Message Boards Digest

April 11, 2019

Here are the most recently added topics on the BenefitsLink Message Boards:

CLE401kGuy created a topic in 401(k) Plans

Safe Harbor Plan with Relaxed Entry for 401(k); How to Treat Top-Heavy Minimum

Plan is top heavy. Immediate entry for 401k, 1 yr and age 21 for profit sharing. Plan is safe harbor. Any participant who entered the plan immediately for 401k but did not yet meet the eligibility requirements for profit sharing and is not terminated is entitled to the top heavy minimum. Is the top heavy minimum considered to be a safe harbor contribution or is it a profit sharing contribution?
Number of replies posted  4 replies      Number of times viewed  56 views      Add Reply

Santo Gold created a topic in 401(k) Plans

After-Tax Employee Contributions to a Safe Harbor Matching Plan

If an employer wants to allow for after-tax employee contributions, then those contributions are tested in the ACP test. If the plan operates as a safe harbor match, does that mean that the ACP test passes automatically with respect to the after-tax employee contributions?
Number of replies posted  2 replies      Number of times viewed  35 views      Add Reply

bzorc created a topic in 401(k) Plans

Partnership Sponsoring a 401(k) Already Filed Its Form 1065

Partnership consists of 5 doctors. One doctor is a 95.96% owner. The other four doctors own 1.01% each. Three of the doctors are Highly Compensated Employees by definition, and the other two are not. For 2018, all five doctors made elective deferrals to a 401(k) plan. The "95.96% doctor" wants to make an additional $36,500 employer discretionary contribution on his behalf, but doesn't realize that his plan is a New Comparability plan and undoubtedly is top-heavy as well. (I'm not the TPA on this; I'm getting second hand information here.) Their TPA requires "a couple of weeks" to perform the "pressure testing" (never heard it called that before) to see what the employer contribution will be for the company. Complicating matters, the accountant filed the Form 1065 without extension; no employer contributions have been made as of today. Question: if the 2018 Form 1065 is amended to reflect the employer contribution that is necessary, does that give the company the additional time to make the contribution and have it deductible for 2018?
Number of replies posted  3 replies      Number of times viewed  52 views      Add Reply

Gilmore created a topic in 401(k) Plans

415 Limit at Plan Termination

Calendar year 401(k) plan terminates 1/24/2019. Final distribution is 4/5/2019. Am I correct that a 50+ year old participant has a 415 limit of $10,666.67?
Number of replies posted  1 reply      Number of times viewed  22 views      Add Reply

Taffy Auditor created a topic in Defined Benefit Plans, Including Cash Balance

Changing EIN on Plan

We recently became the auditor/5500 preparer for a multiemployer H&W plan. The EIN is different than the EIN of the Exempt Trust. The EIN also is used for the Pension and Annuity Plans, but obviously uses a different plan number (in the 500's). 5500s have been filed for many years under this EIN. The Trust files the 990 under its EIN. The #'s agree between the 990 and 5500 (that is to say, there are no other Trusts under this Plan # for 5500). The Trustees would like the 5500 and 990 EINs to match to the Exempt Trust's EIN (same as 990). So, we want to find the best way to change the 5500 filing EIN. There seems to be no way to easily just change an EIN for a plan and keep going on with that plan as if nothing else changed. So, we're thinking we could file a final 5500 (probably at year-end) and zero out all net assets and transfer out. Then, on 5/31/19, have an initial 5500 filed under the Trust EIN showing the transfer in of all net assets. Does that make sense? See any better way? I know the final 5500 would need to include our audit. Would we also need an audit with the initial 5500? Or not until 2020 year-end? Are there other items we need to consider? One thing I want to verify with Plan Management/Legal counsel is that everything is under the Trust's EIN and not the Plan EIN we are closing out.
Number of replies posted  1 reply      Number of times viewed  29 views      Add Reply, Inc.
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