For the A-org test, if the purported FSO is an LLC that has elected to be taxed as a corporation and that is not a professional service corporation (or a professional service LLC), would it fail to be an FSO as a "corporation" that is not a professional service corporation since it is being treated as a corporation for tax purposes? Or would it have to actually be incorporated under state law (and not just treated as a corporation for tax purposes) to be considered a corporation for purposes of this rule?

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Participant/Husband is requesting a primary residence loan of $25,000. He submitted paperwork showing the actual costs incident to the acquisition of a principal residence is $65,000. It shows both the husband and wife on the purchase agreement. Primary residence loans are permitted by the plan. The loan is in the process of being approved. Now another request has come in -- from the participant's wife. The wife is a participant as well. Her application is for $50,000, with the same purchase agreement submitted. Individually, these amounts would be approved. But when added together ($25,000 plus $50,000), $10,000 will not be used for the $65,000 actual cost of the principal residence. Can both loans be approved?

https://benefitslink.com/src/ctop/Chamber_v_DOL_5thCir_Denial_of_Motion_to_Intervene_05022018.pdf

It seems to be the end of the Fiduciary Rule. The DOL is not defending it. Curious to know what others think or know (i.e, because of legal knowledge about the process) regarding the future of this thing.

Is it reasonable that the Prefunding Balance can jump from $145M to $982M in one year? Previously the balance ranged between $100M to $200M. (That's about 25% of the Total Plan Assets). Is this something to worry about? What might cause it? The data came from my pension annual funding notice. I'm retired now.

Company A is 100% owned by John. Company B is 100% owned by Bill. In May 2018, Company A buys Company B. Now John is 100% owner and Bill owns 0%, Each company had its own 401(k) plan in 2017. Company B's plan is merged into Company A's plan. Is Bill considered to be a key employee in Company A's plan due to Bill's prior year ownership? Is Bill a former key employee in Company A's plan, or is he instead just a regular employee under Company A's plan?

Company B is purchasing all of the assets of Company A. All employees of Company A will terminate effective July 15. Company A's 401(k) Plan is terminating. The owners of Company A would like to make a discretionary profit sharing contribution for this final plan year. Can Company A wait until 12/31 to formally adopt a resolution to terminate the plan (thus avoiding a reduction in the compensation limit, 415 limit, 1,000 hrs allocation service requirement for PS, etc.)? As an added benefit, the employer would not have to provide top heavy minimum contributions, because the limitation year would be extended to 12/31. I am not finding any guidance that suggests the plan would be deemed terminated or must terminate as of the date of the asset sale, but it doesn't seem right that an employer can manipulate the staff funding requirements by postponing a formal plan termination.

An employer allowed an employee to begin deferring in 2017, but he is not eligible until 2018. The employer doesn't want to use the EPCRS amendment correction method so that the participant would be eligible for 2017, because a top heavy minimum allocation would be required. If the deferrals plus gain/loss are returned to the participant, what 1099 code should be used? It seems like it should be a 2017 tax event.

Hey, Relius users using the financial interface -- I see in my software that American Funds (both Premier and Recordkeeper) shows as available under the vendor list. I use the import function for Premier plans because you can use the Empower (Great West) option since those systems are the same. I had not noticed the American Funds option before. Has anyone used them? If so, how do you generate a file in Recordkeeper that works with the import?