A dentist has maintained a profit sharing plan for himself and one other employee for years. The assets in the plan, at the moment, consist of only a single real estate property. He has retired, stopped his practice and wants to terminate the plan. He can't find a buyer for the property and there aren't any other plan assets to pay out the other participant. He doesn't have the money to deposit into the plan or to pay out the other participant directly. Does he have to maintain the plan until a buyer is found so he can turn this asset into cash? Is this true and, if not, what are his alternatives?

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A 401(k) plan is using 21, 1 YoS, and dual entry dates for all sources. It is a calendar year plan. They have a NHCE participant that is 42. He was hired 4/23/16. He had 1,000 hours in 2016 and 2017. He entered the plan on 7/1/17. He terminated employment on 7/14/17. You are using the 410a4 statutory entry dates (earlier of 1/1 or 6 months after completing the statutory age (21) and service requirement ( 1YoS)) to define otherwise excludable employees. Can you test him separately for 410b and ADP testing b/c he terminated and would not have entered the plan 6 months after satisfying the statutory service requirement?

I have a plan that restricts the timing of a distribution until after the close of the plan year following a 1 year break in service if termination is for reasons other than death, disability, or retirement. If termination is due to death, disability, or retirement, then the distribution can be paid as soon as administratively feasible. The Normal Retirement age of the plan is age 62. A participant terms at the age of 61(not retirement age set by the plan). They wait and submit a distribution request upon turning age 62, but haven't yet incurred the 1 year break in service. Per the plan provisions, do they have to wait for that break in service and then be paid following the close of the plan year, or does the timing allow for them to be paid as they now reached Normal Retirement age of the plan. The employer notated "retirement" as the distribution reason, but at separation from employment, he wasn't the NRA of the plan. Thoughts on the timing of this distribution?

In my experience (with plans, recordkeepers, and SEC-registered investment companies), a participant's investment direction received by the plan's recordkeeper before 4:00 New York (Eastern) Time is treated as timely received to get the open-end mutual fund prices later determined for that day. Are there any circumstances in which a recordkeeper could allow a later cut-off time? If so, does anyone allow a later cut-off time? Or do all recordkeepers set 4:00 as the time for all funds?

Plan has immediate vesting. Client wants to amend the Plan to a 3 year cliff vesting. I used 1/1/19 for the change date (first day of next plan year) because I felt like the treatment during the transition stage was just to complicated and not really the crux of the question anyway. Option A: 3 year cliff vesting will apply to all new Employer Match money accrued after 1/1/2019. All of the old money will still be 100% vested for everyone who had it, because their accrued benefit is protected. Option B: 3 Year cliff vesting applies to any new participants who become eligible on or after 1/1/19. All of the employees who are participants in the :Plan on 1/1/19 shall forever be 100% vested in any match that ever is deposited to their accounts because the vested percentage is protected. My understanding from the ERISA Outline Book is that the "ERISA Conference Report" which describes Congress's intent might support Option A. But the IRS through some guideline on their website took the position that Option B applies. According to the EOB, "conventional wisdom" is to use Option B. Has anyone ever used Option A?

Can a governmental 401(a) DC plan require rehired eligible employees, who were 100% vested at termination, to repay their entire distribution in order to have vesting service restored? The rehire would need to repay the distribution the earlier of 5 years after their rehire date or 5 years after the distribution was paid. If paid within this period the rehire will be 100% vested. (Yes, they want the 5-year period to begin after the distribution date and not the termination date.) Thank you.

Client initiate new 401(k)/PS plan effective 1/1/18.Plan consists of three participants, father and 2 sons, no common law employees. The makeup of the company is such that they do not have steady income, but rather receive in huge chunks during the year. Can they make their deferrals in one shot during the year? I remember somewhere that as long as the income for the month is at least the max deferral, this would be kosher, but never ran into this situation before.

401(k) Profit sharing Plan, new comp. Doctors max out, staff gets minimum. They currently deposit the 3% safe harbor with each payroll and would like to do the same with the profit sharing. Anything negative with doing this? No LDR, or hours requirement for P/S. If they do this, for the HCE's that max out, would it be better to divide the non-elective P/S that they will receive and do that per payroll, or to contribute the percentage each payroll and stop when they hit the max. I've never had anyone that wanted to deposit the P/S each payroll.

Good Morning - It is that time of year for questions on ADP/ACP Testing failures. One of these years I will get this right. Lets say you have both an ADP and ACP Testing failure. Participants are 100% vested in the match. Only one HCE is due a refund which is distributed out to the participant as an excess contribution. My question goes back to the rate of match which I still cannot understand. In this example, the HCE earned $200,000 in plan compensation and deferred $18,000. The Plan provides a match of 100% on the first 3% of compensation. The Plan contributed $6,000 to the HCE's account. HCE receives a refund of $1,000 for the ADP failure and $500 for the ACP failure. With the refund, the HCE now shows $17,000 of deferrals in the plan and a match of $5,500. Is there an issue here with rate of match? If not, then when is it an issue? Thank you!

Small employer currently has no group health plan. If the employer pays a "minute clinic" a flat per-capita fee (say $200) that entitles its employees to utilize the limited medical services the minute clinic provides at a discounted rate (say $40 per visit instead of regular $90 walk-in rate), has the employer established a group health plan subject to the ACA and ERISA? The problem here, of course, is that if this arrangement is a group health plan, it does not comply with the ACA and ERISA for several reasons, including, no free preventive services and no documentation of the "plan."