JustMe

That's how I see it as well! Thank you all for the group effort!

How is a Family Limited Partnership (FLP) considered for controlled group rules? Specifically, when multiple companies are involved and individuals own portions of some of the companies (perhaps constituting a brother-sister controlled group or combined via ASG rules) and then the same individuals own other companies but only through an FLP.

Thank you VERY much!

Are governmental defined contributions plans subject to the 6-year restatement period? If so, are their restatements due the same time as 401(k), profit sharing and money purchase deadline of 7/31/2022?

I would greatly appreciate some direction as I am sure this will be a relevant topic with businesses changing hands due to COVID over the upcoming months and years!

Stock sale.

So are you saying there is no way to handle this post-transaction? Does the safe harbor plan lose its safe harbor status and has to be tested for the full year with the non-safe harbor plan, or can the merger, in essence, terminate the safe harbor plan and then test the remainder of the year data with the full year non-safe harbor plan?

Yes, acquisition of employer of Plan B by employer of Plan A. Employer A wants to stop the Safe harbor contribution upon the acquisition date as it is too expensive. Too late to terminate the SH plan as acquisition already occurred...

If a Safe Harbor plan (Plan B) merges into a non-safe harbor plan (Plan A) mid-year due to an acquisition, does Plan B receive the benefit of a "terminating" plan under the safe harbor regs from the first day of the plan year through the merger? Then as of the merger date, the Plan A tests the plan with the full year information for the employees of Plan A and then from the date of the merger through the end of the plan year for employees of Plan B? I know there is no guidance on this, but how are others handling?

Coming back to this thread - if a SH plan (Plan B) merges into a non-SH plan (Plan A) mid year due to an acquisition, can the safe harbor provisions be met through the date of the merger for Plan B? Then, for Plan A, the ADP test will include census data for the full year for Plan A employees and only census data post merger for Plan B employees??

Just looking for discussion.

Alonzo Church - thank you! I have 1 new Open MEP as of 2019 and wondering if I could file that one on an individual Form 5500. In addition, I have a potential new plan (effective 2020) that is likely a MEP - finalizing an ASG determination - and was wondering if that one would be able to file 1 Form 5500.

Am I understanding correctly that basically any MEP may file 1 Form 5500 and just provide the attachment regarding the participating employers, the contributions, etc.? Or do Open MEPs need to file separate Form 5500s for their participating employers? Did that change for 2019 or has it always been that way?

Does anyone know if custodians offer directed trustee services for defined benefit plans? What about TPAs? Does anyone else offer these services? What type of insurance do you carry for such offering?

My apologies! Yes, payment to the beneficiary. The participant is deceased.

Thank you all for your advice. So should we use a POA to speak with the jail or have the beneficiary speak to the jail about how to have the benefit paid out?

And just pay the distribution to the participant and let the participant determine how the assets should be handled? No need to setup a separate trust or anything?

I have a situation in which a participant died and 2 of her beneficiaries are in jail. Does the state in which the beneficiary is incarcerated dictate how the money is handled? Would you refer this situation to outside counsel? Not sure how to handle and am not finding a lot of information on the topic.

Thank you Peter.

If a 403(b) plan allows for employer contributions (such as the option is selected in the AA), but does not fund the contributions, can the plan be a non-ERISA plan? I'm thinking not, but don't believe that 29 CFR § 2510.3-2(f)(3)(iv) confirms that for me. There's no "funding," but does the "option to fund" indicate 29 CFR § 2510.3-2(f)(3)(iv) has not been met??

Never mind. I just answered my own question. 10% ownership kills this transaction! Good thing it hasn't happened yet! (H) an officer, director (or an individual having powers or responsibilities similar to those of officers or directors), a 10 percent or more shareholder, or a highly compensated employee (earning 10 percent or more of the yearly wages of an employer) of a person described in subparagraph (C), (D), (E), or (G); or (I) a 10 percent or more (in capital or profits) partner or joint venturer of a person described in subparagraph (C), (D), (E), or (G).

I want to make sure I'm understanding the Prohibited transaction/disqualified person plan rules correctly. If I have a client where the ownership is as follows: A - 40% B - 40% C - 20% A & B are siblings and not related to C. A & B own interest in property (the same property) in their individual 401(k) SDB accounts. They want to sell the property. Since they aren't related and neither own more than 50% of the company, are they disqualified persons? Assuming not, can they personally buy the property from the plan to remove the investment?

No, the plan is not subject to PBGC. Thank you for your advice!

By ignore the plan termination, do I use full year compensation for both plans?

I have a DC plan with a 12/31 PYE and a terminating DB combo plan associated with the same employer. I know plans of the same employer with different plan years may be aggregated for ABT testing purposes under 1.410(b)-7(e), but do you just follow the rules of 1.410(b)-5(d)(5)(ii) and add the DC contributions divided by calendar year compensation to DB benefits divided by partial year compensation? Is it that easy or am I missing something? Any different rules when the plan is a short plan year versus just a different plan year?