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Plan name change


Santo Gold

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Now I'm ready to throw my hands in the air.

I have a dentist client whose practice is in two locations, both employers adopt the one plan in the name of PLLC #1 and is PLLC #! 401K plan with PLLC #2 a second employer under PLLC #1 plan.

In 2015 he merges the two practices into PLLC #2 and PLC #1 collapsed.

Past experience with IRS (no experience yet with DOL), Form 8822-B completed, Form 5500 filed under remaining PLLC #2, line 4 asks for old employer and plan information, which we give.

Five months after Form 5500 filed, an IRS Penalty letter is generated because they have not received Form 5500 for the original plan.

Of course, this takes five months to be straightened out.

Why does Form 5500 ask for the prior employer and plan number if that line is not being read??

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  • 1 month later...

I have a submission to EFAST where only the plan name changed. When I got the same error as Santo (Z-003) I called EFAST and was also referred to the instructions where he said it basically says you can't change the Plan name. So I said to the guy, "You're telling me that you can NEVER change the name of a Plan?!"

He asked me to wait, put me on hold and said he would call the DOL and connect me to someone. After a short (5 minute or so) wait he came back on the line and said he couldn't connect with anyone but had left a message on the voice mail with my information and that someone form the DOL would contact me.

I'll let you know if I get a call back......:)

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I have a submission to EFAST where only the plan name changed. When I got the same error as Santo (Z-003) I called EFAST and was also referred to the instructions where he said it basically says you can't change the Plan name. So I said to the guy, "You're telling me that you can NEVER change the name of a Plan?!"

He asked me to wait, put me on hold and said he would call the DOL and connect me to someone. After a short (5 minute or so) wait he came back on the line and said he couldn't connect with anyone but had left a message on the voice mail with my information and that someone form the DOL would contact me.

I'll let you know if I get a call back...... :)

I'm really looking forward to this!!

WCP

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

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  • 2 weeks later...

Thought I would post an update....

still haven't received a call back [as I think we all anticipated :)]

However I did file the form with the "new" plan name and have now looked at the filing online (without signing into EFAST with my login) and the filing is there and looks fine.

I realize that doesn't mean the employer might not yet get a letter but hopefully it's all set!

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1,715,233, 1,715,234, 1,715,235, 1,715,236,...

Thought I would post an update....

still haven't received a call back [as I think we all anticipated :)]

However I did file the form with the "new" plan name and have now looked at the filing online (without signing into EFAST with my login) and the filing is there and looks fine.

I realize that doesn't mean the employer might not yet get a letter but hopefully it's all set!

...2,476,514, 2,476,515, 2,476,516...

Always check with your actuary first!

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Our 2014 filing when EIN, plan name, and plan sponsor changed didn't generate any errors. The difference in this case would be that EIN was changed as well. I just had discussion with DOL where they told me that I would need to mark prior filing as a final and start new filing with new plan name. It just doesn't make sense. I will not be able to start new filing using the same EIN and Plan Number. In my case it will impact 2016 filing, therefore I have plenty of time (I hope) for DOL to reconsider and fix their bug, or provide more guidance.

This is what DOL told me as well, for the 2015 filing. I may try "kicking it upstairs" when I call back again.

If they don't fix this nonsense, we have several plans that will be in the same situation in a couple of years. Have you pointed out to the DOL that filing a final 5500 for the old plan name would include falsely indicating that a resolution to terminate the plan has been adopted, falsely indicating that the plan has no participants and no assets at year end and falsely indicating that all assets were transferred to another plan? The 5500 is signed under penalty of perjury. In most cases, I would comply with whatever nonsense the DOL or IRS representative wants just to get the matter closed. But, not with something like this.

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  • 4 months later...

We are going to have a similar situation soon. Employer was an S-corp - just recently changed to an LLC taxed as an S-corp. Same business, employees, etc., but a new employer name and EIN. Anyone heard anything more about this issue?

...17,515,345, 17,515,346, 17,515,347...

Everyone's been too busy with the election. Maybe someone will get to it tomorrow.

Always check with your actuary first!

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Is there an election of some sort? For what? :lol:

Which POTUS candidate will embarrass us the most the next 4 years.

I used to joke in the past about wanting a "none of the above" choice on a ballot. This year I am serious I want one of the ballot.

(I know one shouldn't get too political on this board as it is one of the few safe places so sorry if I offended anyone up front.)

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  • 2 years later...
  • I'm curious about this as well. We have 3 clients that recently received letters requesting their 2017 plan #002 filings. None of these plans have a #002 plan. However, all 3 were clients that had a plan name and EIN change in 2016 or 2017 that was reported on Line 4 of the 5500.
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