I have a very difficult client who is already perturbed with me because we can't process her RMD for free, we can't give it to her in quarterly installments, and we can't endorse a rollover of all her assets into her IRA and THEN taking her RMD. All of my research indicates that she must take the RMD first and then roll the remainder from the 401(k) to the IRA. She is terminating her plan effective 05/31/2019; her date of birth is 08/26/1948; she turned 70.5 on 02/26/2019. QUESTION: Her RMD is a bit over $31,000. She has called several times insisting that when it is processed, her broker will send $10,000 straight to the United Way, tax free, and the remainder which is of course taxable, will go to her. Now that I go to actually research and try to accommodate her wishes, I am finding that this is not permissible. According to my research, she could have done this out of an IRA, but not out of a 401(k). Do any of you know any way that she can somehow avoid taxation on the portion she wants to donate to charity? Can she recoup it somehow when her 2019 personal taxes get prepared next spring?

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Participant originally requested a lump sum distribution. Asked his Employer if he could change his mind. The original paperwork had not been processed, so TPA told the Employer to have the participant to complete new distribution paperwork. The original request was never cancelled by TPA. In November 2018 a distribution check is issued to a participant as a lump sum distribution. Taxes withheld and participant cashes check. The "new" distribution paperwork is received and in December 2018 another (duplicate) check is issued to the participant as a rollover and sent to rollover institution. No taxes withheld and check is cashed. Lots of issues on this one, but if we want to correct it as if the lump sum distribution did not occur, how can we fix it? A corrected 1099-R has to be issued, but how do we get the taxes back from the federal government?

An employer has a group of employees that are will become union members, the collective bargaining agreement begins mid-year. The calendar year 401(k) plan provides a safe harbor match. The union has negotiated to be eligible for deferrals in the plan and for some nonelective contributions, but no match. Can the plan be amended mid-year to exit safe harbor just for the union employee group only, to reflect the bargaining that occurred, but still keep safe harbor status for 2019 for the rest of the plan, the non-union portion?

With a SHNEC provision, I know that discretionary matches above 4% are subject to ACP testing. If they also want to fund PS, how much of a margin could they have and still pass?

A plan was established in 2016. The TPA provided an adoption agreement effective January 1, 2016. One trustee signed it December 19, 2016 and the rest signed it 1/1/17. Contributions were not taken until 2017. What can the Plan do to remedy this? They are moving to another recordkeeper, and the shortcomings like this with their current provider are why.

Are people responding to this? I have a client who has received 3 reminders to complete this "voluntary" survey. Please advise what you are doing.