"Employer A acquires Employer B mid-year. Employer A sponsors a safe harbor 3% 401(k) plan. Employer A credits all service with Employer B for all purposes. The result is that all employees of Employer B are immediately eligible. What gets strange is that Employer A calculates and deposits the 3% SH each payroll (not by document provision, just by administrative choice). But for the former Employer B employees, not intentionally but through administrative error, the 3% was not deposited until after the end of 2023. (They corrected this for 2024, and everybody gets the deposit each payroll.) The difference, due to the relative number of employees, would easily pass either a 70% test, or a benefits/rights/features test. Document doesn't specify a particular timing requirement. Yet I can't shake the feeling I'm missing something. Any thoughts on this?"

"A small company just started a 401-k last year and has less than $10,000 in assets as of the end of the plan year. Are they required to file a form 5500? (is there a minimum asset level)?"

"Client initiated a standard termination of a 403b then filed for bankruptcy last week. NOPBs were sent out earlier and many participants chose lump sum payments. Some were paid out before the filing, others made requests (8 requests) but no payouts have been made on those yet prior to the bankruptcy filing. Do the lump sum payouts have to end on bankruptcy filing? or can the lump sum payouts still be made if over 80% funded?"

"Employer has self-insured health plan administered by large national insurer providing administrative services only. Plan document contains very broad, expansive 'latest and greatest' subrogation provisions provided by ASO provider. Employee / participant was injured in auto accident more than a year ago. About a year ago, participant's lawyer wrote employer inquiring about plan sponsor / employer's willingness to waive subrogation rights under the plan or possibly agree to reduced subrogation amounts. Lawyer also requested usual host of plan documents per ERISA. Employer / Plan Sponsor did not respond or provide any plan documents. Participant's lawyer has surfaced again noting they have negotiated settlement and are ready to disburse proceeds. Lawyer reminded employer of its failure to provide documents per ERISA and the potential penalties that have now accrued. Lawyer is pushing for immediate answer from employer on follow-up request to waive all subrogation rights (or settling for about 1/15th of value) in exchange for agreeing not to report plan's failures to provide plan documents. The overall subrogation amounts at issue here are not that great. Employer freely admits it ignored all requests to provide documents. Can the employer (as plan sponsor and ultimate ERISA plan administrator) agree to simply waive pursuing subrogation here without giving rise to a possible fiduciary breach or other potential exposure? Any suggestions on how to negotiate and limit possible exposure to employer?"

"I'm trying to determine whether stock held by an IRA is attributable to the owner for purposes of the controlled group rules. So, for example, if I own 100% of Company A, and my IRA owns 100% of Company B, am I deemed to own 100% of Company B, such that A and B are in a brother/sister controlled group? I know the answer is 'yes' in the context of a qualified plan (based upon the language in 414(b) stating that 1563(e)(3)(C) doesn't apply). However, I have not been able to find a discussion of the application of these rules to IRAs anywhere. From a policy standpoint, the case for attribution would seem to be even more compelling in the IRA context, given that there's always going to be a single individual who owns the entire account. I find it hard to believe that this issue hasn't been addressed, and I assume I'm missing something obvious."

"Anyone else having issues with the EFAST system? I had a client that has been trying to sign this 5500 since late yesterday afternoon but continues to receive a message saying 'ERISA Filing -- Technical Difficulties -- We're sorry but we are experiencing technical difficulties. Please try back later.' "

"The sole participant of the PS Plan passed away and all Plan assets have been distributed except for one. The Plan held a survivorship (2nd to die) life insurance policy insuring the sole Participant and Spouse (who as of 2012 became ex-spouse). The policy was to be transferred to the ex-spouse (who is still a Trustee of The Pan) at the participants death. Upon transfer the ex-spouse would owe income tax on the cash value of the policy. That cash value is approximately $200,000. The ex-spouse doesn't want to, or can't pay the income tax and proposes an alternative: [1] Leave the policy in the Plan Trust so the ex pays no income tax. [2] The ex pays the annual premiums each year to keep the policy in effect. The ex desires to keep the the policy because, besides being a life insurance policy, it also pays Long-Term-Care benefits of up to $17,000 per month for life. Can the Plan Trust remain in existence? Can the ex pay the premiums? The ex is still a Trustee of The Plan because the couple remained on good terms as friends following their divorce."