PS

There are no beneficiaries and client want the funds to be sent to PBGC and looking for a contact.

Hi, We have terminating plan were there are few deceased part's some of the vendor's do not accept deceased part account. I believe PBGC does accept however how do I get a contact which I can refer the client to. Thanks

Thank you!

So in this case if they want to remove the 16b indicator they will require to file Form 4 statement?

16b is an indicator for a participant who is an officer of the company that is subject to 16b reporting to the SEC

Hi, one of the client would like to know if the 16b indicator can be removed any idea how this can be done?

notified by the testing team.

I'm not sure on the formula that was used.

I looked at the plan document once again and there was an amendment in 2016. The plan has a Fixed Nonelective formula based on groups and a Discretionary Non Integrated Profit sharing. The plan was amended effective 1/1/2016 to add the Disc. Profit sharing. The testing results for the excess were based on their Fixed Nonelective profit sharing that was funded for 2020 for the profit sharing. This was a an employer contribution and not match (profit sharing contribution).

This plan still has few part's with balance, so we are yet to do the final force out for the non-responsive part's. There is also balance in the forfeiture account which the plan sponsor will need to exhaust, I have the same question if an amendment can be done now? is it possible?

I'm not an expertise with testing. The plan appears to have allocated non elective contributions based on compensation in excess of the prorated 1.401(a)(17) limit, As per the plan document they had opted for Discretionary Formula - The Employer may decide each Contribution Period whether to make a discretionary Non-elective Employer Contribution on behalf of "eligible" Participants. and had selected Non-Integrated Allocation Formula - In the ratio that each "eligible" Participant's Compensation bears to the total Compensation paid to all "eligible" Participants for the Contribution Period. As BG5150 stated these are NHCE's.

its was for the NHCE's.

I believe it was the profit sharing over match.

I guess its the NHCEs, since the plan has already terminated and its only the assets that needs to be zeroed out can an amendment still be done? I thought all amendments should be done before the termination of the plan.

yes, what option does the client have? since they are unable to recover the amount and the plan is terminating.

there are 7 affected part's and the total amount is $35,427.24 ( excess)

One of the Terminating plan there was a excess employer match for 7 part's ( profit sharing) out of 7 asset was recovered for 1 since the other 6 had already taken distribution ROE letters have been sent. Since the plan is Terminating Plan sponsor would like to know how we can recover the assets since none of them are responding. I informed the plan sponsor they can fund/send the excess amount so that we can post the OM (orphan match) into the forfeiture account and they can letter recover the assets from the part's however the plan sponsor does not want to send in the amount in this case how can the excess be handled since the plan is terminating. What other option the plan sponsor might have? Thanks

Thank you!

Thank you. The plan is terminating sometime next week and I informed the client that the testing will be done for the short plan year ending 11/18 and the limits will be Pro rata. However the client stated since these Participants would not be contributing anywhere else will the limit still be 19,500 for the entire year and if we can consider the entire limit.

Generally when a plan terminate testing is done for the short plan year, one the plan that is terminating in November could like to know if the 401k limit will be the same for they part's since they are will not contributing in any other plan so will the limit be the same? will the testing be for the short plan year. Thanks

The client had a non-prototype qualified plan and a ESOP plan. They changed the non-prototype plan to 401k plan and now decided to Terminate the plan. They have the ESOP with a different record keeper.

One of the Plan sponsor changed their Non-prototype plan to a prototype 401k plan, there also have a ESOP plan with a different record keeper. The plan sponsor failed to amend the plan document when they changed it from Non-Prototype to Prototype. The Plan sponsor now sent us the document stating they have amended the plan to include ESOP feature effective 07/31/2021, I believe they cannot do such an amendment on their own and it should be done by us since we are the record keeper for the 401k plan correct? The plan sponsor states they were advised by they lawyers that when they added the Roth provision for ESOP purposes it required creating a KSOP. they were also told that this required (per government rules) both 401(k) and KSOP features be captured in a single document. They cannot be separate documents. I've never encountered this before any thoughts how we can proceed with the termination on the 401k plan? Thanks

Thank you! Let me check the plan document.

Ok, thank you.

Hi, A terminating plan the plan sponsor terminated the plan as of 09/05/2021. All contribution were stopped, the termination activity stated as of the term date were all part status every changed to term in the plan and everyone became 100% vested and also communication was sent out to the part's about the term part and asking them to take action on their account balance. The forced distribution is set for Dec-2021, however now they advisor has got back asking with the term date can be changed to a future date 10/15/2021 since they would want to allow contribution for few of they employees. Can the term date be changed now and contribution be allowed? what will be the repercussion.