Leaderboard

I would go even further. If the DFVCP filing is fileable (sp?) before the non-5558 due date (could be the tax return due date if the plan year and fiscal year coincide) I would recommend not filing the 5500 on time and include it in the DFVCP filing. Who would want to trigger a notice from IRS (whether that trigger is a 5558 *or* a current year filing).

If the plan’s provision follows 26 C.F.R. § 1.401(k)-1(d)(3)(iii)(B)(4), that the participant does not own the real property should not, by itself, negate a deemed financial need if the residence is the participant’s principal residence and he or she needs the plan’s distribution to prevent an eviction of his opportunity to live in his principal residence. About whether the participant lacks other resources, consider whether the plan empowers its administrator to rely on the claimant’s written statements.

You like badly written regulations?

When we have such issues, we generally do a VCP to obtain relief to do a retroactive participation agreement and related changes to the plan (our documents makes it a multiple employer plan whenever a non-controlled group member participating employer signs on). We *never* retroactively amend to correct without the VCP filing....

This reconciling note in the auditor's report can be used for any difference. It is under used in my mind. While most of my 5500s and the auditor's reports agree there is no rule that says they have to agree. The auditor merely has to put a reconciling note in their report detailing what and why the difference. I see them 1 or 2 times a year.

Just remember the union exclusion rule does NOT say you can exclude a union member but you can exclude a union member if their benefits have been subject to good faith bargaining. People tend to short hand the rule by saying you can exclude union employee. And 99.99% of the time that works as the union will have done the good faith bargaining. However, has there been good faith bargaining regarding those ad hoc employees not being covered? I am not saying there is an issue as much as I am asking if this is an issue that needs to be looked into?

The easiest way to know if they did what you recommended is go to the EFAST 2 website run by the DOL and look up the Form 5500 for this plan. https://www.efast.dol.gov/welcome.html In the upper left hand corner is a search function. If you know the plan's EIN or name you should be able to find and see the Form 5500 as they are public filings.