I’m considering selling my TPA practice. I’d like to hear feedback on the process from anyone who has gone through this experience. 

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I'm taking over a plan that has immediate force-outs in the document for VAB <$5,000.  I suspect that provision was not followed by the prior TPA, and based on how the assets are set up (individual brokerage accounts) and the fact that we won't be monitoring the plan on a daily basis, it doesn't seem like the right fit for this plan.  Is it a cutback to change this to happening after the end of the year of termination in the document?  Thanks.

Hello, will someone please provide me with an IRS direct Email address or Address. This is regarding a Tax-, qualified plan, under [(401(a) that is subject to 401(a)(13)(B) and to 414(p). Seems like a simple question, but I just cannot find the appropriate Address nor email address.  

Thought I'd throw this question out there: Non profit has started a new 401(k) plan for contributions moving forward. The legacy 403(b) is being left as is with no new contributions, but there remains a large forfeiture account, which exceeds payable fees.  Can such forfeiture account be transferred directly to the new 401(k) account to be used for employer contributions over there?

I am trying to figure out if the Scorp HSA contribution for a more than 2% owner is subject to UI / SDI in CA on quarterly forms.

I am aware that the S-corp HSA contribution needs to be entered on W2 in Box 14 and that Box 1 and Box 16 (State) needs to have the HSA amount of $6900 included .

I have contacted a CPA and was told that Health insurance and HSA are only subject to FIT / SIT not UI / SDI .

Is this correct for CA ? 

The payroll provider did not include the HSA to be taxed for UI/SDI only PIT wages on Ca Quaterly DE9c.  Is this correct ? 

The Edd information sheets states employer contribution to HSA is subject to UI/ SDI is the info sheet referring to non 2% employees who have the contribution reported in box 12W instead of Box 14 for 2% shareholders? 

I would like to know that payroll is correctly paying my taxes . 

Plan defines comp as W-2 comp, but does not include post-severance pay for Deferrals, match or non-elective contributions.

Terminated participant received severance pay, but we don't know yet exactly what constituted the severance pay.  Would assume at least part of final check was unpaid vacation, sick leave, etc., and possible customary 2 weeks "severance pay".

Question is, do we include all or part of the severance pay in calculation of SH NEC or not?

I’ve been out of the business for a few years, in that time QDIAs came into being. My employer (a TPA) is telling me the QDIA notice requirements fall on the fund companies we work with (examples: Transamerica, Nationwide, Voya, Hancock) and the Plan’s financial advisor. We as TPA do nothing with the QDIA notice. This doesn’t seem right to me. I had a financial advisor tell me he expects the TPA to take care of it. How do other TPA firms handle the QDIA notice requirements? 

Ten-year-old ESOP, loan is now paid off.  We're planning for 2020 and trying to determine how much to pay the terminees.  Plan provides for typical 5 installments for distributions over $5,000 in the year following the year in which the loan is paid off.  For example, a participant retired in 2017 with a $100,000 benefit was supposed to begin receiving distributions in 2018, but did not due to the outstanding loan.  In 2020, does he receive $60,000 ($20,000 for 2018, 2019 and 2020)?  Or does he receive $33,000 (1 of 3 remaining installments due)?

We need some insight...my husband had a major medical emergency earlier this year. He was fully covered at the time. I have found out that his company's health plan is self funded and BCBS is the administrator. Fast forward to several months later, his company abruptly closed, now filling Ch 11. His claims are high-dollar, about 900k and it took BCBS a while to finalized the claims due to the complexity of the claim. BCBS send payment over to the hospital, which they confirmed to me that the payment has posted. However, now, we are being told by his HR that they never funded the account for BCBS to issue payment and the HR is confused on how a payment was made. The BCBS reps told me that they would never send over payment if there were insufficient funds in the account and when they issued the payment, there was sufficient funds in the employer's account. So, my question is, can BCBS ask for that payment back from the hospital and then we will be liable that bill even though he was insured during the time of hospitalization? BTW...the EOB (which I saved) says we owe $0.  Or what how do you think this will play out?  We are worried sick.  Thank you.

I had a feeling this one could get bad and stocked up on water and supplies last weekend, which was good because the line was snaking around Sam's Club at 7am this morning...

I hope you all stay safe and dry!

Grrr.... I thought I understood this, but some discussion recently now has me questioning myself.

Calendar year plan. Participant terminates employment 12/31/18. Receives final paycheck - just normal wages only - on 1/4/19. Plan uses W-2 compensation, and the determination period is also calendar year.

Plan uses the "defaults" for 415 post-severance compensation purposes - that is, normal qualifying post-severance compensation categories are included for 415 purposes, and the plan does NOT utilize the "administrative delay" rule - also commonly referred to as the "first few weeks rule."

For PLAN compensation, the plan includes,  for all contribution categories,  the allowable post-severance compensation categories - regular pay, leave cash-outs, etc..

So, the payment of wages received on 1/4/19 should have deferrals withheld, and the participant should receive a 2019 safe harbor nonelective, and therefore, for a cross-tested plan, also receive gateway. But since 1000 hour/last day, receives no other PS allocation.

Participant Included in all other 2019 testing.

Am I off my rocker on this?

I know Tom is in Florida, and many others as well. We'll be thinking about you - best wishes for all of you and your family, friends, and neighbors, and hopefully you will be relatively unscathed by the hurricane. Good luck!!!

this is a really long story - but to just cut to the chase, I had a loan deem on my 401K account about 6 years ago due to my employers' error to make the necessary payments from my paycheck.   I had tried every which way to have them fix this and was told there was no way to fix it - I paid the penalty and taxes on it back then - not realizing, of course, that this would stay on  my account FOREVER (until I retired, etc.) and would limit any other loans I could take.  I am now wanting to do a early partial distribution in the amount of $50,000 (I know about the penalty and taxes since I am not 59 1/2 yet)  - my question is - will the deemed loan have to be paid out of that early distribution that I take or since there will still be plenty in the account to cover the loan - can that be done when I turn 59 1/2 and get a full distribution?  Hope all of that makes sense.  thanks in advance!

We know that a safe harbor 401(k) that "consists of solely a cash or deferred arrangement and matching contributions that satisfy the safe harbors of 401(k)(12)/(13) and 401(m)(11)/(12)" gets a pass on the top heavy requirement.

I'm sure I'm overthinking but if I have a Plan with employee deferrals and SH match basic formula, then an additional 100% vested ER match of 25% up to 4%, I still get the TH free ride, right?

A new health and welfare plan was established in 2016 and had less than 100 participants in 2016 and 2017 so no Form 5500 was filed. For the 2018 plan year, we were incorrectly told by the client that the number of participants at the beginning of the year was 145 so we filed an extension before July 31 indicating this is the first extension for the plan. Upon additional review, the client confirmed there were only 20 participants at the beginning of 2018 , therefore a 5500 report is not required.

Do we need to do anything to notify the IRS to disregard the extension?  Will we get any inquiry from the DOL about a potential filing? Now that we filed an extension, do they expect to receive a 5500?

Thanks.

Here is an interesting question.  Participant has $10,000 of Fund A in his 401(k) account and $5,000 of a participant loan in his 401(k) account.  He also has $7,000 of Fund A in his Match account. 

Can I have the participant sign an investment election to rebalance his portfolio and shift $5,000 of Fund A from his Match Account to his 401(k) account, and then transfer $5,000 of his loan from his 401(k) account to his match account.

His 401k account would be reduced by the $5,000 loan leaving, but increased by $5,000 of Fund A being transferred in. As a result, the account has the same balance in the end.  The same thing happens in reverse order on the match side.

Is there anything in a reg or whatever that indicates the source of a loan can never be altered?  There is much in the rules that is quite clear that loans are INVESTMENTS like any other.  A consequence of that definition is that this should be doable.

One of my clients is going through an IRS audit and is getting frustrated. We have been supplying her with everything but she now wants us to take over speaking with the auditor. Years ago, I would complete the Form 2848 as an unenrolled return preparer and using my CAF number. Looking at the 2848 now, it appears that I can no longer do this? Do I need to apply for a PTIN?

Am I no longer allowed to speak with the auditor at the client's request?

Any advice would be appreciated.

Taking over a 401(k) set up by one of the payroll companies in 2017.  It is a law firm organized as a partnership of professional corporations.   The three partners did make 401(k) deferrals both years, however the processing payroll company did not include the individual PCs as adopting sponsors of the plan.

Think IRS would approve a correction for them to adopt the plan now retroactive to 2017?   There are about 50 non-partner employees of the partnership who are in the plan (about 2/3 of them are NHCEs).  

Thanks. 

Is there an additional requirement that if an Owner who is LESS than a 5% owner, over age 70 1/2 and is still employed MUST take RMDs because they are in a "position of control" with the Plan Sponsor/Employer?  The TPA is stating this to our client, but I haven't been able to easily find anything requirement this by the IRS.  Perhaps it's a Plan Document requirement?  Trying to find an answer for the Owner/Employee.  They actually serve as the "Chairman of the Board".  Not really sure how much "control" they really have.  

Your help is greatly appreciated!

We have a client that has an existing safe harbor 401(k) plan that does the enhanced match.  There may be a new participating employer joining due to control group issue that does not have a current plan but cannot afford the enhanced match.  May new employer do the basic match instead and have special language to that affect on their participating employer agreement?  Both companies have HCEs.