LMD1

Terminated DB plan transferred overfunded assets to QRP. Currently they are still in the 7 year period to allocate. If the sponsor is looking to sell the company, can the new sponsor keep and allocate the suspense assets or does the excess have to revert back to the original sponsor?

Plan has immediate eligibility for salary deferrals, but has a 1 year of service for Safe harbor non-elective. No other contributions in Plan. Assets are greater than 60% for Key EE's. I know plan is subject to ADP testing for the otherwise excludable group. My question is: Does the deemed not-top heavy rule apply to those with less than 1 year of service and who are not eligible for the SHNEC? Or, are they required to receive a top-heavy minimum?

PS plan terminating with merged MPP assets subject to J&S. If MPP portion is >5K and participant is missing or unresponsive, can we roll their funds to an IRA or must we purchase an annuity?

Non Owner Participant dob 6/28/46, terminated from company in 2015. Wants to roll over his entire balance to new employer plan before attaining age 70.5 to avoid RMD. Is entire balance eligible for rollover since he will turn 70.5 in 2016 but after the distribution? Or do we have to process an RMD and rollover the balance? Thanks in advance for any direction.

Thank you. I have only found instruction on the steps you outlined, which is assuming they are working on an accrued method. I couldn't find any guidance on the calculation for the cash method for Schedule C.

I have a sole prop with common law employees. The Schedule C is done on a cash basis method of accounting. The 2015 Schedule C includes the 2014 deduction of the employer cost of the retirement contribution for common law employees. Do I use this net schedule C as the basis to calculate the self employment tax to determine the owners plan compensation? Or, do I add back the 2014 deduction, deduct the 2015 employer cost for the common law employee and then calculate the self employment tax?

In correcting a loan through VCP for missed payments beyond the cure period, does the accrued interest calculation require the interest to be compounded?

401(k) Plan - 1 year of service dual entry for non-elective PS and Safe Harbor, 3 mos of service monthly entry for deferrals. Plan is top heavy. Client is allocating a profit sharing so we must meet top heavy minimum requirements. Plan Compensation is date of entry for each source. ee#1 - hired 4/1/13 - enters plan for non-elective ps and safe harbor 7/1/14. Receives combined profit sharing and safe harbor on 1/2 year comp (7/1 - 12/31/14) of 5%. Gateway testing on 1/2 year compensation passes. In addition, making sure it meets 3% top heavy on full year comp. EE#2 - hired 4/1/14 - not eligible for non-elective profit sharing or safe harbor. Since plan is top heavy and eligible to defer, must receive top heavy 3% on full year comp. Now that top heavy is allocated, must test gateway, Correct?. What compenation would I use for the gateway portion since eligible compensation for non-elective ps and sh is $0 since not eligible. If I use comp from participation date for deferrals 6/1/14 - it doesn't seem fair to ee#1. What compensation should I test gateway for EE#2? Thanks!