PS

sorry, OFAC is Office of foreign asset control and I'm referring to Employee contribution and its related 401k plans.

Hi, If a participant has a OFAC restriction can they continue contribution? how is the contribution affected? Thank you.

Hi, I wanted to ask on a 401k distribution related to a plan termination and the RMD. One of the participant was informed that a RMD was processed for 2023 and he could need to take the RMD for 2024 before he did a rollover. This participant was still actively working on 12/31/2023 although the Plan termination date was 12/31/2023. Does the IRS allowance still hold if one is working full time and not terminated from employment will require to take the RMD? Though the Plan termination date is 12/31/2023. If, with the plan Termination date all participants needs to be terminated, is it possible to correctly have a 2024 termination date? Therefore the participant can take the RMD for 2024 and not for 2023? Or, does the Plan termination date supersede the IRS allowing an individual not to take the 401k RMD in 2023 if still employed, while still meeting the direction to take the 401k distribution and RMD for 2024 by April 30, 2024? Thanks

If the participant has already taken the cash distribution and if the loan is outstanding and wishes to offset, I assume this will fall into QPLO correct? and I believe we will require to code the loan correctly on their 1099 and taxes are deducted correctly for the loan correct?

Plan sponsor has opted for the loan to be offset, the plan is terminating any idea how the loan offset can be dealt with since some of the participants have taken the distribution and the loan is still outstanding.

One of the 401k plans that terminated, we were couple deceased participants and since they were no beneficiary the plan sponsor directed to cut a check to the deceased estate. Although there was no estate set up, a check was cut to the estate of the deceased name. the check was cut in 2023 and in Feb 2024 the spouse has reached out claiming for benefits, since the spouse wants the money to be rolled over, I'm trying to understanding how the tax that was deducted be handled?

Thank you!

That is correct the plan is terminated. and the distribution occurred in 2023.

Hi, One of the terminated plans failed their ADP test since all participants have moved their money how can the correction be done? can they just have the tax record corrected or should employee return the excess amount to the plan.

I only assisted with the plan termination.

Hi, I assisted with one of the plan termination and the sponsor as reached out asking for 1099s to the people that switched employers but stayed with us. I'm not really what this means, why would we send a 1099S? I believe 1099s was more with self-employment however could anyone help me understand when a 1099s is sent?

sorry, I meant the pay period ends 01/31 and they will be paid until 01/31, however the contribution will be deducted on 01/29 which include their 01/31 as well.

Plan is terminating due to Stock sale and the sale date is 01/31/2024 and the termination date is 01/30/2024. The pay period is until 01/31/2024, the Plan sponsor will deduct the employee contribution on 01/29/2024 which will include the 01/31/2024 contribution, can the contribution for 01/31 be included though they are deducting the contribution before the termination date? the reason I ask is 01/31 is the sale date as well and since its a stock sale I believe they should be deducting only up to the termination date which 01/30/2024.

The acquiring company reached out to me and I felt they should consult with the counsel before the proceed hence I wanted to be double sure of what I'm conveying. Thank you.

Hi, Looking for some guidance. I assisted with a plan termination, As per the plan sponsor's direction all unresponsive participants fund were rolled over to an IRA account however the plan sponsor has now come back stating the funds will require to be rolled over to the acquiring company 401k plan. The plan sponsor is ready to connect with the IRA provider to provide direction to rollover the funds to the acquiring company 401k. I have two questions. I thought funds from an IRA account can not be rolled over to a 401k plan, is that not true? can the plan sponsor direct the IRA provider to rollover the funds to the 401k plan. The plan sponsor will make the account whole ( is ready to do any gain and loss calculation) and send the money to the IRA provider, so that the IRA provider will directly send the funds to the acquiring company record keeper. My assumption was the funds needs to come into the terminating plan have the correction done and then rollover the funds to the acquiring company is this not true?

QTA is a long process getting an approval from DOL takes almost a year and this only piles up abandoned plan. what other measures can reduce abandoned plans or how can we terminate abandoned plans.

Hi, I'm looking for some advise on Abandoned plans. When a plan sponsor decides to terminate their 401k retirement plan as per regulation it need to be closed within 12 months from the termination dates however we have seen plan sponsor becoming unresponsive which ultimately leads to Abandoned plan. From a record keeper perceptive what will be challenges to maintain an abandoned plan? also on the regulatory part if any? Kindly assist. Thank you

Hi, I'm looking for some clarification on final 5500 for Terminating plans. Is the final 5500 based on the Plan Termination date of final asset exist date. We received a Plan for Termination in 2022 and the Term date was 8/31/2022 and the asset exist date was 12/26/2023, post the asset exist date there was a residual amount that got posted on 01/02/2024 since the plan had assets in 2023 the final 5500 will be for 2023 right? and the residual amount can be adjusted in 2023? Thank you.

Is there any sample participant notification template about the plan termination? I'm just looking for a sample to see what will be the appropriate content do include in the notication.

the notice is sent 45-60 days before the force out date. What I understand is for 401k terminating plans the two important notification is the notice deferral cease and special tax notice can this be a digital notice or should it be mail only.

part of the communication does talk about contribution will cease, it also talks about participants to take distribution. My understanding was a 30 days notice should be given before particiapnts are forced out if failed to take any action on their account balance.

Thank you!

Hi, When a 401k Plan terminates, the plan sponsor is bound to send Plan termination notice to participant, beneficiaries and retired etc. Should this notice be sent only via a certified mail or can they use digital platform like e-mail/online to send this notice instead of certified mail? Thank you!

Thank you 🙂

We already started the termination process and all participant have received the term notice and the force out distribution for unresponsive participants have been set for 12/05. I thought personal assets are not eligible compensation permissible for contribution to the plan is that not true?