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401(k)athryn created a topic in 401(k) Plans
I have a plan that includes two members of a controlled group, companies A & B. They will be splitting the plan to avoid a 2019 audit, which they can do because they are very much two separate companies and two locations. They will need to be tested together because they are still a controlled group. The existing plan, covering employees of Company A, will continue to exist, but will be restated as of 8/1/2018 to edit a few details and remove the adopting employer. A new plan will be created for Company B. Assets will transfer from A to B. [1] Am I correct in calling this a spin-off? [2] Does this new plan get to be #001 or is it now #002? I would think #001 because it is the first plan for this particular EIN (of Company B) because Company B was merely an adopting employer of Company A's plan and, therefore, did not have its EIN reported on the Forms. [3] I read a
thread that seemed to indicate that the new plan should be a continuation and restatement of the existing plan. How can that be, if the existing plan continues to exist? Do I restate the existing plan and then split it into two separate plans?
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Sabrina1 created a topic in 401(k) Plans
If the plan administrator pays for a benchmarking study, is that fee considered a settlor expense? Or an administrative expense that can be paid out of plan assets?
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ParticipantPensionLimbo created a topic in Qualified Domestic Relations Orders (QDROs)
My ex-wife passed away before a QDRO was done. The requirement for the QDRO is in the Family court order for my pension only. I'm going to request the court/judge remove the need for the QDRO since my ex-wife has passed and we can't move forward to begin a QDRO as originally intended. By the way, I spoke to the originally assigned QDRO attorney and he told me that given the complexity of getting a QDRO now, I would essentially lose the entire retirement benefit to legal fees! Huh!? Court date is tomorrow -- just found this website today! Trying to have the court/judge provide a MUCH cheaper solution to getting my pension released without going through Probate and whatever legal gears this QDRO attorney said would eat the entirety of the pension fund! Please advise and thank you in advance. Best regards, Michael D. in California
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pensionLifer created a topic in 401(k) Plans
Employer exceeded the 25% limit for the employer contribution. Does the 10% excise tax on the overage apply only if they have filed the corporate tax that includes the full deduction?
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Belgarath created a topic in Cafeteria Plans
An SBC seems to be required for a stand-alone HRA. And if the HRA is integrated with the medical plan, then it's possible to have the health plan SBC cover the HRA as well, but if it doesn't, the HRA will need an SBC. And the SBC requirement doesn't extend to stand-alone 'excepted benefits' plans such as dental or vision plans, and many FSA's (if they are HIPAA "excepted benefits). Agree?
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ESI2015 created a topic in 401(k) Plans
Client sponsored a 401k plan and terminated it a few years ago for various reasons. All participants became fully vested and received a complete distribution except one remaining participant, who still has a brokerage account. The business situation has changed and the client would like to start a new plan. Even though this plan was terminated, they continue to file Form 5500. What are their options? If they finally get this participant paid out, typically they cannot start a new plan for at least 12 months. Is there a possibility of reinstating the existing plan because it has not yet been fully paid out and a final Form 5500 has not yet been filed?
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TPAnnie created a topic in 401(k) Plans
May a Roth 401k borrow money for a real estate investment? Two ideas are: [1] Mortgage the property from the bank and pay the note from the Roth 401k account. [2] Roth 401k source borrows the funds to buy the property from traditional 401k/non-Roth source and pays the loan with a set interest rate back to that source.
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