ratherbereading

Methinks it's time to move on and turn the page!

Retirement age for most people now is at least 66 1/2. You can't collect social security until 62, so curious as to what the benefit is to doing this?

Yes if you're doing it on an accrual basis.

Does the plan document say that part time and seasonal employees are excluded? I believe that IRS guidance will require these p/t EEs to be eligible to participate after working the required number of consecutive years with 500 hours. They can still be excluded from employer contributions if they don't work 1,000 hours in a year. That is my take on it.

It should have been used each year!! Not accumulated.

We cash out anyone with $200 or less. Our fees eat up 75% of the distribution anyways.

Pretty sure I know the answer to this one but just in case ... 401k/PS plan- owner gives his 2 kids (they do not work there ever - they have other full-time jobs) the max 401k and accompanying SHMatch every year. They are on the payroll so get W2s. They do not contribute any 401k monies where they actually work, but can they get a profit sharing contribution from both this plan and their actual plan? No need to comment on the legality of this - been down that road with them. TYIA!

Luke, no they are not an owner.

DC Plan - employee terminated last month. To prevent her from suing the company (no details on that) they will be giving her $8,000 severance pay that will show on her W2. I don't think they give her the guaranteed 3% safe harbor on that amount because it was not given for services rendered and she would not have gotten it had she stayed with the company. True or not? The document discusses post-severance pay (bonus, commission, etc.) but not this. TYIA.

I need some help with this. Participant turned 70 1/2 on 11/16/2019. DOT 12/31/2003. Deferred RMD to 4/1/2020. RMDs were suspended in 2020. Did not take one in 2021. Should the first one have been in 2021? Thanks in advance!

Plan year end is 09/30/2022. Funds at Nationwide. Are RMDs done based on 12/31/2021 balance or the 09/30/2021 balance? Thanks in advance!

That is correct!

Yes you do!

It's not Mr. to begin with. And I cannot wade through your post for fear I shall be put to sleep. Yikes!! And I'm not sure what you are trying to say with your first sentence. Yes, the plan document does indeed say exactly that.

Ah, yes it does! Thank you so much. Should have looked there first!

DIvorced plan participant dies. QDRO $$ was allocated to the ex-wife a few months ago. Plan participant dies last week and his bene is still the ex-wife. No updated bene form was completed. She is entitled to his 401k, correct? His contigent benficiares are his 2 sons.

I am going to hijack this thread. I have a plan terminating also due to an asset sale effective 8/1/2022. Does a safe harbor 3% need to be done for 2022?

Same situation many times. No we didn't report it to the DOL. We had a client or two that we fired for that. Up to them to fix it. I would just resign from the plan and go on.

I turned 65 in April. Signed up for Medicare online in January along with my Advantage plan. No problem whatsoever! Not taking Soc Security until age 70 though because that is the max I will get. If you have an HSA account you have to stop contributing to that when your Medicare kicks in.

Thank you, Nate

The compensation in the document is W-2. Spousal travel in an expense reimbursement (apparently it is $$ paid when your spouse travels with you for business reasons). Document is silent on fringe benefits-- doesn't include or exclude. Thanks!!

Considering gross compensation for plan purposes is Box1 on the W2 + deferrals + section 125 + bonus + commission. What about spousal travel and group term life? Are those also included in gross compensation?

I think your best bet is to use Penchecks. https://penchecks.com/

Is this going to be a thing now? https://www.aaepa.com/2018/11/qdro-not-just-for-divorce-anymore/

Dislike: Too much government interference which, unfortunately, is becoming the norm/ Like: Helps EEs save for retirement/may help testing pass/encourages plan participation/the added bonus of a matching contribution