Robin Wilson

More on this topic.....Accordingly, may a safe harbor match formula be "modified" mid year within the realm of the procedures listed or is the "add (or modify)" on with regard to a discretionary match?

Section B.III.D.4 (prohibited mid-year changes) of Notice 2016-16, states the following: A mid-year change (i) to modify (or add) a formula used to determine matching contributions (or the definition of compensation used to determine matching contributions) if the change increases the amount of matching contributions, or (ii) to permit discretionary matching contributions. However, this prohibition does not apply if, at least 3 months prior to the end of the plan year, the change is adopted and the updated safe harbor notice and election opportunity are provided, and if the change is made retroactively effective for the entire plan year (which may require a plan that provides for periodic matching contributions as described in §§ 1.401(k)-3(c)(4) and (5)(ii) and/or 1.401(m)-3(d)(4) to be amended to provide for matching contributions based on the entire plan year). It appears that you may add SH match mid year per the exception. What is does not say is if the plan had to have already had Safe Harbor match during that same year and then had it removed. My take on this is that that plan did not have to have already had Safe Harbor Match. Please advise of your opinion. Thank you.

When filing the form 5500, what should the IRS plan # be listed as for the PE? What if the PE had a prior plan that merged into the MEP - what should the IRS Plan # be then? What happens when the PE decides to start their own "stand alone plan" - what should the IRS plan # be listed as then? What happens if the PE decides to start their own "stand alone" plan and previously sponsored a "stand alone" plan that merged into the MEP that the PE adopted? Additionally, what should the effective date of the "new" plan be listed as? Should it be a restatement?

When setting up a "stand alone" plan in which a PE was previously participated, what should the IRS plan number be listed as? They were an adopter of an "open" MEP in which they filed a separate 5500.

When filing the form 5500, what should the IRS plan # be listed as for the PE? What if the PE had a prior plan that merged into the MEP - what should the IRS Plan # be then? What happens when the PE decides to start their own "stand alone plan" - what should the IRS plan # be listed as then? What happens if the PE decides to start their own "stand alone" plan and previously sponsored a "stand alone" plan that merged into the MEP that the PE adopted?

may a plan document reference a plan provision in it's current document by reference to a prior document?

My understanding of the regulations is that you cannot start safe harbor provisions prior to deferral provisions. Is that not accurate?

If a client wishes to start a new plan that has deferrals and safe harbor match only (does not have an Employer Match or Profit Sharing provision), must the plan have a short plan year for the first year to accommodate the notice requirement? Or can the plan year begin on 01/01/21 with a special effective date of 04/01/2021 for deferrals and safe harbor, even when the there's no match or profit sharing? I'm trying to avoid having a short plan year for the limitation year and include comp for the entire 12 months of the year.

Correct that couldn't defer until 02/01/2020. No mass terminations. Just so I'm clear, ok to add PS in the following year of a new plan as long as it's before the tax filing of the Plan - correct?

Inquiring if regs allow the addition of profit sharing provisions as follows: During the 2020 calendar year, a client starts/sponsors a new Plan, with elective deferral provisions only, effective 01/01/2020. Plan executed 02/01/2020. During the 2021 calendar year, the client wishes to add profit sharing beginning 2020 (as of the original effective date of the Plan). Because the client has until their tax filing to make a Profit Sharing Contribution, is it fair/accurate to say that the client may add PS as of 01/01/2020 as long as the amendment is executed by their tax filing?

Would this be an acceptable formula for SH QACA Match: 200% on first 1% and 50% on next 5%.

When transferring assets due to a spinoff, protected benefits should be adhered to, as i understand the regs. Should the definition of compensation be considered? What about safe harbor provisions?

When client severs their relationship with MEP provider and wants to set-up their own plan, should that plan be a "restate" of an existing plan for that employer or the establishment of a new plan? My understanding is that a spinoff from a MEP is a continuation of an existing plan. Is that correct?

Plan wants to amend to remove the AE feature of the QACA SHNE and change to traditional SHNE. Will the vesting schedule still apply to those SHNE contributions already made under the QACA SHNE provision?

Plan currently has a QACA provision (3% nonelective - 2 yr cliff vesting). They have amended the Plan to remove the QACA provision. Client made 3% nonelective contribution. Does vesting still apply?

Client is wanting to change their vesting schedule from 100% immediate to 4 year graded (25/80/75/100). My understanding is that Vesting is a protected benefit which cannot be reduced or eliminated. The more restrictive schedule must be applied to all future contributions received on or after the effective date of the change.....unless you make all current participants 100% immediately vested in all future contributions as well and apply the more restrictive schedule to new participants. Are there recent or newer regulations addressing this that may have a different application than the one I've described? Is this how more restrictive vesting should be applied?

I have an amendment for the following: 1. change service crediting method for eligibility from Elapsed Time to Actual Hours 2. change service crediting period for eligibility from Anniversary to Anniversary switching to Plan Year 3. change service requirement from 1 year period of service to 1 year (1000 hours) of service 4.change plan entry dates from "the first day of the month on/after meeting eligibility requirements" to "the first day of each calendar year quarter on/after meeting eligibility requirements" 5. All requested changes effective 01/01/2021 The Plan currently has SHNE provisions Can this amendment be applied to all employees who have not yet entered the plan? Are there any cut-back issues that come into play?