"Client has discovered deferral contributions that were made late in 2018. The Form 5500-SF for 2018 already has been filed. Should they file an amended 2018 return indicating the late contributions?"

"A Terminated employee was in the DB Plan with zero benefits. This is because the DC plan balance offset his DB Benefit (offset plan). During the 1/1/2018 -12/31/2018 plan year, this terminated employee received his DC Balance (this offset his DB benefit and therefore he did not receive a benefit from the DB Plan). Therefore, he was not included in the 2018 DB Val Report. The valuation date for the DB Plan is 1/1/2018 (BOY Valuation date). Does this justify removing this employee from the 2018 DB Valuation (because he received his benefit during 2018, after the 1/1/2018 val date)? Either way the Report numbers are all the same, since he did not accrue benefits under the DB Plan. The only issue is the participant count."

"I am working with an ESOP to get their problems cleaned up. We need to file an amended Form 5500 for the 10/1/2014 to 9/30/2015 plan year. We can't access the 2014 form on ftwilliam. I don't do really old forms like this very often but something in the back of my mind says after so many years EFAST2 requires you to submit a very old 5500 using the current year's form instead. Can someone confirm this for me?"

"We are setting up Auto Enrollment (4%) plan with Auto Escalation (1% annually up to 10%). When we looked at plan demographics we noticed that close to 40% of participants have elected flat dollar deferral elections instead of percentages. How would administrator auto escalate someone with flat dollar deferral election? Here are a few options we have considered.

1. Divide pay period deferrals by the pay period comp and increase the flat dollar amount by calculated 1% if needed. This approach would potentially hurt folks with variable comp through the year, who want to ensure max deferral (402g limit) and not losing any match (match is calculated with per pay period comp).
2. Exclude anyone who has elected flat dollar deferrals from Auto Escalation. Wondering if that would be considered definitely determinable in accordance with Regulation §1.401-1(b)(1)(ii) and uniform for EACA rules. Currently Top choice if prior sentence holds.
3. Only apply Auto Escalation for participants who have not made any affirmative elections. However, that would only limit this entire plan provision to the future new hires, who never make elections.

Are there any other approaches you have seen that you would like to share?"

"We took over a plan from another TPA who had done a PPA restatement effective 2015. The restatement was COMPLETELY wrong (some of the terms didn't even make sense). All valuations from 2015 on have been done consistently as I expect the prior TPA intended, but not in compliance with the restated documents. At this point, what is the best way to proceed? We need documents that agree with the valuations. Is there a good way for us to correct this situation or do we have to use one of the EPCRS programs?"

"I am considering an individual 401(k) plan that I believe has a profit sharing component to it. I am getting really frustrated and am wondering if I'm getting my chain yanked. A potential plan provider is saying they have a 'QRP.' They say it's not a Solo-K but everything they talk about screams '401(k)'. They tell me that a Solo-K does not fall under ERISA (which I agree with based on everything I have read), but their QRP does. They say it has judgment protection from creditors and falls under ERISA. My questions: [1] How can any plan with only one participant (the owner -- that's me) fall under ERISA and receive protection from creditors? I thought ERISA was intended to protect participants in employer plans? If it does fall under ERISA, is it because the plan has profit sharing as well? [2] While clear with their marketing, what would/could make a 'QRP' of Solo-K fall under ERISA and have asset protection? [3] Would a plan that falls under ERISA file an annual report to the DOL? Would I have an exemption to this requirement? To me it's the difference between spending $3,000 on this 'QRP' vs a much lower fee for a Solo-K. Again, the promoters are saying it is NOT a 401(k), but it looks, smells and acts like a 401(k)."

"Reviewing the fund lineup of a retirement plan. One of the funds is a CIT with an expense ratio of 25 bps. 100% of the CIT is invested in a single Vanguard Fund with an expense ratio of 8 bps. Why would someone create a CIT to only hold one mutual fund and then increase the fees of the fund?"

"A participant died in 2016 without a beneficiary designation on file. As a result, her son is the beneficiary on her $4,600 account. He doesn't want the money. Even if I had his SSN and address, he probably wouldn't cash the check. Also an RMD will be required for 2020. The plan sponsor hasn't been much help, but I did learn that she has a brother. What options are available to distribute the funds?"

"Can a US citizen working in the UK as a sole trade (their version on sole proprietor) set up a 401k or SEP based on his UK income? Per the US/UK totalization agreement, the income is not subject to Social Security, but is reported on Schedule C of his Form 1040. I know we only use wages that are subject to Social Security but this is an odd situation."