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About PFranckowiak

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  1. Assumption: All participants except HCE's terminated employment 2/28/17. (Company Bought out - new company took employees and business, but not plan or corporation) Existing Corp will continue until 12/31 as owner finalizes everything. Owner wants to make PS contribution for the year. Owner already put in $24,000 deferral - So cannot terminate plan as of 2/28 due to 415 limits. Assuming the NHCE's compensation is $110,000 for 2 month year they worked. 5% (SH and GW) is $5,500 Owner anticipates Compensation to be around $50,000 for him. If we continue the plan until 9/30. 415 Limit would be 54,000 x 9/12=$40,500 HCE max ER contribution would be $40,500-$18,000 =$22,500 Maximum Contribution limit = .25 * (110,000 +50000) = $40,000 $5,500 +$22,500 =$28,000. If we can pass Average Benefits Test - is there anything else I am missing? I want to try to terminate the plan before 12/31 so that participants can get paid out before year end.
  2. In January 2016 the Employer contributed 5,000 as deferral for a HCE individual that was never withheld from his pay. We caught it at year end comparing the total deferrals for the year to w-2's. To correct, we need to take the $5,000 from his account. I assume we need to take earnings also . If we use the 5,000 as a part of the discretionary matching contribution at year end, what do we do with the earnings? (we are estimating about $700) I cannot see how their accounting department never caught this.
  3. Company was sold. All employees except the owner are terminated at the end of February. The owner is keeping corporation active until the end of the year. New company did not take over plan, nor corporation, but in hiring some of the employees to work for them. Plan is cross tested. 3% SH 2% Gateway. Owner wants to max out for 2017. He has some income from shutting down the business and will continue to pay himself. Any problem with giving the employees their 5% on their 2 month salary and the owner getting maxed out at year end. He wants to deposit the 5% so that participants can get paid out. So if he continues until the end of the year, we avoid the Short Plan Year reduction in the limits? Am I missing something here?
  4. Safe Harbor Definition of Hardship Participant provide a notice of failure to provide rent. He also provided a letter from his bank providing the routing number. This letter states its a joint account. List names of both the tenant and the supposed landlord with the same address as on the eviction notice. Employer thinks he wants money to purchase something and that the notice of eviction is "fake". I have a problem with the joint bank account. It appears that the Tenant and the Landlord are both using the same address and live together. Upon further investigation - Landlord is also his Mother and beneficiary. Do you think that this qualifies?
  5. I have looked at it two ways. 1. Taking the Balance at the end minus the Balance at the first date. (then add earnings to payout. 2. Otherwise taking the balance at the beginning date and giving that earnings and then a "new" account that includes contributions between the dates and giving that earnings. Taking 50% of the account that has the contributions to the Alternate payee. Difference between the two is the earnings on the Balance as of 12/1/05. Does the alternate payee have a right to 50% of those earnings?
  6. It says the alternate payee gets 50% of the Account Balance Accrued between 12/1/05 and 9/1/16. The participant has an account balance of 10,000 as of 12/1/2005. Is it a simple calculation of taking the AB as of 9/1/16 minus the AB as of 12/1/05 and taking 50% of that? Or do we separate the Participants AB as of 12/1/05 and the Participant keeps the earnings on that. Or do we reject it and have it clarified?
  7. What code is used for a Post Tax Distribution basis that is being rolled to a Roth IRA? Thanks
  8. Thanks
  9. We administered a plan in 2011. Went to another vendor. We just got the plan back with a new investment advisor. The plan investments will be different as well as the models. How is the best way to set up in Relius? As a new Plan under the ER or should I roll forward the old plan six years? About 25 participants. Since investments have changed, would it be cleaner to set up as new plan? Daily Valued plan.
  10. HCE participant with a Self Directed 401k account took money out of the plan and then put it back in two months later. Not 59 1/2. Is this correctable through VFCP? He needs to put back the money plus interest. Anything I am missing? Pat
  11. I think your 6a count should be 124, if your line 5 is 124. If the employees entered the plan on 1/1, they are participants as of 1/1 and in the beginning of the plan year count.
  12. Thanks - they were on as an A in prior years before 2015 and we are just cleaning it up as all were paid during 2015 and 2016. All on the form will be Ds in 2015 and 2016, so I think I will just combine them and put them all on the 2015 and be done with it. Thanks - I didn't explain clearly, I see where I put a D where it should have been an A! P
  13. Tom- they were reported as D in the past. Plan terminated and participants paid out in 2015 and 2016. Can I put the D people for 2016 (short year) on the 2015 form, or do I have to do a form for the short year too? Will the IRS Fire system accept the short year form for 2016 on a 2015 form? Thx P
  14. I need to remove people with a code D? Some were paid in 2016, would like to put them on the 2015 form as being paid with a D so I don't have to file the 2016 form.
  15. I have a plan that terminated and I need to file an 8955-SSA for 2015 and then the short plan year 2016. Can I just put all the D's on the 8955-SSA for 2015 and call it good? or do I have to file two forms. Will the IRS system except an 8955-SSA for 2016 on a 2015 form? Thanks P