Anyone else having issues with the EFAST system?  I had a client that has been trying to sign this 5500 since late yesterday afternoon but continues to receive a message saying

"ERISA Filing - Technical Difficulties - We're sorry but we are experiencing technical difficulties.  Please try back later."

I'm trying to determine whether stock held by an IRA is attributable to the owner for purposes of the controlled group rules.  So, for example, if I own 100% of Company A, and my IRA owns 100% of Company B, am I deemed to own 100% of Company B, such that A and B are in a brother/sister controlled group?

I know the answer is "yes" in the context of a qualified plan (based upon the language in 414(b) stating that 1563(e)(3)(C) doesn't apply).  However, I have not been able to find a discussion of the application of these rules to IRAs anywhere.  From a policy standpoint, the case for attribution would seem to be even more compelling in the IRA context, given that there's always going to be a single individual who owns the entire account.

I find it hard to believe that this issue hasn't been addressed, and I assume I'm missing something obvious.   

Employer has self-insured health plan administered by large national insurer providing administrative services only. Plan document contains very broad, expansive "latest and greatest" subrogation provisions provided by ASO provider.  Employee / participant was injured in auto accident more than a year ago.  About a year ago, participant's lawyer wrote employer inquiring about plan sponsor / employer's willingness to waive subrogation rights under the plan or possibly agree to reduced subrogation amounts.  Lawyer also requested usual host of plan documents per ERISA.  Employer / Plan Sponsor did not respond or provide any plan documents.  Participant's lawyer has surfaced again noting they have negotiated settlement and are ready to disburse proceeds.  Lawyer reminded employer of its failure to provide documents per ERISA and the potential penalties that have now accrued.  Lawyer is pushing for immediate answer from employer on follow-up request to waive all subrogation rights (or settling for about 1/15th of value) in exchange for agreeing not to report plan's failures to provide plan documents.  The overall subrogation amounts at issue here are not that great. 

Employer freely admits it ignored all requests to provide documents.  Can the employer (as plan sponsor and ultimate ERISA plan administrator) agree to simply waive pursuing subrogation here without giving rise to a possible fiduciary breach or other potential exposure?  Any suggestions on how to negotiate and limit possible exposure to employer?

Client initiated a standard termination of a 403b then filed for bankruptcy last week.  NOPBs were sent out earlier and many participants chose lump sum payments.  Some were paid out before the filing, others made requests (8 requests) but no payouts have been made on those yet prior to the bankruptcy filing. 

Do the lump sum payouts have to end on bankruptcy filing? or can the lump sum payouts still be made if over 80% funded?

A small company just started a 401-k last year and has less than $10,000 in assets as of the end of the plan year.  Are they required to file a form 5500?  (is there a minimum asset level)?

So, Employer A acquires Employer B mid-year. Employer A sponsors a safe harbor 3% 401(k) plan. Employer A credits all service with Employer B for all purposes. The result is that all employees of Employer B are immediately eligible.

What gets strange is that Employer A calculates and deposits the 3% SH each payroll (not by document provision, just by administrative choice). But for the former Employer B employees, not intentionally but through administrative error, the 3% was not deposited until after the end of 2023. (They corrected this for 2024, and everybody gets the deposit each payroll.)

The difference, due to the relative number of employees, would easily pass either a 70% test, or a benefits/rights/features test. Document doesn't specify a particular timing requirement. Yet I can't shake the feeling I'm missing something. Any thoughts on this?

Is there a DFVCP fee for a late 5500 filing that has no assets or lives ?

I have a PEP with a Dec 2022 effective date.  However, no plans joined the PEP until 2023.

Thanks!

I have a plan that allows forced cash distributions for balances less than $1,000.  FTW document.

Participant terminated and took a distribution earlier this year, well over $1,000. 

She was entitled to a small profit sharing from 2023.   Her balance is less than $1,000.

Can I force her out?   Even though at one point it was over $1,000.

I really thought i read, i could but i can not find anything definite.

Thank you!

Plan name:  ABC Corp 401k Plan

Employer on plan doc:  DEF Industries, Inc, d/b/a ABC Corp

Plan Sponsor on 5500:  ABC Corp

is it ok to just list the d/b/a as the Employer

Is it possible to designate a beneficiary with a specific dollar amount?  For example, the primary beneficiaries are two children who each get $100,000, then the rest goes to the spouse?  Realizing that spousal consent would be required, but I've never seen anything other than percentages used.  In the instance for which this is being asked the account balance is well beyond the dollar amount alloted.  Thanks very much.

Multiple ER 401(k) with a 1/1 plan year has 8 adopting employers.

• Employers 1, 2, 3 & 4 are all part of the same controlled group and are tested together in what we'll call plan "A".
• Employers 5, 6, 7 & 8 are all part of the same controlled group (and all unrelated to employers 1, 2, 3 & 4) and are tested together in what we'll call plan "B".
• The MEP uses the prior year testing method.
• The 2022 NHCE ADP average for plan "A" was 3.5%
• The 2022 NHCE ADP average for plan "B" was 4.1%

In February of 2023, ownership changes occur and employer 8 moves from plan "B" to plan "A". So as of 2/1/2023, Employer 8 is no longer related to employers 5, 6 & 7. They are, however, now related to employers 1, 2, 3 & 4. Therefore, 1/1/2023 to 12/31/2023 ADP testing looks like this:

• Plan "A" consists of employers 1, 2, 3, 4 & 8
• Plan "B" consists of employers 5, 6 & 7

How does each plan determine the prior year averages on the 2023 test? Am I correct in saying that each plan only has 1 prior year subgroup, and therefore 3.5% will be used as the prior year average for plan "A", and 4.1% would be used for plan "B"? 

For a PEP with less than 100 account balances, they are allowed to file the 5500-SF, correct ?   I am getting push back that they must file Form 5500 with Schedule I.

Thoughts  ?

I'm trying to close out the plan as the company went out of business last year. It has no assets at this time. We normally file a form 5500 and schedule I every year but this year I'm getting an error saying to use the 5500 EZ. I'm assuming it's because the plan as $0 assets so we don't need the schedule I anymore thus a 5500 EZ. Is that correct? 

for example: calculating a 2024 RMD using the accrued benefit on EOY 2023 valuation (small plan)

NRA in plan document is 62

the owner is 74 in 2024 and is active in the plan (still working at the company)

when calculating the APR, 

1. use 2023 mortality table, and

2. post retirement actuarial equivalent interest rate

I'd like to confirm if the 1 and 2 assumptions above are correct, and see if there are any regs about these assumption determinations. another question is if the plan actuarial equivalence mortality table is 94 GAR, do we need to use 94 GAR for all RMD cals or we should use the 2023 mortality table when using the accrued benefit on 2023 valuation? Thanks in advance.

Trust owns s corp.

The pres and sec of the s corp are the beneficiaries of the trust.

Are they therefore considered owners of the s corp and therefore they ate HCEs irregardless of their salaries being only 100K? Thank you!

If forgot to answer the new compliance question number 12 re the preaproved document letter serial number..CAN it be written in ...as EZ are mailed and not scanned? Thank you

The extension applies now to ALL of Florida (all counties). See https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

We have a client that has been chronically late with their contributions in the past few years (all of the interest is being paid in '24).  On Schedule I Question 4a, what would be included:

- Would it be just the contributions for the current year?
- Would it be all contributions for the prior year(s) where interest had not yet been paid?

I believe it's the second one, even though the contributions had been paid in the year.  Since the participants had not yet been made whole, all contributions should be included.  I just wanted to confirm.

Thank you!

Is there anything special to do to file a Form 5500 for a Frozen Cash Balance Plan?  It is fully funded (assets exceed the liabilities)

OR do we just file it with no contribution requirements for the year?

Does anyone know if the "high 25" rule (certain distribution restrictions to HCEs in a DB Plan) applies to a collectively bargained plan? I have an actuary who is suggesting it does not apply but am not finding any authority for that.