Any tips on how to enter the definitions of statutory and plan compensation where the statutory definition is 415 compensation and the plan comp definition is gross comp on the W-2?

Background: 403(b)(9) Non-electing Multiple-Employer Church Plan

A church mistakenly sent employer contributions to the plan for two terminated employees. This church did not intend to provide post-employment contributions and is asking the funds be returned. Generally, when the plan receives an employer contribution that is in amount higher than intended, it applies it to another employees(s) of the employer for a future contribution, but these were the church's only two employees in the plan. The church intends to hire someone, but timing is uncertain.

Can the funds be returned to the employer, or must they stay in the plan for a future contribution since the church intends to stay in the plan.

Group:

I wasn't sure which area to post I'm hoping this is proper message board. 

Client's ESOP had a DOL investigation (Plantation, FL EBSA office) start early 2020. I represent client as their Tax/ERISA Attorney. Throughout 2020 I provide all requested documentation. Then from Sept '20 we don't hear anything. 

A few days ago I get an email from a new investigator saying he will be issuing new subpoenas. We've provided everything I can think of. 

Anyone else represent clients from this DOL EBSA dept? There happens to be a related US Tax Court matter in its beginning stages related to tax deficiencies and disqualification of clients ESOP.

Any other practitioners been successful in filing declaratory actions in Federal Court? instead of waiting years on end for the DOL to conclude its investigation? 

Thoughts and comments appreciated. 

Any Relius users have plans at T. Rowe price that can give guidance on how to import T. Rowe's trust report for annual compliance?  Being told by Relius that we need to have the file "trimmed" and then can be used in the "Hartford" interface which is the same used for American Funds. Are users "trimming" files and if so is there software available for that or how is that done?  Or is there another interface or solution to avoid that trimming process? 

Hi,

I'd like some advice on the following scenario.

The DR owns 2 companies – one company will have a Simple IRA (he will not contribute to the SIMPLE) and the other company (he is the only employee) will have a SEP and he will participate in the SEP.  He is also 50% owner in a 3^rd company which has a 401k – can he contribute to the 401k as well?  Can he max out on both the SEP and 401k?

Thank you!

Is it optional for a Multiemployer plan to change into a Multiple Employer Plan arrangement as long as all the parties agree to such a thing occurring? Or is a plan locked into a Multi for life?

Alternatively, if the CBA parties agree, could all the employers transfer assets to a MEP who is sponsored by a PEO and terminate the Multi?

Code Section 401(a)(28)(B) requires an ESOP allow qualified participants to make a diversification election within 90 days after the close of each plan year and distribute or invest the amount to be diversified within the following 90 days. In my experience, privately held plan sponsors who may not have a valuation or allocation completed within the first 90 days have met this requirement by issuing a preliminary diversification notice in the first 90 days and following up with a final notice when allocations are complete. 

The IRS sample pre-approved ESOP language issued in 2015 allows for the 90 day election period after the close of the plan year to be extended, eliminating the need for a preliminary notice followed by a final notice. 

Does this extend to individually drafted ESOPs? I am somewhat uncomfortable with the assumption that it does, as the statute is very clear and I would appreciate hearing others' thoughts. 

An owner of an LLC has his interest of the company sponsoring a plan held in trust, would the owner be able to use the income earned by the interest to participate in the plan? Is this even an issue?

For an Individual Retirement Account not held under an ERISA-governed plan:

Does any IRA custodian require a spouse’s consent as a condition to the custodian’s willingness to follow a designation that names a beneficiary other than the IRA holder’s spouse?

Does any IRA custodian have in its form a spot for recording a spouse’s consent to a beneficiary other than the IRA holder’s spouse?  (Even if no public law requires this.)

For either question, if you know any, please name names.

What I’m looking for is whether an IRA custodian does something, before there is a dispute or claim, to protect the community-property rights of an IRA holder’s spouse (or make it convenient for an IRA holder to show her spouse’s consent to a potential transfer).

I have a prospect who is interested in a triple stack match.  Owner, spouse, and adult child with two additional employees where neither wants to participate - which is insane in this scenario, but I digress.  Company is a S Corporation so the owner and family members keep their W-2 wages well below the 401(a)(17) limit - they are around $125k each.  I think I have this correct but I really hope someone is more comfortable with this than I am.  I believe they can each get a match equal to 16% of their $125k W-2:

Stack 1 - enhanced safe harbor match 100% up to 6%

Stack 2 - discretionary match 100% up to 4% (I know this can be structured differently but no need in this scenario)

Stack 3 - fixed match 100% up to 6%

Everything I've read on other posts and in literature only refers to the standard safe harbor match formula and assumes the owners have the maximum 401(a)(17) comp.  I hope those of you with more experience with the triple stack match can help me out here.  Does this stacked formula, giving participants a 16% match if they contribute 6% of pay, still safe harbor?

Plan terminated a bunch of years ago, and accounts were paid out in drips and drabs. 

The only accounts left are for the owners and several people who left the company long ago (like 2010, 2011-ish).

The employer doesn't have SSN for these people, so rollover places wont take the accounts.

Pooled PSP, not at a nat'l provider or anything like that.

What becomes of those accounts?

Does anyone know if a 401(k) participant that accumulated shares of company stock prior to the company going public can use NUA?

The company is now public. However the shares were accumulated while the company was private.

Participant has since retired and would now like to use NUA 

Thank you

Anyone else seeing the recent letter from the IRS that the 2019 extension request was approved?  Hearing from many of our clients and we actually received a letter today for our own plan!  anybody know what gives??

If a company misses a few matching contributions for one participant (who is NHCE), back in 2019 and it's now more than 12 months after the end of the plan year, what would be the correction method? The participant was able to contribute deferrals for those periods, but just wasn't matched.

Would you simply fund the matching contribution to the participant? If so, would you adjust for any potential gains during the period?

Thanks,

The SECURE Act changed RMDs for nonspouse beneficiaries to the 10 year rule, unless you're an eligible designated beneficiary (EDB). Other than a spouse, that's someone who is a minor child, disabled, chronically ill, or an individual not more than 10 years younger than the participant. We interpreted the last one to be someone younger, but not by more than 10 years. A client interprets that to also include any nonspouse beneficary who is older than the participant because they are 'not more than 10 years younger'. That would mean the 10 year rule only applies to a nonspouse more than 10 years younger than the participant (not including minor children). How have others interpreted this?

Final 5500 EZ form was filed some time ago.  I may be moving to a new place, which is different from the address used on the final 5500 EZ form submitted. Is it necessary to inform IRS of the address change?

My question has to do with how the partial termination rules apply following a plan merger.  Buyer is acquiring seller.  Some of seller's employees will be let go -- some in 2021 and likely more in 2022.  Seller's 401(k) will be maintained for the balance of 2021 and then merged into buyer's effective 1/1/2022.  So some of the terminations will happen while seller's plan is free-standing and others will happen after the plans are merged.  Question is, assuming there would otherwise be a need to assess whether there has been a partial termination by aggregating terminations across the 2 plan years, does the plan merger help prevent a partial termination in a some way?  Is there an argument that the seller's plan goes away when it is merged so you don't have to consider the 2022 terminations at all?  Or, if not, does the plan merger at least make the 20% threshold harder to hit because the denominator grows when the plans are merged?  Would appreciate your thoughts.

Hi

New plan was signed/adopted by 12/31/2020, sponsored by sole-proprietor aka husband. Now they want to add another sole-proprietor aka wife for 2020 as an adopting employer.

Can this be done retroactively?

Thanks

Before 2020, partnership A maintained a single-employer individual-account retirement plan for its employees (including those of its partners who are deemed employees).

In 2020, partnership A amended its plan to allow participation by partnership B (for those of its partners who are deemed employees and for employees, if any).

Partnership B is a new-formation startup.  There is no transfer of assets or liabilities from a plan of B into A’s plan.

The two partnerships—while separate artificial persons—are a § 414(m) affiliated service group.

The plan’s governing documents specify partnership A as the plan’s sponsor, administrator, and trustee.  The documents admit partnership B as a participating employer.

Is there anything in Form 5500 that calls for reporting the Employer Identification Number of partnership B?

Partnership sponsors safe-harbor 401(k) plan -- non-elective 3% Employer contribution. Partnership is dissolving effective 02/28/2021. What is the maximum amount that can be contributed to the Plan for a partner for 2021?  Is the answer simply the pro-rated 415(c) limit (i.e., $58,000 x 2/12 = $9,667) plus $6,500 catch up if age 50 or older?  Total = $16,167 (assuming partner's Earned Income for the 2-month short plan year is at least $16,167).

Does the Plan termination date necessarily have to be 02/28/2021? Although the partnership will dissolve on 02/28/2021, the partnership will still exist in some form after that date to collect account receivables, pay bills, etc.