metsfan026

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."

Good morning everyone! Is anyone familiar with the Auto-IRA Mandate recently signed for New York? I know it says that if you are already providing a retirement plan they are exempt from the mandate. If an employer opted to put a plan in today, though, are they also exempt from the mandate?

So I just wanted to make sure I'm thinking of this accurately. There are a total of 93 people eligible for the Plan - 33 HCE and 60 NHCE If, based on people working for the subsidiary LLC that they want to exclude (or a VP, etc. that they don't mind excluding): 1 HCE out of 33 will be benefiting 8 NHCE out of 60 will be benefiting That would satisfy the 70% ratio percentage test, and therefore be able to be done without an issue? I just wanted to make sure I wasn't overthinking/confusing myself.

I know the SECURE Act removed the requirement for Safe Harbor notices for non-elective Safe Harbor contributions. I just wanted to make sure that it applies to both the 3% Safe Harbor and the basic Safe Harbor Match? Thanks in advance!

I apologize if I misunderstood the response and truly appreciate the responses. No unions and there are a lot of highly compensated employees. I'll have to run the numbers and see if there's a way I can do it. Again, I apologize and truly appreciate everyone's time/responses