ratherbereading

Good point. I actually found proof that ERISA plans are exempt from CIP as someone mentioned earlier. I have imparted this wisdom to Matson Money.

That's what I think to, but they insist they are correct ... I asked them to provide me with the language in the Patriot Act that applies to 401k plans. No response.

Yes, I am actually telling you everything. The Trustee (also the Plan Administrator) agreed that this participant should not have contributed without an ID and did not prevent Matson from distributing his money. I had no knowledge about it until after the fact.

The participant is not terminated, however, so he shouldn't have gotten his money.

In the continuing saga of this story ---- the plan paid him out, which is a prohibited transaction. How is this fixed? It's a small amount $160 (401k) and $40 (match). It's already been done, so it can't be undone. My instinct is to tell them to let him start participating and hope the plan doesn't get audited. Now the investment company says he can contribute without a picture ID, but he cannot withdraw his money. He refuses to get an ID....

The issue is this participant has NO ID at all from anywhere, and doesn't seem in a hurry to get one. The financial advisor works closely with the financial institution in question, and the my contact (not the Trustee or Plan Sponsor) believes everything he says. He discourages the client from going anywhere else. I'm not sure, however, the Trustee knows what's going on.

I have a client whose participants all have individual accounts at Matson Money/Trust Company of America. They receive statements that say "xxxx 401k Retirement Plan FBO Participant Name." The plan does not exclude ANYONE from participating. One participant has no ID (he moved from another state and has not gotten a current state ID). The company hired him based on his social security card and previous ID. Trust Company of America refuses to open an account for him citing The Patriot Act. They returned his deferral money and matching contribtuions. Now the plan is in violation of the plan document. Anyone ever come across this? Thanks in advance.

Hi. I have a participant that was paid out in error. Luckily, she never cashed the check, so the distribution was reversed, and her account made whole. How do I figure any gain/loss associated with her account while her money was gone? She was paid out 9/28/15 and the money went back into her account 1/22/2016. Luckily, she has only 1 fund and I have the unit values for said fund for each day from 9/28/15 - 1/22/2016. Thanks in advance!

Thanks ETA Consulting. They are basing it on the fact that they don't want to pay $350 for the amendment...!

One of my client's changed the name of their business. We advised them to change the business name in the Plan document and they refused. Does it matter?

Thank you ETA. That's what I thought, but wanted another opinion.

Can a 401k plan that has insurance still use the 5500-SF form?

Company neglected to take loan repayments from participant's paycheck. Loan taken in 2013. Investment house defaulted loan in 2014 and a 1099-R was issued in 2015 for 2014 for the loan amount. Is there any way to have the 1099-R reversed and the loan paid back now? Participant is still employed. Can this be corrected through the self-correction program?

The document specifically reads that participants can amend their deferral election up to 100% for any bonus.

The plan does not exclude commissions for any definition of compensation. This is the first time they have let someone defer on their commissions. Do I have to have it reversed for this participant because no other participants were offered this?

I have a plan that includes overtime, bonuses and commissions in compensation. The document specifies participants may defer up to 100% if their bonuses. It does not mention commissions. A client gave a participant a commission check and withheld 401k deferrals and matched it. Is this okay to do? The document does not address this.

Thank you!

It allows distributions for death, disability, or retirement. So, while he is at retirement age, he is still working so not technically "retired."

The doc doesn't specifically say no w/d until 65,

I have a plan that is on a McKay Hochman document. The plan does not allow in-service withdrawals. There is a participant who is 69 and wants to withdraw his money and is still working. The base document looks like it allows for that. I can't see anything referenced in the adoption agreement, but the SPD seems to agree with the base document. My co-workers say no, because there is no in-service provision, he cannot take his money. Thoughts? Thank you in advance!

A participant terminated on 2/20/2015. His money is still in the plan. His loan balance as of 2/20/2015 is $1283.33. That was the day the last payment was made on the loan. I am now sending him distribution paperwork. Do I need to accrue the loan interest until his money leaves the plan, or do I use the loan balance of $1283.33 as his outstanding loan balance? Thank you in advance.

I have a balance forward plan with pooled accounts at LPL Financial. Each participant receives their own statement. When forfeitures occur, instead of having a separate forfeiture account, they put the money into the owner's account. I have tried convincing them they need a separate forfeiture account to no avail. They don't want to pay for an account that isn't active. Isn't this a problem for the plan? Forfeitures are supposed to be allocated yearly. Is there regulation I can quote to convince them to have a separate forfeiture account? Thanks in advance.

No mention of true ups and I am referring to the adoption agreement. Do not have the basic plan doc. The exact language is, "The computation period for determining the Employer matching contributions shall be determined by the Employer at the time that the amount of such contributions are determined."

I'm not sure. We just took over the plan from another TPA. The previous 2 years there was no match. Not sure before that.

The document does not specify!