RatherBeGolfing

Short answer, whenever I need one Seriously though, I get a 2848 signed whenever I need to deal with the IRS because the assumption is that if it involves ANY information specific to the client, the IRS will (or is supposed to) require the 2848.

How do you, a "fiduciary", contract out of your co-fiduciary responsibility under ERISA?

As long as he can show that there is a legitimate hardship, and he has a balance available in nonrestricted sources, he should be able to take hardships as needed.

Im quite certain I have participated in several threads dealing with 3(16) in the past 12 months

Absolutely correct. This does not make a future mortgage payment a hardship. What your highlighted passage means is exactly what it says. Contrast that to section 457 unforeseeable emergency which requires the expense to be beyond the participants control. You still need the mortgage payment to be currently due in order to get a hardship distribution. future payments, even if you know you wont have the money to pay them, are not a hardship until the payment is actually due. I would even go as far as to argue that a past due notice is not enough unless it also specifically mentions foreclosure, but others might disagree.

Which takes us back to BG's earlier post... Exclusion of employees by name or other specific criteria having the same effect as an exclusion by name is not considered a reasonable classification.

pffffft. Like anyone actually files before the last possible day.

April 18

Honestly, you probably just need to find a better person to talk to at the RK... This sounds like it is coming from someone who just does not understand plans

The recordkeeper is not just wrong, they are so wrong it is cause for concern... I agree with what you are illustrating, but I would say that the last year of service is not really earned until the end of the limitation year (12/31/2017) so it would be 30 months for the 3 years.. Unless the participant terminated right at the 24 month mark of course...

I agree with ETAs analysis above.

I agree, check with your document provider. That said, I think ADP only is correct.

Enjoy!!!!

I agree, amend and file with audit.

Thanks. I was able to convince the sponsor that refunding the deferral will be cheaper in the long run :)

I'll second this

YES.

Owners son would have entered plan 1/1/2017 but was allowed to defer in 2016 against our advice, and now I am dealing with the fallout. The owner insists on a correction method other than refund. I have 2 or 3 NHCEs who did not get the opportunity to participate early. Can I retroactively amend to bring in the son and 2-3 NHCEs since it would benefit more NHCEs than HCEs? And if I do include the NHCEs, would they also need to get QNECs for missed deferral opportunities + match since they weren't given an option to defer?

I don't think so, but time will tell. The memo is not guidance, it is a guideline for IRS examiners. It also only directs the examiner that plans should be treated as satisfying the substantiation requirements if all the steps in the memo are met. If the steps of the memo are not met for whatever reason, we are right back to square one.

The IRS confirmed last year that the date that should go on the form is the technical extension date (the 15th). If that date falls on a Saturday, Sunday, or a legal holiday, the return may be filed on the next day that is not a Saturday, Sunday, or a legal holiday. You filed with the correct date, and can still file the 5500 on the next day that is not a Saturday, Sunday, or a legal holiday.

I think getting the questions on the form was the easy part. actually getting the data and dealing with it is the costly part. From what is going on with det letters, allocation of resources may be one of the bigger issues

I think it is a mix of reprogramming and allocation of resources for the IRS. On the DOL side it is a funding issue for sure.

As of right now, there is nothing official indicating if and when new compliance questions may be effective. Unofficially, I have heard repeatedly that they don't even have the funding to use the "don't complete this section" compliance questions that are currently on the form, and the 5500 overhaul has similarly been put on ice. From the comments at ASPPA last year, maybe by 2019... Janice W was one of those who said don't expect anything anytime soon, the money isn't there for it

What does the document say? Are distributions allowed immediately after termination or do they have to wait?

How long has electronic renewal been an option for ERPA renewals? I renewed today through Pay.gov and I don't remember that being an option last time I renewed. Easy to fill out and got a confirmation that both my form and payment had been accepted