metsfan026

Thanks to both of you? So would they still get a 1099 for the loan default, but the repayment would offset that? I just want to make sure I understand. Thanks!

Question, Plan is terminating and there is a participant who has an existing loan. In my experience they have two options: 1) Pay the loan back in full 2) Default on the loan Someone is asking if they have the option to repay the loan back to their IRA, assuming they are rolling their balance into an IRA. I know what my gut is telling me, but I just wanted to make sure this isn't a viable option. Thanks in advance!

We have someone with an old SEP IRA plan that they are looking to roll the money into a Cash Balance Plan? The value of the SEP is around $1.1 million, just for reference. Thanks in advance!

We re-amortize when someone is on an approved leave of absence. I wasn't sure if a suspension qualified as a leave, or if that had to be handled differently

Question regarding a participant being out on suspension from their job in terms of their loan repayments. The plan states that repayments have to be made through payroll deduction, so obviously if they are out on suspension no repayments will be made. There are two options that I see: 1) Re-amortize the loan to increase the weekly repayments 2) Have the employee makeup the missed payments and leave the schedule the same Is #1 a viable option, or would that not be allowed? I know we can do it if someone is on a leave of absence, but can we do it for a suspension? Thanks!

Thanks, just one of those days where I kept talking myself out of what I knew was right

I think I'm overthinking this, but now I just wanted to be sure. If the Plan is Top Heavy, but no Key Employee received a contribution (they also did not make any deferrals for the year) the Top Heavy is not required correct? Since the highest contribution percentage for a Key Employee is 0%. I just wanted to make sure I was not confusing myself. Just one of those days.

Good morning, I hope all is well. Has the IRS issued final guidance on putting in matching contributions as Roth as of yet? If it's a Safe Harbor Match, does that impact the ability to do it as a Roth? Thanks in advance!

I'll be honest, I don't have much experience in this area but I have someone asking me questions. Someone wants to change their SEP to a Simple IRA. Are there any issues with doing this and can they still contribute to the Simple IRA?

Good afternoon, thank you in advance for your help! I have a two-man plan who has a Cash Balance + Profit Sharing combo Plan. One of the owners if, given the 6% limit into the Profit Sharing for deductibility, does he still have the ability to a mega backdoor Roth. Anyone have any guidance? Thanks in advance!

Good afternoon, I hope all is well with everyone. I know Secure 2.0 had initially said that Hardship Distribution could be self-certified. Was that pushed back, though? I just want to make sure, as we had a client that had adopted that strategy, but I think we may need to backtrack. I just want to be sure. Thanks in advance!

That's what I thought. Thanks!

Good afternoon everyone, I hope all is well! I have a client with about 40 employees, and they want to allow all of them to participate in the Plan. What they don't want to do is give the Match (which is the Safe Harbor) to a small portion from getting any type of match (less than 5). Generally I didn't think this was allowed, but I wanted to be sure. I know if it was a discretionary match, it wouldn't be an issue. SH, I thought would be but I wanted to confirm Thanks!

Thanks! Would it be an issue to include them in 401(k) (and I guess, in turn, Safe Harbor), but not the Discretionary Match?

I know the Secure Act forces plans to include part-time employees in the Plan. However, can a plan still explicitly exclude them as a group in the Plan Document as long as it passes all coverage testing? I thought we could, I just wanted to be 100% sure. Thanks!

Thanks everyone! Just wanted to followup, I know there was some guidance that came out so I wanted to check. Thanks everyone!

Just a question, after having a discussion with a co-worker. Can a plan have different eligibility dates for a 401(k) and 3% Safe Harbor Contribution, or should they match? I know the eligibility date for a Profit Sharing (or any discretionary contribution) can be different. I just wanted to confirm if the Safe Harbor had to match the 401(k) or not. Thanks in advance!

Thanks! So it would really be just restating the document converting it? Just wanted to make sure there wasn't any other steps

Good afternoon everyone, I hope all is well. I have a new client that has a traditional DB Plan that started in '21. They want to convert that into a Cash Balance Plan. Is there a way to simply restate the Plan (which we need to do anyway) and convert it into a CB? Or do we need to terminate and start a new plan?

I have a client asking about the mechanics of making the employer matching contribution as Roth, as allowed under Secure 2.0. In particular how the taxes are being handled. Is the Match being put through payroll, or are companies paying the taxes independently?

So it would just go to the people active at the time of termination, correct?

I have a Plan that's terminating. Can they allocate the Forfeiture Account to any active participant at the time of Plan termination? They had a few people who had been terminated for at least 6 years, 100% vested, that just refused to take their money from the Plan. They want to avoid giving money to them from the Forfeiture Account, if possible. Thanks!

Perfect. If the owners are among the Top 8, we use them in the Top 8 correct? So it's the Top 8 plus whichever owners would not be included otherwise. Just want to make sure.

So just a little background: There's a total of 37 eligible participants 4 are owners (including owners through family attribution) 19 HCE based on compensation I know you can limit the HCE to the Top 20%, and all owners are considered HCE. So in this case, regardless of the compensation of the owners, would we use them and then the next 4 highest to create the 8? Or do you use the highest 8, and then add any owners who are not included (so you would be over 8)? Thanks in advance!

Here's the language in the document for the Deemed Cash Out. So if someone hadn't been out 5 years, they are now 100% at Plan Termination correct? I just want to make sure my thought process is correct. Thanks! If a Participant's vested interest in his Hypothetical Account is zero, such Participant shall be deemed to have received distribution of his entire vested interest under the Plan as of the date he incurs 5-consecutive Breaks in Service and he shall cease to be a Participant under the Plan as of such date.