I am looking for a creative solution around repayment of loans in a spinoff. Imagine I have an organization where a group of employees are part of divestiture. The selling organization's loan program does not allow for terminated employees to continue making payments, nor do they want to open up this feature to the entire population. The purchasing organization does not have a loan program, nor do they want to create one. The best solution would be for one of the parties to adjust/create a loan program. That seems to be a tall order even though it makes the most sense. So I am looking for a creative solution where the entire group of employees can be packaged together so they continue making loan repayments.

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I was just made aware that the 2016 5500 filings for our plans failed to include the audited financial reports. The reports were done on time but the wrong attachments were uploaded to EFAST. No notice was received from the DOL, as of yet, but I would like to get this corrected as soon as possible. Do I amend the filings via EFAST or is there another more efficient way?

Due to payroll issue, plan sponsor failed to implement changes made to existing 401(k) plan participants' elective deferrals for two payroll periods. So there is a mix of participants who elected to increase deferral percentage and failed to defer enough as well as participants who decreased their deferral percentage and now have contributed more than they intended. Plan Sponsor is clear on fix for those who failed to have their deferral amounts increased and will give notice and correct those accounts via EPCRS guidelines.

What is less clear are the possible alternatives for participants who didn't have decreases implemented and so deferred too much to the plan. Plan sponsor does not want to forfeit amounts from participants' accounts and/or make additional payments to participants through payroll to get them the additional pay they missed. Instead, company wants to correct this (at least in all cases possible) through payroll system adjustments. For example, somebody that was deferring 10% and elected to decrease deferral to 5% (and thus had two payrolls with an extra 5% deferred) will have "negative 401(k) deferrals" for the next couple of payrolls.

If I understand the proposed correction process correctly, that seems to mean they will basically offset or adjust participants' future 401(k) deferrals to reduce the contributions by the excess amounts contributed. So while next two payrolls should have a 5% 401(k) deferral, they will instead show a negative 5% 401(k) deferral and participants will basically not have any salary deferred and contributed to the 401(k) Plan. After 2 pay periods, the total deferral amounts will be correct and equal to what participant would have deferred if the election change had been timely processed.

Is it generally possible to correct this sort of mistake in this or a similar manner by essentially adjusting within the payroll system? If not squarely covered under SCP, do others have experience with these sorts of corrections getting approved under VCP? Not sure exactly what you do with individuals who have dropped deferral rate down to 0% or have since terminated employment? Guess you could just arrange for forfeitures in those cases if that is only way to fix. Guess you could also forfeit excess earnings but still make main deferral adjustments via payroll? Thanks for any thoughts or experience.

I have had a green card for 18 years. I have been living outside US for 8 years. I have not visited US in the last 4 years due to family issues and I was told my green card is no longer valid. I was advised that I should surrender my green card and re-apply for new green card (through my family). My question: If I surrender my green card, what will happen to my IRA (it was established during the time I worked in US for the 1st 10 years of my career)? Are there any tax implications and will I be forced to withdraw from my IRA or can I leave it there until retirement age even though I will no longer be a green card holder?

I have a Safe Harbor PS 3% Plan that covers 150 employees. They are planning to fund the PS per payroll. Is there any BRF issue if the company were to fund the PS for most of the employees but missed a few of the participants due to administrative errors during the year, but were later caught up with the annual true-up? My concern is that everyone will not equally benefit in terms of timing of the allocation. I am advising against it because I see it to be a problem.