A plan provides that, if a participant works past age 65, no retirement benefit will be paid until actual retirement, subject to any required minimum distributions. Once the participant retires, distributions begin and the participant receives an actuarially increased benefit. The plan has been frozen. The plan sponsor wants to amend the plan to force distribution at age 65. Would such an amendment be an impermissible cutback?

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A plan is an owner-only plan until 8/1/2018, at which point an employee becomes eligible. The owner has an individual brokerage account, but, starting 8/1/2018 and going forward, all new contributions will be deposited into individually directed accounts at one of the larger online providers. The owner's brokerage account balance will be transferred to his new account at the new investment provider, but this likely will not occur until September. Is a blackout notice required? It is no longer an owner-only plan, so blackout rules should apply, but the owner is the only participant affected by the blackout, so it seems unnecessary.

My ex-husband was awarded a specific dollar amount when our divorce was finalized in March 2016 (New York State). The amount awarded was to be equitable distribution of our assets. In April 2018, his attorney drafted a QDRO specifying the dollar amount plus investment gains and losses. I argue that he is entitled to only the amount specified in the divorce. Can I win this argument? Per the divorce decree, my ex-husband is responsible for preparing the QDRO (which has been done). Is he also responsible for paying the $600 processing fee charged by my employer's 401(k) plan? Thank you.

A longtime client with a Profit-Sharing Plan inquired (late 2015) about setting up a 401(k) Plan because of employee interest. I suggested he do a survey to see what employees might defer. He never got back to me. In the meantime, Plan needed PPA restating so I turned on the 401(k) switch.

Early 2018, client wants to "discuss the next ten years" with me. During the meeting, he nonchalantly says that he started a 401(k) Plan in 2016 with his Payroll Company. Only he deferred. The ADP test failed, and he was told he'd get a refund. (Same in 2017, except one other HCE deferred and was due a refund as well.)

Client had a MP/PS combo forever. MP (Plan 001) merged into PS (Plan 002) in early 2000's. We filed the 5500 for 2016 on time (assets approximately $500k). Payroll Company prepared a 5500 for 2016 showing only the owner deferral and match of $498.39 + interest as assets. Client tried to submit Payroll Company prepared 5500 a number of times and it was rejected. I asked if he had signed any paperwork. He put me in touch with Payroll Company (the individual who had set up the new plan is long gone), and they sent me an Adoption Agreement. I found a number of inconsistencies in the AA, including "New Plan 001" instead of restated Plan 002, immediate eligibility instead of 1 year, and a 5% of deferral match where it was discretionary in the PPA restatement. I also requested and received the account valuations for 2016 and 2017.

Dilemma No. 1: Payroll Company took $498.39 out of owner's pay in 2016 and shows the amount in their accounting as $474.69 deferral and $23.70 match. The match amount equals 5% of deferral, by magic. Owner wrote no checks; funds were taken from Company account. Taken by itself, the New 001 Plan is Top-Heavy (Super Top-Heavy w/002). Don't even know what Owner's Net C was in 2016 (since no contribution, no census) but I assume it's over $200K. So $23.70 / $200K is 0.01185% of pay Top-Heavy contribution for all employees. But wait! Owner's 5% match is forfeited under ACP.

Question: Is everyone due a Top-Heavy contribution even if the Owner's match, after forfeiture, is 0% of pay? (As an aside -- Why wouldn't the 2016 deferral have been refunded?)

A one-life individually designed designed DB plan is to be terminated in 2018. The plan was restated in 2012 for PPA. No changes have been made to the plan. Does the plan need any amendments before it can be terminated?

Company A acquires Company B 5/1/2017. Company A grants service with Company B for eligibility purposes (not sure exactly how exactly this was done). Can Company B be treated as otherwise excludable employees for testing purposes for 2017 (i.e. have 5/1/2017 hire dates)? Can Company B be excluded for 2017 testing purposes by using the acquisition transition rule? Or are Company B people treated for testing purposes as having their Company B hire dates?

How difficult is it to add another benefit to an existing VEBA? We have an existing VEBA and management asked us to evaluate adding the existing retiree life plan. The company pays most of the retiree life premiums, but retirees contribute a portion. What are the key considerations? Upfront and ongoing legal and accounting costs? Our current annual retiree life premium is relatively small (about $600,000 per year including retiree contributions) so one of my concerns is that the initial cost to move the plan into the VEBA and the ongoing legal, accounting and investment expense could be significant in comparison.

Prospect sold his company (S Corp) effective 2/1/2018 -- strictly asset sale. Employees were terminated 12/31/2017 and were not hired by the purchaser. Remaining employees are seller and spouse, no common law employees. As of 2/1/18, it's the same company but with a new name. Employer ID number is same. Seller wants to start a defined benefit plan. Because the corp's EIN is the same, is it feasible to start the plan 1/1 under the old corp, then change sponsor and name of plan 2/1? Or make the effective date be 2/1 and prorate the salaries 12/11ths and have a short year 2/1-12/31/2018?