So how do you deal with this? According to Sal, these guaranteed payments, under some circumstances, ARE taken into account in computing net earnings from self-employment. Most calculations I've ever seen just use the K-1 Line 14 amount, minus 179, unreimbursed partnership expenses, oil & gas depletion.

Because these amounts are "taken into account" - does that mean the CPA has factored them in already, if applicable, when arriving at the Line 14 number?

These are often pretty large amounts.

Plan year runs from July 1, 2015 - June 30, 2016. Plan has a profit sharing allocation of 5% to all participants, no allocation conditions.

Participant earns $30,000 from July 1, 2015 - December 31, 2015. 

Participant earns $1,000 from January 1, 2016 - June 30, 2016. Participant terminated employment January 30, 2016.

Profit sharing allocation is $1,550 (5% of 31,000). Participant makes no deferrals. The profit sharing allocation is deposited in September 2016.

How does the 415 limit work in fiscal plan years? TPA is processing a 415 failure of $550 and I am trying to understand how this works in conjunction with a pro-rata profit sharing formula.

Thank you

Our plan documents have the last day of the plan year written in.

We have a plan that ends Feb 28.

What do we do in leap years?  The doc says Feb. 28, not "last day of February."

Do the regs address this?

Where can I find a write-up on when a SH contribution is missed, when are we required to do the ADP test?  Is it in the EOB?

I have a plan where, for whatever reason, the ER did not deposit a SH for two people.  They did it for the other dozen or so participants.  Do I have to do an ADP test for 2014 and 2015?  And still have the ER make the SH contribution.

What if it was for an entire population for a year?  What if it's just a true-up that was missed for the plan/a few participants?

I don't think I've ever sat down and read an clear, concise procedure for

Solo 401(K) Plan, 2 separate businesses and both have adopted the plan   Spouse is on payroll in one business and is the only employee.  The other business has no employees.  In past years, we have utilized the Schedule C income from both businesses for purposes of calculating the employer contribution for the owner.  So this year, Business A has a loss of 30K and Business B has a profit of 50K.  My guess is that we need to net the 2 businesses for income of 20K as the earned income for the owner since both companies have adopted the plan.  Can anyone confirm this? The plan sponsor business with the spouse as the employee is the business showing the loss.  

Company X maintains a defined benefit plan with a traditional formula based on final average compensation.  Participant A has completed 32 years of service with X and is within months of reaching age 65, the plan's normal retirement age.  Can A file a disclaimer with the Company X plan administrator and therefore give up his/her right to receive benefits under the Plan?  Is the disclaimer rule available only to beneficiaries and not to participants?  Why or why not?         

a one participant start up DB plan that will contain life insurance....advisor is asking for a trust ein. I don't think it's necessary.  Is it?

Employer is a restaurant with several locations.  They will  be making some major fund changes to the plan.

Mailing fund change notices is a big issue, so the client wants to post the notice on their new intranet system. The intranet will be used to post company news and for training.

 All employees will have access to the intranet while at work.

The way I read the electronic delivery rule, the  participant must have access to the information through a work site computer kiosk, even if not at their desk, 

Will posting to the intranet satisfy the electronic distribution rules?

I have two plans that are a controlled group.    Both plans have deferral and match.   If they pass 410b testing, can I test the two plans separately for ADP/ACP testing?     Thank you, panic mode time here........

Forgive what may be an elementary question. A participant in a 457(f) plan had a substantial risk of forfeiture lapse. Normally, this plan is a vest-and-pay plan to conform to the 409A short term deferral rule, so any amounts subject to SROF in year 1 are paid out no later than 3/15 of year 2. The sole participant in the plan had a substantial risk of forfeiture lapse in Y1 but the amount was not paid out at all due to administrative error.

My understanding is the amount that should have been paid in Y1 (or no later than 3/15/Y2) would have the following treatment:

1. Entity issues a revised W-2 for 2015 showing the late payment amount
2. Participant files revised 1040 showing same and pays:
   1. Interest on late payment
   2. Underpayment rate plus 1% (per Prop. Treas. Reg. 1.409A-4(d)
   3. Excise tax of 20% (per Prop. Treas. Reg. 1.409A-4(c))

Does this all seem right? Am I missing anything? 

Sec. 403(c)(2)(C) of ERISA permits the return of a contribution made by an employer if the contribution was made on the condition that it was deductible.

If a business owner makes a contribution in 2016 based on what he thought his income would be and then the income is less making the contribution non-deductible, can the contribution be returned without any reversion tax?

Can an individual age 50 have a 457(b) deposit of $24,000 in that plan as well as in a 403(b) plan?

Thanks

Working on an s-corp where the two owners deferred $25K in 2016.  They are both over age 50, so they'll get $1K (+ earnings) refunded by 4/15/17.  Fine.

This plan also has an integrated profit sharing that they like to max out.  I know that these excess deferrals would count in the ADP Test (if the plan wasn't a safe harbor 3%), but could they affect the profit sharing?  Do they count towards their individual 415 limits?

Thanks.

How do we correct the situation where the plan sent out QDIA notices, but people were not defaulted to the QDIA. Instead, people were defaulted to a fixed fund.

What do we have to do to correct this?  Thanks!!

Participant's last day of employment is ON 12/31/2016.  He worked ALL DAY 12/31/2016.   He is 74.

When is his first RMD due?

Discuss!

Is there a deadline for a nonprofit to make an employer contribution?

Specifically, if a calendar year plan files their 5500 prior to July 31st but they also have an extension (5558 was filed timely), when is the deadline for the SAR?  Everything I've read says two months after the filing deadline including extension.  Does that give the plan sponsor until December 15th to distribute the SAR?  Many of my clients include the SAR in the annual filings even if they have filed before July 31st.  Thanks!

Can someone give me more details about calculating refunds for a takeover plan when the prior provider will not provide earnings information for HCE subject to refund?  I know there is a provision that the refunds can be calculated on the time the assets were deposited to the new recordkeeper and projected to an annual rate.  I'm just having trouble finding the source.  Thank you.

Just curious as to how people generally handle this in real life. Suppose you have Corporation A, which sponsors a plan. Plan passes all testing just fine, and employer doesn't want any changes whatsoever.

Owner is also 100% owner of Corporation B. No employees other than the owner. No Plan, and doesn't want to adopt Plan of Corporation A as a participating employer. Assume document properly reflects existence of CG, but related employer (Corp B) doesn't adopt the Plan of Corp A  as a participating employer.

Although you technically have to consider compensation for the owner from Corporation B for 415 comp, nondiscrimination testing, etc. - would you bother to ask for it, particularly if the employer doesn't really want to give it? Since it could only HELP passing testing, which already passes, would you ignore?

Assumption:  All participants except HCE's terminated employment 2/28/17.    (Company Bought out - new company took employees and business, but not plan or corporation)

Existing Corp will continue until 12/31 as owner finalizes everything.

Owner wants to make PS contribution for the year.

Owner already put in $24,000 deferral - So cannot terminate plan as of 2/28 due to 415 limits.

Assuming the NHCE's compensation is $110,000 for 2 month year they worked.  5% (SH and GW) is $5,500

Owner anticipates Compensation to be around $50,000 for him.

If we continue the plan until 9/30.

415 Limit would be 54,000 x 9/12=$40,500

HCE max  ER contribution would be $40,500-$18,000 =$22,500

Maximum Contribution limit = .25 * (110,000 +50000) = $40,000

$5,500 +$22,500 =$28,000.

If we can pass Average Benefits Test - is there anything else I am missing?

I want to try to terminate the plan before 12/31 so that participants can get paid out before year end.