I believe I know the answer, but I wanted to confirm:

For a Profit Sharing Plan for the RMD to be taken in 2022, we obviously use the 12/31/21 Balance.  If a receivable is made in '22 for the 2021 Plan Year is that included in the balance used for the calculation?

Thanks in advance!

Hi,

At 250 a day for late 5500, isn't that quite steep...is there a grace period? Yes, there Is the DFVCP, however tax returns allow to file a few days late with barely any penalty (relatively). Thank you for any insights etc.

Hello:

Does anyone have any feedback or concerns implementing the 2022 W4P in their DB systems?  I am being told that the IRS didn't rule on implementing, but from what I can find, the W4P is required to be in place for 2023, where as the W4 was required in 2022.

I found IRS publication 15-T that specifically addresses this so I am unsure why some don't think this is law.

Any thoughts or insight is appreciated.

Patty

profit sharing plan states that in the absence of a designated beneficiary, the spouse becomes the beneficiary and if no surviving spouse, then the children. Plan also states that an ex-spouse can take the spouse's place on death if so provided under a domestic relations order per.  In this case, the marital settlement agreement stated that the participant was to name the former spouse as beneficiary under the plan. The participant has died; but there is no executed beneficiary designation form effecting what the marital settlement agreement called for. There is no spouse at death, only the ex-spouse and children.  Does it matter that the deceased did not physically name the ex-spouse as beneficiary while alive or was the intent of the marital settlement agreement sufficient?  Any insights are appreciated.

I am seeking guidance on whether the Plan Sponsor can submit an application to VFCP for funds that were moved back and forth from the plan to the corporation over the course of 3 years.  Turns out one of the owner/trustee was mishandling funds unbeknownst to the other owner/trustees.  This is a family business and they trusted him.  All funds have been restored and lost interest deposited and excise taxes paid with 5330 forms.  The company recently sold and the buyers attorney is requiring they apply for relief through VFCP.  She claims it qualifies for this program under one of the 19 categories that states "the use of plan assets for corporate purposes is a prohibited loan to a party in interest."  I don't see where she sees this category on the application form.  I explained the situation to a DOL agent in Washington D.C. and Los Angeles and both of them told me the application would be rejected if there is any indication that there was fraudulent activity.  Is the attorney confused or am I?  I would appreciate any comments and/or guidance in this matter. 

Greetings,

A large plan filer filed their 5500 on Monday (10/17) and the CPA audit was attached. The audit attachment is still not showing up on the EFAST website 2 days later. Any idea how long it normally takes EFAST to include the audit as part of the filing you can see on the EFAST website?

The filing was done through the ftWilliam software.

Thanks in advance.
 

I just wanted to make sure that I was reading the regulations correctly.

If someone participates in both a 401(k) and a 457 plan, they can max out their contributions in each ($20,500 + $6,500 catchup) if their compensation allows it, correct?

I know with a 401(k) and a 403(b) the $20,500 is total between all plans, but I believe I read that 457 is completely separate so you can max out in both simultaneously (for a total of $54k).  Just wanted to make sure I was correct

Plan documents appear to say that a default IRA rollover cannot be done for those who severed employment, attained the later of 62/NRA and have balance <$5,000.   So if they don't respond to the distribution process, they get a cash-out less withholding and are not to be rolled to a default IRA.   This seems to be something I had not noticed. I doubt we've had a case since retirees are diligent about getting their funds rolled out

Am I right about this? 

Mailed in 59 Form 5558s to the IRS for the 2021 plan year on July 22, 2022, certified mail return receipt.   Now my clients are getting Notices CP216H indicating that they have denied the request for an extension of time because the request was not filed on or before the due date of the return.   I have a copy of my Certified Mail receipt showing the package being mailed out on July 22, 2022.  I cannot get through to the IRS on the phone "due to extreme call volumes" and I should try again tomorrow.  Anyone else getting these denial letters?  Should I resend the entire package again with all 59 forms ?

Is there a specific deadline for requesting a determination letter for the initial qualification of a new individually designed plan?

The instructions to Form 5300 do not appear to contain a deadline, nor does Rev. Proc. 2022-4. By contrast, there are specific deadlines for determination applications for merged plans.

Hi all- looking for some guidance. I have a FICA Alt plan established under a 457plan. The employer made 3 contributions (contributions were done in 2022 and just recently) for an employee who was no longer eligible to participate in the plan. Can the employer request the funds back and can we just send the funds back to them. I wasn't sure if that was allowed for FICA Alt plans. Any guidance would be appreciated. 

Hypothetical:  Employer A's cafeteria plan provides for immediate entry (i.e., no waiting period) into plan.  Employer A is acquiring a new company, Seller, whose cafeteria plan provides for a 60-day waiting period.  The vast majority of highly compensated employees are employed by Employer A.  For a number of reasons, Employer A wants to keep this eligibility structure for a while, say, six months.

Assume that Employer A is taking the conservative approach that this violates the eligibility portion of the cafeteria plan nondiscrimination tests.  (I recognize that there are those in this forum that take the very reasonable position that this structure would not violate these tests because it is the underlying benefit that has a waiting period, not the cafeteria plan.)

My questions are two-fold:

1-What highly compensated employees would be affected (i.e., incur extra taxes) by this nondiscrimination failure?  Just ones who are hired by Employer A during the six month period and who can enroll in plan without the waiting period?  All highly compensated employees who elected to pay for qualified benefits on a pre-tax basis? All highly compensated employees whether or not they elected to do so?  What if no employee is hired at Seller during that period?

2-For those who are affected, for what amount will they be subject to extra taxes?  Is it based on their full election for the year or for only the two-month waiting period that they are not subject to?

Thanks!

If my TPA business is in North Carolina, or if I have employees working from home there, can I use the Ida extension for my clients who are nationwide?

2020 filed Form 5500-SF with Schedule SB as the owner had an employee; employee terminated in 2021, not vested.

Participant count at 12/31/2021 therefore is 1, the owner.

Do we file 5500-SF or 5500-EZ as a 1 participant plan??

Hey folks!

I'm attending ASPPA's annual conference for the first time in 15 years. I've been advised that dress code is "Business casual". are Jeans and a nice shirt ok? Looking for some general guidelines so I don't stick out too much. I usually work from home and doubt leggings and a funny T shirt are welcome

Looking forward to potentially meeting some of you folks as well!

Thanks,

Vicki

With Compliance testing what if someone changes salary mid year? Which Salary is used for compliance testing and for determining NHCE and HCE thresholds? Is the salary used the one at the end of the year to determine they pass the ADP, ACP and top heavy requirements? 

Also in this same question does a plan have to pass compliance testing at each point during the year, or only at year end?

Employer (S-Corp) extended its 2021 Tax Return to 9/15/2022, however filed it in April.

In March, 2022 the Employer deposited its Safe Harbor Matching (ADP) contribution for the 2021 Plan Year. This contribution was deducted on its 2021 tax returns.

On September 15, 2022 the Employer deposited its Safe Harbor Matching contribution for the 2021 Plan Year and since it had already deposited the requisite ADP Safe Harbor Match would like to deem it the ACP Safe Harbor Match (as permitted by the Plan).  Q: Can this contribution be deducted on the business' 2022 tax returns or must the 2021 returns be amended to capture the deduction? The amount is well below 404 deduction limits and it is anticipated it will be well below the 2022 404 deduction limit if added to the 2022 plan year contributions.

Plan has 1 year of service requirement, and shifts eligibility computation period to calendar year after initial computation period.

Employee hired on March 1, 2022 and then terminates on May 1, 2022.  During that time period, worked 250 hours.

Employee is rehired on June 1, 2023 (not 2022, as was mistakenly stated in my original post).  

Does the eligibility computation period still shift to calendar year, even though rehire happens outside the initial 12 month period?  

I don't find this clearly addressed in the regs.  It seems the better approach is to shift to calendar year, but is not clear.

We have a consultant who came to us who wanted to start a 401(k).  Technically he doesn't have a company, it's just him getting 1099 income for consulting.  Can someone under that circumstance start a solo 401(k) Plan and file it under their SSN?  For some reason they don't want to do a SEP (haven't gotten a straight answer as to why).

Thanks!