Today I sent the IRS $64.25.

I received this evening an email with subject "PTIN Welcome Letter"

The message read: "Attached please find an official communication from the Internal Revenue Service about your Preparer Tax Identification Number (PTIN) application" (Note, no period at the end of the sentence)

The attachment was an .rtf word file with a bunch of numbers as a title.

This is either a phishing scam or the IRS needs to use some alternative communication methods. If this is a phishing scam, then the IRS website may be compromised.

I did not open the rtf file.

Here's an enjoyable comment I found on Tax Almanac: "Funny but when I sent it to the "phishing Desk" they sent back the standard warnings that 'we never email you.' I am not sure which one of us, the IRS or self, is dumber for I read that they would send this but forgot. "

What is the procedure in VCP filing? For example, a plan was abandoned in calendar year 2005. A new plan(403b) was set up and the TPA failed to terminate the old plan. Distributions from the old plan occurred as well as rollovers into the new plan.

A resolution to terminate was not prepared. No 5500's were prepared for the old plan as well as amendments or restating the plan to comply with EGTRRA. When submitting the filing, should the sponsor go ahead and amend, restate and then submit those to the IRS or just outline it's intentions in the filing and wait for approval from IRS. The sponsor has already filed prior 5500's under DFVC. They are aware that their new plan has "tainted" rollover funds. This is a small plan. About 10 participants.

...yes?

Sponsor has top-heavy DB + DC combo

DC is made up of deferral + safe-harbor match + discretionary profit sharing

Safe-harbor match = 3% + 50% of next 2% (max of 4%)

Since the combo is TH, all employees must get 5% DC contribution

Does this mean that the discretionary profit sharing contribution must make up the difference so that the match + PSP = 5%

For example,

Participant #1 does not have deferral, and therefore no match. this mean the PSP is 5%?

Participant #2 has 6% deferral with 4% match. therefor his PSP is PSP 1%?

(In this situation, is it better to remove the match and move to a non-elective 5% PSP contribution for all participants?)

A new dental practice, being operated as a partnership, is owned 50:50 by two (2) unrelated incorporated dental practices - i.e., the corporations - not individuals - are the 2 partners of the new practice.

Any "controlled group" or other retirement plan "issues" to consider?

Thanks for any and all feedback!

Have any of you NFL Fans reviewed the NFL Channel's 100 Greatest Players of All Time.

The top five were:

1. Jerry Rice

2. Jim Brown

3. Lawrence Taylor

4. Joe Montana

5. Walter Payton

Johnny Unitas was number 6.

What I found to be interesting was not so much the list results, but the process they used in determining the list.

Two part question:

1) There are two companies who are a control group and it would be more beneficial to test separately. For coverage purposes how should a Non-Key HCE be treated who has compensation from both companies and participated in both plans?

Company A has a total of 9 HCEs including him.

Company B has a total of 3 HCEs including him.

For Co. A’s coverage test would it be 9 HCE Benefiting and Co. B 3 HCEs Not Benefiting or only 2?

2) Second question, if Co. A fails the coverage test, can a corrective amendment be adopted to bring in enough NHCEs to pass Coverage so that the 2 plans can still be tested separately?

Hello everyone:

I have a tricky medical leave and hours of service question. Participant died a year ago from an unsuccessful surgery while he was on medical leave. The plan language does not allow an employee to vest if the employee goes on leave, accumulates 1000 hours while on leave, and dies before returning to work. Essentially, the employee must return to work for at least a day to receive vesting credit for his leave time.

The critical language in the Plan states that:

“The employment of an Employee whose approved Leave of Absence is terminated without his returning to regular employment with the Company shall be terminated effective at the commencement of such Leave of Absence.”

As a result, participant's last day of employment for plan purposes is considered to be when he went on leave, not when he died.

Is it consistent with the Code and regs to do that?

Looking for an IRS ruling that an interest rate is requried when making a loan from a 401(k) Plan. My Client wants to offer a "0%" interest rate loan to the employee's.....

Does anyone have any inside information on how soon we might see guidance for In-Plan Roth conversions?

I'm looking for help in completing the PBGC Attachment B (Misssing Participant Individual Information)

We have about 12 participants with lump sums over 5,000 and not sure what category to mark on Part III. 3a.

I believe it is either 4(a) or 4(b).

Can someone please tell me - what is methodolgy 29 CFR 4050.5(a)(3) and methodoly 29 CFR 4050.5(a)(1).

Thank you,

JBY

Any way to log in anonymously to post a question? "Paranoia runs deep

On preparing a Form 1099-R, what is the code for a hardship distribution? 2? Thanks.

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This is the first time that we have a plan that is going to be adding matching to the

safe harbor non-elective.

If accrual requirements (hours or last day) are added to the matching contribution

does that negate the ADP safe harbor? Or does it just require that ACP testing must be done?

H & W obtain divorce decree in State X, awarding W part of H's benefits in Plan in State Y.

Rather than obtain QDRO from State X's divorce court, W has the State X divorce decree 'domesticated' in State Y, where the Plan and Plan Administrator are. Pursuant to the divorce decree, the State Y judge then enters the QDRO.

Is this acceptable? Should the Plan Administrator insist on a QDRO be issued by the State X divorce judge?

Would you use the code for pre-approved plan in either (or both) of the following cases:

1. Plan has adopted a Volume Submitter document, but has special language that makes it not

a word for word adoption. The special language is not extensive, if that makes a difference.

The plan will not be submitted for a determination letter.

2. Same as above, but the plan has been submitted and has received a determination letter.

IRA holder dies without naming a beneficiary under his IRA. The spouse is the sole beneficiary of the estate and the executor. There are a bunch of private letter rulings that say the spouse can roll the money into his/her own IRA, but has the IRS ever come out with a public ruling on this matter? This happens so often, that you'd think the IRS would have made some public comments about this issue.

If a plan is started in Nov. but made effective going back to 1/1 can an HCE still defer 5% of annual compensation? It seems that the NHCEs would only defer a very small percent of their annual comp and I just want to make sure I can use the annual comp for the owner.

Rev. Proc. 93-42 1.01 states "Specifically, the guidance applies for purpose of substantiating that a plan satisfies the following requirements:...and nondiscrimination with regard to an alternative definition of compensation under section 1.414(s)-1(d)(3) of the Income Tax Regulations....Unless specifically provided otherwise, this revenue procedure does not apply to the special nondiscriminatory amounts test under section 401(k)(3) or (m)(2)." Section 5 of this rev. proc provides the standards under which an employer can rely on a prior year's test but it seems to be excluding the ADP/ACP tests...

Ok...so does that mean

If a plan is required to perform a 414(s) compensation test because they use a non-safe harbor definition of compensation for their 401k and 401m test (test compensation), are they required to perform this test on an annual basis? (The compensation used for their 401k and 401m test is the same as their eligible plan compensation.) Or can they complete 414(s) testing every 3 years?

Are HSAs ever treated as property of the employer subject to claims of its creditors?