Can a third party service provider file a claim with the DOL for underpayment for services when the plan prohibits assignment except to the extent of payment (e.g., anti-assignment against all other rights but to receive payments)? Can they proceed with a claim when the TPA is alleging that the provider failed to provide adequate information? Any suggestions on where I can look to find more information on third parties and DOL enforcement activity on underpayment claims? Thanks in advance.

Hello - my ex-wife and I are both American, but live in Canada (Ontario) as permanent residents.  We were divorced last year and, in our separation agreement, agreed to split my pension.  As I understand it, we now need to domesticate our divorce in the US, and then file the QDRO, referencing that domesticated decree.  I'm looking for a lawyer in the US that is familiar and experienced in domesticating an Ontario divorce.  It should be as simple as domesticating an Ontario divorce order that contains the language re the pension split, and filing the QDRO, for which my former employer provides a nice, simple template. The problem is, we don't live in the US, presently.  Would welcome any advice or referrals.  Thanks!

This has happened on a few occasions, and has taken up to 3 months for IRS to correct on their end. 

Form 5500 was filed using the Trust ID # instead of the Sponsor ID#.  IRS sent the client their usual CP-403 Notice, we immediately noticed the error and filed an amended return using the correct EIN and showed the incorrect EIN in Box 3b.  We attached the EFAST Acknowledgement.

As a response, IRS issued a penalty for the late filing of Form 5500-SF that reflected the correct EIN, the Sponsor EIN.

Sound familiar?  Anyone have a sample letter to the IRS in this regard, or we just have to "wait it out" and hope IRS makes the correction on their end?

Quick background, I am an accountant and I was previously an auditor at a CPA firm who worked on benefit plan audits (Mostly 401(k)  and Profit Sharing). I have since moved from public to industry and work as an accountant in the general accounting department.

My company is aware of my previous experience so had me reviewing some of the documents for our different retirement plan audits, seems harmless. However this seems to have escalated. They have now tasked me with a lot more responsibilities regarding the plan and the audits which seems odd. I have become the main contact for the audits, am sent the full document requests and am the employee expected to gather the information and relay to the auditors. I am also expected to keep track of the deadlines and make sure i'm reaching out to auditors and submitting whatever is needed. This includes doing the non-discrimination testing and reviewing forms on the servicer website as well as calculating our year end profit sharing contribution for employees. 

As a side note, I don't actually have access to the HR or Payroll system so I have to request a large portion of items from the HR and Payroll. In my experience, my contact with the clients was never someone in the accounting department. Once in a while there were certain things needed from the controller and obviously bank statement requests for remittance testing..but the people I worked with were always the HR/Payroll department.

I already have a significant amount of duties for general accounting so this whole extra responsibility seems completely inappropriate. Am I correct about this or no? I do still retain a decent amount of information from auditing but regulations change constantly and without regular review, in a year or two I could be completely uninformed. It also just doesn't seem like it should be my responsibility at all? Has anyone else ever had the main contact be an accounting personnel for all this?

Have a client with a pooled 401k/PS plan.

One owner had same earned income for 2018 and 2019.  In 2018, they deposited the 415 max, let's say, $27,000 plus the full catch-up.

In 2019, because the K! was identical, they deposited the max 401k and same PS as 2018 amount in August 2020. 

So, because the 401(k) limit went up $500 and with the same comp, she is over the 415 limit by $500.

How does the 415 refund work when it's all deposited tot he trust after EOY?  Do I just pull only the $500?  I'm not gonna do a mid-term valuation for a $500 refund.

I don't think I can just forfeit $500 of PS since 401k is the first 415 correction.

We have a non high deductible plan along with a HDHP

Currenty our non HHP accumuates covered epenses simulataneou;sy while our HDHP accumulates epenses separtatelt

going forward for 2021 we want to be consistent

what is the standard?

thanks

Alexa

Hi

Takeover plan. First time for 5330.

2 shareholders - both HCE

2018 salaries 200k each thus max 100k deduction limit. Deposited 110k during 2018. Each got 50k allocation and suspense account got 10k (5330 penalty was paid)

2019 salaries 220k each this max 110k deduction limit. Deposited 110k during 2019. CPA informed me 108k was deducted and does not want to amend the return for 2019.

Assume no earnings for 2019, to simplify.

Is the 2019 amount for 5330 penalty 12k? Any other way to reduce?

As the 415(c) limit of 56k is not violated, can any of the excess amount be allocated to the shareholders even if not deductible? I do not think so as not deductible???

Thank you for your comments.

Hi

My apologies if this was discussed before.

Existing 401k plan with SH match. Looking into adding a CB plan for 2020

Can it be switched to non-elective for 2020 and if yes 3% or 4%?

Any other issues not asking?

Thank you

Does anyone have experience filling out the MP-100 for a missing participant in a cash balance plan?  If so, is the present value reported equal to the hypothetical account balance or do you need to calculate a life annuity at normal retirement using the plan assumptions and then convert back using the PBGC assumptions?

We have a plan that wants to terminate in October.  The Consultant has requested that the amendment include language that the Limitation Year for 415 purposes be the calendar year.  They want to be sure that compensation of $285,000 and maximum allocation of $57,000 will be permitted for the 2020 plan year.

It is our understanding (of the Relius document) that the Plan Year that includes the Effective Date of Plan Termination ends on the Effective Date of Plan Termination.  This provision applies for all plan administration purposes, including the application of the Top-Heavy requirements under Code §416, the limitation year under Code §415 and any allocation conditions imposed by the Plan, in essence creating a short Limitation Year.  And in a short Limitation Year, the limits are prorated.  The "maximum permissible amount" will not exceed the "defined contribution dollar limitation multiplied by a fraction, the numerator of which is the number of months in the short Limitation Year and the denominator of which is twelve (12).

I was hoping that someone else has encountered this issue and can provide some guidance.

What is a reasonable estimate for time spent by an experienced retirement plan administrator to prepare a 5500-SF filing for a DB plan including AFN, considering the assets and the participant counts have already been reconciled, the actuarial valuation report has already been completed, and the valuation software produces attachments, AFN info, etc. (Datair)? This is for plain vanilla situations, no life insurance, etc. Excluding time spent for the 8955, I am thinking 3 hours to get the it to the client for signature, and another hour or so to get it filed, is that a reasonable expectation on average?

Trustee and president of corp., no other officiers DIED

wife of trustee can't find assets

other people in the plan

5500sf due 10/15

What can I do as the third party admin?

The sole Trustee died.

There are employees in the plan.

5500SF due 10/15.

Wife of deceased trustee can't find assets.

Any suggestions on what I can do (third party admin).

We are preparing Form 5500 for our client's 401(k) plan with a plan year ended December 31, 2019. In the course of the plan audit, it was discovered that the client applied an incorrect definition of compensation for deferral & matching contribution purposes. QNECs & additional matching contributions have been calculated & will be deposited to the accounts prior to the end of 2020.

Should the 2019 QNEC/matching contributions be reported as a receivable on the Form 5500 Schedule H?

Does anyone know where I can find the IRS approval letter for a Datair EGTRRA non-standardized prototype?  I have tried contacting Datair and the prior TPA who restated for EGTRRA but am having no luck.

I don't operate in this area so forgive the basic question - there is, or at least was, a rule that if NQDC payments are subject to FICA taxes in, say, the first year of the program, then they are all withheld then, and not subject to FICA later.  I may have stated it poorly but you know what I'm talking about.

An accountant suggested that it can't be done any more; i.e. you'd have to withhold FICA each year.  I'm not aware of any changes - is this true?

Like many of you, I work mostly with 401(k) Plans, but have a few 403(b)s.  I have a very small ERISA 403(b) Plan that currently has one participant.  They are hiring a new employee who will be eligible (of course) and the plan sponsor thought she could use the advisor of her choice because, apparently, the advisor on the existing account was the participant's choice.  I know that the 403(b) plan can offer different investment providers (all options offered to all participants), but can they also have multiple investment advisors?  Seems problematic. 

USERRA is very clear about the make-up rules, coverage/nondiscrimination/deduction/etc. issues for make-up contributions upon qualified reemployment.

What about the year the employee leaves for qualified military service? Example, active participant in a Profit Sharing plan that has a 1,000/last day requirement. Participant leaves for qualified military service in July 2019, having worked 800 hours. So this person does not get an allocation of profit sharing contribution for 2019.

I can't find any dispensation for coverage/nondiscrimination testing for the year the individual terminates employment for qualified military service. However, it "feels" wrong to include this person, to the detriment of testing results. Do you include such an individual in the testing, or just toss them out altogether for 2019? My heart says to toss them out, but my head isn't agreeing.

Interested in any thoughts you might have. Thanks.

An owner, who sponsors, participates in, and is a trustee for a plan that covers NHCEs, wants to form an LLC with a friend in which they will each own 50% of the LLC.  The LLC will totally consist of an interest in an existing, unrelated business.  The owner would like to use plan assets to acquire his 50% share of the LLC.  I am guessing that this would be a PT unless he were to own no more than 10% of the LLC - is this accurate?   

Sorry to bring up this topic again, but 2 questions on the PPP loan forgiveness.

First,  the only employees of an S-Corp are a husband and wife, each 50/50 owner.  They want to prefund a portion of their 2020 DB contribution and use it for PPP loan forgiveness.  Is the max that can be used 2x's $15,385?

Second, and I apologize for losing track, but was the issue of deductibility ever resolved?  I seem to remember that if an expense was used for loan forgiveness it could not be deducted, which causes issues especially for plan contributions.

Thanks very much!