WhatsESUP

I was just made aware that the 2016 5500 filings for our plans failed to include the audited financial reports. The reports were done on time but the wrong attachments were uploaded to EFAST. No notice was received from the DOL, as of yet, but I would like to get this corrected as soon as possible. Do I amend the filings via EFAST or is there another more efficient way?

Has anyone taken the EA-1 exam lately? Anything new to consider?

A former participant had his account balance distributed in February 2017. The distribution was processed as a direct rollover to his new company's 401k. The check was deposited in February by the rollover institution, Empower. The plan administrator never gave the authorization to Empower so Empower issued a check payable to our Trust, FBO the former participant, as a refund. The check was issued and mailed to the former participant in April 2017. The former participant sent us the refund check this week. He has held on to the check for almost a year. Do we need to accept the funds back? The form 1099R was already issued. Also, we couldn't accept the check as we have since changed Custodians and the check is made payable to our old bank. What options does the former participant have? Thank you

A participant is requesting a hardship distribution for funeral costs for a sister. The sister did not live with the participant and was not claimed as a dependent on the participant's tax return. What does the plan sponsor have to do to verify if the participant's sister is a dependent? Thanks!

Thank you for the comments and IRS website link. A former employee's Fidelity rep was stating that all funds needed to be withdrawn from all qualified plans. The former employee provided a link to the Fidelity site with the following language: You must distribute all assets from all qualified plans you hold with the employer, even if only one holds company stock. https://www.fidelity.com/viewpoints/personal-finance/company-stock To make sure we were providing good information to our employees, the question was referred to our outside ERISA attorney who stated that ESOPs are Profit Sharing plans and that a Lump Sum from all plans would be required. It didn't pass the smell test so I thought I check with the experts here. Thanks everyone.

To take advantage of the Net Unrealized Appreciation (NUA) tax rules for shares distributed from an ESOP, the IRS requires a Lump Sum distribution from all of the employer's qualified plans of the same type (that is, all pension plans, all profit-sharing plans, or all stock bonus plans). If the employer has a 401k plan and a separate ESOP, do employees have to take a Lump Sum distribution of both the 401k and the ESOP to take advantage of the NUA? I've read different opinions on this.

Great feedback. I appreciate the input. When in doubt D! Love it.

The plans I am working on for the 2016 8955 filing did not include the Code D entries for those participants that withdrew their balances in prior years. This goes back many years. Should I even consider sending a file with the many prior years missed Code D records or begin including the Code D records moving forward? I don't know if this will draw unnecessary attention to the plans or not.

A participant's wife has passed away and he would like to rollover the 401k balance from his wife's company to his 401k account at his company. Can 401k plans accept spousal death benefit rollovers or must he rollover the balance to an IRA? Thanks!

Any new insight regarding a qualified disclaimer of benefits for the designated beneficiary? The beneficiary submitted a disclaimer but the plan document does not have any language regarding disclaimers. Does the plan document need state specifically that disclaimers are allowed?

I need suggestions on 8955-SSA filing software. All I need is something for the 8955 electronic filing. The IRS site provides a list of vendors but the vendor websites do not provide much information. Thought I'd check here for reviews before calling the vendors listed. Thank you

Great question! Is there any IRS publication or reference that I can use to confirm that the cash value should be included in the RMD calculation?

Our ESOP administrator reinstates shares for those rehired participants that terminated employment with a 0% vested balance. There is no time limitation for reinstatement. It was my understanding that if a participant terminated employment 0% vested the terminatino date was considered a distribution and the 5 year Break in service rule calculation would start. Is there a limitation on reinstatement for 0% vested rehires? The plan doc does provide language for partially vested balances reinstated within the 5 year break in service for those that return the vested shares.