After submitting under the 5500EZ Penalty Relief Program, along with check, Plan Sponsor has found their missed 5500 which apparently was filed after all....

Any success getting the application taken back? Can't seem to find a number to call.

Below the scenario:

Plan was originally effective 1997. Taking over the administration of the plan 2019. 

No copies of the original plan document, the GUST and the EGTRRA restatement. Some amendments are in place, most interim amendments.

So would we have to create all these documents and submit to VCP?

Not sure why I am not in full agreement with approved plan of action.

Any guidance would be really appreciated. 

We have a plan transitioning to us, can we eliminate partial withdrawals for terminated participants?  We prefer full distributions only for them.  Is it a cutback?

Ok, say we can.  Plan signed sealed and delivered.  Restated for no partials.

Now, there is pushback.  The plan wants it back in.  Can we do the partial withdrawal now, then amend it retroactively to allow it?  Similar to when a hardship is granted when the plan initially allowed it.

Group:

In 2017 taxpayer/client sets up a leveraged esop where loan payments were to be made by Oct. 15 of each successive year.  Client has recently began an audit by TEGE dept.. No IDR response nor any site visits have taken place.  Client failed to make first year loan payment due Oct 2018.

Do I wait to cure late loan payment before auditor even questions why payment was not made?  After discussing with the TPA I'm leaning towards curing late loan payment + interest prior and make this part of our response in an effort to get in front of potential issue.

What has been your collective experience in auditors view on late ESOP loan payments and curing?  For what it's worth, there are a number of communications from advisors informing client to set up separate ESOP account but no account was even set up.

Thoughts and comments appreciated.

Warmest,

Joe Dadich, CPA, Esq.

When is the cut off for an employee to normally enroll in 401k plan?  For example, they meet eligibility on 7/1 but don't hand enrollment form until 7/15.  Is this ok?

Thanks.

Employer maintains defined benefit and 401K/SH.

Profit Sharing is discretionary.

How do you handle the top heavy combination?  Must a 5% contribution be made to the PSP, or 2%?

Attached is a screen shot of the details on how Costco matches employee contributions on their 401(k). I'm not too sure if I understand it. 

My Assumption: Costco will match 50% of your contributions. So if you contribute $42/month, then their match would be $21/month?

Is my assumption correct? 

Good afternoon to all,

We have a prospect that has about 1800 employees, mostly in lower paid jobs, in the service industry (think restaurants as an example).  Of the 1800, only 600 would be eligible if we use 1 year of service, dual entry, age 21.  There are 12 HCE employees.  All these employees are spread out over several corporations, but they are all owned by one man, so it's a controlled group.

They have been presented a standard 401(k) plan with a safe harbor match to cover everyone and have rejected it.  What they say they want is a deferral-only 401(k) plan for the NHCEs and a separate "carve out" plan (their terminology, not mine) that benefits only the HCEs for which the company would be willing to provide a match.

We are somewhat aware of the existence of Non Qualified Deferred Compensation plans but our understanding of them is that they have so many drawbacks that they are not very popular anymore.  We don't really think that the 12 HCEs will appreciate their contributions being a general asset of the employer, being subject to taxation if they leave and take the funds, etc.  We understand that the contributions could be put into a Rabbi trust, but even then, they are still subject to the claims of creditors if the company experiences bankruptcy.  All that makes this look like a doubtful solution.

Are we missing some cutting edge, new plan design possibilities within the world of qualified plans?  How have you addressed such requests, if you can share?

As always, your comments and experiences are much appreciated.

The default benefit under an money purchase plan is a joint and survivor annuity.  As a defined contribution plan, it cannot pay this benefit straight from the account; it must acquire an annuity from an insurance company.  What insurance company will sell an annuity contract to a plan trustee without a participant signature on the contract application?  MetLife already has its hands full trying to find participants on contracts it sold to willing buyers.  An MPP with a retirement once ever so many years cannot buy a group annuity for just this.  With investments all in mutual funds for active participants, there is no insurance company involved in the administration or normal investment.  Does anyone know of an insurance company taking this business?

Does anyone know where I can find old revenue rulings online? I am specifically looking for Revenue Ruling 80-155 which is the one that talks about money needing to be allocated if deposited by the end of the plan year. 

We are having a (hopefully brief) disagreement with an IQPA auditor, and I'd like to provide them with a copy, not just secondhand sources. 

I should know the answer, but I see conflicting answers.

EOB mentions all service must be counted for vesting purposes; although I noticed the following when I queried online:

"Although all service from date of hire must be recognized for eligibility, a plan can be written to ignore years prior to its effective date (or the effective date of any previous plans) and/or years prior to attainment of age 18 for vesting purposes."

I was asked to look into having a new plan drafted under the second criteria, now not sure.

If you could create a beneficiary form that allowed participants to check the box for applying this primary bene for ESOP and/or 401(k) and this secondary bene for ESOP and/or 401(k) or check the box for "same" and could work it all out in a logical electronic format, can one beneficiary form (actually two within one) cover 2 qualified retirement plans?  

Apparnetly in the bylaws to the condo association it says non-payment can result in a foreclosure on your property.

Has anyone approved a hardship based on a delinquent condo fee? They have the nasty collection letter from the condo associations attorneys threatening that foreclosure is one of the remedies they will pursue.

This is a first for me...

I need a little help from anyone who has some reference material from way back.  What year did the eligibility requirements drop from age 25 to 21.  In a plan termination audit by the PBGC I was asked to provide an explanation as to why someone did not enter the defined benefit plan until 4 years after their initial employment date.  I do not have census information for the early 1980's so I can only speculate that it had something to do with the change in eligibility requirements.  This individual was only 20 when he was hired.  I do not have a copy of the original plan document.

"S" corporation shareholders are wife. Husband and daughter. They opened a self directed 401k with profit sharing for the business. In lieu of making salary deferrals they want to contribute real property (land). This land will come from a  partnership which is same husband, wife  daughter ownership. How can this be done. Then they are wanting the "s" corporations match to be land that the "s" owns.  How can they make contributions without a salary deferral? How are they going to put land into three different 401k accounts? 

A TPA who is not responsible for providing payroll services sets up a 401k plan and instructs the employer more than once in writing that deferrals are taken from/come from participants' paychecks and are tax deductible.  The employer, being a thrifty sort, does her payroll herself on Quickbooks and does not indicate such to the TPA. 

A few years down the line, after making deferrals most years, she figures out that they were incorrectly contributed from her corporate account rather than from her paychecks and her accountant never deducted them on the business returns.  She also paid federal and state income taxes on her unreduced W-2s.  Now she is blaming the TPA for just assuming that she was using a professional payroll service and not specifically instructing her how to process the deferrals on Quickbooks.  The accountant, who probably put her up to this since he must now charge her to make it right, is also taking the same stance.  The TPA believes the accusations are inappropriate for various reasons, including the belief that it's on her since she decided to do her own payroll without realizing all that's involved.  I am curious as to what TPAs think about all of this and what details they usually provide on this matter during the installation process.  Thanks in advance for any assistance.     

Completing a Form 14568-D for a VCP submission. My question is, do I leave the box empty that is asking for the plan number?

I found no instructions for the Form 14568 Series.

(Instructions for the Form 8950 submission say to enter 990 as the plan number.)

A plan is transitioning into our platform from another provider.  We provided blackout notices to (mostly) everyone.  Due to a census snafu, a terminated participant was not included in the notice distribution.

Now he is calling the broker saying no one told him his money was moving.  The broker is yelling at us saying we are in violation of ERISA.  (BTW, we provide 3(16) Administration)

What is the remedy besides sending out the notice and typing up a mea culpa?

The violation isn't self-reporting is it?  Do you think we are not he hook for $131/day?

If a plan document allows forfeitures to be used to fund corrective contributions for missed deferrals and associated match, may forfeitures also be used to fund the attributable earnings on those contributions?

Took over a client - whose 5500-SFfor 2017 was filed using an incorrect EIN.  They have terminated the plan after only two years... (no money) and I assume I need to amend 2017 before I file the FINAL 5500 for 2018 using the correct EIN.  I am just wondering if I only  fix 2018 and mark as FINAL if that will be confusing to the DOL/IRS.  

Opinions?