Pensions2020

One of our clients wants to merge a recent acquisition's Plan (Plan B) into their own Plan. Plan B has an enhanced SH Match formula. Plan A's formula is the QACA auto enroll SH Match. Are there any considerations for attempting to do this as of 07/01/24 or best to wait until 01/01/2025? That was my first response but upper management would prefer to do it sooner.

We had a client terminate their Plan and pay everyone out in September. We have discovered that one of the participants was shorted $5 on their 401k deferrals during the year while finishing up the last Form 5500. This deposit happened in March. How can we rectify this? Could they give the employee a $5 check? Deposit the $5 to the Plan and see if they will send them another check? I'm thinking they may take it all in fees if that is the case. The client wants to submit Form 5310 to receive a determination letter so I want to make sure it is handled properly.

Would they be able to receive $500 tax credit for adding auto enroll in Plan? It is only Owner and spouse in Plan. I know this isn't the spirit of the tax credit but if it is in Plan Document would it be able to be used? If anyone would be hired they'd be auto enrolled. I'm of the understanding that they wouldn't qualify for any of the other tax credits since there are no HCEs.

2022 Form 5500

Had a Plan with 350 participants but only 101 with balances. Under the new Form 5500 audit rules, is one required? I know that it is clear that any Plan that hasn't met the 120 limit won't need one but wasn't sure if one had already been having the annual audit if it could discontinue.

We have been attempting to terminate a Plan for about a year that is with Ascensus. We have a handful of terminated employees and a deceased participant. The deceased participant's spouse does not want the funds and refuses to sign paperwork (they were estranged for many years). We would like to force them out to an IRA and finally close this Plan. However Ascensus refuses to let this happen. They say that Plan cannot terminate until beneficiary signs forms. No one else can be forced out as they want checks to be cut at same time. I have countered that they are excercising control over Plan Assets and acting as a fiduciary but they claim that in the termination paperwork they require you to sign, the Plan Sponsor requests no one gets paid out unless they sign a form. I don't know how many years Ascensus expects them to continue the Plan for this beneficiary. Does anyone have this experience or ideas?

Participant Directed. Looking to take fees from participant accounts. There are no forfeiture money in the Plan. The Fee disclosure doesn't specifically mention TPA fees. It is generated from a recordkeeper. We do not charge any participant fees for distributions etc.

What sort of notice may be required to pay our TPA fees from Plan Assets. We still have not been paid for 2019 services as the client's business has been heavily affected by Covid so a thought about paying our services from Plan Assets came up. Our document allows for this and this seems like an allowable fee to charge to participant accounts but was wondering if I was missing anything about having to let participants know about this. We would likely do the same for 2020 services as well.

We have a potential client coming to us for help closing their solo 401(k) Plan. He filed a Form 5500SF in 2010 and then an EZ in 2011. Assets never rose above $20k and no further Form 5500s were filed since. It was my understanding that one a Form 5500SF was filed, they would need to file one every year afterwards even with assets under $250k. Therefore we would need to go back and file the missed returns and corrections. I contacted a colleague who differed in opinion that they could switch between Form 5500SF and EZ and would not be required to file if under $250k which would change things in closing his Plan.

Thanks everyone for their input!

Considering a change to org structure to include Senior Plan Administrator and Plan Administrator (and possibly Jr. Plan Administrator). Did anyone have criteria to make someone a Senior Administrator vs a regular Plan Administrator? Is it just experience in years worked in the industry (after 10 or 15 years?) or would it be taking on additional roles? Thanks!

Thanks for the info!

Does anyone know of any updates on the upcoming Plan Restatements due to begin on 05/01/2020?

We know that the 3% Safe Harbor Annual Notice has been eliminated with the SECURE Act. However we received information from VOYA (attached - page 3) that says it is still required to give participants a notice if they are a new hire. I haven't read this anywhere else in regards to the SECURE Act. I would assume that only the SPD would need to be distributed? 0310_001.pdf