"An individual-account (defined-contribution) retirement plan allows participant loans. These loans are meant to follow Internal Revenue Code Section 72(p) so making a loan is not then treated as a distribution. The plan has no nonelective or matching contributions, only elective deferrals. The plan sponsor's general policy in setting plan provisions is to treat participants as adults who make one's choices about what to do with one's money. For example, the plan allows every kind of early-out distribution that can be allowed without tax-disqualifying the plan. The plan's current loan policy precludes another loan if the participant defaulted on an earlier loan. That restriction applies even if the participant fully repaid the loan after the default. The plan sponsor is considering revising the policy to allow a participant to take another loan if the participant has fully repaid the defaulted loan. Nothing in the plan's procedure, whether current or proposed, for processing participant loans calls for the plan's sponsor/administrator to do anything on a particular request. (A loan never requires a spouse's consent.) Rather, the recordkeeper routinely processes approvals and denials of loans on nondiscretionary terms. BenefitsLink neighbors, what do you think? Is it a good idea to allow a participant to take another loan if the participant has fully repaid the defaulted loan? Or if it is a bad or troublesome idea, why?"

"Is there any guidance on the difference between a true change in residence and extended travel (i.e., length of time)? In February of this year Employee submitted an election change form to remove spouse from health coverage due to spouse's move out of the country. 6 weeks later Employee requested to add spouse back to health coverage due to spouse's move back into the US. Employee has now requested to remove spouse from health coverage again due to spouse's move out of the country again. The Employer thinks the spouse travels back and forth to the couple's home country a few times a year for 6 weeks at a time. Are these qualifying life events?"

"This is for a 457(f) Plan. We made several payouts, but miscalculated earnings which resulted in underpayments. As you would expect from a 457(f) Plan, vesting and payment occurred the same year, so FICA and income tax would have all been applied in the year of distribution. Some of the underpayments occurred in the last year or two and we could, potentially, correct under 2008-113. But some are older. For those we correct under 2008-113, the correction is pretty clear. For those that we cannot, what are our options? We prefer not to report the underpayments as 409A violations because that would cause major issues for the affected participants, when the miscalculations are not major (at least not in relation to total benefits for these participants). Can we just correct past W-2s and leave it at that? Can we make up the underpayments and then issue 1099s in the current year? Any help is much appreciated. If I'm missing any relevant information, please let me know."

"An owner only, husband and wife, frozen DB Plan has been able to cover 40% of all eligible, by just including the owner and his wife (5 total eligible and 40% is 2). After 3 years, they now have to cover an additional 2 employees to cover 40%. There are 2 sons on the census that can be brought into the plan, as the additional 2. The aspect of bringing them into the plan and giving them a benefit of .005 of comp and a 11g amendment, has been discussed before. However, [1] does this mean that the plan is unfrozen, and ALL must be given this .005 benefit accrual or just for the 2 employees that are being added to the plan now? [2] Is this .005 of comp benefit accrual given to them going forward each year or just for the year in which they are added (as plan is still frozen going forward)?"

"What can I do when I request rollover from 457 plan to my existing 401K (different bank). Date request and had been process on April 12, 2024 and got email that they send the check on April 15th 2024. Until now I receive nothing, keep calling them which 3 different phone numbers but they keep saying 'mail should be there 10 business days or they sent to my bank'. I check with my bank, the security banker told me they got nothing. What should I do?"