If a company is in the business of offering early childhood education (infant to pre-K), kindergarten, before and after school programs, and summer programs do you think that constitutes a service organization?

I've reviewed the Who's the Employer's ASG chapter and conducted supplementary research, but I can't find anything on-point. I know educational services do not count as consulting, so that avenue is closed.

I lean towards concluding that the school is a service organization because the material income producing part of their business is the teachers' services, rather than capital. But I could be persuaded the other way too.

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We use FT Williams.  We tried to help a client file a 5330 to pay the excise tax for an over contribution.   FT Williams tells us the filing rejected because the form was late and money was due.  They however don't give us any insight how to get the payment and filing done in the correct order. 

If anyone has done this successfully we could use some insights on how to do this. 

This was so much easier with the old paper forms. 

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I'd love the thinking of folks who are more well-versed in SIMPLEs. Didn't get any traction on the other board, so I thought I'd try the 401(k) board since it does involve one.

Company A maintains a SIMPLE IRA in 2024 & 2025; several employees of Company A create their own Company B in 2025. Company A maintained a SIMPLE IRA (I'm not sure if the SIMPLE IRA is still active); Company B established a 06/01/25 effective date SH 401(k) Plan (short initial Plan Year). Company A & B have different EINS with no ownership crossover.

I understand that when an employer establishes a mid-year 401(k) Plan that the deferral limit is adjusted based on the # of days/365 of each arrangement. Because these are two unrelated employers, my thinking is that this does not apply to this scenario, so all EEs can contribute the total $23.5k between the two arrangements if they would like (a maximum of $16.5k being attributable to the SIMPLE IRA).

• Do you agree that the deferral limit for the Company B 401(k) Plan does not need to be pro-rated based on the number of days it was in existence vs. the SIMPLE IRA?
• Since catch-up contributions are separate to each Plan, can a 50+ participant who contributed $10k to the SIMPLE IRA under Company A defer an additional $24.5k to the Company B 401(k) Plan? ($6.5k SIMPLE deferrals, $3.5k SIMPLE catch-up, $17k 401(k) deferrals, $7.5k 401(k) catch-up)
• If the Company B employees are still employees of Company A and participating in the Company A SIMPLE IRA, does that matter? Or is it just a consideration in that both the non-catch up deferrals to each arrangement count towards their overall 402(g) limit?
• As I write this out, I imagine that a relevant consideration is whether Company B and Company A constitute an ASG. If they do, would their contributions be subject to the adjusted deferral limits based on the days/365 of each arrangement?

For some time now (both before and after the shutdown), I have had technical difficulties getting an EIN issued online.  Roughly nine times out of ten I will get the message "Apply for an Employer Identification Number (EIN) online is currently unavailable
We apologize for any inconvenience this may cause. Please refresh your browser or try again later."  The most frustrating part is that you have to complete the entire application process before getting this message.

The few times a number was issued, it just seemed random.  I have tried deleting cookies, using different browsers, and applying at different times of the day.

Are any of you having similar difficulties?  Do you have other suggestions or insights that could help?

My thanks in advance for any ideas.

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Hi

A plan of mine was picked by PBGC for audit and all information was provided 6 months ago. I have not heard from them at all since then. sometimes no news is good news but here I am getting a bit worried that I have not heard anything.

Between all governmental firings as well as shutdown, does anyone have an experience similar to mine?

Thanks

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We work with a large financial institution that has sent us a sample correspondence that they plan to send to their 401(k) clients.  It states that if a plan does not permit Roth deferrals, participants whose FICA wages were $150k of less in the prior year can continue to make catch-up contributions on a pre-tax basis, but those whose wages exceed this limt are not permitted to make any catch-ups.  The research we have done on this topic seems to suggest that though it's possible to have a plan operate in this manner, it's not recommended, as such an arrangement can create discrimination issues.  If this is true, we are surprised that an investment firm, which has a popular recordkeeping platform, would push this method without at least caveating the downside.  Do we have a correct understanding of the new rules in this regard? 

I was looking at the rules for when you can switch from the full 5500 to a 5500-SF.  It seems like, under the new rules, if the number of account balances is under 100 as of the first day of the plan year, the client can file a 5500-SF for that plan year.  Any input would be greatly appreciated.

Hi, 

One of the plans is scheduled for termination due to the stock sale, but it has come to our attention that the acquiring company does not offer a 401(k) plan. Typically, under such circumstances, the plan should terminate prior to the sale date, with all contributions ceasing accordingly. However, in this case, while the stock sale date is set for September 30, 2025, employee contributions are expected to continue until December 29, 2025. Could you please confirm whether these post-sale contributions can be accepted? Additionally, if there are any specific compliance considerations or steps we need to take in this scenario. 

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My current provider for both val and 5500 programs had informed me of a 10% jump in monthly fees which I find a bit too high (I have been using them for 30+ years).

I think I need to look into a more modern and 21st century system.

I use it primarily for CB/DB and combo plans and need simple DC as well (I do not deal with RKs) as good testing system.

I would appreciate your experiences with other systems (except for Relius).

Thank you.