Lou81

I have a plan that has terminated. The owner retired and sold the business. Preparing the final 5500. Do we need to change the address on the 5500 to the home address of the plan sponsor or leave as is (which is the company address)? Thoughts? Thank you!

Thank you Luke. There were only 2 and they voluntarily terminated. No partial plan term.

Thank you CB! appreciate it!

I have a plan that has terminated effective 12/31/2023. I am completing their 12/31/2023 plan year end work. There were 3 participants that took a full distribution in 2023 (prior to the plan term or knowledge of the plan term). They were not fully vested to the profit sharing. 2 terminated in 2023 and 1 in 2020. The money was forfeited and used in 2023. Do we need to restore the accounts of the 2 participants that termed and distributed in 2023? If yes, where do I find, exact DOL or IRS language? Thank you!

Thank you- Belgarath. it appears the procedures only state "upon receipt of a DRO"

I have a participant that is requesting a loan. He indicated it is for a divorce. The plan does not require spousal consent We do not have a DRO. is there anything that would restrict him from taking the loan at this time? Thank you!

Thanks CuseFan. That was my thought as well.

Hello.. Plan is going into black out... notices have been mailed timely, however some are returned for former terminated employees. What do you do if a black out notice is returned via USPS due to insufficient address? Thanks!

Paul, Are you saying his service in 2021 would still count towards his 6 months? my thought was, since he had more that a year break, he had to start over.

Good Morning, i think i know the answer, but rehires always get me... ee worked 4/15/2021-6/17/2021 Rehired 12/10/2023 on FTW document. 6 e is marked for 6 months of service, elapsed time. With monthly entry dates. Neither Rule of parity or one year hold out are marked. Since he was gone more than 12 months and he didn't meet eligibility, does his 6 months start over and his entry date would be 7/1/2024? Appreciate your input! Thanks!

Greatly appreciate it. Thank you.

Need some help. Plan has 1 year of service, 1000 hours and dual entry. FTW Document - Rule of Parity & 1 year hold out is not elected i have an employee hired 8/2020 termed 3/2021. Worked over 1000 hours Rehired 8/2022 Since she worked over 1000, would she enter on rehire date? Appreciate your help. Thanks!

Thank you all!

Hello! Looking for some help. i have an plan on an FTW document. the eligibility is 7g. completion of 3 consecutive months of service (not to exceed 12; hours of service failsafe applies) Entry dates are 1/1 & 7/1 I have an employee hired 4/3/2023. Would they enter the plan 7/1/2023 or 1/1/2024? I am thinking that if they they worked at least 1 hour in April, May and June, they would enter 7/1/2023. Appreciate your thoughts.

Thanks Paul!

Hoping for some help. Client had a late deposit for the 12/23/2022 pay date. The total deferral was $1,400 It was discovered, deposited and the lost earning were calculated and deposited into the plan in Feb 2023. Since the payroll was 12/23/2022 , is it considered late for 2022? Do we need to put on the 2022 5500 and complete the 5330 for 2022? Could this be corrected with self-correction and no need to report? Your help is appreciated.

No problem, Paul! Thank you all!

Thank you. Paul yes, it is g that is marked. are you stating that he did meet the eligibility prior to termination? Thank you for your response.

Hoping someone can help. Plan's eligibility is 2 months of service, with monthly entry its an FTW Doc and reads, Completion of 2 consecutive months of continuous service (not to exceed 12; hours of service failsafe apply) Rolling period i have an employee hired 10/7/2020 terminated 11/7/2020. Rehired 10/27/2022 Trying to determine if he is eligible. since he worked in both Oct and Nov in 2020 does this count as his 2 months of service? Thank you!

Awesome! Thanks!

I have a plan that tests the adp/acp using prior year testing I ran the test for 2022, and fail. However if i test using statutory exclusions I pass. The plan was not tested using statutory exclusions in 2021. So the NHCE average when i did 2021 shows 3.46% but when i run the adp test for 2022 using stat exclusions, it changes the prior year to 3.70%. I understand why... Question is, can i switch back and forth using statutory exclusions from year to year if needed? Thank you!

We have a plan that we took over recently. its a small plan with little distribution activity. It does not appear that they have applied for a Trust id. They can not locate if they did. Is there any way to find out if they have one? If i try to apply for a new one the plan was effective in 1994, more than 25 years ago. The system only allows 1 year in the future or 25 years in the past. Would you just enter 1997 to apply for it? Thanks!

Bri- the rule of parity is not elected in the adoption agreement, so don't you use all service? This is where I am getting confused... thanks

its an FTW document All eligibility service with the Employer is taken into account except that if permitted in the Adoption Agreement, the following service shall be disregarded in determining Years of Eligibility Service: (a) One-Year Holdout. If an Employee has a One-Year Break in Service (One-Year Period of Severance to the extent the Plan uses the Elapsed Time Method), Years of Eligibility Service before such period will not be taken into account until the Employee has completed a Year of Eligibility Service after returning to employment with the Employer. Where a Plan's service requirement is two years of service, if an Employee experiences a one-year break in service prior to satisfying the two years of service eligibility requirement, any service prior to the break in service will not be taken into account. (b) Rule of Parity. If an Employee does not have any nonforfeitable right to the Account balance derived from Employer contributions, Years of Eligibility Service before a period of five (5) consecutive One-Year Breaks in Service (One-Year Periods of Severance to the extent the Plan uses the Elapsed Time Method) will not be taken into account in computing eligibility service. Elective Deferrals are taken into account for purposes of determining whether a Participant is a nonvested Participant for purposes of Code section 411(a)(6)(D)(iii). If a Participant's Years of Eligibility Service are disregarded pursuant to the foregoing, such Participant will be treated as a new Employee for eligibility purposes. If a Participant's Years of Eligibility Service may not be disregarded pursuant to the foregoing, such Participant shall participate in the Plan pursuant to the terms of Article 3. To the extent provided in the Adoption Agreement, eligibility service may also include service with employers other than the Employer.

Hello - need some help! plan has year of service 1000 hours and entry dates of 1/1 & 7/1 I have an employee hired 6/2017 and terminated 7/2017. Only worked 12 hours She has rehired 2/2022 - worked over 1000 hours in the 2022. Plan does not have rule of parity or one year hold and elig switches to plan year. Does she enter the plan 1/1/2023? Thanks!