"A 401k plan excludes a certain group of employees. The employer mistakenly submitted a contribution to the plan in the amount of $500 for an employee who is not eligible for the plan. It was deemed a mistake of fact, and the $500 was sent back to the employer. But there are about $40 in earnings. I understand that the IRS does not allow those earnings to be sent back to the employer. Does anyone know how the earnings should be handled? This employee will never be eligible for the plan. Should these earnings be distributed to the employee even though the EE is not eligible for the plan? Can the earnings be moved to a suspense account and reallocated or used for plan expenses? Thanks for any insight."

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"Suppose you have a small defined benefit Pension Plan and the 100% shareholder is now 73 and needs to take his first RMD on April 1, 2026. It is our understanding that if the RMD is calculated and based on a 20 year certain annuity (for example), he can later take the balance of his benefits as a lump sum distribution if he actually retires. However, if the RMDs (prior to actual retirement) were calculated and based on a single life annuity, he is prevented from taking the remainder of his benefits as a lump sum when he retires. Instead, he is forced into taking the remainder of his benefits under the plan as a single life annuity. Does anyone agree or disagree with this? Suppose we started calculating his RMD basing it on a 15 year term certain annuity. Is there any problem using only 15 years? Generally, most plan sponsors and participant's want the smallest RMD possible but not in this case. Then presumably when he retires in a few years or so, he can take the balance of his vested benefits as a lump sum and then roll over to an IRA."

"“Our goal is to deliver on President Trump’s promise for a new golden age by fostering a retirement system that allows more Americans to retire with dignity,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “This proposed rule will show how plans can consider products that better reflect the investment landscape as it exists today. This greater diversity will drive innovation and result in a major win for American workers, retirees, and their families.” [DOL news release]

"What I do not understand is, if you make private equity funds available to the public, that would make the private equity funds publicly traded. Wouldn’t that mean we need all of the protections that public investors receive through SEC filings, etc.? Imagine the disclosures needed for liquidity restrictions. I can see the place for this in a pooled, trustee directed plan (especially defined benefit), but not a participant directed one. I don’t get it."

"I am going to start studying to take the EA 2F exam in the fall and the other 2 after that. Since there are so many study materials to choose from, what are some books, study guides, or other material anyone who has taken each exam recently, used to study and worked well for them?"

"I have a scenario caused by an employer changing from T Rowe Price to Fidelity in the midst of QDRO submissions. The Stipulated Judgment of Dissolution specifies a Valuation date of 10/23/20 and my account contained only pretax contributions on that date. Fidelity won't accept any Valuation date prior to 12/29/2023 since that's when their record keeping started. My first Roth contribution date was 2/24/23 with TRP and then an in plan Roth conversion was completed prior to Fidelity takeover 12/29/23. All payroll contributions since 2/24/23 have been Roth. Fidelty's QDRO guidance allows for USE of a valuation date prior to 12/29/23 but states adjustment to the award should occur utilizing TRP statement. They state the valuation date must be 12/29/23 or the QDRO won't be qualified.

"A motion to vacate the QDRO was filed in February 2024 with due diligence after the judge signed the invalid QDRO. The award was not adjusted for the valuation date Fidelity required. The motion to vacate STILL hasn't been heard. This resulted in the AP account segregation on 3/4/24. All Roth contributions I made including the in plan Roth conversion were treated as marital property resulting in a Roth tax cost basis being assigned to my Ex when he should have NONE. Fidelity backed out all Roth from his award as of the 12/29/23 valuation date and ignored my prior non-marital Roth contributions that started 2 years post dissolution and 18 months after the 10/23/20 stipulation of Valuation date.

"How would the calculation work to 'adjust' his flat award amount (no gains/losses)? Does he just keep the Roth tax cost basis, which is a loss to me? Are we to calculate the income tax savings he received as a dollar amount and then subtract that from his award? Would any individual IRS amendment be necessary for either party?

"Fidelity's valuation date mess suggests the state court violate 2 stipulated orders, one stating valuation date and another stating the flat dollar amount of his award. I'm doubtful that Fidelity would even get involved due to the court's extended delay.

"After 5 QDRO attempts, all being incorrect, the judge has even imposed judgement interest on the total award amount and atty fee reimbursement for my objections! Wouldn't this be an ERISA violation as well since a VALID QDRO IS REQUIRED for the award to be made? another motion to vacate was filed for that as well."