Our firm uses ftwilliam and as far as I know it can’t do restructured testing (breaking the plan into component plans and testing separately). I was wondering how other people were doing this testing? Do other software programs do it? Do you have to do the testing outside of a software program like in excel? 

Hi, I had HSA with my previous employer and had contributed total ~$2500 in year 2022 until I changed job in 06/2022. Can I sign up FSA with my new employer and contribute to FSA limit (which is ~$2800 for year 2022)?  I wanna ensure it is allowed per IRS rules. Thanks!

Hi

Existing DC plan with NRA 65 only. Plan effective 1/1/2018.

Participant DOB 1/1/1946, DOH 1/1/2011, DOP 1/1/2018 thus NRA attained on 1/1/2018.

Looking to add a CB with NRA 65 and 5 YOP

Participant attainted age at val date (EOY) 75 with NRA 79. This is for the CB plan.

When testing for combo plans, the system used 75 as the testing age.

Is this correct under 401a4-12?

Thanks

SH plan.  ER wants to remove Roth feature effective 7/1/22.  Calendar year plan.

Can they do that?

Spouses in CA own separate sole prop businesses without employees and each has a solo 401(k) plan document. 

May I file a 5500-EZ for each separately or must I file a 5500- SF for each due to control group status after the $250k ceiling is reached.   I recall that used to be the case in 2008 but I believe that has since changed.

Looking for validation or direction on where to look further.

Thanks,

Bob

Prove me wrong....

A CPA I work with prepares his own 5500-EZ.  He is telling me that he must file the EZ electronically because he files more than 250 returns.  Per the EZ instructions he is reading this:

Mandatory electronic filing. A filer must file the Form 5500-EZ electronically using the EFAST2 Filing System instead of filing a paper Form 5500-EZ with the IRS if the filer is required to file at least 250 returns of any type with the IRS, including information returns (for example, Forms W-2 and Forms 1099), income tax returns, employment tax returns, and excise tax returns, during the calendar year that includes the first day of the applicable plan year.

While he may file in excess of 250 returns on behalf of his clients, it is my contention that what is written he is interpreting incorrectly.  Is what the IRS is saying  the following... that if the plan sponsor files in excess of 250 returns on behalf of them self then sure, they must file the EZ electronically.  But because he files on behalf of his clients that is not the case, don't need to file his EZ electronically.  

I am happy to file the EZ electronically to sooth his anxiety.  I just don't think it's necessary.  

Client has not yet restated DC plan for Cycle 3. Client is willing to sign interim amendment for a plan terminating in 2022. What are the issues if he terminates the plan prior to 7/31/2022, the Cycle 3 restatement deadline, without actually restating the plan for Cycle 3?

Company with multiple doctors, set up so each doctor has their own corporation with its own plan, and then there is one plan for employees. All plans are combined for testing (they also mirror each other).

One of the doctors is exiting the firm toward the end of the year and going independent. As such she will exceed 1000 hours while within the Controlled Group, but not after she departs.  I think hours are only relevant for Controlled Group testing since she will definitely work 1000+ hours for her own Corp.

Since employer contribution requires last day worked, I believe the contribution itself will not be included in the combined testing which will reflect a $0 for her.

Just curious if there are any differing thoughts?

We recently acquired a small TPA firm - less than 100 clients.  Former owner used Datair and we are a Relius group.  Relius cannot accommodate a conversion until 4th quarter.  Does anyone have experience converting from Datair on their own? They are going to send us instructions but former owner did not use Datair export so we are lacking in support issues.  Or, does anyone know of an independent contractor that can be contracted to work on these types of tasks.   Looking for suggestions based on past experience.  Thank you.

We currently administer a profit sharing plan sponsored by a dental professional association. No individual accounts. Two trustees, one retired and a replacement was named November 2021 and as of that date, ownership changed to new PA.

Under SECURE, we set up three separate plans, in name of the PA as it existed on 1/1/21 - one for each trustee, the third for the employees, effective 1/1/21 as the PA is on extension.  All contributions have been made to the existing plan in order to coincide with the existing PA.

The existing accounts will be transferred into their respective new plans with individual accounts in 2022.

One of the trustees is itchy that the new plans were set up under the old PA, we told him it had to be this way as the new PA did not exist on 1/1/21.

Since the money will not be transferred until 2022 and we are applying for a fidelity bond, and the bond will not cover prior acts, who is the sponsor and in whose name should the accounts be under?

As of now, the new plan is set up under the name of the old PA but probably will not be funded until individual accounts are set up with a carrier, prior to the due date of the PA tax return.

A plan client wants to make a retroactive amendment going back to the beginning of the 2021 plan year that is not corrective of a plan document failure, operational error or discrimination violation. This is a voluntary retroactive amendment to add additional accrued benefits to NHCE plan participants. Thus there are no anti-cutback or discrimination concerns. Shouldn't this retroactive amendment be permissible with no need to rely on SCP or 1.401(a)(4)-11(g) since this is not a correction of a plan or operational violation?

It is my understanding that a person who "opts out" (irrevocable election) is not an excludable employee for purposes of the coverage test, and is treated as not benefiting.

There is only one NHCE in the plan and this person signed an irrevocable election.  (Would have been eligible otherwise.)  Coverage fails.  Plan document allows us to bring in enough NHCEs to pass coverage.  Can we still give the opt out person an allocation to pass coverage?

Client maintains two companies, one is a professional service corporation (the "PC"); the other provides management, back office and other services to the PC (the "MC"). MC only provides services to the PC, no other clients. There is no cross ownership between the two companies, just a management services agreement. 

MC and PC want combine their employees for purposes of medical plan coverage. Is it a MEWA? Does the answer depend on whether they qualify as a management group under Code 414(m)? I found an old opinion letter that says that whether they are a management group or ASG is not determinative as to whether they can be treated as a single employer for purposes of determining if a MEWA exists, but that doesn't give me much comfort. 

Does anyone know of an Excel spreadsheet for ASG determination?

A Tax exempt employer allows all employees to accumulate unused vacation pay. Employees may cash out up to 25% of unused days in any calendar year. When the employer has extra staffing needs, it allows them to cash out the entire bank. When employees retire, they are cashed out.

Obvious 457(f) issue is the cash-out. At what point is this vested deferred compensation? The annual vacation schedules are negotiated with a union - 2 -4 weeks based on seniority. This is not just a special deal for executives, although they participate also. 

I think this is a fairly common design, and I've seen little in the way of IRS guidance. Thoughts? 

What is the best method to use to correct an EIN on a Form 5500-SF which was already filed? I don’t believe amending the 5500 to show the correct EIN in box 2b of Form 5500 would work since the correct EIN in box 2b would not be able to cross-reference the original Form 5500 which was filed using a different and incorrect EIN.

The instructions for completing Form 1095-C state that an employer can only use the W-2 Affordability Safe Harbor if it applies for the entire year. I assume this means calendar year (tax year) as that is the reporting period. 

Are the rules any different for a non-calendar year health plan? For example, if the plan year is July 1 - June 30 and premiums are "affordable" Jan - June but increase on July 1 and are not affordable Jul - Dec, can the employer use the W-2 Safe Harbor code for only Jan - Jun? My interpretation is no, it seems straight forward, but I am getting push back from an accounting firm and would like to make sure I have not missed something. 

Thanks in advance.

This has been discussed but most of the threads were older so I'd like to see what others think now.

Plan Sponsor name and EIN (as well as the Plan name) were changed effective 01/01/2021.  When preparing the extension for the 2021 plan year, the FT Wm software is using the old name and EIN, even after I updated them on the website.  Can I assume this is the correct way to file the extension and then when the client files the 5500-SF form and reports the Plan Sponsor name/EIN/Plan name change on that it will line up with the extension that was filed under the old name/EIN? 

It makes sense to me because the EBSA has no record of the new information until the 5500-SF is actually filed. 

Just paranoid I guess and want to be sure.....

Participant has been working part time for years, under 1000 hours.

In last plan year they worked zero hours, but they are not formally terminated.

My recordkeeping system has excluded them from the Top Heavy Test. But his balance is so large, that it makes a difference whether the plan is top heavy or not.

Include or exclude him?

We want to start sending our reports electronically and we are looking for a nice software package that will help us create slick reports using the output from ASC and adding in some verbiage.  Anyone using anything commercially available out there?