Hi,

I assisted with one of the plan termination and the sponsor as reached out asking for 1099s to the people that switched employers but stayed with us.  I'm not really what this means, why would we send a 1099S? I believe 1099s was more with self-employment however could anyone help me understand when a 1099s is sent? 

Hi

Looking at a takeover and a combo plan design.

Existing plan has deferrals, basic match, EACA and PS.

PS is comp-to-comp with last day rule but no hour requirement so not a good option for combo plans.

I was asked to look into a possible 2023 CB plan addition.

Is it possible to add a new PS only plan and not utilize the existing plan's PS provisions?

Also, as I never worked with EACA, does it affect any combo designs? Do not think but checking.

Thanks

We are using batch reports to run many of our compliance tests, combine into a single pdf, and store on our network. We have done so successfully for several years without any issues. Recently, the job started failing and we are receiving a "482 Printer Error." I was able to narrow down the issue to the default printer being assigned by the batch. When I change the default printer to Adobe PDF, the job runs successfully and will run successfully for all users the remainder of the day. The next day, the same issue presents itself. The parameter file for the batch has been saved to our STP folder. Other times, it does not allow me to change the default. I make the change in print setup, but when I go back in, the wrong default is once again set. Is there another way I should be defaulting the job's printer so it does not change? Thank you!

Small employer group health policies have, since ACA, been allowed to impose no more than a 90-day waiting period on new employees before they must be offered coverage.  42 U.S.C. 300gg-7.

Can a small employer offer coverage in that time frame to a new employee, but it would require the employee to pay all of the premium expense until say 1 or 2 years of employment have passed?

 A newly eligible participant is filling out her DOB.  She and her husband have been separated for 16 years.  They file their taxes separately.  She listed her son as the beneficiary of her 401k balance.  Is there any reason why she can't list the son as primary?  Does separated spouse need to sign off on that?   Any ideas or sites that I can go to to clarify this issue?  Thanks!

Assume an employer did not offer a group health plan, but was interested in purchasing access to a health clinic for its employees and their families. This clinic is not located on the employer's premises, it offers an array of primary care services, and will be shared with other employers.

There is an exception to the ACA requirements for "on-site medical clinics," but that term does not appear to have been defined by the regulators or courts. Because of the scope of benefits offered (more than minor injuries/illness or first aid), the location of the services (not on employers premises) and the fact they will available to family members, this will be treated as a group health plan. 29 CFR 2510.3-1(c). It also wouldn't meet the requirements to be avoid COBRA obligations. 26 CFR 54.4980B-2, Q&A 1(d). Many commentators seem to hang their hat on the ACA exception for "on-site medical clinics" to open the door to allow this kind of arrangement, but I'm not sure I see it.

Can an employer offer certain essential health benefits through a shared clinic without triggering the ACA rules on caps, preexisting conditions, etc.?

I apologize in advance for my ignorance, but I haven't had this question come up before. A company acquired an existing 401k plan (stock purchase). Can the new company get the tax credit (as if it were a new plan, new company)? There is a new EIN, new trustees, etc., but the same, existing plan.  

Also, this company plans to purchase other companies soon, but they plan to have them terminate their existing plans (if applicable), as part of the purchase agreement. They would then add them (as controlled groups) to the current plan. (Same 1 owner (and spouse) on all companies.) In those instances, can they get the tax deduction for each and every new company as they are established?

I am certain I will never be able to provide enough information for anyone to form an opinion. I am just reaching out to see if folks think that the client should absolutely obtain legal advice regarding ASG, or if I am totally over-thinking the ASG issue.

I received a call from a potential client (with no plan in place currently). He is a surgeon who works for a hospital as an employee and participates in the hospital's 403b plan. He gets both elective deferrals as well as employer contributions.

He is also an eminent researcher, who then forms companies to commercialize on his research. He has some equity ownership in these companies, as well, usually between 3%-15%. The companies have their own management and employees. He is not an employee of any of these companies. However, some of these companies pay him, via 1099, for “consulting” to that company. He would like to establish a retirement plan for the 1099 “self-employment” income he receives from these companies.

1) Is it possible that there might be an ASG between his “self-employed business" and any of the businesses in which he has equity ownership? I wonder if his self-employment business could possibly be an A-org, or B-org to any of the companies he has helped to set-up. There is certainly some common ownership, he is being paid for providing services, and these companies are in the medical field. Thoughts?

2) Assuming that a plan for his self-employment income could be established, do we need to aggregate any of his 403b benefits from the 403b plan with ANY plan he establishes for his self-employed income (since he is a 100% owner of his self-employed business). It is my understanding that 403b and DC retirement plans must be aggregated for 415 limits. Does this aggregation also apply for any reason (like deduction limits) between a 403b plan and a Cash Balance Plan, for example?

Thank you for your thoughts.

When calculating the Top Heavy account balance determination, and there is a profit sharing contribution that is partially deposited before the end of the plan year and partially deposited as a receivable, how do you handle that in your testing?

Here is a good one:

Safe Harbor NEC plan.  Plan does an additional match of 25% up to 8% of compensation.  So ACP testing is required.

Question:  Can you run an ADP test (assuming it passes) and the run the ACP test with borrowing from the ADP side?

For a calendar year NFP 403b plan, they want to make their deposit sometime in August (for Reasons).  But they intend on filing their 990 at the regular deadline (5/15/24, 4.5 months after the end of the year).  I know that in the for-profit world, this means that they can't take the deduction for it in the prior year, so they might run into a 404 issue in 2024.  Does that apply to a NFP?  Any part?

Thanks.

So, suppose a calendar year plan is terminating in March. The plan must, of course, amend for SECURE and SECURE 2.0 - (CARES amendment was done way back).

I believe that technically, since the amendment is ADOPTED in 2024, and there is a 210 day period following the end of the PLAN YEAR IN WHICH THE AMENDMENT IS ADOPTED (hence 210 days into 2025) that no SMM is required. Now, employees were previously notified if certain provisions applied - QBAD's, for instance, albeit not in a formal SMM.

If I'm correct, this makes the plan termination process easier, because the SMM's can be wildly variable with the voluminous possible changes, and are a royal PIA.

Thoughts?

Does the successor plan rule in Treas. Reg. § 1.403(b)-10(a)(1) apply to a church 403(b) Plan that contains elective deferrals? I do not see anything exempting a church plan from being subject to that rule. Thank you. 

I know adopting a SH plan for 2023 is out.  What about just a PS plan and then converting it to a SH plan for 2024?  That should be perfectly fine, right?  

Date of adoption would be say today, 2/2/24

Effective date I could say 1/1/2023?

I own a LLC (taxed as S Corp) that offers a SIMPLE IRA to employees and myself.

I also have additional sole proprietary self-employment income from other activities(no employees, just me).  Can I setup a SEP IRA to put some of that income into a retirement account?

Does anyone have a good website for the actual text of internal revenue code, specifically that incorporates the changes from SECURE 2.0?

The ones I usually use, such as the Cornell Legal Institute don't have those sections updated yet, and I don't know when they will be. So when I want to see how the updated language works with the prior language, I have to have both the text of SECURE 2.0 open as well as the code as it was pre-SECURE 2.0. Its getting a little old. 

When I want to really understand something, I do try to read the source material, not just other's articles and interpretations, so having an updated integrated source of the IRC would be so helpful. 

http://actuarialtools.com/cctable.html

I've been using this site to pull the covered comp tables for years but the 2024 tables are not yet available. Anyone know where to pull them from?

Under HIPAA, a business associate must notify a covered entity health plan no later than 60 days from the time it discovered a breach of unsecured protected health information.

If a business associate has, say, thousands of covered entity clients and discovers that only a few participants of only a few of the covered entity health plans are affected by a breach (and the business associate does not know which ones until later), when does that 60-day window start?

Does it start when it determines which specific covered entities are affected?

Or does it start when it discovered the breach (which would require that it notify all of its clients, most of which would ultimately be unaffected)?

I could not find any HHS guidance on point.  

Thanks.

I've got a PEO MEP.  One of the members terminated their service agreement with the PEO effective 1/31/24.  Is there some kind of timeframe or requirement that their assets have to leave the MEP?

In case it matters:
> There is a SHNEC deposited after we calculate it EOY.
> They have not yet made arrangements for their portion to be spun off (no TPA or asset custodian chosen, etc.).
> They have also not made arrangements for anyone to administer their spin off going forward, so I told them that they have to cease deferrals at least temporarily (because there is nowhere to submit them).  I'm not 100% sure that is correct; is there a better option?  I'm presuming this won't affect SH status since they will still all get 3% of full year comp when someone does the annual 2024 administration.

Obviously, the PEO sponsoring the MEP would like them gone as soon as the product platform can get them out.

Thanks.

Group:

IRS audited clients retirement plan an esop. 

In the USTC declaratory action retirement plan is disqualified. 

Typically on an appeal from USTC the bond amount determined from tax deficiencies. 

However since the Dec action doesn't have a tax deficiency how do you proceed with appeal? 

File a bond with $0?

What companies have you used for appeal bonds? 

Thank you