DAK

Section 5.03(a) of Fidelity BPD No. 17 covers catch-up contributions. Fidelity's 2020 BPD No. 17 restatement updates that language and may be more clear: "Rather than requiring an Active Participant to cease making Deferral Contributions for a Plan Year after his Compensation has reached the annual Compensation limit under Code Section 401(a)(17), an Active Participant may make Deferral Contributions until his total Deferral Contributions for a Plan Year equals the product of (i) such Active Participant's Compensation for the Plan Year up to the annual Compensation limit multiplied by (ii) the deferral limit specified in Subsection 1.07(a)(1)(A) of the Adoption Agreement or Subsection 5.03(a), as applicable. Also, rather than requiring an Active Participant to cease making Employee Contributions once the annual Compensation limit is reached, an Active Participant may make Employee Contributions until his total Employee Contributions for a Plan Year equals the product of (i) such Active Participant's Compensation for the Plan Year up to the annual Compensation limit multiplied by (ii) the contribution limit specified in Subsection 1.08(a) of the Adoption Agreement or Section 6.05, as applicable."

I understand Notice 2014-35 to say that it applies to any DFVC filing submitted electronically and that the deadline for filing Form 8955-SSA required for a Form 5500 filed under DFVC prior to November 1, 2014 is December 1, 2014. (This would mean that any DFVC filing made after December 31, 2009 when forms were first required to be filed via EFast2 and before November 1, 2014 should have filed Form 8955-SSA by December 1, 2014 to avoid IRS penalties for the late Form 5500 filing.) Otherwise, the deadline is 30 calendar days after the DFVC filing. Thus, the Form 8955-SSA deadline for any DFVC filing made on or after November 1, 2014 for which a Form 8955-SSA is required is subject to the 30-day filing deadline. Notice 2014-35 refers to the “later of” and gives an example explaining the application of the December 1, 2014 deadline: “Any Form 8955-SSA required to be filed with the Service pursuant to this notice must be filed on paper by the later of 30 calendar days after the filer completes the DFVC filing or December 1, 2014. This requirement applies with respect to any DFVC filing submitted through EFAST2 (generally, all DFVC filings after December 31, 2009), regardless of whether the filing was submitted before the issuance of this notice. For example, if a DFVC filing for a delinquent 2008 Form 5500 was submitted in 2012 and information required to be filed under § 6057 was never filed for 2008, a paper Form 8955-SSA must be filed with the Service for the 2008 plan year by no later than December 1, 2014 to qualify for the relief provided under this notice.” I'm always reminded to check the box on Line C, Part I (Special extension) on Form 8955-SSA, and enter "DFVC" in the space provided on Line C. The IRS will then determine whether you have also filed the late Form 5500 under DFVCP.

Any amount assigned from the participant’s account that represents child support can be paid to the child and not the alternate payee. A QDRO distribution paid to the child for child support will be taxed to the plan participant not the child or the alternate payee. Tax withholding will apply to the distribution. Larry is right. This needs clarification to be properly structured to accomplish what is intended.

I have come across this with probably the same large record keeper who characterizes the revenue credits as a “negative” fee because they “reduce the recordkeeping fees otherwise paid by the plan”. The amounts can be reconciled to the activity in the suspense account set up in the plan for deposits when there is excess revenue. Standard reporting is available and is also provided to the plan sponsor and auditor with the draft Form 5500 and Schedules. This record keeper refers to the Form 5500 Schedule C instructions for element (d) to explain entering the amount as direct compensation: “Enter the total amount of compensation received directly from the plan for services rendered to the plan during the plan year. If a service provider charges the plan a fee or commission, but agrees to offset the fee or commission with any revenue received from a party other than the plan or plan sponsor, for example, as part of a commission recapture or other offset arrangement, only the amount paid directly by the plan after any revenue sharing offset should be entered in element (d). Enter in element (d), as direct payments by the plan, amounts a plan sponsor, or contributing employer or participating employee organization in the case of a multiemployer or multiple-employer plan, pays a plan third-party service provider reimbursed by the plan.”

Your request may exceed the IRS loan limit. Keep in mind that the maximum loan amount is the lesser of your vested account balance or $50,000 reduced by the highest outstanding loan balance in your account during the prior twelve-month period. Also, some plans impose a waiting period between paying off a loan and applying for a new loan. Luke and CEB50 are spot on – check the plan document, SPD, and any separate loan policy.

The revised 2019 Form 8950 is only available via pay.gov for electronic filing. See the below article which contains a link to a copy of the revised form for reference. You have the option to file in paper form before April 1, 2019 so if you choose to make a paper filing, you will use the prior Form 8950 (Rev. November 2017) and include the check with Form 8951 (Rev. September 2016) per the Note in the How To File section of the 2019 form’s instructions. https://tax.thomsonreuters.com/blog/irs-form-8950-now-available-for-online-submission-of-vcp-applications/