metsfan026

Good evening, I hope everyone had a Happy Holiday and has a Happy New Year! Just a quick question regarding the benefits in a Cash Balance Plan. If the document says Employee A gets a benefit of $100,000 and Employee B gets $20,000. Is there a required salary they need to get to get that benefit, or since the document states a set dollar amount as long as the testing passes there is no issue (the only two employees are 50% owners, so discrimination isn't an issue). Theoretically, can Employee A take a $10k salary and still get the $100,000 benefit? Thanks in advance!

This is a new case for us, so I'm honestly not sure

It was an accountant because the max deductible we were telling them was greater than another actuary. I was just confirming, even though I knew we were correct. Thank you

Good afternoon everyone. Someone is questioning me, so now I'm second guessing myself. The max deductible contribution for a Cash Balance is: Funding Target + Normal Cost + Cushion Amount (Funding Target /2) - Assets I have that correct, right?

We have a client that turned into a co-op, so all 14 employees own an equal percentage of the company (about 7%). So technically all employees are greater than a 5% owner and therefore an HCE. Am I correct in saying that there would be no compliance testing? I just want to make sure. Thanks!

We have an S-Corp who is telling me that the owner is no longer going to be receiving a W2 and instead receiving K-1 income. Is there a way to utilize the K-1 income for the salary? Just trying to help the client. I've read that K-1 can only be used if it's a partnership, but I wasn't sure if that was accurate or not. Thanks in advance!

We have a client setting up a Mega Backdoor Roth contribution in his 401(k) Plan. The question is, does that contribution need to show up on his W2? I didn't think so, but I wanted to confirm. Thank you in advance!

Good morning! I'm just trying to see if we can setup an additional plan for someone due to it being a controlled group: 1) Employer #1 - Husband owns 100% of the company, his wife is the only employee 2) Employer #2 - Wife owns 100% of company (and is the sole employee) So the question is, the wife is getting a benefit under her husband's Plan (and a sizable one). Can she also setup a Plan under her own company or would that not be allowed?

We have a participant requesting a Hardship distribution based on: Yes I am backed up on my bills specially my mortgage, car payment and daycare I'm probably overthinking this, but I don't believe it falls under the IRS Hardship rules. I just wanted to confirm Thanks everyone!

There's a discretionary match in the Plan, but it isn't going to be used for this year (1st year of the Plan). My bigger concern was that we needed to go back and catchup the missed deferrals. But since there isn't a match, that doesn't appear to be the case.

Thank you! I just want to make sure I'm reading this correctly. All of the missed deferrals are from August and later so it's all current and there's no current match. That means they just have to start the contributions ASAP, correct?

Good morning everyone. We have a client who inadvertently failed to start auto-enrollment contributions for several employees. I just want to make sure what the correction is for this type of mistake? Do they catchup the missed contributions via the next payroll and pay them interest for the missed contributions? For the interest, what's the best way to calculate? Thank you in advance

We have a client that has been chronically late with their contributions in the past few years (all of the interest is being paid in '24). On Schedule I Question 4a, what would be included: - Would it be just the contributions for the current year? - Would it be all contributions for the prior year(s) where interest had not yet been paid? I believe it's the second one, even though the contributions had been paid in the year. Since the participants had not yet been made whole, all contributions should be included. I just wanted to confirm. Thank you!

Yes, the SB was being done as Frozen and $0 Normal Cost. I just had never done the form for the Frozen, so wasn't sure what to check off (unlike with a Terminated Plan). There's a chance the opt to unfreeze it in a year or two, or just close it down (it's not subject PBGC). That's why I was asking.

Thanks! So, if they opt to un-freeze the plan at some point we simply remove that code on the 5500, right? I just wanted to make sure

Is there anything special to do to file a Form 5500 for a Frozen Cash Balance Plan? It is fully funded (assets exceed the liabilities) OR do we just file it with no contribution requirements for the year?

I hope so!!! And thank you!

Good morning, I have a few clients that don't want to log in and electronically sign the forms themselves. What steps do they need to take to authorize me to sign the forms (with my name) on their behalf? I think I know, I just wanted to be 100% sure. Thank you!

This is the checkoff for the Plan:

We've always used Box 5 for the compensation when a document defines it as W2 Compensation. We have an auditor questioning it, wanting us to use the Gross Pay (which isn't a box on the W2). Which one is commonly used?

OK, so pull out the overages and move them to the Forfeiture. Thanks!

I know if someone is funding the Safe Harbor Match on a payroll-by-payroll basis, a true-up is not required. However, what happens if someone is inadvertently overfunded? Does that money need to be pulled from the account or since it's on a payroll-by-payroll basis no adjustments are needed? Thanks in advance!

I have a non-gonvernmental Plan, but they do educational services and do get some grant money for pre-school programs. Would they be considered exempt from ACP Testing? I just want to make sure, as the issue is coming up with the auditors if it is required or not. Thanks in advance!

It's just a general question at this point. They haven't failed, but are worried about if they fail in the future.

This isn't my actual client. An advisor asked me, so let me get a few more details....lol