ratherbereading

Interesting. I have a plan where the owners wife and 2 kids get a W2 as well as safe harbor/profit sharing/and max out their deferrals and none of them actually work there. Ever. The 2 kids have full-time jobs other places. Their max 401k contributions come out of one check at year-end. One of the kids over-contributed because they forgot they were getting maxed out at their father's company . . .

Thank you!

I know this has been discussed before, but looking for an answer without having to read through a bunch of regulations, etc. etc. Plan has 2 partners, no EEs. They both get a K-1. Is the limit based on 25% of their combined net/earned income, or is the limit based on 25% of their individual net/earned income? Thanks --

No, he didn't ask for a projected test. He's a Schedule C sole proprietor. He never makes his contribution until close to the tax filing deadline. It's only an issue because for the past 2 years they didn't do their flex 3% safe harbor.

It means I told the client the doctor could contribute 11000 and still pass testing.

Plan has 3 HCEs (2 contribute) and 12 NCHEs. Doctor/owner has until his tax filing deadline to contribute. Last year I gave him 11000 and 6000 was categorized as catch up. Test passed. This year I gave him 8850 and the test passes, the 11000 wouldn't work (change in demographics); however, it show a refund to HCE #2 in the amount of $550 (no SBJPA/Allocable Income/total Refund Amount)-- this in Relius. Then it shows the $550 as catch up to the doctor. Does that make sense? Thank you in advance.

Doesn't your recordkeeping system tell you? E.G. AST, Relius? Or you can Google. 🙂

Me too!!!!!

I am pretty sure clients keep nothing we send them. It's very annoying.

Same exact scenario here. We got them the 3% notice last week so you should be fine if they distribute it timely.

Does anything prohibit a participant from taking a legitimate COVID distribution and using part of it to pay off an existing (non-COVID) loan? Thanks in advance.

Carol, I always print out yours! I was about to suggest your name and realized you were the poster . . .

Ok, I got it now! They really need to reword that!

I do see what you're saying, but the instructions so read that they should be on there until the year after they are corrected, no? I'm taking them off though because it doesn't really make sense to have them on there.

Large plan with late deposits in 2017. Corrected in 2018 with applicable earnings deposited in 2018 and 5330 submitted in 2018. All done. According to the 5500 directions, these late deposits go on the 2019 5500 for the last time, correct? See below--- The total amount of the delinquent contributions must be included on line 10a for the year in which the contributions were delinquent and must be carried over and reported again on line 10a for each subsequent year (or on line 4a of Schedule H or I of the Form 5500 if not eligible to file the Form 5500-SF in the subsequent year) until the year after the violation has been fully corrected by payment of the late contributions and reimbursement of the plan for lost earnings or profits.

Welcome!

Our 3(16) platform specifies we approve all distributions, including hardships. None of our employers want to override our decisions; that's why they utilize it. .

It depends as others have said. The TPA for whom I work, mandates the plan sponsor (i.e. the employer) approve online, or sign off on all distributions, no matter what they are. They have to make sure the hardship distribution is in line with the plan document. Not sure why it would be a big deal for them to know.

No need to apologize!

Our plans have a cash out provision of $200, so anyone with a balance of $200 or less can be forced out. Most of our clients do pay a fee on their participant balances. I find that most of our participants take their money, or roll it over to a new plan or IRA.

But how do you not notice this for 9 years????

No and they shouldn't. We have plenty of other stuff to do so wouldn't be a good idea at all.

Personally, I don't care what it's called. When people aske what I do (which I hate since I am much more than my job!) I just say I work with 401k plans.

In the previous TPA I worked for we would tell the client "It WOULD HAVE BEEN signed on such and such a date..." for missing documents, amendments, resolutions, etc. etc. They always came up with it.

I don't have any plans like that. All mine are with one carrier for all sources.