|
Here are the most recently added topics on the BenefitsLink Message Boards:
|
|
401(k)athryn created a topic in Cross-Tested Plans
A plan decides upon a profit sharing contribution for 2017 that allocates a different dollar amount and percentage to each participant. This complies with the cross-tested formula in the plan document and passes testing. When preparing the notification from the employer to the Trustee (see Padilla memo), do we have to list each employee separately? Can we refer to an attachment, which would be our allocation spreadsheet? Alternatively, can we combine the 3% safe harbor and profit sharing when referencing the amount on the trustee notice? This would make it much easier for this plan. They basically were trying to allocate a set dollar amount to certain employees, but it is a combination of the 3% Safe Harbor and profit sharing, so the profit sharing is all over the board due to differences in compensation.
|
|
[Advert.]
"ASK THE AUTHOR" Personalized help for all of your tough 5500 questions in 4 business hours from noted author and speaker S. Derrin Watson, J.D. Including any supporting schedules: 8955-SSA, 1099-R, 5330 and more). Sign up or email sales@ERISApedia.com
|
|
austin3515 created a topic in SEP, SARSEP and SIMPLE Plans
A participant is entitled to a contribution to his IRA under a SEP arrangement, but he terminated long ago and is not responding. What to do?
|
|
EsopAdmin created a topic in Employee Stock Ownership Plans (ESOPs)
Employer stock is held in a KSOP. Is Net Unrealized Appreciation treatment available in 2018 if the participant terminated employment in 2015 at age 67 but received a small ADP testing refund in March, 2016 and no other distributions have been processed? If the participant wanted to elect NUA treatment, should he have elected to take a lump sum distribution of his entire account in 2016 (the year of the small refund) because his 2015 separation from service was his triggering event, or is NUA treatment an option available in 2018?
|
|
K2retire created a topic in Correction of Plan Defects
A client with a controlled group of companies recently created a new company and transferred several plan participants to the new company. These employees were allowed to continue to participate, but the new company is not an adopting employer. The document specifies that "an individual who becomes employed by the Employer in a transaction between the Employer and another entity that is a stock or asset acquisition, merger, or other similar transaction involving a change in the employer of the employees of the trade or business shall not become eligible to participate in the Plan until the Plan Sponsor specifically authorizes such participation." We've been advised that this must either be corrected with a VCP filing, or by returning the ineligible contributions. I'm wondering why this couldn't be self-corrected with a retroactive amendment under the "Early Inclusion of Otherwise
Eligible Employee Failure." Meanwhile, the client continues to withhold deferrals and is not ready to make changes to the plan yet...
|
|
Tom Poje created a topic in Retirement Plans in General
Based on the CPI value released today (and using the values for Mar-Apr-May) the rounded/actual 2019 limits would be: Catch-up: $6,000/$6,364 Deferrals: $19,000/$19,092 Comp: $280,000/$281,900 415: $56,000/$56,380 DB limit: $225,000/$225,520 Key Employee definition: $180,000/$183,235 HCE definition: $125,000/$127,376
|
|
Dalai Pookah created a topic in Correction of Plan Defects
An employee of a sponsor of a 401(k) plan fraudulently caused deposits, in excess of what was deferred, to be made for the employee and several others in a 401(k) plan. Now that this has been discovered, can these contributions be refunded to the plan sponsor?
|
|
|
|
|
Lois Baker, J.D., President loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher davebaker@benefitslink.com
Holly Horton, Business Manager hollyhorton@benefitslink.com
Copyright 2018 BenefitsLink.com, Inc. All materials contained in this mailing are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.
|
|