jim241
-
Posts
38 -
Joined
-
Last visited
Recent Profile Visitors
498 profile views
-
Is a 5330 Necessary If Late Deposit of Deferrals Is Corrected Under VFC?
jim241 replied to Übernerd's topic in 401(k) Plans
As follow up on this thread, if a plan sponsor qualifies for the PTE under 2002-51 but the excise tax is above $100, notice is required to be sent to affected participants. What happens to the excise $$ amount? Paid to the plan still? File 5330 with excise amount paid to the IRS? Amount in question is above $100 but below $150, still not a very large amount. -
Part of the newly issued hardship regulations in determining whether an amount satisfies an immediate and heavy financial need was to replace the facts and circumstances test with the three requirements here: Amount Necessary to Satisfy Need. A distribution will be considered as necessary to satisfy your immediate and heavy financial need only if: (1) You have obtained all distributions, other than hardship distributions, under all plans maintained by the Employer; (2) The distribution is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the distribution). (3) You have represented in writing or by electronic medium that you have insufficient cash or other liquid assets to satisfy the financial need. My question is, in regards to (1) above - does this mean theoretically that a participant who is age 59 1/2 or older and thus eligible for an in-service distribution, must take the in-service distribution and get hit with a 20% withholding prior to taking a hardship distribution?
-
Does anyone know when these tables were last amended or changed? Trying to find historical information for prior years.
-
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
Sorry if I wasn't clear. The alternate payee is requesting that the QDRO application be verified by the plan and paid out. The plan will do this but would like to know if they can pass the costs along to the alternate payee. I was pretty sure that the plan would have to pay for the costs but thought the exclusive benefit rule may have some impact. -
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
Correct. I under this. However, my question was can a DB plan use plan assets to cover a QDRO application for an alternate payee or can the plan as the alternate payee to cover the costs? -
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
I don't think it could refuse. -
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
I think you're right. My question then remains, can the plan/employer require that the alternate payee cover the expenses of a QDRO application? -
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
From ERISA outline book: 5.c.1)d) QDROs. Expenses relating to the determination of whether a domestic relations order is a QDRO may be charged to the participant or beneficiary (including the alternate payee) seeking the determination. In this regard, Advisory Opinion 94-32A is expressly overruled. -
Alternate Payee Benefit Fee
jim241 replied to jim241's topic in Defined Benefit Plans, Including Cash Balance
The fee is based on determining and processing the alternate payee's QDRO benefit distribution. However, isn't this an exception to the exclusive benefit rule, particularly expenses relating to the determination of whether a domestic relations order is a QDRO may be charged to the participant or beneficiary (including the alternate payee) seeking the determination? -
An alternate payee would like an application prepared so that they can start receiving their benefit. Plan Sponsor is ok with this as long as the alternate payee pays for the application to be prepared…is this allowed? Document does not provide much help.
-
A non-electing church plan wishes to increase normal retirement age for most participants, effective for already accrued benefits. I know the plan is not subject to 411(d)6, so no cutback issue. Any other issues besides potentially upsetting participants?
-
Are they any foreseeable issues with removing a Roth elective deferral option from a 401k plan?
-
No interim valuation is being done. My original question is, there is pooled 401k and a retired participant who has 44% of the total account assets is requesting a distribution in a lump-sum. My concern is the impact on the other participants and if the distribution should be allowed.
-
If a participant has 44% of the assets and leaves the pooled account, the assets have to be liquidated in order to satisfy the distribution. That leaves the other participants with 44% less and now impacts the value of their accounts. I know the impact wouldn't take place until the annual valuation - but nonetheless their asset value has significantly dropped.
-
I agree. My question doesn't necessarily involve the interim valuation. My concern is if the owner who has more than 44% of the total assets in the plan receives a distribution it will significantly impact the value of the other participants accounts. Is there anything that says that the distribution shouldn't be done or other information regarding this?