metsfan026

This is the definition of 8(f) on the 5500-SF: The amount to be reported for expenses involving administrative service providers (salaries, fees, and commissions) includes the total fees paid (or in the case of accrual basis plans, costs incurred during the plan year but not paid as of the end of the plan year) by the plan for, among others: 1. Salaries to employees of the plan; 2. Fees and expenses for accounting, actuarial, legal, investment management, investment advice, and securities brokerage services; 3. Contract administrator fees; and 4. Fees and expenses for individual plan trustees, including reimbursement for travel, seminars, and meeting expenses. Don't think it fits there, so I guess I'll go with the 8(g) as an other expense?

Good morning everyone! Just curious how everyone handles management fees on the investments and reporting it on the Form 5500. I've seen a few different things, most notably: Include them as part of the Investment Gain/Loss - Line 8(b) Include them as "Other Expense" - Line 8(g) I'm not sure if it matters either way, but just curious since I've seen different things in the past. Thanks everyone!

Where would you insert this into the document? Would it go into the Force Out of Small Balances or the timing of Forfeitures?

Thanks! Let me see if I can get the language inserted into our documents!

The document just says Forfwiture occurs at the earlier of distribution or 5 years Is there something we can add to modify that?

I have a client who doesn't want to provide statements for terminated participants who are 0% vested, but have not yet been out 5 years therefore the money in the account has not yet forfeited (it's all Profit Sharing money). Is there something in the regs that requires statements be sent to these participants? Can someone point me to it, if there is, so I can provide it to the client? Thanks in advance!

Yes, I had originally ran them from 09/15, but just re-did it from 12/31 and everyone has a negative rate of return as per the custodian.

Got it, thanks! What do you think of charging the client interest on the late payment though? Assuming everyone had a negative rate of return, is it not necessary?

What else should I be considering? Just want to make sure the client gets this rectified quickly and correctly.

Got it. Do you agree that we don't need to add interest to make the participants whole, since they have all seen the value of their accounts decrease?

It was a 2020 required contribution, so it had to be funded by September 15

They missed the 09/15/21 deadline for their required contribution. Going to be making it this week, plus any interest owed to make the participants whole.

Have a client that missed making their Safe Harbor Contribution. Going to make the payment now, plus lost interest. The question is what interest rate should be used? Where the money is invested calculates the actual rate of return, and from the due date to today most of the participants have actually lost money (even though the Plan lost during this time, I don't believe we can't avoid making interest). Therefore is it best to use the VFCP calculator to calculate interest? Thanks!

Good afternoon! I know people can have Life Insurance in a Defined Contribution Plan. Is it possible to have it in a Cash Balance Plan as well? I just wanted to confirm. Thanks in advance!

I have a client who is an S-Corp. They get a W2, but also took what the call $70k in "distributions" as bonuses that are not included in their W2 for the year. The question is, do those "distributions" count towards compensation during the year or is it excluded since it is not part of the W2?

I think they are trying to hang their hats on compensation being "W2 compensation". I agree, but I'm just trying to make sure!

We have a new potential client that may pay most of it's employees through 1099. I assume if the bulk (let's say 75% are paid that way), we're going to create discrimination issues? They were pushing back against me saying someone else told them it wasn't an issue, so I just wanted to confirm

I have a quick question and just want to make sure I'm not overlooking anything: Company 1 Person 1 - 100% ownership Person 2 - 0% ownership (though they work for the company) Company 2 Person 1 - 75% ownership Person 2 - 25% ownership The two people are not related. Since Person 1 owns less than 80% of company 2, there isn't a Controlled Group issue (even though Person 2 works for both, they only have ownership in one). Thanks in advance!

Thanks Bill. I've seen that, but I wasn't sure if a straight Profit Sharing Plan fell under one of those or if the assumption is that it falls under the "but not limited to" group

Is anyone familiar with the mandated retirement plan being instituted in New York? The question is if a company has an existing Profit Sharing Plan, but doesn't allow for 401(k) contributions, are they exempt from participating in the mandated plan?

Sorry, it's a 401(k) Plan

Is spousal consent required to process an RMD? I have one being held up by the custodian, due to needing spousal consent. Thanks in advance, and if you could let me know where in the regs I can pull the info I'd appreciate it!

What's the best way to word the definition of the pay credit in a Cash Balance Plan, if you want to allow it to rise each year? I'm not an actuary, but I've seen charts that show limitations for Cash Balance contributions based on their age (like a 40-year old may only be able to contribution $100,000). I know it's not the 415 limitation, so just trying to figure out the best way. I apologize for all of the questions, I'm just trying to learn more about these plans so I can be more helpful to the people in my office. Thanks in advance!

Isn't the maximum 1.5 * (Funding Target + Normal Cost - Assets) ?

Your right, and I probably should've worded the question better (I was rushing out to a meeting and I'm not an actuary). In this case, however, since the assets are in excess by enough they could only deduct up to the $25k correct? Otherwise they'd need to raise benefits, if they could, in order to allow for more contributions to be made. Just for further reference, the Funding target is roughly $900k and the assets are around a million