ratherbereading

What does the plan document say? Generally, an in-service can be taken from Roth ... After participant has reached age 59.5 (or died or become disabled), and At least 5 years after the first day of the calendar year in which participant first made a Roth contribution to the retirement plan.

This may help even though it's a few years old . . .

In our office we mail the 5330 to the client and instruct them to mail it in with their check. We sign as preparer and they sign as plan sponsor. Hope that helps!

I addressed this before but I have a plan whose owner maxes out his wife and his 2 daughters, and they all have no show jobs. So while they are "participants" and "employees" in that they get W2s; get 1000 hours each year on the census, and get the SH and PS allocation, none of them actually work there.

Hi David. Yes, it does.

The president of our TPA is in agreement with letting her take an in-service withdrawal. She is not terminated yet, so had we the broker not mentioned she would be terminating in November, we wouldn't have known and she would be eligible for an in-service withdrawal since she's still employed at this date.

We solved this by giving her an in-service distribution since she's still employed.

Hello. I have a participant who is 76. She is retiring 11/30/17. She wants to roll her money to an IRA, and then before 4/1/18, take the RMD from her IRA. Our procedure is to process the RMD first, and then the distribution. Can anyone point to IRS information that says she can go ahead and roll over her money without taking the RMD and then take it from her rollover? Her financial advisor is pushing us to do it this way. Thanks in advance!

I just had this come up the other day! A participant can only take a ROBS from a previous employer plan. See attached and this as well--- How To Set Up A ROBS IRS_robs_guidelines.pdf

The problem can be rectified by making a qualified nonelective contribution (QNEC) to the plan on your behalf, and as in the case of other operational problems, the error can be fixed through the Employee Plans Compliance Resolution System (EPCRS). Is the plan administered by a Third Party Administrator? They can step in and help. I've done this for my clients who have neglected to withhold and contribute participants' 401k deferrals. https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-correcting-a-failure-to-effect-employee-deferral-elections

No, no confusion between a loan and hardship. She is only taking a portion as a hardship; therefore, some of her money will still remain in the plan

After discussing this with our TPA's ERISA attorney, yes, the alternate payee may take a hardship from her account as long as she meets the requirements, and she does.

The plan does not prevent the spouse (alternate payee) from taking a withdrawal, but for some reason, they want to leave the money in the plan and take a hardship.

Can an alternate payee (ex-spouse) request a hardship from the Plan? I have an alternate payee that wants to do this. The plan document is silent on it. They first wanted a loan, which obviously they cannot have because payments cannot be made via payroll. Not sure about hardships though. Thanks in advance!

Thanks ETA Consulting!

The 401k amount for that payroll was $3,564.57; the profit sharing amount was $2,202.66, and the match amount was $679.72. So it does constitute a problem!

Good morning! I have an ERISA 403(b) plan who used forfeitures to offset one payroll. The payroll, however, included deferrals, profit sharing, disc match, and loan repayments. Total allocation was $6847.96 and it was offset by $4610.39 from the forfeiture account. They do their profit sharing and matching contributions each payroll. What's the fix? Thanks in advance!

The document says "The computation period is on a payroll basis." I think they are fine.

I have an audit plan and they made 1 late discretionary matching deposit in 2016. It was 2 weeks late due to a glitch in their payroll system. Their plan document was amended to allow matching contribution, made on an a payroll basis, as of 2/1/2016. All their 401k deposits are fine. CPA wants them to go through SCP or VCP in case the plan ever gets audited. And he wants us to submit a letter stating that this is not an operational failure in case they get audited in years to come. I'm thinking neither is necessary. Is this an operational failure? Thanks in advance!

I followed Tom's advice and it worked!!!! Thank you so much!!!!

To answer everyone's questions--ADP only; 4,000 plus people; Tom Poje- good idea! If anyone has a spreadsheet they can share please send to cwoien@tpsgroup.com Thank you!!!

Does anyone have a spreadsheet they can share with me on calculating ADP refunds manually? Not the gain and loss, the actual refunds. We have a plan that we don't put in Relius, so everything is done manually. Thanks in advance!!

Hello. Anyone know what the limit is on participants in Relius? I just received a plan with close to 5,000 participants from another administrator in my company. It's not on Relius because of its size, so testing, eligibility is all done manually. Does anyone have a plan this large that is on Relius? Thank you in advance for all replies!

Later reply but I totally trust the CPA on this. He's very close to the client, he signs the 5500 for him, does all the payroll, so he is definitely telling the truth.

Just don't get acquired by United Retirement Plan Consultants!! They are bad news.