kmciver

I have a DC plan that terminated in May 2017 and all participants have been distributed by 12/31/2017 except for one account. We had a sample QDRO provided to us, but the ex-wife of the participant refuses to sign the QDRO. What can the plan do at this point? The employer does not want to keep paying for filings indefinitely. Is there anything that can be done?

I will most definitely suggest legal advice. If anything, my fees will seem much more appealing than theirs after he speaks with them.

I had someone come to my office today that has a "keogh" plan. He is self-employed and about to take minimum distributions. 1. He thinks he has plan documents but doesn't even know when the plan started...my first gulp. 2. He has employed two full-timers for the last twenty years who have never been given a statement. 3. Since the employer didn't know what a 5500 is, I think it is safe to assume no 5500 has been filed. I think we will find some documents, but I am sure he will be a non-amender at some point. With regard to the participants, he is willing to reallocate to include the employees as of their eligibility date. Can I file under VCP for both the plan defects and non-compliance together? Then would I need to file old 5500's under the DFVC? How far back? Any advise (other than run for the hills) would be appreciated.

Can our firm do a "sponsor" amendment with the VS? We are trying to make the same decisions right now.

I have a ps plan (no 401(k)) that terminated 9/04. All paid out 4/05. The plan year was 3/1 to 2/28. The plan was top heavy. If I start a 401(k) today I assume it will be top-heavy. What if the Key's sit out a year?

I have a 401(k) where the employer incorrectly deposited $1,020 too much into an employees' account (a key employee, no less). Do we refund the employer? Is there anything else that needs to be done to keep the plan in compliance. It was truly a mistake by the bookkeeper.

Makes sense. Thanks, Karen

I have a client who wants to implement a safe harbor 401k NOW. They have a 9/30 existing ps plan. I don't think they can do safe harbor until 10/1/04 due to 3 month rule. This is my question: If I they do 401k for the next two months and I use prior year adp, can I use the assumed nhce adp of 3% for last year and then add a qnec of 3% to the nhce for this year for a total nhce percentage 6%? Thanks K

I have a plan whose sponsor went bankrupt during the previous plan year (2002). They closed down completely with layoffs after 3 months into the plan year (2003). There were 140 participants on 1/1/2003 and about 15 participants at the end of the plan year (2003). They've always filed a Schedule H with an Auditors Report. Can anyone think of a reason why the don't need an auditor's report for 2003? Is there any way we can request a waiver, etc.

I just read this post and thought of one of my clients who file late last year. He wrote the DOL a very humorous and honest letter that he miss place the form and found it on October 29th and filed immediately. He was fined $350. Which seems like an arbitary number, but I guess he was rewarded for his honesty. I don't think he thought he was rewarded for anything though. Good Luck

Thanks for the reply. That is where I lean, but I was hoping for a loophole somewhere. Karen

I have a 401k plan where one of the hce's never deferred. Helped out the test each year. For some reason, now he doesn't get comp for tax purposes, but still works. Can I include him in the test?

Does anyone know what kind of notice has to go out to the participants? I do not think this falls under Sarbanes-Oxley since it is a discontinuance of directed investments. K

Has anyone handled a profit sharing plan that had individual account where the employer/trustee decided to take over the investment direction and go to pooled accounting? Any comments?

I prepared a 5500 for a self-directed 401(k) large plan invested with an insurance company. On Schedule H item 4(i), I answered "no" to this question. Did the plan have assets held for investment? I guess I thought because it was self directed, the answer was no, but now I think the answer should have been yes. What is the correct answer? Has this changed in recent years? Is this one of those questions that causes the PWBA to send out a letter requesting clarification? Thanks

Sorry, I'm not sure what the answers are. K

Archimage, Are you saying that eEven if you don't make the ps contribution

There are two limits you need to think about: 1. The individual limit (415..) of 100% or 40,000. and 2. The "corporate" limit (404c) of 25%, as long as EGTRRA has been adopted. Since a one man plan falls under both categories, the max deduction for this person is 25% or 40,000 whichever is less.

Situation #1 - They are not going to make additional contributions. I wanted the answer you gave, but I was under the impression that a plan not top-heavy only when a safe harbor matching formula was used. Situation #2 - They make additional contributions. If this is the case I think all participants get a TH contribution, right? This gets more confusing every day. K

I have a top-heavy safe-harbor 401(k) plan. The plan says that employees are eligible quarterly after 90 days of service. This is the same for deferral and employer contributions. The plan also says that the eligible employee for safe-harbor excludes those ee's who have not meet max age and service req. We've allocated the non-elective safe-harbor contribution to employees that are in the plan and have meet the 21/1. There are several newly eligible employees who've never work 1000 hrs that did not get the contribution. Does this satisfy top-heavy if this is the only contribution to be made to the plan? Thanks

I am working on a cross-tested plan for the second year. I just found out this year that the youngest employee is the son of the owner (different names, so I didn't pick it up). I'll be able to do a corrective amendment for 2002 so that we pass the average benefits test for 2002, but I am concerned about the prior year. If I retest the plan for 2001 it fails miserably. Can I do a corrective amendment now and give contributions to pass the test for 2001. Does this fall under self correction? Or is there a better way to fix this problem?

They are looking for equitable costs.

I have a potential client (doctors) that want to do a DB, but the younger doctors are not happy. Does anyone have any good design tips to satisfy the young doctors (qualified or non-qualified)? Thanks, I know this is a very general question but I wondered if there was an easy answer out there.

Thanks for all the feedback. I am definitely going to change the class structure. Karen

I have a new comp plan 401(k) that has one 5% owner and two HCE's that are eligible for 2002. (Next year there with be a NHCE also eligible.) The first class is 5% owners and the second class is all others. Am I correct in saying that class A can max out and I only need to give class B a 3% top-heavy contribution provided that I pass the ABT? And next year provided that I do not change the classes, I will need to give 5% to class B since the NCHE needs to get the gateway? Thanks Karen