ewatson12

So for FBJ, Mike Preston, and shERPA, if no specific state law requires the employee wishes to be followed in this regard, can the irrevocable promise be enforced?

No refinancing, only 1 loan permitted. I can't seem to find anything in reference to state law as some of the early posters mentioned. It is an Alabama based plan

I have a participant who has said he would like to stop loan payment withholding from his check because he can no longer afford them and treat it as a taxable distribution. My first thought is he can't while he is still employed there. The loan paperwork (which I have not been able to lay my eyes on since new plan in transition to us) should state that it is an irrevocable pledge and conditional upon payroll deduction repayment. As the plan sponsor, I would think they could not just stop collecting the repayments since it is their job to ensure repayment to the plan. My next idea is to explore a hardship to pay off the remainder of the loan but I am waiting on the participant to express an immediate and heavy financial burden in one of the safe harbor instances. Thoughts on the ability of the plan sponsor to stop withholding the payments? I would think this would be prohibited transaction land.

I have a plan that needed to make up missed deferrals for participants. It fell in the field of 25% of the missed deferrals. Does this now need to be adjusted on the w2s for the year and included as elective deferrals? My initial thought is no, since the EE would then get the tax benefit of the ER money. Never had this case before. Suggestions?

They have the basic sh match of 100% of the first 3%, 50% of the next 2%. I mean that even though he is deferring 3% of his income from 1 check, it would not actually be 3% of his compensation meaning he could only receive the employer contribution equal to the actual % of his total compensation.

Controlled group

I have a plan with two participating employers. I have one employee who gets a check from both employers and recently began deferring. He has since told me he does not want the 3% withheld from his check from both employers - just one. First- can this be done? Does it simply need to be stated on the enrollment forms? Second - compensation should be considered from both employers to determine his total comp correct? If this is the case, if his pay from company 1 is 1400.00 and from employer 2 is 400.00, and he only wants 3% from company 1 check withheld, that means he would not be eligible for a 3% match of that amount since his deferral would actually be 2.33% of his total income under the plan? Can someone offer guidance here? Thanks!

I have a plan with a missing participant and need to get the funds out of the plan. (Acct balance between !000-5000). I'm having trouble finding a custodian or financial platform that will accept a force out without the participant's signature. We have followed the IRS guidelines in the field book for locating lost participants. The platform that currently holds the plan does not accept them. Does anyone know of one that will accept this forced transfer?