"Participant took a loan two years ago (5-year note) and has been making payments as required via payroll deduction. Participant has told the employer she cannot afford the payments and to stop the withholding and that she will default on the loan. The loan program requires payments be made via payroll deduction until the loan is paid in full. Can a participant just stop their deferrals? Seems to me, if the employer allows this employee to stop, they have opened the 'black hole' for others to do the same. Somehow the IRS would have to view these as sham loans -- done as a way to get funds not otherwise available. Doesn't stopping the loan payment cause the loan to violate 72(p)? I have read some states mandate that, if the employee tells the employer to stop a withholding, the employer is legally required to stop, even though this is contrary to ERISA."

"50% owner sells ownership in C-Corp, will be paid $500,000 per year for next five years as payment. Continues to work for C-Corp and draws a salary. Can this person open up an S-Corp to receive the $500,000 per year and have the S-Corp start a qualified plan just covering himself?"

"401(k) plan allows for entry/change to employee deferral contributions on Jan 1st and July 1st each year. An employee was eligible to start deferring on 07/01/19 and was given notice of eligibility to defer. The employee did not inform the Plan Sponsor that he wanted to defer until the end of September 2019. The Plan Sponsor starting withholding with the next payroll. Would this be OK based on the SH brief exclusion rule, or should the employee deferral contributions be refunded and the employee informed that they may start deferring on 01/01/20?"

"I'm a Relius document user and am seeking advice (because they don't seem to respond as quickly as they used to). They posted a notice on the site with regard to the safe harbor notices saying to select 166b on the checklist and then: 'Clients can run a provisional report within RD ASP using the logic string in paragraph 166b as their selections. This report will assist in determining what action, if any, is needed regarding 166b for 2020 annual notices.' Can anyone out there tell me how to run a provisional report in RD ASP??? If not, does anyone out there have suggestions on the safe harbor notice revisions due to the hardship distribution changes that have not been incorporated in the SPD (or even an SMM) at this point? Some folks hemmed and hawed at ASSPA Annual, but I didn't get anything concrete in the sessions I attended."

"A 'Supplemental Unemployment Benefit Plan' is organized under 501(c)(9) to provide life, sickness, accident and similar benefits. It's in the construction trades and vast majority of claims paid are due to periods of temporary unemployment. It also pays benefits in cases of death, disability, etc. Can this 501(c)(9) VEBA pay a stipend in connection with bereavement leave? This would seem to satisfy the regulations by protecting against a contingency that would interrupt a member's earning power, but I cannot find anything that answers the question one way or another."

"Specifically looking for cases/authorities that would demonstrate that a health plan participants decision to be a surrogate for profit would not be covered under a health plan that prohibits coverage of occupational illness incurred from work for profit, including self employment."

"Can a under-59-1/2 employee withdraw funds from a Rollover Account that used to be a Simple IRA? Meaning company had Simple IRA Plan. They converted it to a 401k Plan and Simple funds were rolled over. Now an employee who is under age 59-1/2 wants to withdraw his Simple IRA Rollover Funds from the plan."

"Client wants to start a DB plan for 2019. Informs me that he put away $20,000 in a SEP already. This is already in excess of 6% projected 2019 salary (non-PBGC -- one lifer). Under deduction rules, 31% application, max 2019 deduction is $50k (based on current comp -- will not increase). SEP was $20k and DB deduction cannot exceed $30k. if only SEP, max deduction is approx. $40k. [1] Cannot take back the SEP, correct? If not, how can it be done? [2] If a DB plan required $100k of contribution and only $30k is deductible for 2019 (as per above), assuming that there will be room for 2020, can the remaining $70k deduction be applied towards 2020, in addition to the 2020 $100k DB deduction (i.e. 2020 total deduction can be $170k)? Or, DB plan design for 2019 should have no more than $30k of required contribution? Client wants $100k each year and start in 2019."

"A story about the dangers of individually directed plans with participants being able to select where assets invested -- A participant moves money from brokerage to credit union IRA account. (She shouldn't have had the power to make the withdrawal or establish a new account without the permission/guidance of the Trustee.) Participant starts withdrawing money from the Credit Union Account and essentially empties the account to the tune of $30K. Generally, when this happens, the employer will terminate the employee and the withdrawal would be treated as a distribution. No such luck. The employer does not want to terminate the employee, leaving the conundrum: how to correct? Because the funds were safe-harbor and deferral and the participant was below age 59-1/2, in-service distribution doesn't help. Rev. Proc. 2019-19 6.06(4)(b) seems to indicate, in this case, that after reasonable attempts to collect are made, there is no requirement for someone to repay the plan if the distribution was made to a participant or beneficiary. Any thoughts on how you would handle? Advice to sponsor?"