Lou81

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!

Thank you.!

hello! I have a plan that amended the vesting schedule effective 1/1/2018 from an immediate vesting to a 2/20 vesting schedule. I have an employee that was hired 9/2017. She was eligible 1/1/2019 (1 year 1000 hour eligibility with 1/1 & 7/1 entry) Does she fall under the old vesting schedule because of her hire date or does she fall under the new because of her participation date? I appreciate your help. Thank you!

thank you! Not self -employed. I will discuss with the accountant~

We have a new client that has a life policy in the plan. it does not appear that the PS58 cost have ever been report. I read on a prior thread that the PS58 cost were optional, but I also read they are required to be reported. Is it required? If so, would i just start now. I wouldn't want to go back and have him redo taxes... yikes! Thanks!

Thanks K2! Yes, she is receiving greater than 3% of full year comp between all ER sources.

Good Morning, Have an integrated profit sharing plan, that is top heavy. It also has basic safe harbor match as well as discretionary match (66.67% up to 6%) I have a new participant that entered 7/1, the plan uses date of entry comp. I am trying to determine her profit sharing allocation. i.e full year comp 30,000, entry date $15,000, she is receiving the SHMT 3.5%, her disc MT is 2.68% of entry date comp When i run the profit sharing, (the allocation is 3.22%) should she get 3% of full year, or just the 3.22 of entry date comp? Between all employer sources she is receiving greater than 3% of full year comp. I just want to make sure meeting the top heavy requirements for an integrated plan. Thank you for your help!

I have a plan that uses prior year testing. Eligibility is 2 month with monthly entry. For 2018 I tested without statutory exclusions. I passed the testing for 2018. I am running a projected test for 2019. The plans fail the adp/acp test. In Relius I can select the statutory exclusion " test separately" box. Are there any rules for switching between statutory exclusion from one year to another? Appreciate your help!

Thanks Mike - that's what I thought!

I have a sole proprietor Money Purchase plan. Is the funding deadline 9/15? The accountants says since it is an individual it should be the extended date of the return, 10/15. Thank you!

Thank you Below Ground

HI ~ Looking for some guidance- amount on line 3b of 5300 for penalty? I have a client with late deferrals for 1 participants from 2018. The amount is small and we are not filing through VFCP. I have calculated the lost earning using the participants rate of return. I am completing the 5330. Line 3b is a 100% tax on the failure to correct. If I'm reading this correctly, if the prohibited transaction is not corrected within the taxable period, an amount equal to 100% of the 'amount involved' is imposed. If my lost earnings are $50. My excise tax is $7.50. Since it was not corrected until 2019 the penalty is $50. Total due with 5330 $57.50 . Thanks!