My wife has a 457(f) plan with a hospital in which her employer contributes $3,000 per quarter or $12,000 per year. However, each $3,000 quarterly contribution is taxed (Federal, FICA, etc.) -- it shows up as a separate paycheck with applicable tax deductions -- and the remaining amount (around $2,000) is then deposited into a deferred account that grows tax free until it is distributed at a later date based on SRF conditions. As we understand, the SRF conditions are staying employed with the hospital for 3 years or meeting a retirement age of 65. Her HR Benefits department has stated that their 457(f) plan is unique in that it taxes the $3,000 quarterly contribution upfront. She will be leaving her job and will not meet the SRF conditions so she will lose all of the contributions that are in this deferred account. Since the $3,000 quarterly contributions are in her paycheck, taxes deducted, and eventually her W2 as income, should these contributions be deducted by her employer from her income and her W-2 adjusted since she will forfeit these contributions? Any thoughts or guidance is much appreciated.

A plan is recordkept at a large, well-known financial services firm. The firm offers a budgeting tool that is accessible on their website and participants can sign up for it on their own, outside the plan, for a fee. The contract is between the participant and the vendor for the tool. The tool is not offered within the Plan and the company has no involvement with the tool. Does the company have any fiduciary responsibility around the tool, simply because it is available on the recordkeeper's website where participants access their account?

The client sponsoring the 401k plan is a partnership. Throughout the year, the partners deferred on their draw and calculated the 3% safe harbor calculations. They put in the maximum of $24,000 (both over age 50). When I received their K-1s, box 14a only had $24,000 as self-employment earnings. There's a Section 179 deduction of $2,035. So I see a problem. Am I wrong in using box 14a (Schedule K-1, Form 1065)? They had draws of $192,000 and $108,000 so their 3% was calculated by their payroll department based on the draws.

My wife and I have a HDHP with my former employer and contribute to a family HSA. We are both on the same HDHP (not individual plans) and would like to max out our yearly HSA contribution. I will be on Medicare effective August 1, 2018 when I turn 65 but my wife will remain on the HDHP, since she is 63. At the end of July, 2018, I anticipate contributing $4,500 to my HSA. My wife does not have an individual HSA. I'd like her to open her own HSA in 2018 but I'm not sure how much she can contribute because I will have contributed $4,500 this year before going on Medicare. My wife also will be on the HDHP during all of 2019. How would I calculate the maximum HSA contribution? I don't see a similar scenario as above in IRS Pub. 969.

Is anyone aware of a cite that says the 5500 must continue to be filed until all assets are distributed? I see it in the 5500 instructions, but I don't see it any the regs or any advisory opinion. I did find a PLR, but I would like a DOL cite.

I am curious how others set up and track these plans. Assume individual accounts. So prevailing wage contributions are made to offset 3% SNHE contributions. All non PW EEs receive 3% SHNE from the employer. However, as I understand it, any PW contribution in excess of 3% of pay would be classified as discretionary profit sharing. Should I be attempting to set up two DB/PW buckets? Or is it allowable to re-source the money into SHNE/discretionary? The reason I ask is because down the line it may get tricky with determining amounts available for hardship or early in-svc withdrawals and the like.

Pooled account. Plan apparently didn't have a checking account. Check for $X sent to the Trustee to use in making a distribution to a terminated participant. Trustee deposited it into the EMPLOYER's checking account and simultaneously wrote a check to the terminated participant for the appropriate amount, and submitted the 20% withholding to the IRS. Yeah, it's a PT, but what is the penalty? There is zero loss or gain to any party involved, and no "amount involved" if one were to try to pay a 15% excise tax anyway. What do folks do with this on a practical level, rather than a theoretical level? Or is there an exemption I'm missing?