JG-12

I can't seem to find an answer to this question. Is electing the source of an in-service distribution a protected benefit? Potentially an optional form of benefit? Or maybe not protected as an "administrative procedure for distributing benefits"? I'm not asking about removing in-service distributions entirely. This is a scenario were currently participants are able to elect which account (e.g. pre-tax, after-tax, rollovers) the distribution comes from. Would it be impermissible to eliminate this election and instead institute a policy whereby any in-service distribution is taken from all accounts on a pro-rata basis?

I'm not sure this is accurate based on the articles I have read. This appears to be something the IRS informed document providers of during the review process. See here too: https://www.relius.net/news/Docs/Flexible Match Communication.docx

Fidelity provided a client with a discretionary matching contribution notice and this was surprising to me as I had never seen or heard of such a thing. After looking around, it appears the IRS never formally announced that this new notice is required. Instead, they may have forced document providers to incorporate this notice into the actual plan document. Has anyone else come across this? Is there a formal regulation that I'm missing or was this a way for the IRS to backdoor regulate plans? Thanks!

I should add there is a second member who owns something like 40% of the LLC.

No.

I would think so, but by a literal reading of the regs, it's not obvious to me what the theory should be.

The LLC is a taxable business. The LLC's capital and profit interests are owned by the non-profit corp. No. Not sure, but if it's anyone it is the non-profit.

26 CFR § 1.414(c)-5 provides: "common control exists between an exempt organization and another organization if at least 80 percent of the directors or trustees of one organization are either representatives of, or directly or indirectly controlled by, the other organization." I'm trying to determine if a not-for-profit corporation and a LLC are in a common control group. Obviously a LLC does not have directors in the conventional sense, but what if it has a board of managers that are the functional equivalent to a board of directors? Does anyone think that the managers should be considered directors in this situation? The tax-exempt corp does have complete control over who the managers are. Should also point out the LLC is treated as a partnership for tax purposes. Thanks!