"We have someone with an old SEP IRA plan that they are looking to roll the money into a Cash Balance Plan? The value of the SEP is around $1.1 million, just for reference."

"Benefits dept found that an employee had overcontributed to FSA (2022) because of an employer error (having 2 deductions for FSA, 1 was not end-dated). It is now 2024, how does payroll refund the employee?"

"I understand that a participant can opt out of the plan. And that if they do they can not return. If a participant opts out, they no longer are part of plan testing.... correct? EDIT: I meant 'Waive out' And Dang.... meant to mention this.... This guy has 2 daughters. Would they be considered HCEs due to attribution? I'm guessing they are both older than 18. My thought was they may screw up testing so have them waive out.... take them out of the equation. But if they are HCEs by attribution then no issue if they defer very little or nothing at all."

"Leveraged ESOP, closely held stock, has only one tranche of stock acquired with the proceeds of a single ESOP loan that has not been renegotiated. Dividends on unallocated shares are used to pay a portion of the stock loan. In the third year of the loan, 50,000 shares are released per the amortization schedule. The loan payment was $500,000, of which $100,000 was from unallocated dividends and $400,000 was an employer contribution. There are a few forfeitures that resulted from participants leaving who were less than fully vested. Therefore, active participants were allocated shares as a result of the loan payment as well as reallocation of forfeitures. However, only the shares that were released by virtue of the loan payment are using the cost basis of the shares when the loan was funded; the shares released as a result of using unallocated dividends and forfeitures are allocated with a cost basis of the FMV as of the end of the year. I had always understood that all shares acquired with the proceeds of a stock loan carry the basis at which they were acquired, regardless of release of shares or reallocation of forfeitures. Am I wrong here?"

"I have a plan that for the last couple years was required to be audited due to creeping over the 120 eligible participant threshold. They've never had more than 50-60 with a balance in the plan. After filing 5500SFs for several years, the last couple years they've had to perform an audit and file the regular 5500 along with an auditor's report. With the change in regulation counting only participants with a balance and less than 100 participants with a balance, and an audit no longer required, can they just revert back to filing the 5500SF? Is there anything else that needs to be filed?"

"Employer sponsored a 401(k) that allowed union employees to participate. About 5 years ago (approx), the Union started their own 401(k) Plan. Union employees now participate under the Union Plan. Several of the union employees have a balance in the original plan. Question, [1] Can the current plan spin the union employees out to their Union Plan? [2] Union employees want access to their funds in the original plan, want to transfer to Union or maybe take a distribution. [3] The Union employees are treated as ineligible class and therefore are not eligible for a distribution (not 59 1/2, not terminated). Trying to figure out a way to get the funds to the Union plan and they can take funds as allowed under that plan. thoughts??"

"Plan has After tax contribution and there are allocation conditions for match (1000 hours for Active & last day requirement). In ACP test do we need to include all, irrespective of the allocation conditions as everyone is eligible to make after tax contributions which are tested under ACP test."

"Client (ex-wife) was divorced in 2009. Ex-husband's attorney drafted a QDRO and submitted it to Putnam, the IRA provider, in 2010. Putnam will only give us the QDRO from the file, and states it requested a signature from the ex-spouses on a form letter of instruction in 2010 but ex-husband never signed or did anything further. Client does not recall ever getting a request to sign anything. Further, Putnam told her in 2010 that the amount owed to ex-husband was on 'hold' in her account. At the time she thought little of it. Ex-husband died 4 years ago. Client recently tried to access the funds sitting in her account, but Putnam says there is a hold due to the language in the QDRO that says if the AP dies prior to receiving all the funds and does not designate a beneficiary 'such amount shall be paid to the Alternate Payee's estate.' The client gets statements from Putnam that are titled 'IRA Rollover for Mary Smith' -- the funds have never been separated into deceased husband's name. She has no idea if he had an estate, an executor, or anything else. (They had no kids so there was no connection after divorce.) Putnam is telling her the executor can submit forms to request the funds. I am getting nowhere with them. For starters, I don't know why the QDRO would govern since this is an IRA (yes, some IRAs accept QDROs but this provider clearly needed other documents to process the division). I don't see what right they have to hold this money in limbo when the ex-husband never signed what was needed to separate the funds. Anyone have any suggestions about how to proceed?"

"Hello All, As you know, effective 1/1/2024 most employers are required to file Form 5330 electronically using the IRS Modernized e-File (MeF) System through an Authorized e-file Provider (AEP). The IRS has a listing of AEPs on its website (even though the link says individuals, it's for individuals and businesses). I've contacted some of those listed and they actually are NOT registered to file Form 5330. I've also contacted some mid-size and large accounting firms and TPA firms we work with as well as Empower and have found that while they are set up to file as an AEP, they are NOT registered for Form 5330. According to Empower, they are ultimately going to be able to file, but there is no ETA at this time. I'm struggling to advise clients how to file electronically other than contacting one of these random providers. I can't find anything online addressing the practicalities of this or whether the IRS is even really ready to accept these electronically. However, per the 5330 instructions, if a paper return is filed when electronic is required, the return will be considered as not filed by IRS. Right now, I have two clients who need to file, one of which is a $1.7B plan. I can't tell them to go to the nearest H&R Block listed on the IRS website (which probably is not even registered for 5330). What am I missing here? What is everybody else doing?"

"Plan has been around forever and fails ACP this year. The 2023 match has not been deposited yet, but the affected HCE has plenty of match source money from previous years. The platform is refusing to process the refund because the contribution to which it refers has not been deposited. is that a reasonable position to take?"