AdKu

I've one client with target benefit plan and I couldn't find forfeiture use specifics in the reg. Can forfeitures in target benefit plan be used If the plan doc. states, " “Administrator may elect to use any portion of the Forfeiture Account to pay administrative expenses incurred by the Plan. The portion of the Forfeiture Account not used to pay expenses will be used first to restore previous Forfeitures resulting from rehired Participants, then to restore Forfeitures resulting from missing Participants or unclaimed benefits. Any remaining amount will be used to reduce Employer contributions.”

In IRS 417(c) - QPSA - Spousal Benefit it is stated: "A qualified plan, like a defined benefit plan, money purchase plan or target benefit plan, must provide a QPSA to all married participants unless the participant and spouse consent in writing to waive the QPSA." "it must give a participant a QPSA notice during the period beginning when he or she is age 32 and ending with the close of the plan year before the participant is age 35,or within one year from when an employee becomes a plan participant if he or she is hired after age 35." Is this practically true that as practitioners we must provide the QPSA notice for all affected participants of all the DB/Money Purchase/Target Benefit Plans that we administer within the applicable QPSA election period as stated in the code? Does it mean the surviving spouse will receive a lump sum instead of annuity if a participant/spouse consented to waive QPSA in writing and the two were married more than 1 year when the annuitant/the participant died before retirement?

Some of the DB plan participants are past age 62 (like 64). Do I convert their age 62 or age 64 benefits to age 65 using DC testing assumption?

Is age 65 or 62 to be used when cross-testing a DB/DC plan? If the DB Plan doc. states NRD "The later of age 65 or the fifth anniversary of Plan participation, or if earlier, the later of age 62 or the 10th anniversary of Plan participation" The DC plan doc. states NRA means the "Later of age 65 or 5th anniversary of the date the participant commenced participation in the plan

Thank you very much ESOP Guy, justanotheradmin and CuseFan. Does the fact that the money that left the DB plan was from unrelated rollover account, i.e., it wasn't part of the accrued benefit in the DB plan, make any difference?

From a Sole prop., husband and wife only, DB plan, a direct rollover distribution from the DB plan unrelated rollover account was made to the Sole prop newly established 401(k) Plan as internal transfer in 2018. The TPA who is also the recordkeeper didn't think a 1099R was necessary because of the nature of the internal transfer between two plans of the same employer, Sole prop. Wasn't 1099R required when the money leaves one plan regardless of whether it was direct rollover within the same sole prop? If so, how can we correct it now May, 2 1/2 months after the due date? If possible please include the section of the code that pin-point a situation like described. Many thanks AdKu

Many thanks!

Thank you, RatherBeGolfing. Line 5(c) mention participant with account balance. The only contribution he has in his account is originated from the 2018 employer contribution allocation. Since he is 0% vested, the 2018 employer contribution allocation will be forfeited. Is this safe to assume this subsequent event will not prevent him from being count as a participant for Line 5(c) and line 5(b) purposes?

Background information: an employee become a participant 07/01/2018 and terminated 08/18/2018 with only 1 year of service for vesting purposes. This participant allocated employer contribution for the 2018 plan year, and the employer contribution was made in March 2019. Question: Is this 0% vested and terminated participant should be in the 2018 participant count for form 5500-SF purposes? 5(b) Total number of participants at the end of the plan year 5(c) Number of participants with account balances 5(e) Number of participants that terminated employment during plan year with accrued benefits < 100% vested Generally speaking, is 5(e) applicable to 401(k)/profit sharing plans?

Many thanks!!!

Can a CEO of a company sign PBGC Form 500 Filing in the Plan Administrator line - Standard Termination Notice Single-Employer Plan Termination? If this was Form 5500, I believe the answer will be yes under normal circumstances. A CEO of a company can sign the Form 5500 representing the employer as long as the stated plan administrator is the employer in the plan document.

FAPInJax: Thank you very much for the your help. Unfortunately, I do not see the 1994 Group Annuity (GATT) table in Relius under Data Entry / Tables / Annuities. But there was 1983 Group Blended Annuity (GATT). I feel I'm not setting the parameters correctly (see attached). Could it be the case? Relius - Data Entry-Tables-Annuities.pdf

FAPInJax: Thank you very much for the your help. My 1st confusion was whether to use the pre- or post- retirement interest rate and you give me a hint. My 2nd confusion was and still is I couldn't find gender neutral 1994 Group Annuity Mortality table in Relius under Data Entry / Tables / Annuities. If I use 1994 Group Annuity Female/Male the APR will be 150.2975 and 133.8514, respectively. Looking at the prior actuarial valuation, it appears they used 139.383 for APR at age 65 when actuarial assumptions is Pre-retirement 7% interest; Post-retirement 5% interest, and the 1994 Group Annuity Mortality without setback. david rigby, Thank you for your reply. I regularly uses actuarial valuation spreadsheet particularly for potential client to prepare proposal then move it to Relius when the prospect become our client. Every year, I update the spreadsheet by updating actuarial tables to reflect the most current applicable mortality table by exporting the data from Relius Data Entry / Tables / commutation Factors - Post-retirement qx, lx, Dx, Nx, Nx(12), 12*Nx(12)/Dx just to figure out the APR at different age. My issue remains the same - not finding gender neutral 1994 Group Annuity Mortality table in Relius.

We are using Relius software. Please help me how to pull from Relius (or direct me where/how to find it)the APR at age 65 if the actuarial assumptions are: Pre-retirement 7% interest; Post-retirement 5% interest, and the 1994 Group Annuity Mortality without setback.

Thank you!

How many times can you amend Form 5500 for a single plan year? Are there amending timing issues? Facts: A client 2016 form 5500 was resubmitted in 2018 because DOL required the Independent Auditor to fix his audit report to follow certain GAAP guidelines. Some months later in 2018 DOL send a letter to the client requesting to apply for VFCP to properly correct the late employee deferral contribution remittance that was reported on the 2015 and 2016 plan year? The 2016 plan year Form 5500 that was filed with DOL had the total late contribution for 2016 plan year only. VFC program requires to report the total of both the 2015 and 2016 late employee deferral contributions on the 2016 Form 5500 until such year the plan applied for VFCP. is this okay to amend the 2016 Form 5500 for the second time in 2018?

To begin with, there were later deferral transmissions that I needed to correct using VFCP application. In the process I have also learned that couple of deferral transmissions were administrative delays for a few days. As far as why RK does what it does, I was explained that in a small RK environment once a week trade is very practical. Do the majority in this form think this administrative delays is uncommon must be once for all ?

RatherBeGolfing, you're correct it was a matter of a few days because of a weekly trade. Bill, I really don't know why the record keeper only do one trade a week. Are there requirements to state this few days administrative delay in VFCP application narrative?

Do the majority in this forum holds the same opinion as MoJo? If so, how would you rectify this type of breach?

Yes, for the most part the wire was sent on each pay date but some times participant level breakdown doesn't get to the record keeper 2 or 3 days later. What does IMHO stands for? Forgive me for my lack of knowledge.

Suppose the record keeper received employee deferral contribution through wire after the trade for the week was completed. And the record keeper waited the next trade to deposit the deferral contribution in to each employee deferral accounts. How should it be treated the days elapsed between employee deferral contribution received and deposited in to each employee deferral account for VFCP application and lost earnings purposes?

Can a non spouse be named as a beneficiary as a part of a joint and survivor annuity (if the participant is still actively working, if the participant separated from services, if the plan is under termination, etc.....)? Any related information will be highly appreciated.

My understanding is that there are three options to comply with final correction of late contribution. 1) If the late contribution transaction fall under the prohibited transaction exemption 2002-51, meaning late contribution were deposited not more than 180 days late (but I've still question whether it includes lost earnings make-up day to the plan), the plan sponsor can take advantage of this exemption (assuming the plan didn't used this exemption for a similar transaction in the last three years) and provide notice to participants within 60 days of applying under VFCP. This option will provide relief from prohibited transaction excise tax calculation. 2) In lieu of providing participant notice (either to avoid the stringent disclosure requirements or the timing is too late because most affected participants left from service with the plan sponsor) , the plan sponsor could calculate and pay prohibited transaction excise tax on the late contribution lost earnings either to the plan (no Form 5330 filing required with IRS) or to the IRS (Form 5330 filing required with IRS).

DOL wrote a letter to one of my client (large-audited plan sponsor) to consider applying for the VFC program to formalize the late contribution violation correction. The 2nd half of 2015 and the 1st half of 2016 plan years contribution transmission were late because the plan sponsor switched payroll service company. When the annual account valuation was performed the following year, the late contribution violation was discovered, corrected and reported on the Form 5500. The lost earnings was calculated using DOL calculator and each participant portion of the lost earnings were deposited in to participants' accounts. Question: 1) Does the prohibited transaction exemption 2002-51 in which the deferral deposit is not more than 180 day late applies to the principal? Or does it include the date the lost earning deposit into participants' deferral accounts? 2)Is this permissible to use the VFC program, section 5(e) - de-minimus exception to amounts less than $20, and not to write a check for former plan participants who were already paid out but allocated lost earnings as small as $0.10 at a later time? 3)How does the plan allocate the excise tax paid to the plan on the lost earnings to fully correct this prohibited transaction? How about the de-minimus amount for prior paid plan participants reallocated? Do the excise tax and de-minimus amounts sit in the plan suspense account to be reallocated as employer contribution to all current plan participants? Any help to any part of my questions are highly appreciated.

Thank you everyone! Just to clarify, the case was that some participants terminated before the end of the plan year with less than 1,000. In order to get NEC the plan requires terminees to have worked 1,000 hours.