Scott50

The plan audit for the 5500.

We just went through this with a client. They had a perfect record of timely deposits and a solid procedure. We noted this anomaly in their annual report, and didn’t have any issues when they were audited.

You may be better off amending the plan eligibility to employees hired after a prospective date. That way you don’t have employees chasing eligibility.

If the employer is flush with cash, and the plan allows for discretionary match and/or profit sharing, use that provision. You aren’t tied to a larger SH provision in the future.

Why not do a negative contribution, call the service provider and explain what you did and why. Most of the service providers prefer this action.

I have a plan participant that wants to roll his IRA into the 401(k)(allowed by the plan). He is over 70 and has taken his MRD for a few years. Can he stop taking his MRD now that the funds are in his 401(k) plan? He is still working for the plan sponsor and making referrals.

The document not withstanding - can you roll an IRA into a 401(k) plan? I seem to remember that you can’t.

We have a plan that was supposed to exclude the HCEs from the matching contribution. The original plandocument didn’t have the option. The new plan document does, but the box wasn’t checked. The plan was promoted as no contribution to HCEs in all the meetings and materials. We are giving it to them for 2018, but don’t want to for2019. Can we retroactively exclude the HCEs for 2019 effective back to 1/1/2019?