Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Need some 401k/tax/payroll help
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Jackburton" data-source="post: 2117760" data-attributes="member: 34538"><p>Ok, so I called back after later today and got another customer rep. These reps are a go between actual plan managers in different depts. I was placed on hold for about 2-4 minutes while they relayed questions back and forth. After verifying info I was told I was mailed a letter explaining what was done today /boggle. She explained that the Teamster plan failed the non discriminatory test which was indeed the same thing as the HCE test. I inquired was management taken into the account when determining the threshold, she explained since they are on a different plan, no. Basically, only hourlies are considered into the formulation for 401k participation.</p><p></p><p>I further inquired about the limitations of the income and contribution, she explained the test is performed in the first quarter of the year. Because of this, the overage that was recatagorized will be taxed for the 2016 as "carryover income" and on the 1099 I get, will be under 5500 reporting code on the 1099. I was also told I would not be charged 10% for pulling the overage out. I then decided to have make a check made out in the amount of the overage. I was told a minimum of 20% will be withheld and had the option of no state tax withheld and I could pay it when doing 2016 taxes in 2017. I'll just throw it into my TDAmeritrade account as leaving it in the 401k account does nothing that I couldn't do better in my non restricted trading/investing account.</p><p></p><p>If you have any questions let me know, I should be receiving the letter in the coming days. Hope this helps anyone in the same predicament and maybe pass this on to anyone that might have the same circumstances.</p><p></p><p><a href="https://www.irs.gov/Retirement-Plans/401k-Plan-Fix-It-Guide-The-Plan-Failed-The-401k-ADP-and-ACP-Nondiscrimination-Tests" target="_blank">https://www.irs.gov/Retirement-Plans/401k-Plan-Fix-It-Guide-The-Plan-Failed-The-401k-ADP-and-ACP-Nondiscrimination-Tests</a></p></blockquote><p></p>
[QUOTE="Jackburton, post: 2117760, member: 34538"] Ok, so I called back after later today and got another customer rep. These reps are a go between actual plan managers in different depts. I was placed on hold for about 2-4 minutes while they relayed questions back and forth. After verifying info I was told I was mailed a letter explaining what was done today /boggle. She explained that the Teamster plan failed the non discriminatory test which was indeed the same thing as the HCE test. I inquired was management taken into the account when determining the threshold, she explained since they are on a different plan, no. Basically, only hourlies are considered into the formulation for 401k participation. I further inquired about the limitations of the income and contribution, she explained the test is performed in the first quarter of the year. Because of this, the overage that was recatagorized will be taxed for the 2016 as "carryover income" and on the 1099 I get, will be under 5500 reporting code on the 1099. I was also told I would not be charged 10% for pulling the overage out. I then decided to have make a check made out in the amount of the overage. I was told a minimum of 20% will be withheld and had the option of no state tax withheld and I could pay it when doing 2016 taxes in 2017. I'll just throw it into my TDAmeritrade account as leaving it in the 401k account does nothing that I couldn't do better in my non restricted trading/investing account. If you have any questions let me know, I should be receiving the letter in the coming days. Hope this helps anyone in the same predicament and maybe pass this on to anyone that might have the same circumstances. [URL]https://www.irs.gov/Retirement-Plans/401k-Plan-Fix-It-Guide-The-Plan-Failed-The-401k-ADP-and-ACP-Nondiscrimination-Tests[/URL] [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Need some 401k/tax/payroll help
Top