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Found 14 results

  1. Is it possible to take an HCE's ACP testing refund and have it recharacterized to an after-tax "bucket" within a 403b plan? I would imagine the plan would need to issue a 1099R reporting the taxable event for the required distribution amount. Thanks so much for your assistance!
  2. Both 403(b) plans are subject to ERISA. The 2 401(k) Plans will be merged. The 401(k) Plans are Safe Harbor plans. It is my understanding that the 403(b) Plans could be terminated and the employees would have a distributable event and that the distributions must be made within 12 months and they could rollover the assets to the 401(k) plan but are not required to do so. Is there anything that would prevent the plan termination of the 403(b) Plans on 6/30/2022 with the covered employees becoming immediately eligible for the existing 401(k) plan on 7/1/2022? I know if this were 401(k) Plans, the only option would be to merge the plans but because this is a 403(b) Plan, it cannot be merged into the 401(k). Thanks!
  3. Plan Sponsor chose to forfeit participants' non-vested account balances immediately upon their termination of employment and use that money to reduce their payroll period employer match contribution payments. The plan document states the typical requirements of forfeitures occurring on the earlier of being fully paid out their vested portion upon termination OR having incurred 5 1-year Breaks-in-Service. The Adoption Agreement also states that the timing of allocation of forfeitures should occur in the Plan Year following the Plan Year in which the forfeitures occur. It appears that the employer should not have had access to the forfeited amounts until the year following the year the "true" forfeiture would have occurred. How should this problem be corrected? Everything I'm finding so far discusses employers NOT using forfeitures by Year-End. This employer seemed to use them too soon. Is this addressed in EPCRS? Thanks in advance for your help!
  4. 403b is terminating Sept. 2018 and starting 401k same year 2018. Plan wants move away from universal eligibility for ED on 403b and add age 21 and 6 mth service. - 403b is 001 so use 002 for 401k? - use original effective date as 1/1/2018? - rollover of loans allowed? Does it need to be stated in AA or no? - does excluding vesting prior to effective date of the plan need to be addressed? - any employee can in 403b plan rollover balance to 401k even if they would not be eligible to enter under 401k plan under new eligiblity rules? - employees years of service and vesting still can continue If all the participants chose to rollover to 401k plan? - any other considerations on plan document creation or processing/logistics? I appreciate your help!!!
  5. Can a Fire District set up a 401k plan? Or does it have to be 403b or 457? It is a political subdivision of a Town and they, as a governmental entity, have the authority to assess taxes. It is not a tax-exempt entity granted exemption from income tax under IRC section 501(C). Thank you.
  6. context 2 separate entities created a 501(c)(3) Joint operating company (JOC)- essentially a virtual merger with no transfer of assets- there are no employees of the JOC - any expenses for the JOC are invoiced to the separate entities. The separate entities share no common ownership. the companies want to set up 1 plan and align their other benefit programs, create efficiencies in management, finance, etc. Company A - church 403b Company B church 401(k) My question is- Could the JOC sponsor a plan where the 2 separate entities are adopting employers? could the assets be merged into this plan? (i know the DoT hasn't ruled on the compliance requirements for church 401k/403b mergers resulting from PATH act, expected sometime this year) I think it is safer to keep both plans separate and align the plan design previsions across both plans. I would imagine that the JOC could be set up as a PEO and sponsor a plan but i think for simplicity keeping both plans separate is probably the most appropriate path - if anyone has any guidance on this issue or has worked with it in the past, that would be helpful - can provide more information as requested.
  7. Hello! I work for a private university. Our 403b match is different based on age. If you are under the age of 35 and have worked less than a certain number of years you are eligible for 4% (once you complete a certain number of years you're eligible for the full match). If you are over the age of 35 you are automatically eligible for 8%. Is it legal to create that type of rule? Seems like it favors employees over the age of 35 - who more than likely are also making more money than the younger employees.
  8. Hello! I've read through a lot of old content on this board and just want to say thank you. It has been a huge help. Lord knows this industry in a minefield of misinformation and salesmen. I am the new administrator of a 20 year old group deferred annuity plan with MetLife for a mid-sized non profit. We are looking to terminate this plan and start a new 401k (or 403b) with much lower fees. We have calculated that each participant is paying an average of 2% in AUM fees annually (1.25% annuity fee + .75% ave fund fees). This plan also comes with a 7% surrender fee that decreases by 1% each year. We have been advised by a TPA to leave the plan open and start a new 403b with a different provider. However the provider that I'd like to work with (Guideline Technologies) does not yet offer a 403b. This would also drag out the closure of the MetLife account. Unless people are really pushed out of the plan, I imagine a lot of people will drag their feet. I'd like to avoid having to manage 2 separate providers for any longer than necessary. So I'm thinking it would be better to immediately terminate the 403b and incur all surrender fees (which I've calculated to come out to around 65k). I've run a cost analysis (attached) that shows that if we move to a low cost provider such as Guideline which has only .15% AUM fees, then our participants would be better off moving their assets immediately and incurring all surrender fees rather than wait a few years for the surrender fees to subside. So my question is... do you see any downside to this plan? Since the surrender fees would be paid by the individuals, could the organization be held liable for any damages? Or do you have a better solution for us? Thanks so much in advance. I'd be happy to answer any questions for clarification as well. Asset Loss v Surrender Fee Cost Analysis.xlsx
  9. Hello Everyone, I am from India and working in the filed of 401 k plans from past 4 years. I am looking forward to pursue ASPPA certification RPF-1 & RPF-2 in 2016. Can someone please guide me how to apply for and also provide the latest study material regarding the same. Your help is really appreciated. Regards, Pankaj SWami
  10. July is a busy month for ... for multiple reasons. Firstly, although tax season ends on or before April 15 for many investors, it runs through June for others. The Internal Revenue Service allows investors to request an extension until mid-June, and many employees and owners of small businesses take advantage of the extension to put off taxes until the middle of the year. Many doctors, for example, close their respective practices for the entire month of July after working non-stop from January through June and getting their taxes done. It’s during this time that doctors and other small business owners can focus on evaluating their portfolios, and this often leads to the decision to roll over 401k plans. July is also a busy month ... because many teachers and government employees retire at, or close to, the end of June each year. When someone with a 403b retires, they often decide to immediately roll their 403b plan over to a self-directed Individual Retirement Account (IRA). This provides the investor with greater financial flexibility, more retirement account investment options, and lower fees.
  11. I am a former employee of a public university of Illinois, now receiving retirement benefits. Ordinarily that would include health insurance benefits, but I took the option to opt out of receiving that benefit in exchange for a monthly cash incentive. This money is subject to Illinois and federal income tax, which suggests to me that it is treated as wages and salaries. I wouldn't especially mind paying the income tax, except that I live in Texas (which has no state income tax) and now find myself having to file Illinois income taxes, which is a paperwork headache. It would be very helpful if I could divert this "salary" into a 403b or similar plan, as I did while I was employed. (The opt-out incentive will disappear when I turn 65 in a few years, at which time I will want to start cashing in those very 403b and 457 accounts.) I am still trying to track down who in Illinois has the authority to tell me if this can be done or not, but I would like to find out whether it is at least within the framework of IRS rulings to do so, and if so, whether other benefits plans make this kind of arrangement possible. (That would give me some ammunition if I try to request that such a program be created in the Illinois system.) So ... is it considered normal to treat health insurance opt-out incentives for retirees as income that can be placed pre-tax in a retirement plan? dave
  12. This is not my field... Does anyone have data on the percent of schools that allow rollovers? It is my understanding that 90%+ of for-profits allow rollovers but that schools do not participate at such high levels. Relatedly - what is the effort/cost/headache to a school to amend their plan and allow rollovers? thank you
  13. Hello all and thank you for taking the time to look at this. I am hopeful that somebody reading this might have the information that I need to make the right decisions. I'll try to keep this as condensed as possible, so there may be important details I've missed. Please ask if you need more detail. The details: wife is fired by employer with 403b (2009) wife has cancer and short time to live ( diagnosed Jan2010 - deceased Mar 2011) wife has daughter from previous marriage wife asks me to sign spousal consent form to transfer 403b to IRA with XYZ Bank (around Dec 2010) I ask bank rep the following two questions - 1) will I remain the beneficiary - answer Yes 2) will it continue to require my signature to change the beneficiary info after converted to IRA - answer Yes I sign a document titled Spousal Consent - from what I recall on the doc there was no information regarding death, or giving up rights, basically a document saying that we the bank want to manage this account to provide you the best returns blah blah blah. I later discover on an IRA statement that the wife has changed beneficiary to the daughter my copy of what was signed goes missing (daughter suspected) I call the bank rep - rep won't talk to me I go to the bank - they won't talk to me (not a named beneficiary) try to get copy of signed Spousal Consent to see what it says from bank, ex-employer, two 403b funds (Vanguard, Fidelity) - no success my attorney ask the bank for copy of document from the bank and they tell him they have no copy of any documents ever signed by me as part of the ongoing estate battle - the daughter (also executrix and beneficiary of bank accounts, land, life insurance, ...) supposedly looks into this and also cannot get any documents from the bank or funds - according to her lawyer I have looked at multiple Spousal Consent forms from my employer and online source and universally, they all have language in them that clearly state you may be giving up your rights to the money, etc. The document I signed had nothing like that (from what I recall). Clearly I knew wife was going to die and tried to carefully review the consent form for any similar language and nothing raised any flags. I continue to believe that the bank rep has a fiduciary responsibility to me as a beneficiary to inform me accurately about the impact of the transfer to IRA. Is all hope lost? I have had a very difficult time finding anyone well versed in this subject - please help.
  14. 403(b) plan is with Mutual of America and allows loans. Employee takes out loan and employer does not start withholding and remitting loan payments until something like 100 days later. Mutual of America defaults the loan. The Employer doesn't stop the loan repayments after the default and Mututal of America continues to accept them. Is the employee just 'out' the loan repayments that were made after the loan was defaulted? It seems that the deemed amount should be reduced or the loan repayments returned?
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