Articles — Ascensus

Moving Money to an HSA with a Qualified HSA Funding Distribution

What is a qualified HSA funding distribution and how much can be distributed? Can a qualified HSA funding distribution help satisfy an RMD? What is a testing period?

What Is the Top-Heavy Test and What Should Plans Do if Top Heavy?

What is the top heavy test and who is a key employee? What if a plan is deemed top-heavy? What are top-heavy minimum contributions?

What Does It Mean to Have a Nonqualified ESA Distribution?

What is the difference between a qualified and a nonqualified distribution from a Coverdell ESA? Does a penalty tax apply to a nonqualified distribution?

expert, ESAAscensusSeptember 20, 2018Compliance & Operations, Coverdell ESA, Distribution, Education, Q&A

What Can Be Done to Help Pass ADP/ACP Testing?

When conducting ADP and ACP testing for a plan that does not use a safe harbor 401(k) design, what techniques can be used to structure a test to enhance its chances of passing? How should a failed ADP or ACP test be corrected?

expert, Employer PlanAscensusSeptember 20, 2018Compliance & Operations, 401(k) Plan, IRS, Contribution, Distribution

Disclaiming IRA and HSA Assets

What can be done when an IRA owner’s spouse and children are the primary beneficiaries of the IRA but the children want all of the IRA assets to go to the spouse? With an HSA, the assets are deemed distributed to a nonspouse beneficiary upon the HSA owner’s death, but can the nonspouse beneficiary still disclaim the assets he would receive as a beneficiary?

expert, IRA, HSAAscensusAugust 16, 2018Traditional IRA, Roth IRA, HSA, Beneficiary, Compliance & Operations, Q&A

403(b) Pre-Approved Plans

What is a 403(b) pre-approved plan and what is the benefit of having one? Are existing 403(b) plans required to be restated as a pre-approved plan? Is there a deadline to restate an existing plan onto a pre-approved plan?

expert, Employer PlanAscensusAugust 16, 2018403(b) Plan, Compliance & Operations, IRS, Plan Establishment, Q&A

Safe Harbor 401(k) Plan Mid-Year Amendments

Can the Safe Harbor 401(k) plan be amended mid-year to increase eligibility to a one year of service with 1,000 hours? Can an employer amend a Safe Harbor 401(k) plan mid-year to increase the safe harbor nonelective contribution?

HSA Nonspouse Beneficiary, HSA Access

What happens to an HSA when the owner passes away and the beneficiary is a not the spouse? Can someone besides an HSA owner have access to the HSA?

expert, HSAAscensusJuly 19, 2018HSA, Compliance & Operations, Distribution, Beneficiary, Reporting, Q&A

Retirement Plan Hardship Distribution Changes

What changes are forthcoming regarding qualified retirement plan hardship distribution rules? When are these changes effective? Is the plan document required to be amended for these changes?

IRA Qualified Charitable Distributions

What is a qualified charitable distribution (QCD)? Are there limits to how many QCDs an IRA owner may make in a year? How are QCDs treated when the IRA owner has nondeductible contributions in the IRA?

expert, IRAAscensusJune 14, 2018Traditional IRA, Roth IRA, Compliance & Operations, Distribution, Reporting, Q&A

IRA Document Concerns Upon Mergers and Acquisitions

Are we required to notify IRA clients who came to us from an acquisition that we are the new trustee? What should I do if the IRA documents are missing? Do we need to do anything regarding the SEP plans that were established with the previous organization if we do not offer SEP Plan documents?

expert, IRAAscensusMay 17, 2018Compliance & Operations, Documents & Amendments, SEP Plan, SIMPLE IRA Plan, Q&A

Form 5500 Filing Failures

How do I fix a failure to timely file Form 5500 for my retirement plan? Is everyone eligible for DFVCP?

expert, Employer PlanAscensus -May 17, 2018Compliance & Operations, DOL, Retirement Plan, Reporting, Q&A

Qualified Retirement Plan Creditor Protection

Are assets in a qualified retirement plan protected from creditors? How are owner-only plans, such as an Individual(k)™ plan, impacted? What is the effect on creditor protection if QRP assets are rolled over to an IRA?

IRA Investments—Are there restrictions?

We are considering offering additional investment opportunities. What are the limitations? Are life insurance and collectibles the only two investments prohibited in an IRA?

IRA, expertAscensusApril 19, 2018Compliance & Operations, Investment, Q&A

Coverdell ESA Pros and Cons

What are some benefits of an ESA compared to other types of accounts? What are some of the pitfalls? Can a customer open an IRA for his child to pay the child’s education expenses?

ESA, expertAscensusMarch 15, 2018Compliance & Operations, Coverdell ESA, Education, Distribution, Q&A

Retirement Plan Beneficiary Designations

Can a participant name someone other than her spouse as the designated beneficiary for her qualified retirement plan? If a participant has a last will and testament, should the plan administrator distribute plan assets to the person named on the beneficiary designation or to the person named in the last will and testament?

Who is a retirement plan fiduciary?

What does it mean to be a fiduciary of a plan? Who are fiduciaries of the plan? Must a fiduciary tell participants that he is a fiduciary?

expert, Employer PlanAscensusFebruary 15, 2018Compliance & Operations, Retirement Plan, Fiduciary

HSAs: Prorating Contributions

How is an individual’s HSA contribution limit determined for the year he enrolls in Medicare? How much can an HSA owner contribute if he switches from self-only to family health insurance coverage mid-year?

expert, HSAAscensusFebruary 15, 2018HSA, Contribution, Q&A