One of the newest marketing techniques I am running into is where an "independent expert" come in and says to the firm's controller that by signing Form 5500 for the firm you are exposing yourself to a personal liability, including making yourself a fiduciary. I note that the plan document does include language that fully indemnifies any individual acting as an agent for the plan sponsor. Anyone have any comments on this practice?

[Advert.]

Worldwide Employee Benefits Network represents more than 30 areas of expertise within the Benefits Industry. Join today.

A participant terminated during 2017 with 700 hours, he is 0% vested. He is eligible for a profit sharing contribution for 2017. Forfeitures are reallocated the same as the contribution. Document says forfeitures occur in the year they are paid their vested balance. Since this participant is entitled to a contribution and forfeiture reallocation for 2017, does he also forfeit his balance during 2017? I'm thinking his balance should be forfeited in 2018.

Client wants to purchase a second home and wants to make the purchase using his pension, thereby holding the real estate as an asset of the pension. Is that allowed? Or is there anything like this allowed? He is the plan sponsor of his company's defined contribution retirement plans.

Is it permitted to exclude any elective deferrals made from year-end bonus pay from the SH match? If so, how are those amounts tested for ADP/ACP? Does that throw out the entire ACP safe harbor and test is run as it normally would be? What then about those elective deferrals that have no SH match? Are they tested separately?

Should an RMD be paid to an Alternate Payee before distributing AP's segregated account from 401k plan? Alternate Payee will turn 70-1/2 in 2018 so an RMD would be necessary and would be based on AP's balance as of 12/31/2017. The court order was signed in Sept 2017 but it was not provided to the Plan Administrator until mid January 2018. The participant's account was segregated in Feb. 2018. The AP did not have a segregated account balance in the 401k as of 12/31/2017, so is a 2018 RMD necessary or not? If a 2018 RMD is necessary, should the participant's account as of 12/31/2017 be prorated between participant and AP to calculate the 2018 RMD for the AP? or simply use the value of the AP's account when segregated in Feb. 2018? The participant will also turn 70-1/2 in 2018, however is still employed and a non-owner.

Employee (officer of corporation) just decided that he wants to make max 401(k) contribution, effective 12/31/2017. He wants a corrected W-2 for 2017 ASAP. Also wants CPA to refrain from filing the tax return, and wants an update to the current draft version of the return so that the 401k contribution amounts will be correct. Is this a normal request for a person to on April 15 ask for a corrected W-2 and for the tax return to be changed?