We have had several clients recently that have received letters from the IRS indicating that the 2007 Form 5500 was not filed. We have copies in our office of the signatures and many are trustworthy clients that would not have missed sending the form in. In addition, several of these clients sent their forms in via certified mail and have the proof they need.

I am wondering if others are experiencing the same thing with their clients. Is it possible that these letters are being generated by mistake. I have read several posts debating the merits of sending a letter, calling the IRS, or just having the clients "take it in the seat" and file through DFVC and pay the amount owed. Are you seeing the same thing and has anyone had consistent luck with any particular method of dealing with this?

Questions "m" and "n" of the Part IV on Schedule H pertain "individual account plans" and "black out" periods

I have submitted 5500 drafts for two plans that are audited by different accounting firms. One auditor says leave "m" and "n" blank since they clearly are not relevant. The other says the instructions for Schedule H, Part IV say to leave no question blank unless instructed so they advise to answer "no" to "m" and "yes" to "n."

Like Rhett Butler, I don't give a . . . and want only (a) for all the auditors in the world to be happy and (b) the 5500 filing not to be kicked out.

How are other practitioners completing "m" and "n?" Can anyone supply specific guidance?

On November 17, 2009 there was a discussion in this forum on Section 432(e)(3)(B) of ERISA which provides that the rates provided by the trustees and relied upon by the bargaining parties are to remain in effect for the duration of the collective bargaining agreement, even though the trustees are required to update their contribution schedules yearly. It seems clear to me that if the rates, say under the default schedule, go up after the parties adopt it and while the collective bargaining agreement remains in effect, any such increases in the default schedule rates cannot be imposed on the employer until the agreement expires. However, I have a pension fund that agrees with this conclusion but says it will nontheless impose a 5-10% surcharge on any employers who are not making any additional increased percentage contributions under future revised schedules. This seems like an end run around the inability to impose higher rates on the employer. Any thoughts?

Anybody know how I can remove the date in the lower right and the "Page 1 of 1" on the RGF SAR template?

I can't seem to "see" those on the screen to remove them when I try to edit the template or create a new template.

Thanks in advance!!

I am really feeling a little sick. Did the plan characteristic codes change from 2008 to 2009. I use Relius Govt forms and this is one of items that carries forward from one year to another. But when I looked at the plan codes in the instructions for the Form 5500SF, they do not seem to be the same as they were last year. I know I am "overwhelmed" but I don't remember seeing this anywhere. And, if they did change looks like Relius would have carried them forward correctly. Example 3E indicated a prototype plan in 2008, but in 2009 the insturctions say it is a "one person plan that satisfies coverage".

I assume the plans my clients have filed and have been received by the DOL that have the incorrect codes will have to be amended at some point and time.

Plan failed the ADP test, we made distributions to the plans HCE's, then a few months later the ER informed us that they sent us incorrect comp (due to a payroll system switch), we reran the tests with the corrected comp and now the amount that was refunded was too much.

How is something like this delt with since the HCE's already took a distribution? Can they put the difference back into plan?

Thanks!

Hi all,

We're planning to Fed Ex a large batch of 5558's to the govt. Should we use the regular Ogden mailing address, or is there a separate one for a private delivery service? What phone number should we fill in on the Fed Ex airbill?

TIA, Scott

Can a sole proprietor obtain an extension on his tax return (normally due 4/15) that both extends when the form is due and when he has to fund a prior years employer contribution? If so, how late can that be extended?

Thanks

Are 403(b) Church Plans excused from filing a Form 5500 if they offer an Employer Match

If employer wants their payroll or HR person to be the one to file the 5500 with the DOL, can they? Do they use their name, or the name of the company? The employer does not want a third party to file so that they don't have to submitt the signed pages of the 5500SF.

Also, aren't the 5500 forms already available for public viewing on the internet? I can't find where they would be...just wondering what the big deal is about having TPA's signing if the form is already out there... in the past were the signatures not shown? Can someone tell me where one goes to view a past 5500 form that was filed?

Hi All,

I have my own individual 401(k) with TD Ameritrade under my S-corp, and with myself as the only participant. In the past, 5500-EZ did not require characteristics codes, but the form has changed for 2009. I am a bit confused about what codes I should put on the from, and TD Ameritrade is not being very helpful. I have a plain-vanilla individual 401(k), nothing fancy, with elective deferrals and company profit sharing.

So far I know I need 2E: Profit Sharing, 2J: 401(k) feature, and 3D: pre-approved pension plan (as I have a opinion letter number from TD).

Do I also need 2R: participant directed brokerage accounts, as I manage my own investments? What about 2T - total or partial participant directed brokerage? I think I need 2R but not 2T, but this is confusing. Any other codes I might be missing?

Any help is greatly appreciated.

Regards,

lzk

Please advise if you are familiar with any state or local law that imposes pension funding requirements on a state or city and the basis for the requirement (e.g. statute, ordinance, or case law).

In the case of a third party signing/submitting in behalf of Plan Sponsor, DOL EFAST2 Q&A indicates to attach first two pages of the 5500 with plan sponsor/plan administrator signatures. ASPPA No 22-10 on its sample filing authorization form says Page 1.

Has the DOL changed it's position on what needs to be attached?

A client has come to us with a 457 plan. The client is a township government office. They tell us that their 457 document was written to give an Employer Match to any employee who makes employee contributions to a 529 plan. The rate of match is 50% of the first 8% of employee contribution. The match is calculated based upon the total employee contributions to both the 457 plan and the 529 plan. Is this allowed? Has anyone ever come across this issue before?

Thanks for your input.

I am pretty sure this transaction is wrong on many levels, but not sure even where to begin.

Plan susupended their match. It had about $200,000 in the forfeiture account. The plan used the forfeitures to fund pretax contributions. So, they plan "withheld" $500,000 in pretax contributions and only wired $300,000 in funds and used the forfeitures for the balance.

Pretty sure this is some sort of prohibited transaction...Please let me know your thoughts. Would this be considered "criminal"? As recordkeeper, what is our obligation to report this and to whom do we report?

Thanks!

What do you do if you have unallocated funds to deposit due to nonelective contributions and you do not have an investment election form on file because the pariticpant chose not to defer? Now the participant cannot be located and the plan is going to terminate. Can a default fund be used even though it is an individually directed and controlled contract?

Normally you need participant consent.

Any one had a similar circumstance?

I have very few audit plans, so this is probably an easy answer for those of you who do . . .

Is there any reason that the professional fee for a plan audit--if that fee is reasonable--cannot be deducted from plan assets (if the document permits)?

But I'm suffering from brain cramp. I'm certain I saw something about the IRS potentially having an issue with splitting the pre and post tax money, and doing a direct rollover of only the pre-tax - seems like they said you could only do this under the 60 day rule, and not as a direct rollover, or something like that? My search isn't turning it up. Anybody recall this issue, or something similar?

Changed My Question:

Employer maintains 2 plans: Plan 1: calendar year 401(k) and Plan 2: off-calendar dc plan with only employer contributions.

Plan 1 fails 2009 ADP test. $1,000 of Participant A's excess deferrals are treated as catch-up contributions.

No 415 problems on aggregate basis or otherwise.

Plan 2 tests 2009-2010 fiscal year 415 (on aggregate basis) counting 401(k) salary deferrals made during fiscal period plus employer contributions for same period. Participant A's annual additions for fiscal period exceeds 49,000 by $5,500 (because salary deferrals are not limited on fiscal year basis). Does Participant A get benefit of full catch-up, or does $1,000 recharacterization under and for purposes of Plan 1's ADP issue reduce the available amount to the fiscal year plan?

I am unfortunately having to short sale our home. Under the Debt Forgiveness Act, the total difference of the principle vs sale amounts cannot be forgiven because a refi was done and the mortgage balance does not represent the sole cost of the home or improvements. The amount in question is approximately $90K. Filing for Insolvency to defer the difference not covered under the Act is an option. Without knowing how 457bs are considered in these cases, we would otherwise clearly meet the criteria for Insolvency, however I cannot find IRS ruling if 457b funds are considered assets in these cases. IRS's own Insolvency work sheet only asks for "interest amounts". I know these funds are normally protected. I have access to these funds w/o penalty but would still have the tax liability. Is there any resource or first hand experience with this matter. I am trying to avoid BK if possible. Any help would be greatly appreciated. Thank You,