Jim Chad
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Posts
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Everything posted by Jim Chad
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I lean toward this correction. We have no ability to change section 402(g) of the tax code but we can add a new limit that did not exist before. Evidence of this idea is that the Empower correction form has a separate block for Plan imposed limit refunds and a separate block for 402(g) refunds.
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Thank you, Bri.
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Plan was amended, HCE's limited to 4.5% deferral. An HCE that termed deferred 28%. So ADP test fails. How do I correct? Is there any basis for refunding the one HCE his excess and not count the refund in the ADP test?
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The two plans will have the exact same ownership. Do we need to combine the plans for testing for Top Heavy?
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A 401(k) is TH and has SHMAC and prevailing wage. No discretionary match or discretionary non-elective. Is 3% TH required?
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A standardized prototype is deemed to pass and allows you to give nothing to an employee who terminated with less than 500 hours. I have a volume submitter document that has each person in their own group. Can I exclude this employee form testing?
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This is an IRS code making them non employees for payroll. But the DOL does not have such a regulation. So for pension purposes, they might be employees.
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Aren't real estate brokers an odd group? Isn't there something unusual they can do that no one else can do? I think they are statutory non employees? Derrin Watson refers to code section 3508
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I agree with Bill.
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I believe the first plan year will have to be 12 months long. Can anyone confirm?
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401(k) Contribution Due Date - Over 100 Plan Participants
Jim Chad replied to Stash026's topic in 401(k) Plans
The DOL would say that the part of their regulations that count for Plans over 100 is the part that says "As soon as reasonable" . They think that payday is reasonable, with modern computers. The 15th business day of the following month is when they come for you with handcuffs. -
I do them all in December.
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Partnership has a calanedar year plan putting deferrals for 2018, for partners in on July 1st. How do you think the IRS would view this on an audit?
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Plan Sponsor For Years Over Contributed to 401(k)
Jim Chad replied to Cardscrazy's topic in 401(k) Plans
NO. because if you do not cap compensation properly, the IRS would say that you have a discriminator match. IMNTBHO -
I think I agree with Bird. I think starting a 401(k) will make all contributions in the year the 401(k) started, ineligible. If it is early enough in the year, this may be such a small problem as to be worth it.
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The gate way is just for cross testing. So, no.
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FWIW This sure looks like a illegal CODA to me.
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One idea is to change to a "Jun1, 2019 to May 31, 2020" plan year. Then deferrals could be maxed in 2019.
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Did the 1099 show the whole $160,000 as taxable?
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FWIW I think that when you have an election form, the make up is what the election form says. Or is that the old rule? Can anyone help? O
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Please tell me if I am missing something. Plan is TH first year 64%. 3% is around $9,000. Discretionary non-elective of $1,400 would make the TH percentage 59.9 %. TH test is Accrual for the first year ....isn't it? Am I missing something?
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LLC taxed as Partnership, has 2 owners in active management. The 3rd owner is not active and not deferring. I want to include him in testing because his zero will help. Is it correct to include him in testing?
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FWIW....I agree with Luke. He resumes employment on the day he starts work.
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I think he is saying that taking money out of a QDRO account is not subject to 10% penalty. But if he rolls to an IRA, it will not be QDRO account. Then, when he takes money out, he will be subject to the 10% penalty.
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temp worker, initial eligibility
Jim Chad replied to M Norton's topic in Retirement Plans in General
I don't think that is quite right. I believe that once the person goes on the payroll of the company, his service as a temp does count. See Kevin's answer above.