Our client received their letter yesterday - the IRS is auditing their Safe Harbor New Comparability 401k Plan. I briefly reviewed the Plan document & the plan year under audit (2006) - and everything looks good with the exception of one thing. The mandatory rollover amendment lowering the cash-out amount to $1,000 was signed on 10/18/06. I'm not sure why this was late.
It's the only thing I expect the agent will find - this plan is very clean and well maintained. Is there anything I can do? We do not have a date for the audit yet - this will be scheduled once our power of attorneys are sent.
Thank you!
Calendar year plan and fiscal year?
QUOTE (Kevin C @ Apr 2 2009, 10:14 AM) 
Calendar year plan and fiscal year?
12/31 year-end, no extensions filed for their corporate return.
Rats.
Notice 2005-95 says the deadline for the automatic rollover amendment is the later of 1) the due date (including extensions) for the employer's tax return for the taxable year that includes 3/28/2005 or 2) the end of the plan year that includes 3/28/2005.
10/18/2006 was a Wednesday. I was hoping you had a non-calendar year fiscal year for the employer.
Notice 2005-95 says the deadline for the automatic rollover amendment is the later of 1) the due date (including extensions) for the employer's tax return for the taxable year that includes 3/28/2005 or 2) the end of the plan year that includes 3/28/2005.
10/18/2006 was a Wednesday. I was hoping you had a non-calendar year fiscal year for the employer.
QUOTE (Kevin C @ Apr 2 2009, 10:55 AM)
Rats.
Notice 2005-95 says the deadline for the automatic rollover amendment is the later of 1) the due date (including extensions) for the employer's tax return for the taxable year that includes 3/28/2005 or 2) the end of the plan year that includes 3/28/2005.
10/18/2006 was a Wednesday. I was hoping you had a non-calendar year fiscal year for the employer.
Notice 2005-95 says the deadline for the automatic rollover amendment is the later of 1) the due date (including extensions) for the employer's tax return for the taxable year that includes 3/28/2005 or 2) the end of the plan year that includes 3/28/2005.
10/18/2006 was a Wednesday. I was hoping you had a non-calendar year fiscal year for the employer.
Hey, thanks for your help. It could be worse.....I guess.
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