metsfan026

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

Just trying to do some bookkeeping for a few of my new clients. Does anyone have a list of the required annual notices? Just making sure that they've been compliant in the past. Thanks in advance!

I didn't think we could exclude about 95% of the employees (which is what we'd need to do in order to exclude all of the subsidiaries)

That's exactly what I thought. There's about 1,000 employees with all the subs, and only 15 or so in the main office. Obviously if we excluded everyone it would fail the necessary testing.

Trying to design a plan for a potential new client just for their main office. The issue is that it's a production company, and for every film they do they open subsidiary LLC that are 100% owned by the main office. I assume, based on that, there's no way to exclude all of those additional LLC (adds hundreds of employees) from the Plan and just have it designed for the 10-15 person employees of the parent company? Just trying to confirm my thinking is correct. Thanks!

Got my hands on the document and it states: In the absence of any other designation, the Participant will be deemed to have designated the following Beneficiaries in the following order: (1) the Participant's Spouse (if then living); (2) the Participant's issue, per stirpes; and (3) the Participant's estate. Therefore we are going to distribute the money to his lineal child, not the step-children who were not adopted

What about if the loan has been deemed in default, but the balance is still being shown as an asset of the Plan?

Thanks everyone, that was exactly what I was thinking. Unfortunately, currently I only have the adoption agreement but not the document that the agreement created. I'm hoping to get my hands on that, but I just wanted to confirm

Unfortunately the participant recently passed away, so we need to make a decision on who the money is going to go to.

Just took over a case where they didn't have any beneficiary forms on file. There is a participant who just recently passed away. He has an ex-wife, who he divorced before the Plan ever started so I don't believe she's a factor here. He has one biological child and step-children. Would his entire balance then go to his lone biological child? That's what I'm thinking, I just wanted to confirm. Thanks in advance!

General question regarding RMD. If a participant has an outstanding loan, is the outstanding balance of the loan included in the 12/31 balance for the calculation? In other words: (Investments + Outstanding Loans) / RMD Factor I believe that's the case, I just wanted to confirm. Thanks in advance!

This is exactly what I thought. None of the non-Key EE deferred and the Key maxed out ($26k). Thanks for confirming!

Got into a debate with a colleague and I'm 99% sure I'm correct but wanted to confirm (sorry if this is a dumb question, just want to make sure!) Plan is Top Heavy for 2020. The only contributions made into the Plan in '20 was the one Key employee making a 401(k) contribution (no other Employer money has been contributed). Based on the 401(k) being made, they are therefore required to make the 3% Top Heavy to all non-Key employees, correct?

Taking over a case that has two Plans, a Profit Sharing and a fully funded Defined Benefit Plan. Is there any issue with terminating the DB Plan, rolling it into an IRA and then opening a new Cash Balance Plan? Thanks in advance!

Thanks!

My question is how far back do people normally go to amend forms? Taking over a case that had a mistake in the amount of loan repayments were made back in '14, so the loan balance was off (and subsequently was off every year since). The client has supplied copies of the checks, etc., so I know the mistake is accurate. Is this the type of situation where you would amend every form since 2014? I have all of the information to do it, just wanted to make sure it was necessary. Thanks in advance everyone!

Got it. So it's 4 years or less, between 5 and 19 years and then 20+ years

Good morning everyone! I just wanted to make sure we are using the correct segment rate for the calculation of the Normal Cost. The calculation should be: Contribution Credit x The Assumed Interest Rate (to the power of the number of years until retirement) -------------------------------------------------------------------------------------------------------- Segment Rate (to the power of the number of years until retirement) For the segment rate being used, it should be: First segment rate: 0-5 years from retirement Second segment rate: 6-20 years from retirement Third segment rate: More than 20 years from retirement Thanks in advance for confirming

I know, and they elected Calendar Year data election to determine HCE. Therefore, we'll move forward with 5 HCE and just the 1 NHCE. Thanks!

I know we can do just the top 20% as HCE, but is it an issue going the other way and testing 5 as HCE and only 1 as NHCE

Taking over a case where there are 6 participants, but technically 5 of them are HCE (2 partners, and 3 of the employees who have no ownership stake). Is there an issue from a testing standpoint to use all 5 as HCE or should we test them with just the 2 partners considered HCE? (Only reason I'm asking is because it does make a difference in regards to passing or failing) Thanks in advance!

I just want to make sure I'm reading all of this correctly. Under the Hurricane Ida Relief it says: The IRS also gives affected taxpayers until January 3, 2022 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after September 1, 2021, and before January 3, 2022, are postponed through January 3, 2022. As part of Treas. Reg. § 301.7508A-1(c)(1) it says: (c) Acts for which a period may be disregarded—(1) Acts performed by taxpayers. Paragraph (b) of this section applies to the following acts performed by affected taxpayers (as defined in paragraph (d)(1) of this section)— (iii) Making contributions to a qualified retirement plan (within the meaning of section 4974(c)) under section 219(f)(3), 404(a)(6), 404(h)(1)(B), or 404(m)(2); making distributions under section 408(d)(4); recharacterizing contributions under section 408A(d)(6); or making a rollover under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3); Paragraph (b) discusses the delayed deadline. So does this mean contributions due by 9/15 are delayed to January 3? Thanks in advance everyone!