lradimer

Good afternoon everyone! I'm hoping one of the bright minds on here can shine some light on the following topic and proposed solution: Company A has a 401k plan with it's assets in participant directed accounts with a recordkeeper. Company B became part of an affiliated service group with Company A however previously participated in a MEP. They ceased participation in the MEP and want to move their assets in that plan to Merrill Lynch. To do this there are a few options: 1. Sponsor their own plan with the assets in a trustee directed brokerage account (pooled account with both HCE and non-HCE assets) with Merrill Lynch and transfer the assets from the MEP into it. Company A is much larger than Company B and since BRF testing would be needed due to different investment options, by using a trustee directed brokerage account, BRF testing on the benefit of having participant directed accounts would pass. 2. Sponsor their own plan and transfer the assets from the MEP into it, terminate it and rollover their assets into IRAs at Merrill Lynch and then wait a year to participate in Company A's plan. 3. Transfer the MEP assets into a trustee directed brokerage account with Merrill Lynch that is considered part of Company A's plan. Question 1: Is option 3 permissible? I have never seen a plan that has both participant directed accounts and a trustee directed brokerage account. Company B would be the only one with assets in the brokerage account but both Company A and B will have participant directed accounts under Company A's plan Question 2: Would the BRF testing be done again only on the right to have participant directed accounts or is there a concern that only Company B has the right to have assets in a trustee directed brokerage account?

I could use some input on how to correct this unique situation please... An employee was deferring pretax $750 per paycheck and submitted a request on 3/15/16 to change the election to $350 pretax and $10 roth. The change was not actually implemented until 10/31/16. The employee confirmed that they would like the contributions returned. Would you return $390 per paycheck and recategorize $10 as roth and have the client fix payroll to add $10 of her pretax as taxable wages since a 1099 will be issued for the $340 being distributed? Any suggestions?

The 401(k) plan permits 3 loans at a time. A participant took a loan previously which was then deemed. If the participant has enough assets to take another loan, can he since the plan permits 3 loans? Does the deemed loan need to be repaid first? Thank you in advance for your advice!!