BG5150 Posted November 16, 2021 Share Posted November 16, 2021 Or, at least I think the site is wrong in this case. On the page Is my 401(k) Plan Top-Heavy? (https://www.irs.gov/retirement-plans/is-my-401k-top-heavy), the section titled "Making Minimum Contributions..." it says: "If the average contribution for all key employees is less than 3%, non-key employees also receive that lower percentage instead of 3%." I do not believe it's the average, but the HIGHEST Key EE contribution that is considered here. So, I have one Key EE with a contribution of 2.5% and another with 1.5%, the the TH minimum is 2.5%, not 2%. So who do I contact at the IRS to ask about it? (Or am I really wrong? I consulted Treas Reg 1.414-1 M-7 and the EOB Chap 3B Sev IV Part A.2 which seem to agree with my position) Kac1214 and Luke Bailey 1 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
shERPA Posted November 16, 2021 Share Posted November 16, 2021 I think you're right. But the cynic in me says to capture that screen for posterity and not point it out to them. Could come in handy if I ever have a client who was a bit short on their TH minimum. Bill Presson and Luke Bailey 2 I carry stuff uphill for others who get all the glory. Link to comment Share on other sites More sharing options...
Belgarath Posted November 16, 2021 Share Posted November 16, 2021 shERPA - the cynic in me says the IRS will say that such publications can't be relied on as official guidance, and they will stick it to you anyway! Ebplans and Luke Bailey 2 Link to comment Share on other sites More sharing options...
shERPA Posted November 16, 2021 Share Posted November 16, 2021 1 hour ago, Belgarath said: shERPA - the cynic in me says the IRS will say that such publications can't be relied on as official guidance, and they will stick it to you anyway! Yes, you are quite right! I carry stuff uphill for others who get all the glory. Link to comment Share on other sites More sharing options...
BG5150 Posted November 16, 2021 Author Share Posted November 16, 2021 So, how do I go about contacting the IRS to remedy this miscarriage of facts? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Popular Post shERPA Posted November 16, 2021 Popular Post Share Posted November 16, 2021 Do you enjoy...... Luke Bailey, Kac1214, Tami and 3 others 1 5 I carry stuff uphill for others who get all the glory. Link to comment Share on other sites More sharing options...
Belgarath Posted November 17, 2021 Share Posted November 17, 2021 That's beautiful!!! Link to comment Share on other sites More sharing options...
Peter Gulia Posted November 17, 2021 Share Posted November 17, 2021 Although it does nothing for situations of the kind BG5150 described, some new relief might help when one must interpret new law for which there is yet no official guidance. The Internal Revenue Service announced new policies about “[s]ignificant FAQs on newly enacted tax legislation[.]” Among them: Notwithstanding the non-precedential nature of FAQs, a taxpayer’s reasonable reliance on an FAQ (even one that is subsequently updated or modified) is relevant and will be considered in determining whether certain penalties apply. Taxpayers who show that they relied in good faith on an FAQ and that their reliance was reasonable based on all the facts and circumstances will have a valid reasonable cause defense and will not be subject to a negligence penalty or other accuracy-related penalty to the extent that reliance results in an underpayment of tax. See Treas. Reg. § 1.6664-4(b) for more information. In addition, FAQs that are published in a Fact Sheet that is linked to an IRS news release are considered authority for purposes of the exception to accuracy-related penalties that applies when there is substantial authority for the treatment of an item on a return. See Treas. Reg. § 1.6662-4(d) for more information. But that relief about a penalty applies only if the Treasury department and its Internal Revenue Service published no authority beyond the FAQs (at least none about the point for which the taxpayer says it relied on an FAQ). The new policy seems aimed as situations in which the only authority is Congress’s statute, and the only executive agency guidance is the FAQs. https://www.irs.gov/newsroom/irs-updates-process-for-frequently-asked-questions-on-new-tax-legislation-and-addresses-reliance-concerns https://www.irs.gov/newsroom/general-overview-of-taxpayer-reliance-on-guidance-published-in-the-internal-revenue-bulletin-and-faqs Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Barry Levy Posted November 17, 2021 Share Posted November 17, 2021 You are correct. If you are an ASPPA member you may want to contact the Government Affairs Committee. I am confident they would get your find to the right people. Bill Presson and Luke Bailey 2 Link to comment Share on other sites More sharing options...
imchipbrown Posted November 17, 2021 Share Posted November 17, 2021 I clicked your link and it seems to have been fixed. I think an IRA agent is assigned to read Benefitslink. TommyGunn13, Lou S. and Lois Baker 3 Link to comment Share on other sites More sharing options...
Peter Gulia Posted November 17, 2021 Share Posted November 17, 2021 The webpage now states: "If the highest contribution percentage for a key employee is less than 3%, non-key employees receive the highest percentage for a key employee instead of 3%." And the webpage now notes “Page Last Reviewed or Updated: 16-Nov-2021”. Luke Bailey and Bill Presson 2 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
shERPA Posted November 17, 2021 Share Posted November 17, 2021 So, back to BG's original question as to how to get it corrected, now we know - post it on BenefitsLink! Dave Baker and Bill Presson 2 I carry stuff uphill for others who get all the glory. Link to comment Share on other sites More sharing options...
BG5150 Posted November 18, 2021 Author Share Posted November 18, 2021 16 hours ago, shERPA said: So, back to BG's original question as to how to get it corrected, now we know - post it on BenefitsLink! How about that! Hey, IRS,I think my tax rate should be 0% shERPA, Mike Preston and Bill Presson 1 2 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Dave Baker Posted November 18, 2021 Share Posted November 18, 2021 Has anyone seen Dave (or Lois) Baker and the Commissioner of Internal Revenue in the same room at the same time? Link to comment Share on other sites More sharing options...
BG5150 Posted November 18, 2021 Author Share Posted November 18, 2021 Plus, I feel so important now! (Don't worry, the feeling will pass quickly) Bill Presson 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
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