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Everything posted by ratherbereading
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If what you are saying is true then I'm not sure why you would not get one. There is no last day or hour requirement for a safe harbor contribution. If they are making a safe harbor contribution for 2017 and you were there during 2017, even if you worked for 6 weeks, you should get on. I'd definitely talk to your HR department.
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I think the key words are: may be amended. It sounds like the safe harbor feature is the flexible safe harbor, which means your employer can choose each year whether to make it. Did you get a notice around November of last year stating the company would not be making a safe harbor contribution for 2017?
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Partial plan termination - employees fired for dishonesty
ratherbereading replied to rblum50's topic in Plan Terminations
Hope it helps!! -
Partial plan termination - employees fired for dishonesty
ratherbereading replied to rblum50's topic in Plan Terminations
Maybe the link at the end will help. And to answer #2, yes they would be 100% vested if it really is a true partial plan termination. Why wouldn't they be? As a college professor said once about fairness in life, "The fair is on 38th street." But really, you only have the employer's word saying they were dishonest. I have a plan who has a participant who was fired for attempted murder and he got a distribution. https://www.irs.gov/retirement-plans/retirement-plan-faqs-regarding-partial-plan-termination -
We do our 5500s on an accrual basis, so the 2017 contribution goes on the 2017 5500 no matter when it was made. The bigger question is why is anyone on here on a weekend??? That's awful!!!
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Wrong Loan Interest Rate
ratherbereading replied to JKW's topic in Distributions and Loans, Other than QDROs
No, the interest rate is not hard coded into our documents. -
Wrong Loan Interest Rate
ratherbereading replied to JKW's topic in Distributions and Loans, Other than QDROs
The participant was a NHCE and the interest rate was a small amount higher. -
Wrong Loan Interest Rate
ratherbereading replied to JKW's topic in Distributions and Loans, Other than QDROs
This happened to one of my plans and we left as is. The plan was stuck with the terms, incorrect as they were. -
Wrong Loan Interest Rate
ratherbereading replied to JKW's topic in Distributions and Loans, Other than QDROs
I don't think you can change the terms of the promissory note that the participant signed even if the plan requires a different interest rate because the note is a contract between the plan and the participant. -
Cross-Tested notice to Trustee
ratherbereading replied to 401(k)athryn's topic in Cross-Tested Plans
This was really interesting. I've been doing this since 2001 and have never had to provide a memo to the trustee, just an email with the report.- 17 replies
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- new comparability
- padilla
- (and 3 more)
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Cross-Tested notice to Trustee
ratherbereading replied to 401(k)athryn's topic in Cross-Tested Plans
I've never heard of the Padilla memo. When our TPA provides the allocation to our clients, our software splits everything up between 401k/PS/Safe harbor. That's what we give to our client. Same procedure in the last TPA I worked for. Usually my client is also the trustee.- 17 replies
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- new comparability
- padilla
- (and 3 more)
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Partial Plan Termination and de minimis distributions
ratherbereading replied to ldr's topic in Retirement Plans in General
99% of our documents don't have an auto rollover option- -participants are cashed out if their balance is $200 or less. Our $125 fee is taken out of that. If our fee eats up their balance, they get zero. -
Partial Plan Termination and de minimis distributions
ratherbereading replied to ldr's topic in Retirement Plans in General
The TPA I work for charges $125 per distribution regardless of the balance since that is what's noted in the fee schedule. So if someone has a balance of $100, it all goes to the distribution fee. Hope that helps. -
Is the match discretionary? If so, they aren't obligated to make it even though they promised. If employer contributions are deposited more than 30 days after the federal tax return due date, these contributions will count toward the 404 (I know you said that's not an issue) and 415 limit for the following year. If the employer contributions are deposited after the federal tax return due date, the 404 and 415 limit could need closer review and potentially be problematic
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Staff Employer Contributions Sitting in Owner's Account
ratherbereading replied to ratherbereading's topic in 401(k) Plans
Not my call. I don't own the TPA for whom I work. -
What actually makes them nightmares is multiple loans and clients who make incorrect payments or no payments. I encourage my clients not to include loans. People need to manage their finances!
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This is why loans are a nightmare and shouldn't be offered in a plan!
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I would say yes because it's a new hardship.
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Staff Employer Contributions Sitting in Owner's Account
ratherbereading replied to ratherbereading's topic in 401(k) Plans
Thanks all! -
Staff Employer Contributions Sitting in Owner's Account
ratherbereading replied to ratherbereading's topic in 401(k) Plans
Yes, I guess I am!
