Forgive me if this topic has been covered.

Assume I receive a $75,000 CRD in 2020 and spread income over 3 years. Then I decide to recontribute $25,000 of the CRD.

Notice 2020-5, in Section 4E, says that if I make the repayment before the due date (plus extensions) for the 2020 tax return , I can wipe out the $25,000 for 2020.  The same would be true for the 2021 and 2022 returns.

But if I make the repayment after the 2020 tax return deadline (but within 3 years), can't I still have the 2020 income wiped out by filing an amended 2020 return? Or is it too late?

The Notice doesn't address this. And the fact that the IRS does specifically address amended returns in Section 4D (when the CRD is all included in 2020) gives me pause.

Any thoughts?

I have one small organization, Company A, that merged with 4 other organizations for a new controlled group company NewCo effective 2/1/2020. Company A has a cash balance plan, and as of 12/31/2020, Company As cash balance plan will be terminated, and NewCo will have a CB plan for the whole CG as of 1/1/2021.

Company A would like a full accrual for 2020, resulting in a 120k contribution. They are doing their 1/1-2/1 short tax year filing now, and wanted to know how to put the contribution on there if it hasn't been made yet. My thought is on the final 2020 filing, they change the plan sponsor to NewCo on Line 4, put all of the 2020 PY contributions on the SB, Company A pays all of the contributions, and NewCo allocates the deductions to them within their financials. Does that sound accurate? If they've made any contributions to date, could those be deducted on the short tax year filing?

Thanks for any help!

"What you need is a third-party administrator."

-- "A what?"

"A TPA."

-- "I'm still clueless. I have an investments guy and a mutual funds company that says they'll keep track of where my company's retirement contributions go. What's a TPA?"

=====

Wouldn't it be great for business development, and more appreciation by plan sponsors, if there were a better name for TPAs than "TPA"?

On your marks, get set ... GO.

I'm working on a plan with 109 employees. Among 109 employees only 48 employees entered into the plan (Plan Requirements:- 21 Year age, 1 Year of service) and received Safe Harbor Non Elective Contribution. 

Should i use Form 5500-SF or 5500 Large? What is the parameter for this plan 48 eligible employees or 109 employees?

Can anyone explain 100 participants rule for 5500-SF filling, i'm confused?

Thanks in advanced. 

I generally see two schools of thought on this topic:

1. Process the conversion as a distribution and a rollover.

2. Process as a transfer and it is just a wash so no 5500 reporting.

Does anyone know of any formal or informal guidance on either of these?  I haven't been able to find anything.

is there anything in the guidance about outstanding loans that are not current. i know loans that are current can be suspended under CARES. can loans that were not current benefit from suspension?

This is on the IRS website at: https://www.irs.gov/retirement-plans/file-your-one-participant-plans-electronically-using-form-5500-ez

• Effective for plan years beginning after 2019, a one-participant plan can file Form 5500-EZ electronically using the EFAST2 filing system. Form 5500-SF is no longer used by a one-participant plan in place of Form 5500-EZ. Information for a one-participant plan filed electronically with EFAST2 filing system” will not be available to the public on DOL’s website.
• A one-participant plan covers only a business owner and his or her spouse, or cover only one or more partners or partners and their spouses in a business partnership (treating 2% shareholder of an S corporation, as defined in IRC Section 1372(b), as a partner).
•  A one-participant plan can file Form 5500-EZ electronically with the Department of Labor’s EFAST2 filing system, or completing and mailing a paper Form 5500-EZ (PDF) to IRS.
• However, a filer must file the Form 5500-EZ electronically using the EFAST2 filing system if the filer is required to file at least 250 returns of any type with the IRS.

I added emphasis in bold for the 2% S Corp shareholder, which was part of the Pension Protection Act. Does this mean an S Corp with only 4 employees, each owning 25%, can file a Form 5500-EZ? Doesn't ERISA still apply, requiring the normal Form 5500-SF?

Can a client remove Roth from a safe harbor plan mid-year?  I don't see any rules precluding this.  Only 30 days notice as Annual Contribution notice is affected.  Your thoughts?

Plan Sponsor wants to verify processing of Form 5500EZ. 

Correct procedure to verify?

One person sole proprietor adopted Keogh 401k ( profit sharing /money purchase) in 2005 at fidelity then advised by advisor at fidelity to change to SEP IRA for simplicity in 2015.Based on my income I realize now I would have been able to contribute more had I stayed with Keogh.Never filed 5500 although the balance didn't reach 250,000 until 2012 and was not aware I was suppose to terminate Keogh upon opening SEP IRA.Keogh ( profit sharing /money purchase) has not been funded since opening SEP IRA in 2015.Also I mistakenly since did back door Roth for tax year 2015 to 2018 thinking there would be no tax consequence but realize now there is since I have a SEP IRA..

My CPA does not want to help with this so looking for guidance on who to call for help with this.I assume I need a TPA but wondering if I will be able to find one to help me if I do not have an ongoing relationship.Can anybody recommend a TPA in 32207 zip code area( jax,fl) or one that would be will be able to help remotely.

What are my chances of getting a favorable decision with these issues using the VCP/SCP ? Hopefully I can connect with a TPA to help me soon but if not should I file a 5500 before the 7/31/deadline even if I will be asking for a retroactive termination of Keogh back to 2015 when the VCP is filed.

I took an extension and have not funded my SEP IRA for 2020 .Based on my income and age I would be able to contribute about 10k more to a 401k vs. a SEP IRA for 2020 but wondering if it would be a bad idea to adopt a new 401k for 2020 while  still sorting through the mess with my old Keogh?

Sole prop plan.  Plan terminated 6/30/20.  Profit Sharing only.  Owner wants to make a contribution for the year.

How do I determine the owner's comp?  Sched C won't be ready until next year.

What if it's not PS only, but a 3% SH, or a plan with a fixed match?  Do I have to wait until late-winter or spring? 

We are filing a final short form 5500 for a plan that merged into another plan effective 3/31/20.

In Section VII, question 3a asks 'has a resolution to terminate the plan been adopted?' Should this be a YES or NO since the assets merged with another plan, and did not technically terminate?

Has anyone heard if the IRS is going to come out with any non-amender program as a means of allowing these non-profits to correct the fact that they did not restate by 6/30th?  Already have someone in that situation (not a client I should point out!).

It occurred to me that they did away with all the $325 VCP options so I do wonder if there will be anything...

Owner is thinking about retiring and shutting down his business, no sale.  Since business is terminating would plan still be considered safe harbor even if terminated mid-year?  It's not a sale or merger so I'm questioning myself.  

I have a client that is a closely held business that sold all of its business assets related to its union business and was assessed withdrawal liability by a pension fund.  We argued that the asset sale limitation under Section 4225(a) limited the assessment to 30% of the company's liquidation or dissolution value.  The fund is taking the position that the company is not entitled to this limitation because it did not sell "all or substantially all of its assets" as required by Section 4225(a).  Of course, the company did not sell its cash and A/R but also did not sell its minority stock ownership in a different closely held company (it would be very difficult to sell this minority interest to anyone).  Based on this, the Fund is saying that since Section 4225(a) on its face requires a sale of "all or substantially all of the assets," the limitation does not apply.  If the company had sold its minority stock interest in the other company it would have sold more than 85% of all its assets.  Even without this stock sale, the company did sell 100% of its operating business assets.  I have researched this and could only find one older arbitration case where the arbitrator held that non-operating business assets should be excluded in determining whether all or substantially all of the company's assets have been sold.  Does anyone have any experience with this?  Thanks in advance.   

I am looking at a non-safe harbor 401k plan that failed the ADP test (passed ACP) in 2017 and 2018.  Only 1 of the 3 HCEs were required to take money back and that was done each year.  About 15 total participants are shown in each years ADP test.

However in reviewing that plan now, it seems that from 5-10 non contributing eligible NHCEs were left out of the tests.  Adding them back in will make the test fail even worse.

Can we have the employer make a QNEC for these past years even through we already made a distribution of the excess to the one HCE?  Or do we have make an additional payout to the HCE since we already made what would be a partial refund?   

Thank you for any replies

Hi,

A owner only DB Plan (owner and wife) is overfunded. He was taking RMD past few years based on Accrued Benefit times 12 (meaning did not elect a particular benefit ie J&S or Years Certain etc.-- this has been discussed on this forum in the past as a method for an RMD for an active participant). He retired now and wants to terminate and rollover into two IRA. The issue of course is that the plan is overfunded.  To avoid any reversion and excise tax he will  keep the plan open and elect a partial lump sum distribution and roll 80% of his benefit into an IRA. The remaining 20% of his Accrued Benefit will remain in the plan. Is this a feasible option? (by opting for  a partial lump sum he is not changing his original election since he never made an election until now, rather he was taking RMDs. In addition, even if this considered a change of benefit election, since he now retired and has a change in status, the change in status should allow for a new benefit election to be made). Thank you for any insights and thoughts on this matter. May we all be safe always. 

Just discovered that client mailed their 5500s for 2018 instead of using EFAST.  Does anyone know what happens to 5500s that get mailed?  I assume they are treated as not having been filed and we need to do a delinquent filing and pay the penalty?

A client is an adopting employer in an MEP. The employer is Top Heavy for 2020 and the keys are contributing. The employer is stating that they will be selling a business unit this year and terminating non-key and possibly key employees. How does this impact the 2020 Top Heavy minimum? Are those employees simply deemed as terminated prior to the end of the year and not allocated the Top Heavy minimum? Or, would the minimum be calculated on compensation until the sale for those employees?

Any feedback is appreciated. Thank you.

My BFF’s husband recently passed away. QDRO with ex wife as AP: should the ex have been paid out her 50% of QDRO at the time of divorce 9 years ago? This is for Pension and 401K only. Life Insurance death benefit is in lieu of remaining balance of alimony upon death (12% only of Life Insurance  policy).

Noe that he is dead, what is my BFF entitled to, especially if QDRO hasn’t been yet paid to the ex? 

seems like the ex is getting all the documentation and my BFF as the current wife and executor of the Estate is getting little to no info or help from her late husbands company.

thank you.