metsfan026

The problem is the goal is to only cover the wife (who is the sole employee) in the Cash Balance Plan. There are 6 eligible employees from Company 1 (1 HCE and 5 NHCE). Wouldn't excluding all 6 fail the testing, even though they'd be benefiting under Company 1's plan?

Thanks! That's extremely helpful. So if Company 2 wanted to do a Cash Balance Plan, they essentially couldn't because they'd have to include all the employees of Company 1?

I didn't think this was an issue, but the client was told something by a friend so I wanted to be clear: Company 1 - Owned 100% by husband (wife not on the books) Company 2 - Owned 100% by wife (sole employee) She was told that since they have minor children, this would be a controlled group and needed to be tested together. I didn't think so, but I just wanted to be clear. The only complication is that Company 2 is a law firm that does do work for Company 1. I'm not sure that it's the sole work that they do, but while that could create issues it shouldn't be a controlled group issue. Thanks in advance!

Good evening all! I just got a new lead where the income from the LLC comes solely from their investments in crypto currency. Is this an issue when starting a plan for the LLC? Or as long as they are reporting the income on a K-1 through the LLC, it shouldn't matter? I just wanted to make sure before writing the Plan Document. Thanks!

I don't think 414s is going to be an issue. The biggest exclusions are bonuses for two HCE (for example, someone made in excess of $300k but the bulk of it was through a bonus therefore the usable salary is around $130k). Because of that the HCE percentage is around 69% while the NHCE is 92.80%. Since the NHCE are benefiting more, I'd think it would pass the testing. So with that in mind, putting the exclusion as "All Non-Base Pay" should be acceptable for IRS standards?

Would it be safer to say: All participant subsidies (Health, Travel, Moving, Entertainment, etc.) Just trying to figure out the best way to word it in the document that avoids any issues, but covers what the client is looking to do

Their base comp is labeled as "Regular Compensation" on their payroll. So should we say somewhere define "Base Pay" as the "Regular" compensation line item on payroll?

Good afternoon! Generally when we put in exclusions from compensation in the document we state specific items to be excluded. I have a client that basically wants the document to state that compensation excludes "All Non-Base Compensation". Would this type of generalized exclusion be viewed as acceptable by the IRS? The software would support it, under the "Other" exclusions. Thanks in advance!

Thanks everyone! Was just reviewing our document software to amend the Plan to allow and it states that the participant has to be at least 62-years old, but it sounds like that's been lowered? Our document software also seems to indicate that it's a monthly benefit, but can it be a lump sum?

I didn't think so, but I have a client asking so I wanted to confirm. The participant is under Retirement Age and was hoping to take out a portion. Thanks in advance!

Sorry everyone, they actually sent incorrect information initially. Based on this there are no controlled group issues, not even a brother/sister controlled group since the parents only own more than 80% of one company. I just wanted to confirm that I was thinking this through correctly. Thanks everyone and I apologize for all of the questions! Famiy Members Age Ownership Ownership Ownership Ownership Dad 60 50% 70% 50% 0% Mom 58 50% 0% 0% 0% Brother 36 0% 0% 50% 70% Sister 34 0% 30% 0% 30%

Thanks! So I'm correct that it's 1, 2, 4 & 5 that would have to be attributed. Company 3 could be excluded? I just wanted to make 100% sure

I thought if they owned more than 50% that it was still attributable. Is that not accurate?

I have a potential client that sent over the ownership percentages below, so we're trying to determine if there is a controlled group. Since they are adult children, is it accurate that Company 3 is the only one that wouldn't be part of a controlled group (since the son owns 50% or less of the company). Company 4's ownership would be attributed to the parents, and therefore part of the controlled group, since the ownership gets attributed to the parents since he owns over 50% of the company. Thanks!! Age Company 1 Company 2 Company 3 Company 4 Company 5 Husband 60 50% 100% 50% 0% 100% Wife 58 50% 0% 0% 0% 0% Son 36 0% 0% 50% 100% 0% Daughter 34 0% 0% 0% 0% 0% Total 100% 100% 100% 100% 0%

Good morning and Happy New Year to all! I have a client that is a Private Equity Fund and it's a participant directed accounts. One of the plan participants wanted to know if it was alright to invest in the firm's own hedge fund. May question is if that would be allowed in general, or could it be viewed as prohibitive by the IRS since it's the firm's own fund. Thanks in advance!

Good morning everyone! I have a client that applied to they EFTPS, but never received their PIN in the mail. I know generally you can only do a check if under $2,500, but under these circumstances would it be an issue to have the check sent? Thanks in advance!

Did we establish if the contribution for a Defined Benefit Plan were extended to January 3? I believe that they were, but I wanted to be 100% sure before going back to an accountant who is asking me for one of their clients (luckily, all of my plans were able to get done on time). Thanks!

I know we are in the process of doing the Cycle 3 restatements for all non-volume submitter DC Plans. When are restatements due for any DC non-volume submitter plans due? Thanks in advance!

It's in the Loan Policy, not the actual Plan Document. Is the loan policy a pre-approved document by the IRS? I didn't think it was.

Thanks! That's what I thought, but I just wanted to confirm

Good morning! Is there a limit to the number of times a loan can be refinances in a 401(k) Plan? I don't see anything in the regulations, but my document provider appears to have default language that limits the number of refinances to twice. I wanted to make sure that we could remove that language without there being an issue. Thanks in advance!

Thank you!!

Does anyone know what changes the No Surprise Act causes on the SBC and how it needs to be presented? Are there even any changes? I wasn't sure and a client is asking. Thanks!!

Is there an updated template for the QDIA notices? I can't seem to find one for some reason. Thanks everyone!!

This is definitely not in my wheel house. Does anyone have any information? I truly appreciate it: I was approved for my disability claim. I do not think they are computing the correct amount that is taxable on one of my benefits, which is also the largest. $3500 a month was paid by Cornell, so that is taxable. But the $21500 was paid by me in after-tax dollars. Based on my understanding, then only 14% should be taxable. However, Cornell told the Hartford that 48% is taxable and they are withholding and will likely report this to the IRS. When I questioned this, HR's reply is below: "There is a standard formula that applies to Long Term Disability payments based on IRS Section 105(a). It takes the average of two years of the total premiums contributed by the employer and all employees and finds a ratio between the two. WCM ratio is 48.27% taxable and 51.73% non-taxable."