Any idea when they coming out? Have been holding up the open enrollment process waiting for the new 'official' rates.

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Prospective client started SIMPLE IRA in early 2018, but wants to start a 401(k) plan for 2019. The problem seems to be the 2-year rule for distributions from the SIMPLE. Can they start the 401(k) for 2019, cease contributions to the SIMPLE as of 12/31/2018, and just not terminate it until the 2-year clock has run on the contributions to the SIMPLE?

A participant is deferring 6% of pay and receiving the 4% safe harbor match. His match suddenly dropped down to 2% then to 0%. Upon questioning the payroll rep, I was told that it was because the participant reached the annual safe harbor compensation limit. So his match was capped at $8,250 even though he had not yet reached the $275,000 limit. Is that correct?

Section 3(40)(A) of ERISA provides that the term "multiple employer welfare arrangement" (MEWA) does not include an employee welfare benefit plan that is established or maintained under or pursuant to one or more agreements that the Secretary of Labor (the Secretary) finds to be collective bargaining agreements (CBA).

For purposes of section 3(40), an employee welfare benefit plan is "established or maintained under or pursuant to one or more agreements which the Secretary finds to be collective bargaining agreements" for any plan year in which the plan meets a certain requirements. One of the requirements is (generally speaking) that at least 85% of the participants in the plan are Individuals employed under one or more CBAs.

There is no explanation in the regulation or the preamble that states when during the year this 85% test should be conducted (i.e. first day, last day, etc.) . Does anyone know of any guidance?

The following passed the House (as part of the Family Savings Act).

• Basically, no more notice needed if 3% safe harbor. why, oh why, can't this be in effect now so I wouldn't have to worry about notices this month!)
• Plan can be amended anytime during the year
• Plan can be amended after the end of the year (before deadline for refunds) if increased to 4%

SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 401(k) STATUS.
(a) LIMITATION OF ANNUAL SAFE HARBOR NOTICE TO MATCHING CONTRIBUTION PLANS.--
(1) IN GENERAL.--Section 401(k)(12)(A) of the Internal Revenue Code of 1986 is amended by striking ''if such arrangement'' and all that follows and inserting ''if such arrangement--
(i) meets the contribution requirements of subparagraph (B) and the notice requirements of subparagraph (D), or
(ii) meets the contribution requirements of subparagraph (C)(2) AUTOMATIC CONTRIBUTION ARRANGEMENTS.--Section 401(k)(13)(B) of such Code is amended by striking ''means'' and all that follows and inserting ''means a cash or deferred arrangement--
(i) which is described in subparagraph (D)(i)(I) and meets the applicable requirements of subparagraphs (C) through (E), or
(ii) which is described in subparagraph (D)(i)(II) and meets the applicable requirements of subparagraphs (C) and (D).

(b) NONELECTIVE CONTRIBUTIONS.-- Section 20 401(k)(12) of such Code is amended by redesignating sub21 paragraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:
(F) TIMING OF PLAN AMENDMENT FOR EMPLOYER MAKING NONELECTIVE CONTRIBUTIONS.--
(i) IN GENERAL.--Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (C) shall apply to the arrangement for the plan year, but only if the amendment is adopted--
(I) at any time before the 30th day before the close of the plan year, or
(II) at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.
(ii) EXCEPTION WHERE PLAN PROVIDED FOR MATCHING CONTRIBUTIONS.--
Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (B) or paragraph (13)(D)(i)(I) applied to the plan year.
(iii) 4-PERCENT CONTRIBUTION REQUIREMENT.--Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (C) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.''.

(c) AUTOMATIC CONTRIBUTION ARRANGEMENTS.-- Section 401(k)(13) of such Code is amended by adding at the end the following:
(F) TIMING OF PLAN AMENDMENT FOR EMPLOYER MAKING NONELECTIVE CONTRIBUTIONS.--
(i) IN GENERAL.--Except as provided in clause (ii), a plan may be amended after the beginning of a plan year to provide that the requirements of subparagraph (D)(i)(II) shall apply to the arrangement for the plan year, but only if the amendment is adopted--
(I) at any time before the 30th day before the close of the plan year, or
(II) at any time before the last day under paragraph (8)(A) for distributing excess contributions for the plan year.
(ii) EXCEPTION WHERE PLAN PROVIDED FOR MATCHING CONTRIBUTIONS.--
Clause (i) shall not apply to any plan year if the plan provided at any time during the plan year that the requirements of subparagraph (D)(i)(I) or paragraph (12)(B) applied to the plan year.
(iii) 4-PERCENT CONTRIBUTION REQUIREMENT.--Clause (i)(II) shall not apply to an arrangement unless the amount of the contributions described in subparagraph (D)(i)(II) which the employer is required to make under the arrangement for the plan year with respect to any employee is an amount equal to at least 4 percent of the employee's compensation.''.

(d) EFFECTIVE DATE.--The amendments made by this section shall apply to plan years beginning after December 31, 2018.

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DESCRIPTION OF H.R. 6757, THE 'FAMILY SAVINGS ACT OF 2018'

Delay in adopting provisions for nonelective 401(k) safe harbor

Under the proposal, unless a plan provided at any time during the plan year that 401(k) safe harbor matching contributions applied to the plan year, a plan can be amended to become a nonelective 401(k) safe harbor plan for a plan year (that is, amended to provide the required nonelective contributions and thereby satisfy the safe harbor requirements) at any time before the 30th day before the close of the plan year.

Further, unless a plan provided at any time during the plan year that 401(k) safe harbor matching contributions applied to the plan year, the proposal allows a plan to be amended after the 30th day before the close of the plan year to become a nonelective contribution 401(k) safe harbor plan for the plan year if [1] the plan is amended to provide for a nonelective contribution of at least four percent of compensation (rather than at least three percent) for all eligible employees for that plan year and [2] the plan is amended no later than the last day for distributing excess contributions for the plan year, that is, by the close of following plan year

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Nevertheless, the Family Savings Act's prospects in the Senate remain very uncertain.

Anyone on here for RIA's who also administer retirement plans? I would like to discuss how you deal with distributions from plans in light of the new SEC custody rule.

We have a PSP wherein the employer has not made a contribution since 2013 and has the investment broker send duplicate statements for one account (but there are several). I know what a partial plan termination is, but as of when is this determined? From 2 to 3 years from the last contribution, which would make all participants 100% vested? Which would mean anyone receiving a distribution from, let's say, 2015 forward, must be 100% vested? For 2018, the account is telling us he will be making a contribution, which obviously would include any individual with a W-2 who is still "in" the plan plus any individual meeting eligibility of 21/12/1,000 hours.