Lou81

Good Morning. I have a plan that will be terminating. Say they terminate in 7/1/2022. All participants would become fully vested. What about any participants that were paid out in the 1st 6 months of 2022? Would i need to go back and fully vest them and do a secondary distribution? Or should i fully vest them now knowing the plan will be terminating? Try to avoid any issues. Appreciate your input!

Because they have an hours requirement and last day rules, does that take it out of being safe harbor? Do i have to run the ADP test or is that still satisfied by the safe harbor match? Thanks!

Thank you for the information

Good Morning, Hoping you all can help with a question.... I have a plan with safe harbor match and discretionary match. 1000 hour and last day requirement on the disc match. When running the 410b test, FTW test both the sh match and the disc match contributions as one component in the 410b test. Since they are actually two different money types do they need to be tested separately? appreciate your help!

I would just put the rollover amount in box 1 , 2a, $0 withholding and code G. Thank you!

Good Morning. Looking for some direction. I have a Cash Balance plan that is terminating. I have a participant that wants to roll his cash balance money to a Roth IRA. I believe this is allowed, but i have several questions,. Do i withhold the 20% and report it as taxable on the 1099R and how would i code the 1099R? I appreciate any help. Thanks!

Yes it was a general purpose loan. I would need to file through VCP then correct? Thank you!

Participants death was July 2020. His spouse passed in April 2021. The accounts were still under his name. Thanks!

i put this out here once before but struggle with the right answer. I have a participant over age 72 that passed away in 2020. Non owner – The RMD was waived in 2020 His spouse (beneficiary) passed away in 2021. She was over age 72 as well. Money is still in the participants name in the plan. The plan is terminating, assets will be rolled over to an inher IRA The 3 children are the beneficaries. RMD is required for 2021, based on 12/31/2020 value. I am trying to figure whose age I would based the RMD on. Owner? Spouse or oldest child? Any thoughts? Thanks, I appreciate your help.

We have a plan that we just took over as TPA. In reviewing the information it was discovered, that yhere is a loan that was issued 8/2012 that is still showing as active. Does not appear that any loan payments were ever made nor was it ever defaulted. If I am reading Rev Proc 2021-30 correctly, 6.07(3)(d) - it look like i can use the SCP if the participant would pay the loan off in full, plus interest. Am I reading correctly or does this have to be filed through VCP? Thank you!

the plan is terminating this year.

This is a defined contribution plan. There were no distributions prior to his death, as he wasn't required to take any.

hello! I have a participant over age 72 that passed away in 2020. The RMD was waived in 2020 His spouse (beneficiary) passed away in 2021. She was over age 72 as well. The 3 children are the beneficaries. RMD is required for 2021, based on 12/31/2020 value. Whose date of birth would the RMD be based on? I appreciate your help!

Thank you!

This should be simple but I am struggling for an answer.. I have a participant that requested the maximum loan available. Did the loan paperwork. He returned paperwork and the market has gone down. Can i process for the amount on paperwork or do can he only have the maximum on the date it is processed? If the later, do I have to redo the paperwork for the new amount? Thank you!

Thank you CuseFan!

I need some help i have 3% nonelective safe harbor plan eligibility for deferrals is 6 months with quarterly entry. eligibility for safe harbor is 1 year with quarterly entry. plan uses entry date compensation for those that enter mid-year The plan is top-heavy for 2020. I know I have to give the top heavy contribution to those that are only eligible for deferral, to satisfy top heavy. I assume i need to make an additional contribution to those that entered mid year for the safe harbor, so that they receive 3% of full year compensation. is this correct? Thank you for your time!

I have a plan - discretionary match - Participants are allowed to defer on commissions, however commissions are excluded from match. Is the compensation exclusion test required? Thanks!

Thank you Its a Mckay Hockman #03 I don't see anything in there. (there was something in the EGTRRA one)

I have a participant that recently went through a divorce and the QDRO was processed, paying the former spouse. The participant passed away last week. He was provided but never returned his new beneficiary form. The form on file is the old one listing the now former 'spouse'. Does the divorce and QDRO deem the designation form null and void? I appreciate any input. Thanks!

Great. Thank you for the information!

hello - I have a client where the payroll dept allowed an employee defer into the plan prior to meeting eligibility. The Trustee does not want the participant in early. Therefore, i need to distribute the mistaken deferrals. It does appear that a correction method is to have the investment company return the deferrals adjusted for gains or loss. There is no mandatory withholding. I've read that some have done it as EPCRS or as a 402g. Which is correct way to complete? Thank you!

Thank you.

I just want to confirm... I have 3 companies Father owns 100% of company A & B Daughter (over age 21) owns 51% of company C and Father owns 49% of company C A & B are controlled C is not controlled. I appreciate your help! Thank you !

If the plan allows for Corona Virus distributions. Can they limit the distribution to be from only sources that are fully vested? Thanks!