Have a question about a multiemployer 401(k) plan that utilizes a standardized prototype, I am told. (I haven't seen the document yet.) I was able to look up the 5500 form, where I see that the Plan Characteristics codes do not indicate the use of a pre-approved document. Do you know whether a normal (whatever that is) multiemployer 401(k) plan would require special multiemployer language, or can it use your garden-variety plan language?

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Employer offers voluntary life insurance with premiums based on age bands. Without realizing it, they have been administering the plan such that salary reductions under the cafeteria plan automatically increased mid-year when the life insurance premiums went up (i.e., when a participant reached a new age band such as attaining his or her 40th birthday). Is such a practice consistent with 26 CFR 1.125-4(f)(2)(i) if the plan document allows? That section states: "(i)Automatic changes. If the cost of a qualified benefits plan increases (or decreases) during a period of coverage and, under the terms of the plan, employees are required to make a corresponding change in their payments, the cafeteria plan may, on a reasonable and consistent basis, automatically make a prospective increase (or decrease) in affected employees' elective contributions for the plan." Also, if the practice is OK under that reg but the cafeteria plan document is silent, could the document be amended retroactively to correct?

My question relates to the recharacterization of Pre-Tax Deferrals to After-Tax Contributions, in correcting an ADP test violation. Treas. Reg. Section 1.401(k)-2(b)(3)(ii) states that recharacterized excess contributions will be includible in the HCE's taxable income "as if such amounts were distributed" under the regulations applicable to distributions of excess ADP amounts. Does this require that recharacterized excess contribution must be adjusted for allocable earnings like in an actual corrective distribution would be, i.e., recharacterized contributions along with earnings reported on 1099-R, etc.? My understanding is that when recharacterizing correction option used, allocable earnings are not taken into account, i.e., recharacterized amount (and thus taxable amount reported on 1099-R, etc.) equals just the actual excess contribution without earnings.

My employer (state of California) has a policy (that they say they will not change) of cashing out credit card tips on a daily basis to employees. As such, we do not have the opportunity of deferring that income into the 401(k) plan. Try as I might, I cannot find any law that requires the employer to leave the tips on the paycheck if requested by the employee. It seems to me that this would violate the definition of compensation and would put their safe harbor 401(k) plan in violation.

Due to payroll issue for small group of participants, the employer failed to apply 401(k) elective deferrals for a pay period which included both regular pay checks plus annual bonus payments from 2017. As a result, participants failed to have 401(k) deferrals taken out of bonus payments (some of which are relatively significant portion of regular pay). Employer realized the mistake shortly after it happened and corrected to ensure that regular elective deferrals were being deducted by next pay period. Can the employer apply the 0% QNEC provisions under 2015-28 to the missed annual bonus deferrals as well as regular pay (assuming notice and other requirements are satisfied)? The part I'm worried about is the requirement that correct/regular deferrals start back within a set timeframe. In this case, the elective deferral issues have been corrected and regular deferrals from pay started back the next pay period. That should be fine for using 0% QNEC for the missed regular pay amounts I would think, but does the same thing apply to the one-time bonus payment? There are no other bonus payment deferrals to start back in same way regular pay deferrals start back. It seems the same philosophy should apply here (because participants will have plenty of time to up their deferral elections from regular pay to make up for the missed deferral on the bonus amounts). It's just that they will need to increase regular deferrals by a much higher amount to make up for the missed deferral on the bonus checks.

While this situation may stand as less prevalent or applicable to defined benefit plans, when an individual severs employment with the respective plan sponsor, may and/or must said person, if subsequently rejoining said respective employer, have the option to repay the amount of the distribution to reestablish the accrued benefit per status quo antebellum ? To say as if the distributions and/or severance from employment had lacked? Possibly relevanst citations include Treasury Reg. 1.411(a)-7(d)(4)(iv) and (v); Treasury Reg. 1.411(d)-4 Q&A 2(a)(2)(iii).

May one simply refer to 2001-62, or does an updated reference stand as required, or may one alternately and/or additionally cite to Code Section 417?

Possibly relevant sections:

Treasury Regulations Sections 1.401(a)(20), Q &A 3

1.401(a)(20), Q&A 24

Internal Revenue Code Sections 417(a)(4), 401(a)(11)(B)(iii)

Prima facie, the situation seems to me that as long as a written instrument features a QJSA, QPJSA and/or life annuity as a distribution option for at least certain portions of a respective participant's account(s), spousal consent stands as required for loans. One infers that many, perhaps most, written instruments intimate that the opting for a specific distribution option occurs close to, simultaneously or subsequent to the event prompting the distribution, or leave the sequence of the order of events of the option and the prompting event vague and/or unstated. Upon enrollment into the plan, one may perhaps populate a form indicating how one prefers distributions from the plan in the to a degree distant future to occur. The respective relative tax advantages of various respective forms of distribution and how willing or swayed one feels to a particular form of distribution can vary per one's respective situation. A QJSA and/or QPSA would perhaps rarely commence during a respective participant's employment, perhaps barring the situation of an owner who had to commence distribution circa age 70.5.

What is my recourse if I disagree with the QDRO proposed by my ex-spouse? Do I have to sign it? Can I strike through the part that says "Consented to By" under the signature line? If I don't sign, or if I strike through, can I be held in contempt? What recourse do I have?

I want to pay off my 401K loan with an outstanding balance of $7,500 (at 4/8/18). I called my my benefits plan administrator on Friday, 4/6/18, and was told that my highest balance within the 12 month period from today is about $14,000. I'm confused. If I wanted to borrow, after I paid off my outstanding loan of $7,500, what is the maximum amount I can borrow? I have $110,000 as my vested balance including this $7,500. Is it $50,000 less the highest loan balance of $14,000 in a 12 month period, even though I will fully paid the $7,500, which is $36,000? Or $50,000? Or $42,500 (if this $7,500 were fully paid).

Retirement payments commenced two years ago in life-only form (actually a little more complicated -- amount reduces at his age 65, but in any event stops on his death). This was done to increase their income. She signed waiver of J&S. Now they may be divorcing. Can she get a QDRO? (I think the answer is yes.) Or did the waiver eliminate that option? And is it restricted to payments during his lifetime? Or can it be done for her lifetime? (She is healthier and he is 61, she is 54. I realize that, as always, the plan document may be more restrictive than the law allows, but we don't have access to the document at this time.

Real Estate Investment Company owned 3 businesses, seemingly unrelated (they are in different states and are different operations). Benefit plans are operated independently at each location. But there is common ownership. One of the 3 businesses was sold off 2 years ago. Company now realizes that it needed to file welfare plan 5500s, so it's going back in time under DFVC, combining the two current locations, with the intent to reduce the number of delinquent past filings. Moving forward they will file as one wrap plan. To what extent should they worry about the now-sold-off location for those years?

Is there any problem in making a QDRO distribution to an ex-spouse partially as a cash distribution with the remainder as a direct rollover?