Karoline Curran

I am leaving mine as is.

The CPA doesn't literally have a plan -- he has a client with a PS plan and he's allocating the earnings/losses for them. Thanks everyone!!

It's not one of my TPA's plans-- he's just asking. I told him it should be done based on beg balances-- why would you give someone gains/loss when they have no balance?

CPA has a plan with Morgan Stanley-- 401k/PS pooled account. He's allocating earnings based on salary (individual salary/total salary * gains/losses). This gives someone who is eligible, but not participating, a share of the gains/loss. Is this correct?

I had a plan who files the EZ give me his information and I used the 2017 EZ-- just changed the beginning and ending year dates to 2018.

Wow! Not necessary and totally unprofessional. I second what Larry said.

Is this it? I got this from someone on here! Loan Maximum Calculator (1).xls

Thank you Larry!

It is -- this client is difficult to say the least. Thank you!

Is there any requirement that participants are notified that their loans will be defaulted once they terminate? I have a large plan whose loans are administered by NW. We as a TPA have minimal involvement. We used to send out default letters to their participants, but because NW now recordkeeps the loans we are not going to do that. Neither does NW. NW will deem their loans for non-payment, but again, not send out a notice. Just wondering if a notice is a legal requirement. Thanks.

Hi Eristocrat - no I didn't I researched on my own and didn't find anything definitive either, other than what you mentioned! If I find anything else I will certainly let you know.

Hello all. I have a participant who had an account at Morgan Stanley. His vested account balance was less than $200 so the client, after many tries, had him cashed out; however, despite many emails from me to Morgan Stanley that he was only 20% vested, they cashed him out at 100%, so he got around $800 too much.. It's a 10/31 plan year and I only discovered this last week when I did the valuation and looked at his March statement. Is there any recourse? Pretty sure the participant is not going to give the money back and the client has since moved the funds to Charles Schwab, so this person doesn't have an account at CS.

As others have said, just cash him out. Most of our fees are $150 for distributions, so if someone's RMD is that amount or less, it all gets eaten up by fees. Easy fix.

That's a lot of emails. I had a plan long ago that was audited and I had to produce some emails - but like 15 or 20. I just forwarded them in an email to the auditor as attachments after I'd saved them in a file. Not sure that helps you. Our email is Outlook.

Because we do have clients who have their CPAs prepare the 1099Rs. We don't automatically prepare them for clients with brokerage accounts -- only if they want us to. My concern is having 2 1099Rs done.

Are there any ramifications of no 1099R is produced? Yes, we can do one, but if they actually do one as well, there will be 2. Won't that be an issue?

I have a client whose assets are in a brokerage account. The owner took a loan and never made payments. They apparently never intended to and now want it defaulted. I don't have confidence she is going to have a 1099R produced even though she said that's her intention. My question is: What are the ramifications/fixes for a defaulted loan on a brokerage account when a 1099R is not done? We do utilize Penchecks, but that may result in 2 1099Rs. Thank you in advance-

The TPA for whom I work is doing nothing until the regulations are final. Right now they are just proposed. Relius can't prepare a document amendment, so for us, it's business as usual.

Eligible expenses would be things like costs directly related to the purchase or construction of a primary residence, including building materials and closing costs. Not a moving van since that has nothing to do with the purchase of a principal residence.

I'm in Indy. And now I'm hungry!!!

Mojo - I am now in Indiana so I may it to Ohio! I wouldn't touch Subway with a 10 foot pole, lol!!

We lived in CT for a while! Glad to be out of that awful state! I always called it a sub sammich. :)

Unfortunately, most of our plans do allow for loans. Some for more than one. I'm not a huge fan, but sometimes circumstances are such that they are necessary. All our loans are managed by whatever investment house the money is in so minimal involvement by the employer other than okaying the loan online. I only have one that I have to reconcile manually and that is a pain!

Yes, you would include the loan. Check the Instructions for Form 5500-EZ

I still maintain you are paying back the interest to yourself (I don't have any pooled accounts) as opposed to a bank or credit card, so I disagree that this advantage should be dropped from discussions. :)