Jim Chad

Many plans are written to say that the only form of distribution is lumpsum. If your doc says that, he is not allowed to do a partial. He must take it all out. Or at least that is my understanding.

A calendar 401(k) Plan and we just discovered that for a while we were getting Pay period reports instead of pay check reports. So January 3, 2014 Paycheck was included in 2013 year. Do I have to redo the 2013 work? Isn't there some rule about when a pay period spans 2 years you have an option which year to include it in?

FWIW I think Yes.

How is the discretionary match worded in the document? Is this a reasonable interpretation?

FWIW I see possible problems with Section 415 limits and ACP test.

I am trying to think of what harm would be done to play it safe and amend them out of the Plan first of next year. I can't see any authorization to make this amendment and I don't see any harm in waiting.

Does anyone have recent experience with this? In filing VCP will I need all of the amendments for each law change or can I just restate for EGTRRA and PPA?

Company fiscal years were 9-1-12 to 8-31-13 and 9-1-13 to 12-31-13. Plan fiscal years were 9-1-13 to 8-31-14 and 9-1-14 to 12-31-14. With the prorated 415 limit, the owners are really held down for this 4 month year. Can they still make a contribution for the Plan year ending 8-31-14?

The news and DOL talk about diversifying a long time ago and I am having trouble remembering. Was the quarterly PPA notice required to go to everyone eligible to defer or just those with accounts?

John what did I miss? which sentence gives information that says it needs to be acp tested? I'm thinking not.

Thank you everyone.

Round it to Zero or 1 dollar? And would you file a 5500 for 2015?

Individual brokerage accounts with 4 cents left in one person's account, and a penny left in 2 others. ALL this money has been rolled to their respective IRA's. (please excuse the sarcasm)

All but 6 cents was distributed in 2014. I s there a deminimus or do I have to file 5500?

I would think that for $70,000 it would be worth getiting a legal opinion on paying it back to the employer as a mistake of fact

Can you just take it out as a mistake of fact? How did it get in there? Or maybe allocate it as discretionary nonelective for 2013 and file under epcrs.

It is now a plan asset.....so I don't see why not.

Could you take it out to pay TPA Fees?

I would think you would have to require the 2 year rule. FWIW

FWIW I believe they have to be salary reduction.

FWIT I would say 2 ADP tests. Or I should say I would guess at 2 ADP tests. I have nothing to hang that on. I don't think this is covered in the regs.

Austin and MY 2 cents brought up 2 key questions. 1. Are they covered by a collective bargaining agreement where retirement benefits were part of the negotiations? and 2. How many of each group are HCE? next questions are:3. how is this expected to change in the next few years? 4. do you have a TPA that is going to watch this and look ahead? As Austin said there are many ways you could get burned. I have seen this tried and I have been called in to fix it when it blew up. And, also, I have successfully done this kind of thing. If you would like to talk about this on the phone, my number is 616-284-5285.

That is my understanding.

Any thoughts? Anyone?

Good call, Forksnknives. This thought makes a lot of sense to me.