Search the Community
Showing results for tags 'new plan'.
Found 6 results
-
Good day to all: A doctor (of course) signed the documents to set up a new 401(k) plan in December of 2018 that was effective 01/01/2018. It was to cover only her, at least to begin, because she had no employees. She signed everything, we did the document, she paid the bill, and it died right there. No investment accounts were ever opened; no deposits were ever made. All requests for information have been completely ignored. Does this plan really exist? There is nothing to file because there would only be an EZ if she had over $250,000 in the plan. It makes me nervous, though - I can't quite wrap my head around a client for whom there is nothing to do, if she really is a client at all. Have any of you had this happen? If she ever answers us and says she changed her mind and doesn't want the plan after all, do we need to terminate it as we normally would (resolution, amendment) and file the first, final, and only EZ for it? Can an employer sign all the papers and pay for a plan and then just walk away from it without further ado? Thanks as always for your advice.
-
Good morning to all, Something new to us came up this morning. We put in a good number of brand new 401(k) plans in 2018, with effective dates of 01/01/2018. Therefore nobody in those plans had an account balance at 12/31/2017. If a 73 year old employee made salary deferrals in 2018 to his employer's new plan and then quit during the year, must he take a RMD before 12/31/2018? What would the distribution be based upon, since there was no balance at 12/31/2017? Same concept if it was a working owner of the business: a 73 year old owner installs a new 401(k) plan in 2018 and makes salary deferrals. He's still working at 12/31/2018, but because he is the owner, he would normally have to take a RMD by 12/31/2018. What is it based upon, since there was no balance at 12/31/2017? At first blush we thought maybe they don't have to take one until 2019, but nothing is ever that simple or easy. Advice as to what the rest of you are doing will be greatly appreciated!
-
I have a situation where Company A started 401(k), contributed, took loans, and then Company A went bankrupt. Although the business is closed the 401(k) maintained active status to avoid loan default and classification as taxable income. 6 months later the same owner started another business, of the same industry type, and 3 of the same employees. A new 401(k) was opened and the owner requested to transfer the loans into the new 401(k). Because this is a same owner with a request to transfer assets, is this a successor plan or new plan with rollover? Thank you for any input.
-
We are working on a proposal for a New Plan. There are four employees (Owner, Spouse, and two NHCEs). The owner sold some assets of their business 6/30/2016 and terminated the two employees. They went to work for the firm who purchased the assets. The owners now would like to set up a plan effective 7/1/2016, covering only them. (They will have sufficient income in the short year to maximize their contributions). They are restricted from doing that because of 401(a)(4)-5 correct? or does that only apply to DB plans. -
Client's old FA set up a calendar year non-SH 401(k) effective 4/1/2016 which excludes leased employees. Can it be converted to a SH-401(k) covering leased employees now? Client has leased employees that he is happy to include now that he knows he needs to in order to pass testing. Solutions much appreciated. -
Suppose a new individually drafted defined benefit plan was established mid-2013 with a January 1, 2013 plan effective date. Suppose the plan was signed and executed and the plan document was submitted to the IRS with Form 5300 last summer. No contributions made yet, but liabilities for 2013 have accrued. Now suppose the client calls today and says business has turned so bad that they aren't sure they will even be in business a few months from now and they don't see any possibility for making any plan contributions. Also suppose the DB document says something like "...if, pursuant to an application for qualification, the IRS should determine that the Plan does not initially qualify as a tax-exempt plan under Code Sections 401..., then if the Plan is a new plan, it shall be void from its inception..." Since the IRS is still in the review process for this plan's determination letter application, would the IRS accept and even consider a request to them asking that they issue an unfavorable letter on this supposed plan? Has anyone done this? What do you recommend?
