Hi

A record keeping company (RK) that is also the document sponsor insists on 30 day waiting period for the following amendment to be effective:

Plan has 401k+ 3% NE (non-elective) SH+PS provisions

Currently, 401k and NESH has 1 year wait and age 21 with first month following completion of eligibility as entry date. PS portion is 21/1 year with dual entry.

Plan sponsor wants to eliminate the 1 year rule (age 21 stays) for the 401k+SH portion and have immediate entry as of date of hire but does not want to change PS provisions.

Is this true that they have to wait 30 days for a more favorable eligibility?

RK insist on it so that they can change and provide an updated SH notice.

Thank you

Corporate taxpayer has been paying premiums for individual Long Term Care policies on its outside directors for over a decade, no 1099s issued.

Is there any basis for excluding these premiums from director income?

If not, is the proper reporting form a 1099-NEC?

Since “correction” of the problem will be many amended tax returns, anybody willing to venture an opinion on how many years delinquent 1099s should be filed?

Thanks

.

Client wants to amend to allow in-service distributions at age 45 + 10 years of participation from reg match and ps.  The document is PPD VS 401k document, and while I could do those two options separately, I would need to use the describe line to actually get the combo of those two.  Would you have any concerns about adding this type of provision?  Other than it being a bad idea in general to take your retirement funds at age 45.

Is it a PT if father provides investment services to son's plan and receives compensation?

I think so...just checking.

Sorry if this was asked before, cannot seem to find it

This is for 2021

W-2 box 1 100,000

W-2 box 5 90,000

W-2 box 14 - other - 2% SH 10,000 - this is the difference between box 1 and box 5

What is the 2021 salary for pension purposes?

Thank you

My husbands first marriage ended in divorce and finalized on 3/2/10.  His ex wife never filed a QDRO in Pennsylvania and now has contacted an attorney to start the process.

Because of her untimeliness, what are my husband's rights?

I have been searching and searching the regs and IFR for this to no avail. I understand what data pieces need to be used to generate the lifetime income illustration but what is the formula to generate the monthly payments. I imagine it must be so easy that no one else is asking because I do not see it. If I get a question from a client on how the monthly payment was calculated I need to be able to provide that. I've reviewed the standard annuity formulas but those do not seem to be what I am looking for because they require you to know what the monthly payment will be. 

Plan is terminating 12/31/XXX0. Files 5310, but much later (more than 180 days after termination date) files Form 500 with PBGC. IRS approves 5310 submission, with 12/31/XXX0 termination date in XXX2. PBGC comes back and says termination date must be 12/31/XXX1 because Form 500 was filed more than 180 days after termination date.

How do we reconcile this? There may be 4019a)(26) issues with the XXX1 year due to the additional of additional employees. What is the cure for filing Form 500 late? Do we need a XXX1 valuation?

Hi, 

Plan is terminating due to stock sale - the sale date is 05/13, the plan will terminate by 05/12.  The term date is 5/12 (thurs)  and pay date is 5/13 (Fri) terminating plan will  deduct/withhold the contributions on 5/10  (tues) I believe they can still post to the term plan since the deductions were withheld prior to the term date correct? or is it pay date driven?

Thanks

We have a new potential client that may pay most of it's employees through 1099.  I assume if the bulk (let's say 75% are paid that way), we're going to create discrimination issues?  They were pushing back against me saying someone else told them it wasn't an issue, so I just wanted to confirm

Top hat plan never filed statement with DOL so we are taking it through DFVCP.  Do we simply file the top hat statement and pay the $750, or must we also complete and file the several page application (which application does NOT indicate this as one of the items for which this is to be filed, see below): 

Transactions Corrected Check which transactions listed in the VFCP you have corrected:

Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans

Delinquent Participant Contributions to Insured Welfare Plans

Delinquent Participant Contributions to Welfare Plan Trusts

Loan at Fair Market Interest Rate to a Party in Interest

Loan at Below-Market Interest Rate to a Party in Interest

Loan at Below-Market Interest Rate to a Non-Party in Interest

Loan at Below-Market Interest Rate Due to Delay in Perfecting Plan’s Security Interest

Loans Failing to Comply with Plan Provisions for Amount, Duration or Level Amortization

Default Loans

Purchase of an Asset by a Plan from a Party in Interest

Sale of an Asset by a Plan to a Party in Interest

Sale and Leaseback of Real Property to Employer

Purchase of Asset by a Plan from a Non-Party in Interest at More Than Fair Market Value

Sale of an Asset by a Plan to a Non-Party in Interest at Less Than Fair Market Value

Holding of an Illiquid Asset Previously Purchased by a Plan

Payment of Benefits Without Properly Valuing Plan Assets on Which Payment is Based

Duplicative, Excessive, or Unnecessary Compensation Paid by a Plan

Expenses Improperly Paid by a Plan

Payment of Dual Compensation to a Plan Fiduciary

Correction Amount

Does anyone know which plan-documents supplier—Relius, ASC, ftwilliam, someone else—Ascensus/FuturePlan licenses from?

Welcome any thoughts or experience on this.  Still waiting to see exactly what the specific plan document provisions say here but situation involves a partner in a partnership who leaves the partnership mid-year.  Partner continues to be entitled to a portion of revenues collected during the second half of the year, is assisting generally with collecting receivables and other transition issues, reflected as a partner in the partnership for the year, etc. but is not performing new services / generating new fees for the second half of the year.  Can the partner be considered "employed" on the last day of the plan year for purposes of profit sharing?

I have a quick question and just want to make sure I'm not overlooking anything:

Company 1
Person 1 - 100% ownership
Person 2 - 0% ownership (though they work for the company)

Company 2
Person 1 - 75% ownership
Person 2 - 25% ownership

The two people are not related.  Since Person 1 owns less than 80% of company 2, there isn't a Controlled Group issue (even though Person 2 works for both, they only have ownership in one).

Thanks in advance!

Is anyone familiar with the mandated retirement plan being instituted in New York?  The question is if a company has an existing Profit Sharing Plan, but doesn't allow for 401(k) contributions, are they exempt from participating in the mandated plan?

Reviewing takeover plan docs from prior TPA.  Document is 3  % safe harbor with cross test language.  Definition of comp excludes bonuses.  Plan passes comp discrimination test but Safe harbor was calculated on comp less bonus.  I thought you had to use a 414s definition of comp for Safe Harbor.  Am I wrong?

I have released a client from my servicing contract and he is asking me to return my files.

I know this has come up before, my files consist of paperwork the client has submitted to me (W-2s, K-1, etc),  my calculations, my copies of the investment reports I access online.

Aside from the client having all this information already, is there any basis for me to send him my file or is this just "sour grapes"?

For some reason, powers that be made this plan effective 12/1/21.

What limits am I prorating when doing the profit sharing?

And am I correct in remembering that self-employment income is "earned" on 12/31?  So in this case, the owner will be using his full $290,000 comp?  (unless the comp limit is 1/12 of course...)