metsfan026 created a topic in 401(k) Plans
"For a plan that does their Safe Harbor Match on a payroll-by-payroll basis, it it necessary to do a true-up at the end of the plan year for the participants who started their contribution mid-year (or for those who maxed out prior to year-end)? Or can the document say the plan does not do a year-end true-up?"
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AJC created a topic in Plan Terminations
"A SIMPLE-IRA plan was adopted by an employer that already had a 401(k) plan, and both plans operated side by side for a number of years. The employer has been notified of the operational failure and agrees to stop contributions to the SIMPLE-IRA plan immediately and terminate it. Is a termination notice required? If so, is the termination notice required in advance of stopping contributions or in advance of an official termination date?"
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PS created a topic in Plan Terminations
"Should the PS administrator send in the SMM once the plan has terminated? When should they send it?"
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Jakyasar created a topic in 401(k) Plans
"New 401k plan, effective 1/1/2021 (no short plan/tax year). They decided to hire a new employee on 9/1/2021 and will pay $350k salary for calendar 2021. This employee will have an immediate entry of 9/1/2021 due to a special entry date amendment (otherwise plan has 21/1 and dual entry for eligibility). For 401k deferrals, profit sharing allocation and testing compensation, what needs to be modified pro rata? Assume no hour requirements for PS and 401k."
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PS created a topic in Plan Terminations
"When a plan is terminating, should there be an amendment to terminate the plan? or will a BOD resolution suffice?"
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Gilmore created a topic in Retirement Plans in General
"A Canadian company has a US subsidiary. The US company sponsors a 401(k) plan with a 1 Year of Service eligibility wait, and excludes non-resident aliens. An employee in the Canadian company is moved to the US company. While working for the Canadian company the employee had earned more than 1 year of service as measured under the US plan. Does the Canadian service count under the US plan? I'm thinking it would, just as it would with any other controlled group member?"
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TPApril created a topic in Distributions and Loans, Other than QDROs
"Say the payroll date is 12/31. Paychecks aren't typically issued until the following week, i.e. in January. Loan repayments were stopped. Would the loan's default day (at the end of the 2nd quarter following the first missed payment) be June 30 or would it be September 30?"
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ryan1986 created a topic in 401(k) Plans
"I recently qpplied for a hardship withdrawal through Vanguard to cover orthodontic expenses for my child. I sent in everything that was requested, but they are still insisting that I send in a pre-treatment estimate. So I contacted my dental insurance provider and asked for one, but they can't provide one to me because her treatment has already begun. Is there anything that I can do or someone I could talk to, to escalate this situation?"
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AJC created a topic in SEP, SARSEP and SIMPLE Plans
"A SIMPLE-IRA plan was adopted by an employer that already had a 401(k) plan, and both plans operated side by side for a number of years. The employer has been notified of the operational failure and agrees to stop contributions to the SIMPLE-IRA plan immediately and terminate the plan. Is a plan termination notice required before stopping contributions?"
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HCE created a topic in Miscellaneous Kinds of Benefits
"Stock options were granted and, under the terms of the options, they were scheduled to vest next month or expire if the participant is terminated before vesting. Several employees terminated last month, under the understanding that vesting would accelerate to vest on their termination dates (giving the participants up to 3 months to exercise post-termination), subject to board approval. We have not yet received board approval, but it is soon forthcoming. So now we have a issue that the options technically expired before they were officially accelerated, even though acceleration was anticipated (subject to board approval) prior to them expiring. Would it be at all advisable for the board to approve the acceleration now? Or have we already blown it with respect to ISO status and 409A compliance (assume the stock price has gone up since grant, so they would not have an
exercise price of FMV if treated as a new grant today). Alternatively, can we treat them as accelerated prior to termination (and, consequently, expiration of the options), and the acceleration was simply retroactively condoned by the Board at a later date?"
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Peter Gulia created a topic in Retirement Plans in General
"Plenty of advisors are preaching to retirement plans' fiduciaries (mostly, employers) that they ought to do something about cybersecurity. Imagine an employer takes heed, and tries to follow EBSA's Tips for Hiring a Service Provider with Strong Cybersecurity Practices. https://www.dol.gov/sites/dolgov/files/ebsa/key-topics/retirement-benefits/cybersecurity/tips-for-hiring-a-service-provider-with-strong-security-practices.pdf Step 6 is about what a fiduciary should seek to include in (or delete from) a service provider's contract. It includes a list of five or six provisions a fiduciary should seek. But is this realistic? Imagine a plan's size limits its negotiation with a recordkeeper to engaging it (on its standard terms) or not. For the points the EBSA guidance mentions, are there meaningful differences in what recordkeepers offer? Or are
recordkeepers' provisions so much in a common mainstream that there's nothing much an employer would compare?"
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