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Message Boards Digest

December 13, 2017

Here are the most recently added topics on the BenefitsLink Message Boards:

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Chippy created a topic in 401(k) Plans

Required Beginning Date for Former 'Key Participant'

A shareholder is ceasing to be a 5% owner as of 12/31/2017 and will continue to work at the company. He turns 70-1/2 in 2018. Because he's not a 5% owner in 2018, is it correct that he does NOT have to start taking RMD's from the plan until he retires?
Number of replies posted  3 replies      Number of times viewed  54 views      Add Reply
 
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mjf06241972 created a topic in Distributions and Loans, Other than QDROs

Refund of Deferrals Due to ADP Failure; Use as RMD?

Can a refund resulting from a failed ADP test be used to satisfy RMD requirements for Key Employee in a 401k plan?
Number of replies posted  2 replies      Number of times viewed  50 views      Add Reply
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pj20 created a topic in 401(k) Plans

Salon as a 'Service Organization' -- Is This an Affiliated Service Group?

A 2/3 owner in a salon also has a sole proprietorship, in which she pays herself for services performed in the salon. She maintains a Solo-401(k) for her proprietorship, which she maxes out. Is this an Affiliated Service Group, or does a salon not qualify under the definition of a Service Organization?
Number of replies posted  1 reply      Number of times viewed  49 views      Add Reply
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CharlesLeggette created a topic in 401(k) Plans

How Does an Owner Who Gets No Paycheck Make a Deferral?

An LLC shareholder taxed as a sole proprietor wants to contribute a deferral but he gets no paycheck. How is that accomplished?
Number of replies posted  4 replies      Number of times viewed  52 views      Add Reply
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OxLobber created a topic in IRAs and Roth IRAs

Can 2017 Conversion Be Recharacterized in 2018?

Is anyone aware of provisions in the tax bills to allow 2017 conversions to be recharacterized in 2018 despite the elimination of that ability going forward?
Number of replies posted  2 replies      Number of times viewed  18 views      Add Reply
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Tom created a topic in Form 5500

Ever Filed a Form 8955 Late? Use DFVCP?

Has anyone had to file a late Form 8955? We have a new client whose form was not filed for 2016. I saw something from the IRS saying that such a plan sponsor should file under DFVCP, which I suppose means re-filing the Form 5500 and paying the penalty. Does anyone have experience with this?
Number of replies posted  1 reply      Number of times viewed  18 views      Add Reply
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Vlad401k created a topic in Distributions and Loans, Other than QDROs

In-Plan Roth Conversion by Participant Not Yet 59-1/2?

Let's say a plan allows for in-plan Roth conversion. A participant has only pre-tax deferrals in his account, but he's not yet 59-1/2. [1] Because deferrals always have an age 59-1/2 age restriction for an in-service distribution, would he be able to convert his account to Roth? [2] If so, what if he decides to withhold a certain amount, let's say 10% on that distribution? Would that be permitted? It seems to me that it shouldn't be, because the amount going to the Roth conversion would be less than the original amount (the other 10% being the taxes paid).
Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply
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ERISAAPPLE created a topic in 401(k) Plans

Interim Amendment for Forfeitures Used to Fund QNECs/QMACs; Needed If Accounts Fully Vested at All Times?

We have an individually-designed safe harbor plan that has 100% vesting for all accounts, including the profit sharing and discretionary match. Is the plan required to adopt an interim amendment to provide that QNECs/QMACs will be vested when allocated? I can't imagine they would.
Number of replies posted  2 replies      Number of times viewed  28 views      Add Reply
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Trisports created a topic in Form 5500

DFVC Filing; DOL Says We Paid Too Much in Penalties

Plan sponsor failed to file the final/short Form 5500 for the plan year ending 5/31/2016. We recommended DFVC, filed the return in November 2017 and paid the $2,000 penalty (this is a large plan). The DOL's online calculator correctly indicates that the penalty is $2,000 (based on 313 days late). The client received a letter from the DOL stating that they might have submitted an overpayment of $1,260, and included an ACH form for the plan sponsor to request the refund. We called the DFVC number on the letter but got voicemail and have yet to receive a call back. Any idea what might have triggered the letter? Anyone had success in addressing this with the DOL? We don't want to overpay the penalty, but we are pretty sure the penalty is $2,000 and not $740.
Number of replies posted  1 reply      Number of times viewed  21 views      Add Reply
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