2020 plan year is top heavy. Client is discretionary SHNE but cannot afford to fund SHNE or the top heavy minimum. Can the key employees withdraw all of their 2020 contributions (with earnings) in order to bypass the top heavy minimum contribution? I'm thinking this is a big no-no, but would like some proof. If any responses could have some regs pasted in, that would be fantastic.

We have out clients complete a "filing authorization" form every year when we, as TPA, are filing the 5500 on their behalf.

Do we NEED to have one completed every year?  Can we do just one that says Sponsor A authorizes TPA to file on behalf of Sponsor for all years until authorization is rescinded?

I was also thinking that the authorization would be rescinded if the signer of the 5500 changes for any year.

Is there a rule that you have to get one each year?  Link?

Anyone have opinion about filing Schedule D for record keeper plans such as - Hancock, American Funds RKD and Plan Premier, Ascensus, Principal, Nationwide, Empower, Lincoln?  We generally complete this but it seems like a waste of time as most information is on Schedule H.

Most if not all W2s we have received net deferrals from Box 5.  We know pre-tax elective deferrals are added back to Box 5 on W2, such that gross is used for determination of any employer contribution.

Since post tax are already included in gross income (usually Box 1 on W2) of mixed opinion of others, do not increase gross by any Roth deferrals?

Looking a copy of the EBSA Q&A 15 from the 2009 Enrolled Actuaries Meeting (deals with payment of plan expenses).

Thanks in advance.

Hi

If 110k is contributed during 2019 and only 108k is deducted (CPA is not changing the deduction), is the excess 2k considered excess for 5330 penalty or can it be applied towards 2020?

Thanks

TRANSIT EMPLOYEES’ PENSION PLAN (TEPP) 
 
REQUEST FOR PROPOSAL:  TEPP Legal Services 2020 
  
The Administrative Board of the Transit Employees’ Pension Plan (TEPP) is accepting proposals for a firm to provide Legal Services for the Transport Employees’ Pension Plan, a non-ERISA, collectively bargained, governmental pension plan.  Responses shall be prepared in accordance with the requirements. Proposals will be accepted until October 26, 2020 @ 2:00 PM, CST.  The full RFP can be downloaded at https://www.ridemcts.com/business-partners/ebid/tepp-legal-services.   If you have any questions, please contact Carol Noll at cnoll@mcts.org

Hypothetical question which may turn out to be real - don't know yet if it is 401k plan or ERISA 403(b), but I don't think it matters.

Say you have employer A, whose plan has a (pick it - let's say 4 year graded) vesting schedule for matching contributions. (Not a safe harbor plan, by the way.)

Let's say that employer A is going to be involved in starting up a new business, that for now at least would NOT be a controlled group.

The new business B will have a bunch of employer A's employees transferred to them.

Is there a reasonable way to have A's employees who transfer to B, have their vesting in A's plan continue to increase at the normal rate, based on the service with B? Something like: for vesting purposes only, former employees of A who transfer to Employer B will have their years of service with B apply to their account balances in this plan.  Or something along those lines.

I've never seen this done, but curious if it can be done.

Does the CARES act provision for changing health insurance coverage mid-year apply to vision or dental insurance? In other words, in a premium only plan, are these coverages considered "health coverage" for this purpose, or does the revocation of existing health health coverage or electing to now be covered, only apply to "health insurance?"

A client's Profit sharing plan was terminated as of May 31, 2020.  All employees other than the owner were terminated as of 12/31/2019.  He wants to know if he can contribute a final profit sharing contribution for 2020.  If so, do we just need his compensation through 5/31, and can he wait until due date of his return to fund? He has already rolled over his balance that was in the plan to another qualified plan of his new employer - started there in July 2020.  Need thoughts and advice.  Thanks!

Hi

Preparing distribution election forms and not possible to get notarization.

3 participants, father, spouse and daughter.

Daughter owns company 100% and can witness both parents signatures on the distribution election forms.

Father is the president of the company, can he witness his daughter's spouse's signature on the distribution election form?

Thank you

If an employee defers 100% of her pay in a Safe Harbor Match plan, does she have to return a portion of her deferrals to ensure she receives the match or does she not get her match for the year due to the 415 limit?

We have a Davis Bacon plan that excludes HCEs but the owner's children received Davis Bacon contributions within the plan. We have 2 issues, the plan sponsor did not follow the terms of the plan document and, if these contributions are to stay in the plan, the plan will fail 401(a)(4) testing.

If Davis Bacon contributions are irrevocable, can we even remove these ineligible contributions from the plan? Or must the plan go through VCP to retroactively correct the plan to include these HCEs for the Davis Bacon contributions?  

The plan allows for cross-testing using individual rate groups. Assuming the contributions need to remain in the plan, could the plan fund a rather large contribution percentage to a select group of lower-paid NHCEs to pass the test? Although this isn't an 11g amendment, if the benefit is not meaningful under a cross-tested plan, could it be construed as a scheme or abuse by the IRS?

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.