metsfan026

Thanks, so are you using 4.75 / 5.18 / 5.92? Or just the 5.00 / 5.45 / 6.23?

Thanks! Which ones are you using:

Good afternoon! We took over a Cash Balance Plan and for '21 it appears they were using these interest rate s (they used the corridors under BBA): However, I see that this table hasn't been updated for Plan Years Beginning in 2022. Does anyone know when these will be updated, or what can be used instead? Thanks in advance!

Good morning! We have a Cash Balance Plan that has the owner and 2 employees being covered. The issue is, for 2022 the owner ultimately didn't take a salary due to business being terrible for the year. Would a contribution still be owed, even though there was no salary drawn? I believe I know the answer, I just want to be sure. Thanks in advance!

Yes, there was a successor Trustee in place. Unfortunately the balance is a little bit too big to just have it pay our fees. There will still be additional funds remaining

Good morning everyone! Have an old client that had terminated the Plan back in 2017 (all participants had been paid out). The problem is that they left a Forfeiture Account open, that remains open today. Obviously we'll need to file Form 5500 for the back years, since there was still money. The question is what should be done with that Forfeiture money? There will be some expenses, due to the required filings, but how should the rest be allocated? Does it need to go to the participants who had previously been paid out? What if those participants can't be found? The owner, who was one of the three participants, has unfortunately passed away. Thanks everyone!

I just wanted to make sure this company was given good advice (not currently our client). They currently have a 401(k) Plan and are looking to add a Cash Balance on top of that. I don't believe there are currently any employer contributions going into the 401(k) Plan. In that situation, do the Plans have to be tested together or can the Plans be separated and tested individually? So when we are collecting EBAR for Rate Group testing, etc., can the 401(k) contributions going into the other plan be ignored? Hopefully this question makes sense. Thanks!

Thanks! If the document is silent, pro rata is an acceptable method I assume?

Question regarding the termination of a Cash Balance Plan. Obviously, like most plans, the assets are down in '22 so now that they are looking to terminate the Plan they are roughly $20k short of the balances earned to date. That said, the only participants are the owner and his wife. Is it necessary for them to make a contribution in order to bring the balance up to the earned balances? Or can they simply distribute the money that's in the plan? Thanks everyone!

It was Hurricane Ian, but she was just visiting at the time. It's not where she lives, so I assume that means she's not covered as a hardship?

Are there any special rules in terms of hardship distributions and the impact of a hurricane? The participant is looking to use the money to fix her car, due to damage from a hurricane. However, by the letter of the law, this wouldn't qualify as a hardship. Before we just rejected the request, I wanted to be sure there wasn't a special exception out there.

That's what I thought, but as expected the client is balking at that. Thanks!

We have a plan that terminated and distributed all of the assets. Unfortunately a residual dividend came in, despite the money having been liquidated into cash. It's a small amount, so what's the best way to handle this without having to cut everyone a $0.50 check? Can the plan sponsor issue an invoice to the Plan for mailing, etc. and pay it that way?

We have a new client that just realized that a '21 Matching contribution was missed for a few participants. The question is do they need to also add interest for the late contributions? I believe that since the market is down, that no interest was needed since the participants have actually benefited from not being invested in the market. I just wanted to confirm that the stance was accurate. Thanks!

Are distributions from a 457 Plan processed through payroll? That's what someone is telling me, I just wanted to be sure

It is a self-insured plan. So, based on this, pre-authorization would not be required correct?

I'm not someone who processes claims, but we help administer a few plans. The TPA denied the following services, saying that they needed to be pre-authorized. My question is, with the The Newborns' and Mothers' Health Protection Act of 1996, I know that says that pre-authorization is not needed for the 48 or 96 hour hospital stay in regards to having a baby but do these services also fall under the no need to pre-authorize: Thanks in advance!

I believe I know the answer, but I wanted to confirm: For a Profit Sharing Plan for the RMD to be taken in 2022, we obviously use the 12/31/21 Balance. If a receivable is made in '22 for the 2021 Plan Year is that included in the balance used for the calculation? Thanks in advance!

I just wanted to make sure that I was reading the regulations correctly. If someone participates in both a 401(k) and a 457 plan, they can max out their contributions in each ($20,500 + $6,500 catchup) if their compensation allows it, correct? I know with a 401(k) and a 403(b) the $20,500 is total between all plans, but I believe I read that 457 is completely separate so you can max out in both simultaneously (for a total of $54k). Just wanted to make sure I was correct

Nope, it's a 1-person plan. He does own a stake in another company, but him and his partner own around 50% of it so there's no Control Group issue. Assets are only around $45k, so that works. Thank you!

Thanks! Since it's an EZ and he's under $250k in assets, there is no Form 5500-EZ requirement for now correct? I just wanted to make sure I had that correct as well

We have a consultant who came to us who wanted to start a 401(k). Technically he doesn't have a company, it's just him getting 1099 income for consulting. Can someone under that circumstance start a solo 401(k) Plan and file it under their SSN? For some reason they don't want to do a SEP (haven't gotten a straight answer as to why). Thanks!

Quick question regarding the PBGC payment. I know it's due by 10/17/22 this year, my question is: 1) Does it have to be received by the PBGC by that date or 2) Does it have to be postmarked that date Thanks! Have a few that waited till the last minute, so have to let them know if they have to overnight the check or just get it in the miail

Taking over a C-Corp with two employees: 1) Owner of about 95% of company 2) Employee with about 5% ownership in the company There is no relationship between the two. The previous TPA had been filing the Form 5500 as an EZ. Would this qualify for that, however? Unless that type of ownership would classify them as a "partner", I don't see it but I just wanted to confirm. Was planning to switch it to an SF, but wanted to confirm. Thanks everyone!

Thanks! I'm trying to determine if it is actually a controlled group currently: Company A - 100% owner Company B - 50% owner currently. He's recently divorced and his now ex-wife still owns 50% of the company Is there any attribution with his ex-wife, or since he doesn't own 80% of both companies?