AATPA

There is no problem with filing a Form 5558 and then not filing the Form 5500 if the form turns out to not be required.

Yes, this is what I'm thinking of, the DBP's. Thank you...

Is anyone hearing anything that the October 15th extended deadline will be extended to 1/1 due to Covid-19? Here's hoping... Thanks!

I had the same exact problem with a client. I believe I had them do notice only within the time period and told them they had to do a match for that pay period but no QNEC for the deferral.

yes! going forward with putting this in and the plan is to add language in the resolution stating that it applies to anyone with a benefit in the plan as of X date. It will not create any increase in vesting for an HCE.

I"m not sure.

I hear you and I appreciate the question! They have some employees that have been there and participated for many years but are zero percent vested because they never have worked 1000 hours. Some will be set to retire or their jobs will be closed soon and they want to make the change prior to this happening. It will not be enough employees with jobs closed to even come close to a partial termination. We are talking about only a handful of employees. That being said, they want to effect the entire plan going forward and they would rather not make something up to these "right now" employees outside of the plan. I thought about changing their vesting year of service definition to "elapsed time," but still I think going back is the same issue. Edited to add this is a 401K with regular match. the eligibility is 6 months, no hour requirement, so that is why the low hour employees enter the plan. No hourly requirement to receive a match.

There are very few HCE's in this plan; it is a large non-profit organization. 700 employees, lenient eligibility so 650 ish eligible, 2-3 HCE's each year. Vesting is on a 6 year schedule, Low turnover in HCE group but in the last 6 years there has been one HCE paid out. He had 1000 hours for more than 6 years. All current HCE's have satisfied 1000 hours >6 years. Does that help?

My client would like to change hours required for a vesting year of service from 1000 to 250. They would like to apply it to prior years of service for any active employee. I tend to think if I change the definition as of current date, past years would require 1000 hours, which doesn't satisfy their intention. I believe they would be open to applying the new vesting year of service definition to all employees with benefits still in the plan (including those who terminated prior to the amendment). Retroactively changing the hours of service requirement would involve recalculating distributions and is not a good option as this is a large plan. My colleague thinks this is possible through language in the Board Resolution for the amendment or the Preamble to the amendment. Stating that this would apply to anyone with a benefit remaining in the plan (or possibly any active employee with a benefit remaining in the plan). Do you think this is correct?

Before starting, I have read the helpful threads here about tip income. My client pays out credit card tip income at the end of each shift. None is run through payroll. Obviously 401(k) deferrals cannot be withheld from cash tips. (the election percentage is based on gross wages including tips, yes, the cash cannot be paid back to the employer to cover that withholding) The question is, is the employer responsible for withholding from credit card tips if they cash them out on a per shift basis? Would they not have to be considered similar to cash tips in that case? They have a safe harbor plan and cannot exclude tips from the definition of compensation or from salary deferral election without it being discriminatory. Their auditor states that they are required to hold on to those credit card tips until sufficient withholdings are met. There are obviously times when the net check is zero prior to being able to withhold 401(k) contributions, or where the full election cannot be withheld. Thanks in advance for any advice.

When setting up the K plan, I was told there wouldn't be much employee transfer between the entities, but now, It looks like 1/4 to 1/3 of the 401K participants will have some service at the 403b entity prior to the B effective date and did not have 5 years of service from 11-15. B effective date is 2011 K effective date is 2016. B entity (or some parent version of it) goes back 10+ years earlier than the plan. K entity did not have any payroll until 2016.

Controlled group members, one non-profit with a 403B and one for-profit with a 401K: Same vesting schedule, however the 403(b) excludes service prior to the effective date of the plan, meaning the 401K plan is giving more service credit. Must I perform BRF testing? The 401K plan has had no HCEs in prior years but does have one in 2018. The 403B plan usually has 3 HCE's.

Don't forget about notifying eligible employees that do not have a participant account set up and won't have access to the custodian website.

Thank you both for your help.

I meant I was hoping that the first 5 months of the 7-31-17 plan year, Deferrals 8-1-16 through 12-31-16 4714.27, could be called 2016 catchup...

Mike: I used whole numbers in my above, but here it all is: No Plan limit, skip to 4 415 dollar limit is 54K 415 comp is maximum Annual additions are PS 53K + deferrals 8175.67 Catch-up used as of 7-31-16 was 1285.71 Deferrals 8-1-16 through 12-31-16 4714.27 Deferrals 1-1-17 through 7-31-17 3461.4 Deferrals 1-1-16 through 7-31-16 is 1285.71, these were the only deferrals for the 7-31-16 plan year and they were all above the DC Plan limit deposited PS. ADP will pass I was hoping I would find that I could assign my second half 2016 deferrals as 2016 catchup, making all of his deposits allowable, rather than having to limit his catch-up for 7-31-17 plan year to 6K. Reading 414v, over and over, hasn't convinced me of that, but I still feel like it's only fair...

Please allow me to add, that in the 15-16 plan year, he had a maximum profit sharing contribution as well as 1K of salary deferrals. (all characterized as catch-up, ee contribution all deposited in calendar year 2016) (no limits exceeded for the 14-15 plan year) My confusion is which year and for what to count things I guess, it being that the plan year that the catch-up is attributed to may not be the year in which it was deferred from pay.

7-31-17 year end plan Participant over 50 deposits max DC plan limit profit sharing during the plan year as well as $8000 salary deferrals. Per calendar-year his deferrals are below the calendar year catch-up limit each year, however during the plan year they are as stated above. Because he exceeded the 415 limit instead of the 402(g) limit, must I limit his catch-up to 6,000 for the plan year? Or may I assign the "catch-up" contributions to the year they were deferred (thus, allowing all of his contributions for the plan year). Most threads I have seen regarding fiscal year catch-up are tied to 402(g) limits and ADP corrections, so thank you in advance for answering if previously discussed.