ratherbereading

Thanks everyone!!

One of my 401k Profit Sharing Plans terminated as of 2/1/2018. There is a terminated participant with a large balance who refuses to send his distribution paperwork back despite numerous follow-ups. Technically, the plan has 1 year to liquidate their assets, but they want to wrap this up. I can't cash him out and the plan doesn't have an auto rollover option. His balance is too big for that anyway. Anyone else have this issues and how did you deal with it? Thanks!

If the plan allows for loans, it's legal. Most of our plans only allow for one loan at a time, however.

jpod, yes the new entity has a different EIN and the plan was restated to reflect the change prior to the end of 2017. I meant to say they went from LLP to a PC.

I have a plan that during 2017 had 2 partners. One partner retired midyear. The plan then went from being an LLC to a PC. The remaining partner received a Schedule K1 and a W2 for 2017. Not sure if I should combine the 2 for the SH calculation, or just use his W2. The retired partner is just getting a K1. Thanks in advance!

Wow! Kudos to your company. I didn't know companies even had this benefit anymore.

Yes, we received the FIS Relius amendment today!

Sammiemor, I have a checklist we use at our TPA but it involves more than testing. If you want it please send your email address and I will be glad to share...

Yes to all the above. Companies have until their federal income tax due date (including extension) to deposit profit sharing/safe harbor contributions/discretionary matching contributions into your account.

If the plan document defines wages as W2 wages, I say no. I don't think it makes a difference that they happen to be employed there for their day jobs as well. If it were outside cleaning people that they were paying on 1099s they would definitely not be included in the plan.

All our plans, safe harbor or not, require a 6 month suspension.

My personal favorite from President Reagan... “The trouble with our liberal friends is not that they’re ignorant: It’s just that they know so much that isn’t so.”

The remaining partner

Thanks!!

A CPA firm went from being a PC to being an LLP during 2017. One partner bought out the other partner and the partner who was bought out has retired. The remaining partner received compensation that will be on a W2 for 2017 for him, but also had some income on a K1. I thought I read somewhere that in this case only the W2 compensation is used for testing, employer contribution calculations, etc., but now can't find anything on it. Is that true? Thanks!

I agree that he can't have a loan for 30 years, or a hardship based on your scenario.

Sorry, that's all I've got...

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!