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The August CPI-U figure was released today at 238.316. coupled with the July rate of 238.654 (awaiting the Sept value which is released Oct 15, it appears there will be no change in any limits next year. if the Sept value was 239.7 the DB limit would increase to 215,000, but I'm pretty confident that is not about to happen. And it requires a lot bigger jump for the other limits to reach the next level. so, next year, same as this year.

Great it will just give my clients a reason to wait another month to send me their data.

Yes, I understand that in a perfect world, plans apply for an EIN specific to the trust, and if that had been done here, all would be good. However, not all plans have done that. I've seen many that use the ER's EIN. We're applying for an EIN specific to the trust now, so I'm hopeful that everything will be back on track soon.

I am not trying to be mean here but I get a chuckle out of this kind of question. You will have until 12/30/2016 to get the money out but might not be able to do so but the New Year's Eve weekend is when the big push will happen to get it done????

Interestingly enough (or perhaps I should say coincidently), a similar type question popped up at the IRS Q and A for ABA which was just posted under the Benefits Link Newsletter. 2. § 72(p) – Plan Loans A participant who took out a loan from a Section 401(k) plan fails to make timely payment of the loan (after the cure period). As a result, a deemed distribution occurs in April due to a loan default and later in the same calendar year in November a loan offset occurs because the defaulted participant later reached age 59½ in November which is a distribution event under the plan. At the time the participant defaulted on the loan, no exception to the Code Section 72(t) early distribution penalty was available to him. Does the plan administrator who issues Form 1099-R still indicate that the distribution was a deemed distribution (Code L in box 7 of Form 1099-R) and an early distribution (Code 1) even if there is a loan offset and the participant is over 59½ by the time the plan administrator issues the Form 1099-R? Proposed Response: Yes. Once the participant defaults on the loan, the loan is considered a deemed distribution regardless of whether a loan offset occurs later in the same calendar year. IRS Response: The Service representative agrees with the proposed response. The Service representative stated that it does not matter that the Form 1099-R has not yet been issued at the time the individual turns 59½ as the general rules would apply.

Yes the S-corp can make a contribution in excess of the profit. Yes, this creates a loss that passes thru to the shareholder(s). This loss can reduce the shareholders taxable income from other sources, but is limited to their basis in their stock of the corporation. If the loss is greater than the basis, the loss is deducted to the extent of the basis and the rest of loss is carried forward and can offset future taxable profit from the S corp.