mjf06241972

Can a Plan be amended to have the In-service Distribution amount less than Age 59 1/2? In speaking with one of the the "big" payroll companies, they stated they could not change this provision but I also received a different response that a special provision can be written into the Plan (like Age 50 and 10 years of service) to allow for the In-Service withdrawal. Thank you.

We currently have 25 DB /CB Plans we outsource. Fees are going up with the company we work with plus restatement fees so I want to review current relationship. Anyone work with a quality company for DB/CB outsourcing work? Outsourcing meaning they provide contributions, valuations and annual 5500 plus SB & schedules. Thank you.

When is the cut off for an employee to normally enroll in 401k plan? For example, they meet eligibility on 7/1 but don't hand enrollment form until 7/15. Is this ok? Thanks.

Code 3b - Use this code if the plan covered self-employed individuals in the return year. Does this mean if someone was a Schedule C or K1 employee (not w2) in the Plan? Thank you.

Thank you!

Can an employee who is actively contributing to a 401k Plan also contribute to a Thrift Savings Plan offered by Military at the same time?

If an employee works less than 1000 hours for the past 5 years and in 2019 they work over 1000 hours, when would they enter the plan? 1/1 or 7/1 - 1 year - Age 21 - Actual hours. Thanks.

If a participant takes a $200,000 in-service withdrawal (and pays the 20% mandatory tax withholding), then they decide they don’t need the money after all, can they put it back into a plan or an IRA? Or is it a done deal since it was a cash distribution to the participant?

Two partners are only employees in a business and want to start 401k / psp. In reading 5500EZ instructions they can file 5500EZ if the partners are the only employees? Just wanted to confirm this. Thanks.

Thanks everyone. I agree with all. It was call I got from CPA. They want more than IRA deduction. Meeting with them after 4/15. They definitely need the 401k/PSP flexibility.

Someone would like to set up a SEP for their business for 2018 (by 4/15/19.) It is 2 partners only and one partner wants to max out SEP but other one wants to put in less. Is there a waiver form or something that can be done to have different contribution amounts since they are both partners and no non owner employees? Thank you.

Spouse never worked more than 1000 hours. Plan will be top heavy as Owner put in max 4k. Plan Document does not say everyone elgiible as of start of plan. it uses standard 1 year, 1/1 or 7/1 and 1000 hours.

I have a new plan for 2018 that is a safe harbor match. Owners spouse contributed to 401k but worked only 300 hours. The plan is based on a full year with an effective date of 1/1/18. If they want to do profit sharing, can they exclude her to keep the other non-key employees who worked less than 1000 hours from getting psp?

Plan Document says compensation used only when a participant. For a calendar year plan, the participant enters plan on 7/1. They are 3% non-elective safe harbor and profit sharing. Do you use compensation from 7/1 to 12/31 for both sources to determine contribution? Thank you.

Thank you for the help!

There are no exclusions in compensation but I would think if not subject to FICA, you cannot use as compensation. Like the S-Corp dividend is normally not used, only W2 income for this reason.

if a business is an s-corp and the owner has 2% shareholder health insurance, is this part of their compensation that can be used for calculation purposes? I don't think so since not subject to SS or Medicare?

Can someone take a distribution on Prevailing Wage when they are under Age 59 1/2 as an Inservice Withdrawal - currently working at the company? I have seen in the past Empower allows it but the plan doc only allows in-service for over age 59 1/2. Thanks.

Can someone give me some help with participant loan? Owner wants to take a loan for $250,000 for the purchase of a primary residence. They have over $500k in the account so 50% is not an issue. They will have to amend the plan to add the loan for residence purchase but I am looking for some guidance on if someone can 1) take a loan for over 5 years and 2)can it exceed $50,000 3)what is the process? Thank you.

Are employee HSA Payments part of compensation used for 401k adp testing purposes? Wages under Code §3401(a) is used for the plan and no exclusions. Thank you.

Thanks Tom. This is great.

Participant enrolled 2 employees early in 401k and plan is 3% non elective safe harbor. Do they refund 401k or can they make 3% non elective safe harbor and keep 401k. This is only employer contribution to plan.

Owner of the company passed away. Was Age 85. Money was in pooled account and funds are requesting be disbursed to his charitable trust per beneficiary form. Questions 1. Does the pooled account have to be revalued to date of death? It is audited plan with 250 employees and multiple brokerage accounts. 2. How is the rmd handled before the disbursement to the charitable trust? Thank you.

I think some of it depends on what responsibilities your admin people have. For example, most firms have their own loan and distribution department and try to keep admin working on numbers and vals only. I handle most of the client calls with our clients to keep them focused on admin work only too. We are a small office but, I think, with the right structure 100 should be no problem. I also agree that it all depends on the size of the clients too.

Thanks very much!