I would be truly grateful if someone could confirm that the following are affiliated service groups.

Hospital Company has agreed to hire as employees, all the members of Doctors Company who will primarily/exclusively perform services for Hospital Company and will be highly compensated by Hospital Company. There is no common ownership between Hospital Company and Doctors Company.

Hospital Company is a FSO and Doctors Company is a B-Org, despite the lack of common ownership, correct?

I really appreciate any help provided!

We have a 401(k) with matching.  Participants must work for 18 months before being eligible for matching, and vesting is immediate.

For testing purposes, we want to allow non-HCEs to be immediately eligible in their first 18 months with 3 year cliff vesting and we want to make this effective as of 1/1/17.  Can we do this?

Three dentists share office space and some of the employees.  Each sponsor a retirement plan, all of the same type, which were established about 10 years ago.

At that time we were advised by a retirement plan consulting firm that these are “shared employees” that would have to be included in the plan of the particular employer if they worked an aggregate of 1000 hours between the different employers; and would have to receive contribution from each plan based on W-2 received from each of different employers.They quoted an old RevRule from 1973 as the only guidance IRS has issued on the subject of “shared employees.”

About a year ago, one of the dentists left the group, moved his office to another location but within the same city.  He continues to employee maybe 1-2 employes of the original group, but only for 1-2 days per week, which is really irrelevant at this point.

Even if one employee is no longer a “shared employee” for the original group who share the office space as well as the employees, we believe that since one of the employees is a participant in this one dentist’s plan and regardless of the number of hours she works for this one particular dentist of whom I am speaking, she must continue as participant in this plan and can not be excluded if she works less than 1,000 hours or employed on the last day any plan year as the plan is definitely TH.

Any employee this dentist hires that works solely for him, there is no doubt, this employee is subject only to this one dentist’s plan eligibilty.

Concurrance?

provisions,etc.

Can I simply transfer the deceased spouse's account to the surviving spouse's account in the Plan? Would it be a rollover?  Should I separately account for it to ensure the 10% penalty applies.

Perhaps more importantly must the balance leave the Plan within 5 years due to RMD rules (participant was under 70.5 when she died).

403b covers HCEs and 401k covers NHCE's.  Do people agree that I cannot include the special 403b catch-up rule in the 403b plan because that would be a discriminatory benfit, right, feature?

I'm pretty sure it would be but thought I would check.

We have a solo-k plan with plan sponsor Y.  Sole-proprietor decided to end his business, Y, this year and establishes a new business Z in the same year.  Sole-proprietor would like to establish a plan for business Z.  Is this ok?  In my gut, I say 'yes',  as an owner of multiple companies can sponsor plans for each company if they want within the regulations.  It is the sole-proprietor that is throwing me.

Essentially have a father/son medical practice.  Father owns 100% and is taxed as a sole proprietor.  Son has been practicing at the business for years as an employee.  Multiple CPAs have advised them that the son should incorporate and work for the father as a contractor.  They have advised them that one of the benefits  is that the son  can set up his own 401(k).

Am Is missing something?  Even if they could assert that the son is no longer an employee I don't see how they get around the related group issues.

Thanks for any guidance.

Hello,

Found this site while googling for my scenario and seems people here know what they're talking about.

Had a Self-Employed Plan for my LLC (no employees) with Vanguard for past 4 years, over 50, making max contributions.

While talking to Fidelity after opening plan with Vanguard, they suggested I open another plan with them to take advantage of "brokerage' feature in their plan (Vanguard did not provide that). So I opened another plan with them - 002, Vanguard was 001.

Now, I'm told that with the 002 plan assets exceeding the limit I need to file 5500 next year. Do I need to file 5500 for both 001 and 002 or just 002 where assets have exceeded the limit?

In order to make my life simple, I'd like to close the 001-Vanguard plan, move everything to Fidelity since after an initial contribution to vanguard when I first opened the plan I've been making contributions only to Fidelity-002 plan.

Could someone please let me know what is the best way to do this and what paperwork other than 5500 (termination of plan) do I need since there are no employees, just myself?

Thanks for the assistance.

Hi,

A current payroll client had expressed interest in setting up a 401k plan. On the way out of the meeting, they casually mentioned to the salesperson that they currently have a 403(b) plan. They are a church organization. They said that they had no plan document, etc. I have never worked on a 403(b) plan so don;t know too much about them. I do know after checking on the payroll system that there is an ER contribution.

Can they have a 401k plan as well? What happens with the 403(b) plan? 

I am totally in need of guidance!

Employer A merges with employer B. Employer B gives stock in B to A in exchange for all of the stock in A.  (i would say this is treated like a stock sale).  Employer A never terminated its plan. A wants to terminate its plan so the owner can do a rollover. Typically since B now owns the stock in A it would decide what to do with A’s Plan. However, our plan has a provision which says that if the employer is acquired and the new employer doesn’t continue to the plan then the plan terminates automatically.  B would eventually want to start a new plan (maybe next year) but they haven’t done so yet leaving A’s plan alone for the moment. 

Can the owners of A rely on that provision in their plan to pay their plan out rather than be forced to merge it with B’s future Plan or relinquish control of its plan to B? 

QSLOB company -  do we count hours for satisfying the 1,000 hour requirement for discretionary non-elective after he transferred to main company during the plan year?

We have a client who established a SEP with Schwab in 2007 using their protoype documents.

In 2016 they opened SEP IRA accounts with TDA and transferred all their Schwab dollars to TDA.  They also made a contribution in 2016 directly to the TDA accounts. They did not update the documents of the plan.

Is there a problem with using Schwab protoype documents, but opening and contributing directly to TDA accounts without re-stating the plan?

Formula for determining earnings on refunds is earnings * excess/(Beginning balance plus contributions for the plan year).  What does contributions for the plan year mean?  Does it have to recognize all contributions including receivables?  If not, why not?

We have a client that has purchased the assets of another company with a chain of retail stores.  The purchasee maintained a 401k.  The new owner established a new 401k  as sponsor, with eligibility waived as of the effective date for those hired prior to effective date of new plan.

Technically, there are over 100 participants as of the first day of the initial plan year.  An IAR would follow in year#2 as per question on Form 5500.

According to instructions form 5500, the initial plan year would show 0 participants at beginning of the initial year and, of course, initial year would be marked.

CPA seems to think show actual # participants who would be eligible to enter plan 1/1.  Would’t this create a warning with EFTPS and a letter or notice be generated from IRS?

Suggestions?

Is there a threshold for not going through EFTPS and instead mailing  withheld amount to IRS with 945-V.  Form 945 under $2500 does not require dates of payment.

Hello,

A new member and would like to thank all contributors here on this forum. Have been going over some posts and found them to be very informative.

My question:

I have a sole prop (and a Self-employed 401k plan with Fidelity) for the past few years.

Earlier this year I've created a new entity - A 'S' corp and "gradually" moved all contracts to that 'S' corp. 

The sole prop will be out of existence after this year.

My understanding is that I can use my existing Sole Prop 401k plan with my 'S' corp. I need to change the Sponsor name and EIN on 5500SF and that would work.

Does anyone see any issue with this? OR

Is it better to create a brand new plan under new 'S' corp and transfer assets from my Sole prop 401k plan to the new plan and then terminate the old plan?

Thank you for your assistance.

I have 2 companies that have a multiple employer plan. 

My question has to do with the compensation for the owner. I have an owner who owns 100% of Company A and 50% of Company B. This owner receives W2 compensation from both companies. I am wondering how I actually test the plan?

Do I have this owner in both companies' separate testings and give them an allocation in both? (They want to do the max) Or am i allowed to aggregate the compensation and only have the owner in one company's testing? I am leaning toward the first way as I feel they do need to be tested under each employer, but I cannot find a definitive answer anywhere.  

I do know that the 415 limit is based on the compensation the owner receives from both employers. 

The FIRE Production System will be down from 6 p.m. ET December 8, 2017, through January 7, 2018, for yearly updates. A controlled launch is scheduled for January 8-10, 2018, from 8 a.m. ET to 4 p.m. ET. The FIRE Production System will be available on January 16, 2018. An alert will be posted on the FIRE webpage if the system is available prior to January 16, 2018.

Company is starting a calendar non-safe harbor 401k plan, document to be signed 11/15/17.  The plan is effective retroactively to 1/1/17.  401k is effective 11/15/17.  415 limits therefore are not prorated.  We will use current year testing.

The owners, due to December bonuses, could deposit $10K+ in 401(k) contributions before end of 2017. Giving them a high ADR.  The NHCEs would not be that high.

A QNEC is being considered, which will cost $$$, but the question is whether the QNEC uses full year compensation as a basis or just the compensation from 11/15-12/31?  This would obviously make a big difference in the QNEC.  Hoping that 11/15-12/31 can be used.

Thanks for any comments

'

COBRA is outrageously priced.  Are there any associations (in Arizona or nationally) for Arizona retired primary and secondary teachers that offer a reasonably priced group Health Care Plan?  Most primary and secondary teachers retire at age 52 and have to wait 13+ years for Medicare eligability.  Any one with a lead for these people?