer is a partnership who reports their income tax returns on a fiscal year basis ending August 31. The plan is a calendar year 401k with a safe harbor match. Does the partnership report calendar year income for determining wages for the 401k or does they use their fiscal year income for 401k purposes ie calculating the match?

Hi, I have a client who is a sole proprietor who set up a 401k plan a few years ago. We took over the plan last year. Apparently back in early 2015, her accountant told her that she could not participate in the 401k plan as a sole proprietor. Her financial adviser then set up a SEP for her only. Now her new accountant told her that this is wrong and she needs to put that contribution into the 401k plan and get rid of the SEP. My question is that can we move her money from the SEP to the 401k and count the $18,000 contribution as if it was made to the 401k for 2015? She wants to get the $18000 contribution that she made to the SEP into the 401k plan so she can get the SH match.

I have a client who terminated their 401k plan and merged its assets with an MEP plan. Now it wants to leave the MEP plan and start another 401k plan. Plan id will be 002. Is there anything I should be aware of when setting up this new plan? Thank you.

Hi, I am trying to upload a year-end report form American Funds. American Funds doesn't help as they say that they don;t work with FT. Williams. FT Williams gave me an outdated link and finally asked that I give them updated instructions when I figure out which report it is. Does anyone know which report is used for FT. Williams? Thank you.

Possible new client wants to set up a 401k before year-end. The goal is to maximize the 3 equal owners. That's fine. I just found out that the same 3 owners own another company equally as well. They don't want to set up a plan for this company at this time. Shouldn't the employees of the second company be eligible to participate in the plan of the first? They will have to be included in the coverage testing, correct? I have very little experience working with control groups so I'm uncertain how to proceed. Thank for for any insight, anyone can give me.

ESOP Guy, it was the former employer who threw the check out not the employee whose check it was. I would think the former employer would be responsible but I guess there's no way of forcing the issue. Thank you to those who replied.

A former employee requested that their 401k benefit be rolled over to his new employer. According to the plan set up with the fund carrier, all checks are sent to the former employer who is then supposed to forward them appropriately. In this case, the former employer supposedly accidently threw the check out. He was supposed to have the check reissued but never did. Now this sizable benefit has been sitting in limbo for almost 2 months without being invested. Is there some recourse to being able to get some earnings on that amount?

Thank you for all of your replies. For some reason, I was under the impression that filing the same as in the previous year was only a one time deal once you reached over 100 lives.That is, one could only use it for the first year that they were over 100 lives then had to switch over to the Sched. H after that first year. Thanks again for the clarification.

They have been filing the Sched. I for 2013 and 2014. Their beginning count balance will be just over 100 employees but no less than that. So for 2013 and 2014, the beginning counts were over 100. Can they still just file a Sched. I for 2015? I don;t think they will ever drop below 100 but it may be a couple of years before they go over 120 employees.

Hi, Can someone please clarify the 80-120 rule? New takeover client. For 2013, beginning count was 105, ending 112. For 2014, beginning 112, ending 102. Won;t they need to do a Sched. H for 2015?

I am trying to find out more details. Unfortunately I'm not getting much cooperation. I learned that the new company has no immediate plans to move the company that they bought into their plan. Hence, at least for 2015, the "bought" company will have to have their own plan. The question now becomes whether the participants account balances just get moved into the new plan or do they participants get to choose to rollover their money elsewhere. It's frustrating as I only get bits and pieces of info. The former company was part of a control group. I will tell them that they should consult an ERISA attorney as I don;t want something to come back at me..

A participating employer under a 401k plan is sold. How does that affect the employees in that participating? They haven't terminated their employment nor has the plan that they were under terminated. Can they set up a new plan of their own if the new employer doesn't want to merge them into their own plan? If so, are the assets just moved over into the new plan? Thank you.

It's very possible that this is an ASG since the corporation is an architectural firm and the LLC is a building company. I have not worked with such scenarios that often. So would there only be one plan?

Here's the scenario: Company 1- Owner A 50% Owner B 50% Assistant Company 2 - Owner A 25% Owner B 25% Owner C 25% Owner D 25% Owners A & B want to start a separate 401k plan for each company. In company 2 they also want to do a profit sharing contribution to try to max out their contributions. They don't want to do a profit sharing contribution for Company 1 because they don't want to pay the 60 year old assistant a profit sharing contribution. Is this possible? Can they have 2 plans with different provisions? I seem to think that what they do with one company, they have to do with the other. Please advise.

The plan has automatic enrollment with a 90 day opt out period. Employee was automatically enrolled either before or during her maternity leave. The 90 days have since passed. Employee wants to opt out and get her money back. Client wants to know if there is any extension for the 90 period. She says she "forgot" to let the employee know about the auto enrollment coming up.

Don't I have to subtract her 401k contribution which was $16900?

Yes, this is the net Schedule C income before any 401k contributions have deducted. Now 2 different amounts have been calculated. Which is the correct way? Don't I have to take into account the 1/.2 SE tax plus medicare & FICA etc. Thank you.