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Drop to 99 - can file as small plan, drop to 79 - must file as small plan. Agree with other comments above. Also, plan audit scheduling and timing can often be a challenge, we see 5500 filing audit not completed issues in this space all the time, and I think moving in and out of audit years (doing/not doing) increases the risk of late audit completion in the years required.

Since the extended due date has not passed, the taxpayer can file a superseded return which will replace the original return. An amended return is one that is filed after the extended due date. Sometimes the IRS will look at an amended return closely, however this would be an easy one to substantiate.

Tax return was done on extension. Client informed me the tax return was not filed. Ask two different people, get two different answers. Sorry to bother

I did just look to see what 8/30 would convert to as 6 months later and it came to 2/28. Starting with 10/31, though, it came up as 4/29. (This was straight plan entry-date calculations as opposed to benefit-eligibility calculation. Maybe Relius does those calculations identically, but I can't say for sure.) Interesting....

About a choice Bill Presson and Bri allude to: If a plan’s administrator skips an audit for a year and the next year calls for an audit, an independent qualified public accountant’s professional standards require some work about comparisons between the audited year’s and the preceding year’s financial statements. Skipping an audit (or a review, compilation, or agreed-procedures engagement) for a year sometimes results in not detecting an error that, with delay, becomes more burdensome to correct. Either point might affect a later year’s IQPA fee. With upcoming changes about some measures counting only participants with an account balance and some plans increasing an amount for an involuntary distribution, we might anticipate more questions about plans that fall below an audit threshold but bear a significant possibility of reentering an audit requirement. For some of those, a plan’s administrator might evaluate, for an “off” year, whether getting some service of a certified public accountant is helpful for the plan’s administration.

Internal Revenue Code of 1986 § 4972(c)(6)(B) relieves from counting as nondeductible contributions (for the extra § 4972(a) tax on them): “so much of the contributions to a simple retirement account (within the meaning of section 408(p)), a simple plan (within the meaning of section 401(k)(11)), or a simplified employee pension (within the meaning of section 408(k)) which are not deductible when contributed solely because such contributions are not made in connection with a trade or business of the employer.” http://uscode.house.gov/view.xhtml?req=(title:26%20section:4972%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section4972)&f=treesort&edition=prelim&num=0&jumpTo=true Congress enacted this, in Economic Growth and Tax Relief Reconciliation Act of 2001 § 637, to help make it feasible for an employer, even if the employer is not a trade or business, maintain some individual-account retirement plan for domestic workers. You might advise your client about which of the three kinds of recognized plans, and which benefit structures, fit the needs and interests of the employer of the domestic workers. For an explanation about how an employer of domestic workers might not be a part of the same § 414(b)-(c)-(m)-(n)-(o) employer as trades or businesses, even if commonly controlled by the same natural person, see Derrin Watson’s Who’s the employer? book.

Hopefully they aren't also staring at their 415 max lump sum on the other end of the calculations....

If the plan’s trustee made fiduciary findings that the appraiser was qualified and independent, perhaps the trustee’s record of those findings includes or refers to evidence that shows the desired fact statements? If the plan’s trustee or the employer paid the appraiser her fee, perhaps the tax-information reporting shows the Employer Identification Number? Beyond those fact-gathering pointers, one or more of the plan’s fiduciaries might want each’s lawyer’s advice about whether there might be a claim grounded on the appraiser’s negligence, what statute-of-limitations or repose period governs such a claim, whether law regarding a decedent’s estate accelerates a time bar on claims, and whether a prudent fiduciary should or should not pursue a claim.