Jump to content


  • Posts

  • Joined

  • Last visited

  1. We have a 401(k) plan in which we need to make a corrective distribution to an employee who made 401(k) deferrals in 2021, 2022 and 2023 but we have now determined was not eligible to make the 401(k) deferrals to the plan in those years. I understand that we have to calculate the gains on those deferrals and include them in the distribution but does each year's correction need to be reported on a separate 1099-R for that year or would the entire corrective distribution be reported on a 2023 1099-R?
  2. We have a client with a 401(k) plan and a participant wants to take a $50,000 loan which he is eligible to do. He also has a second job that is totally unrelated to this client and that job has a 401(b) plan that allows loans. Can he also take a $50,000 loan from the 403(b) plan? I cannot find anything that says he can't but I might be missing it.
  3. We are terminating a defined benefit plan with many former employees. We used a locator service to find addresses for all of the former employees and have learned that several of the former employees are now deceased. What do we have to do to determine if they were married and to find the spouse since the plan has a QJSA payable to the spouse?
  4. We have a client who wants to add a discretionary match to their existing 401(k) plan. They want to make the match on a payroll basis and then do a true up at the end of the year. Do they have to adopt the amendment before the first payroll with the match or can they wait to the end of the year?
  5. We have a defined benefit plan with 21 retirees and no active participants. The employer wants to purchase annuities for the retirees now however we feel they should go through the PBGC plan termination process first. Can they purchase the annuities now, pay out the retirees and then file with the PBGC with 0 participants and $0 assets? The employer has not initiated any formal plan termination process.
  6. No, there is no provision limiting the choice of testing compensation however when using Compensation as a participant for allocation purposes and full year compensation for testing, it fails the testing so it doesn't make sense to use the part year compensation for the allocation.
  7. We have a Cash Balance Plan and a Profit Sharing Plan that we are combining for testing. The Profit Sharing Plan defines Compensation as Compensation from date of Participation. We have several employees who became eligible 7/1/2021 so we would use their Compensation from 7/1/2021 to 12/31/2021 for allocation. The Cash Balance Plan defines Compensation as full year compensation. Can we use the two different definitions of Compensation for the 401(a)(4) testing? Is this allowed or do we have to use full year Compensation for testing?
  8. They are actively employed participants. They have no accrued benefit because participation was not frozen when the benefits were frozen so they were eligible for the plan but didn't accrue any benefit.
  9. We are terminating a defined benefit plan and have some participants with $0 accrued benefit. The Plan Sponsor has decided to file for approval with the IRS and we are filing with the PBGC. When do we consider the participant with no accrued benefits paid out of the plan? Would it be on the termination date or once we get approval from the IRS and pay out the participants with accrued benefits?
  10. I have a client with a DB plan who has decided to delay their contribution until 1/1/2021. Since there is an unpaid minimum contribution on line 11a, how would I answer line 11b about the reporting of missed contributions to the PBGC? I cannot find anything that provides an answer.
  11. We have a defined benefit plan that is a lawyer and his employee. They are not covered by the PBGC. Do we have to file the standard termination process in the PBGC instructions for terminating the plan including the 60-90 day notice prior to the termination date? If not, what is the timeline? Thanks!
  • Create New...