AdKu

Assuming the DB/DC combo plan has no any type of safe harbor contribution and the only contributions are employee deferrals and group based profit sharing. It appears the client volume submitter plan doc. doesn't have any gateway language. How do you handle the DB/DC combo plan gateway when the DC plan has 1,000 hours requirement if terminated before the end of the plan year?

Assuming the DB/DC combo plan has no any type of safe harbor contribution and the only contributions are employee deferrals and group based profit sharing. How do you handle the DB/DC combo plan gateway when the DC plan has 1,000 hours requirement if terminated before the end of the plan year? It appears the client volume submitter plan doc. doesn't have any gateway language.

How to report Direct Rollover from Designated Roth Account from 401(k) Plan to Roth IRA on Form 1099R? I search this forum to see if similar question has been raised but I didn't find direct answer I was hoping for. I also spend some time reading the reg. & the code that deals with Designated Roth Account with no concrete satisfactory result. https://www.law.cornell.edu/cfr/text/26/1.402A-1 https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts According to the 'instructions for Forms 1099-R and 5498(2017)' page 5, I need to enter the designated Roth account amount rolled over in box 1, 0 (zero) in box 2a, and Code H in box 7. https://www.irs.gov/pub/irs-pdf/i1099r.pdf I don't feel this will be satisfactory to inform the investment firm that will be receiving the designated Roth account distribution about the basis. Can someone help me how they will report on 1099R Direct Rollover from Designated Roth Account of 401(k) Plan to Roth IRA?

Is there any issue to make a QDRO Distribution to Ex-spouse in the form of Partial Lump Sum in Cash and the remaining amount as a Direct Rollover? It is my understanding that there is not going to be the 10% tax penalty for a QDRO distribution under age 59 1/2 if it is made from a qualified plan unlike if it was from IRA.

The 2016 Form 5500 including the Independent Account Audit Report was filed timely. The Independent Auditor who prepared the Audit Report contacted me and the client, and informed us that the DOL required him to make a change on the Audit Report to comply with the standard for Fair Value. And he did made DOL requested change. Other than that the auditor informed us that he didn't change any number or any opinion on the audit report. Is there any issue amending the 2016 Form 5500 in 2018 in connection with the change in the audit report? My office use Relius Government forms. Many thanks, AdKu

Many thanks! As you suggested, I'll carefully review 1.401(a)(4)-3(3)(r)

A client financial adviser suggested, the client could take very low salary for the next couple of years to reduce the tax burden. My major concern is that each year we need to run Non-discrimination test under Treasury Regulation §1.401(a)(4)-9 Aggregating DB and DC Plans. This client DB/DC combo plan use the minimum aggregate allocation gateway (GT) in order to test on a benefits basis Isn’t the plan required to use plan year compensation, pay defined under 415(c)(3) (not 414(s)), and annual method to calculate allocation rate for gateway purposes? If so, wouldn’t using very low current year compensation greatly affect the EBAR for gateway test, which in turn requires the plan to provide higher employer contributions in order to pass the test? Please help, if possible include the section of the regulation that allow or disallow the financial adviser suggestion. Many Thanks!!!!!

Thank you very much!!!

Is Code B the correct distribution code to use for 1099-R line 7 when making non-qualified distribution from designated Roth account?

Thank you ETA Consulting LLC.

Is this permissible not to apply the 20% mandatory tax withholding to a Non-qualified Roth Deferrals Distribution when the earning is below $200?

One of my 401(k) client (plan sponsor/employer) is a gov't contractor specialized in staffing information technology and administrative fields. From this client 2016 plan year employee census, I noticed there has been high employees turnover. I find it difficult to determine whether this high turnover considered as a partial plan termination for the following reasons: some of those employees separated from service, according to my office sales team, either were directly hired by the gov't agency sometimes later or their contract ended because the plan sponsor/employer lost the bid or voluntarily left the plan sponsor/employer for a better position elsewhere 2. whether this plan sponsor/employer that is a gov't contractor can be considered as any other staffing agencies such as Robert Half that may or may not be under the same plan termination rule as regular employer

So, the plan is required attaching the schedule A if it has Annuity Contract with the Principal (see below). Correct?

I just want to make sure I'm doing the right thing because the plan is not funded via insurance contract.

Do I have to attach schedule A when a retirement plan trust is not funded using insurance contracts but the investment is held in the insurance company other financial products? Facts: Retirement Plan A invest portion of the plan trust in Principal Real Estate. The parent Company - Principal Life Insurance Company issued Schedule A to Retirement Plan A . In Part I of this schedule A is shown Zero person covered in the insurance contract. In Part II Line 5 under separate accounts provided the current value of plan's interest at year end. Challenge: Unfortunately, I can’t enter a value for separate account under schedule H Line 1c(10)(b) unless I attached schedule A. In order to attach schedule A I must first tell on the main form 5500 that there will be schedule A attached by marking box 9a1,9b1, and 10b3.

A Group Trust is provided by the daily record keeper. All of funds in the Group Trust are publicly traded mutual funds and non of them are the daily record keeper issued securities. All of the daily record keeper retirement clients' trust asset are invested in this Group Trust Is the large plan filer prepare required to put asterisk (*) on Line 4i(a) in this scenario?

When are we required to put a check mark for Schedule H - Line 4i(a)? The instruction simply states, "In column (a), place an asterisk (*) on the line of each identified person known to be a party-in-interest to the plan." Is there a different meaning for 'a party-in-interest' to the plan when it comes to Form 5500?

Many thanks!

Thank you Belgarath! Is this safe to think the word "Profit-sharing plans' encompasses profit sharing plans that allow salary deferrals (in other words 401(k) profit sharing plans)?

No, I was not talking about pension plans (known also as defined benefit/cash balance plans) To clarify, I was talking about a 401(k) profit sharing plan. Did I miss part of the instruction that will tell me that line isn't completed for PS Plan Thank you for your answer.

I haven't seen any number for some of Schedule R - Part I - Line 3 that I have reviewed. Is there any reason why pension practitioners don't enter the number on this line 3? Below is the excerpt from Schedule R- Form 5500 Instructions Part I – Distributions Line 3. Enter the number of living or deceased participants whose benefits under the plan were distributed during the plan year in the form of a single sum distribution. For this purpose, a distribution of a participant's benefits will not fail to be a single-sum distribution merely because, after the date of the distribution, the plan makes a supplemental distribution as a result of earnings or other adjustments made after the date of the single-sum distribution. Also include any participants whose benefits were distributed in the form of a direct rollover to the trustee or custodian of a qualified plan or individual retirement account.

Thank you all!!!

My client is on a semi-monthly payroll and the last payroll of 2016 was paid on 1/5/2017. Each employees W-2s as well as the W-3 total for the 2016 didn't include the payroll contribution for the payroll period 12/16/2016 - 12/31/2016 that was paid on 1/5/2017. How does the regulations require us to treat this last payroll that was paid the following year? As part of the 2016 payroll or as part of the 2017 payroll? If possible, please include the part of the regulation that go over the treatment of this type of payroll contributions. Many thanks!

can 1099 employees treated as employees of a company and contribute salary deferral into the 401(k) Plan if the plan eligibility provisions looks like as shown below? Plan Description: Prototype Non-standardized Profit Sharing Plan with CODA I. ELIGIBILITY AND PARTICIPATION REQUIREMENTS A. Eligible Employees (Plan Section 1.1.25) Must choose either 1 or 2: 1. [x ] All Employees of an Employer are eligible to participate in the Plan. 2. [ ] All Employees of an Employer are eligible to participate in the Plan, except Check each appropriate box (a-g) to specify excluded employee groups, if applicable. a. [ ] Salaried Employees. b. [ ] Hourly Paid Employees. c. [ ] Any nondiscriminatory classification of Employees employed in or by one or more specified divisions, plants, locations, job categories, or other identifiable groups of Employees as determined by the Board of Directors. Please specify: (Note: Under Treasury Regulations, part-time and seasonal employment is not a nondiscriminatory classification. This item should not be completed with a definition that by its terms defines an excluded classification as including NonHighly Compensated Employees with the lowest amount of compensation and/or the shortest periods of service.) d. [ ] Employees included in a bargaining unit covered by a collective bargaining agreement with the Employer in the negotiation of which retirement benefits were the subject of good faith bargaining (unless the bargaining agreement provides for participation in the Plan). (For a Plan that includes union employees, specify whether less than all union employees are included. For example: If the Plan is set-up for employees in Union X, but employees in Union Y are excluded, Union Y should be specified.) e. [ ] Employees covered under any other tax-qualified retirement plan with respect to which the Employer is obligated to contribute. Please specify: (Specify the retirement plan, if applicable. For example: XYZ, Inc. Pension Plan.) f. [ ] Leased Employees. g. [ ] Employees not required to be taken into account for nondiscrimination testing purposes under Code §410(b)(6)(C) but only during the Code §410(b)(6)(C) transition period. (Note: If selected, in the event of a corporate acquisition, employees of the acquired company will be excluded from participation in the Plan for a period not to exceed two years, as determined by the acquisition date and Plan Year.)

Please help