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Distribution out, Rollover in

He should have a deferral election form completed

It's a Relius issue. From Relius: FIS has identified an issue impacting a selection of Form 5500 series EFAST submissions for form year 2020. Form 5500 series filings with internal attachments created using Relius Government Forms (RGF) software templates did not include those attachments in the electronic submission to EFAST. Pursuant to direction from the US Department of Labor (DOL), FIS will resubmit the impacted Form 5500 series forms, with attachments, to EFAST on behalf of all impacted plans. The DOL has indicated that they intend to take no further action against plans impacted by the incomplete electronic submissions. FIS has identified an issue impacting a selection of Form 5500 series EFAST submissions for form year 2020 that included internal attachments. Internal attachments are attachments to the Form 5500 created using templates in RGF ASP. The most commonly generated internal attachments are the reasonable cause explanation for late filing, the schedule of assets, the weighted average retirement age, and the CSEC participating employer list. It was discovered that internal attachments were not included in the electronic data transmission to EFAST for 2020 form year submissions. This issue was remediated in RGF ASP on August 17, 2020 for Form 5500 and Form 5500-SF filings, and on August 19, 2021 for Form 5500-EZ filings. Any form year 2020 filings with internal attachments, filed prior to remediation would have been impacted. As providers of EFAST-certified software, FIS has worked with EFAST and the DOL to address this issue. FIS has provided the DOL with a list of all impacted EFAST submissions and the DOL has directed FIS to automatically resubmit the impacted forms with the attachments. FIS will resubmit the impacted filings the week of August 23, 2021. No action is required from your firm or plan sponsors for the resubmission process. The DOL recognizes that the plan sponsors and administrators signed the Form 5500 filings with the attachments and it was the data transmission process that excluded these internal attachments. Accordingly, the DOL informed FIS that they will take no actions against impacted plans based on the omitted attachments. The DOL will notify the IRS, and while unlikely, it is possible your clients may receive a notice from the IRS or DOL regarding the missing attachments. FIS has posted here a "reasonable cause" letter that can be used in response to any such inquiries. IMPORTANT: The DOL indicated the initial submissions (with the omitted attachments) cannot be deleted from EFAST, and once the filings are resubmitted, both filings will be visible on the EFAST website. Please contact Customer Care for a listing of your customers impacted by this issue, if needed. FIS will resubmit impacted Form 5500 filings via EFAST during the week of August 23, 2021. All Form 5500 EFAST transmissions submitted after August 19, 2021 will include the associated attachments.

I found the CEO's memo to employees amusing given the lack of the use of a certain phrase. https://news.delta.com/ed-bastian-memo-covid-19-update

Prior to the end of the tax year...

From the fact sheet https://www.cdc.gov/mmwr/volumes/70/wr/mm7034e5.htm Assumed commencement date: On what date will the annuity payments begin? Plan administrators must calculate monthly payment illustrations as if the payments begin on the last day of the benefit statement period. Assumed age: How old is the participant on the annuity start date? Plan administrators must assume that a participant is age 67 on the assumed commencement, which is the Social Security full retirement age for most workers, or the participant’s actual age, if older than 67. Assumed Spousal and Survivor Benefits: What is the SLA benefit? Plan administrators must illustrate a Single Life Annuity, which will pay a fixed monthly amount for the life of the participant, with no survivor benefit after the participant’s death. What are the QJSA spousal assumptions? Plan administrators must assume that all participants have a spouse of equal age, regardless of a participant’s actual marital status or the actual age of any spouse. What is the QJSA survivor benefit? Plan administrators must use a Qualified Joint and 100% Survivor Annuity, which will pay a fixed monthly amount for the life of the participant, and the same fixed monthly amount to the surviving spouse after the participant’s death. Assumed interest rate: Plan administrators must use the 10-year constant maturity Treasury rate (10-year CMT) as of the first business day of the last month of the statement period to calculate the monthly payments. The 10-year CMT approximates the rate used by the insurance industry to price immediate annuities. Assumed mortality: How should life expectancy be determined? Plan administrators must use the gender neutral mortality table in section 417(e)(3)(B) of the Internal Revenue Code – the mortality table generally used to determine lump sum cash-outs from defined benefit plans. The use of gender neutral mortality tables is consistent with Arizona Governing Comm. for Tax Deferred Annuity and Deferred Compensation Plans v. Norris, 463 U.S. 1073 (1983).

What part of escalate is unclear? Call them back and if they insist on silliness your response is to request a conversation with their supervisor.

CARES wasn't extended, the last day for a CRD was December 30, 2020. The qualified disaster distributions in CAA21 did not include any area where a major disaster had been declared only by reason of Covid-19. You needed something like a hurricane, wildfire, tornado, etc. If you were trying to get a distribution just because of Covid, you were out of luck after December 30, 2020.

Pretty sure it’s the SIMPLE that is invalid here and the 401(k) plan is okay. Employees certainly would have a case for a claim, but contributions cannot be made to the SIMPLE if the employer is contributing to another plan. Could be fixed favorably with a VCP filing.

$1,500 for two or more plan years, no?

A penalty of up to $2,233 a day for each day a plan administrator fails or refuses to file a complete and accurate report. See ERISA section 502(c)(2), 29 CFR 2560.502c-2, and the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Inflation Adjustment Act). Pub. L. No. 114-74; 129 Stat. 599 and the DOL’s implementing regulation at 85 FR 2292 (Jan. 15, 2020). $750, if it is a small plan. The "hoops" are just submitting your info on the DOL's website and then paying the fee on pay.gov. For those of us subject to Circular 230, we would risk our own professional livelihoods by encouraging a sponsor to report false information to the government. Other professional organizations also require their members to adhere to certain codes of professional conduct, and individuals violating those codes could be sanctioned or expelled. Not that it would change my analysis, but our firm charges the same fee to prepare a timely 5500 that we do for a late one. The $750 goes to the government, not to us.