ratherbereading

Maybe "crime" isn't the word I was looking for. Unethical maybe? But I can fully understand why you would consider that route - no judgment. Please do keep us posted.

I'm so sorry you are going through this. It definitely is a crime to falsify date, so I wouldn't do that. Others may have different advice, but can you consult an attorney versed in employment law? Also, many employers are sympathetic to what their employees are going through. You may be surprised. Here is an article that may help your situation -- https://americanaddictioncenters.org/rehab-guide/with-a-job I also recommend counseling so you are not going through this alone. One step at a time.

Buddy- best wishes to both you and your wife. Life is short, enjoy your trip!

I get it- our tpa owner said do what the auditors say to do but our compliance dept is researching it.

They do it because they feel that since the match is discretionary they can put it in whenever they want...

Thank you Kevin

Good morning-- I hope someone can help with this -- Larry Starr maybe? We have a plan who does not fund their discretionary match until 2 years past the plan year end (12/31) Ex: the match for 12/31/16 was funded on 6/5/2018. The auditor is saying that earnings should be calculated on the late matching contributions. I cannot find anything on this other than making the ER contribution prior to the filing deadline of the employer’s income tax return, including extensions, if they want to take a tax deduction, which they didn't. Has anyone heard of this, or can anyone site a regulation? Thanks!

I believe they can as a voluntary plan amendment has to be signed on the last day of the plan year in which the change takes effect, so they have to sign by 12/31/2019.

Can't they just have it forfeited from the participant's match source?

As you noted above and any eligible employee regardless of plan participation.

Yes. I do agree with you there!

My memory of the events was a little fuzzy so my original post was a little off. What actually happened was the plan in question was amended to exclude the participant from any employer contribution for 2015. Per the legal settlement agreement with the employer (she had sued them for discrimination), upon her voluntarily termination in 2015, she waived all rights to any employer $$ in exchange for a $110,000 settlement from the employer.

First, Larry, I didn't decide to do this willy nilly. Second, we have ERISA attorneys on staff as well as our owner, who knows what he's doing (with at least as many initials after his name as you have, lol!) We are one of the top TPAs in the country. So, no, I didn't cause any problem, it was totally legitimate. If I remember the plan involved I shall give you the details.

This happened with one of my plans 2 or 3 years ago. We had the trustee draft a letter and the participant signed it stating they forfeited all rights for future contributions -- something like that. It was an ugly breakup and they gave the participant a bonus upon termination because they wanted to get rid of them. So no PS or SH for them.

Is there a human resources person he can speak to that can contact the Third Party Administrator, if they have one, administering the plan? I know for the TPA I work for it's the plan administrator that decides if a hardship meets all qualifications, not the 401k provider (e.g. Nationwide, MassMutual). Not sure if your husband's situation is the same re his 401k plan. Hope it works out for you!

What does the plan document say re age to participate? Our documents state that you have to be 21 to participate.

This is a small company - doctor's office - they don't have an attorney on staff, but I did advise them to contact one.

No that wasn't her plan at all.

Yes that is what I ended up doing!

Yes, that provision was added with the Bipartisan Budget Act; however, you don't need to allow it. Our TPA has chosen not to allow our clients to use Safe Harbor $$ toward hardships. Here's some reading on it: https://www.asppa-net.org/news/irs-issues-new-guidance-hardship-distributions

I'm not missing the point, but thank you for the help!

All the research I've done indicates that an IC is classified as a non-employee, and the plan document defines wages as W2 wages.

No one advised her to change. She wants to change due to tax reasons, as she puts it.

The office manager in a plan I administer (profit sharing/3% safe harbor) wants to be become an independent contractor paid via a 1099 instead of a W2 employee. Nothing in her job would change, just the way she is paid. I know this would make her no longer an employee, and she would no longer be able to participate in the plan, but not sure how to advise her on the myriad of other things it could affect. She is also the HR person, so I can't refer her to the HR dept.

"Dear" isn't like the word Darling. It's a business convention—the way we open a business letter, even if we don't like the person. Similarly, "Sincerely yours" is the convention we use to close a letter, even for someone we have never met and to whom we definitely do not belong.