Company A is wholly owned and owns 70% of Company B.

Company A has a safe harbor 401(k)

We administer the plan of Company A

Company B participates in a MEP sponsored by a payroll company, also a safe harbor 401(k).

Effective 11/1, Company A is severing their relationship with the payroll provider and wants out of the MEP.

If we add a joinder agreement to the existing plan of Company A, can we include the participants of Company B into the plan of Company A?

As of 11/1 or must this be done on a calendar year basis?

What are the mechanics to get this done??

If, instead of using a law firm, an employer wants to make an employee stock ownership plan by using the assembly engine of FIS (Sungard) Relius, Wolters Kluwer ftwilliam, or another documents provider, which would you choose?

Which has the most flexibility in choices of plan provisions?

If the user lacks expert knowledge of ESOPs, which has a questionnaire or input system with the best help in discerning what the employer wants?

Which provider's documents are easiest for an employer or its TPA to understand?

What other factors should I consider in helping a friend select a plan-documents provider?

Does anyone have any recent updates on reasonable cause letters? Formerly, it seemed they were pretty lenient on these, but since the implementation of E-Fast my thought is they have been less forgiving. Please let me know your experience.

Thank you.

Three companies A, B, and C.

Company A is a Plan Sponsor of a 401(k) plan.

Companies B and C are participating employers.

Company C is an LLC taxed as a partnership. Employee is a 20% owner of Company C (Limited partner or other LLC member). No compensation on line 14 A of Schedule K-1. He receives a W-2 from company B.

Would Employee be considered a highly compensated employee in the 401(k) plan for discrimination testing?

Does the DFVCP penalty calculator not take extensions into account? For example, it is calculating 79 days late for a plan year end 12/31/15 filed on 10/18/16. If an extension was filed, it is actually only 1 day late. Should the extension filing date be entered in place of the plan year end?

If there are excess annual additions during 2015 & they are not distributed until September of 2016, does a 5330 need to be filed? Person with excess annual additions is the owner/partner who had a loss for the year and should not have deferred money to the Plan.

Is this new - mortgage companies are now requiring plan documents to help secure a residential mortgage loan that has nothing to do with the 401(k) plan itself?

Initially tpa just provided the section on distributions because they wanted to know the availability of funds but they have come back to request the document in full.

We provide recordkeeping services to 2 companies that are related, but not in a control group. They each recognize service with the other company for purposes of vesting and eligibility in their respective plans.

If an Employee leaves Company A to go to work for Company B, and his 7 years of service with Company A is recognized by Company B, when will he be able to enter Company B's plan? It seems like he should be able to enter immediately on his employment at B, but I can't find anything in the document that would substantiate that. Does he have to wait until the next semi-annual entry date? The plan allows quarterly deferral changes, not sure if that makes a difference? Thanks!

Am I crazy today (mostly because it is filing deadline day )

don't the limits for the next year (2017) usually come out some time in October?

Mr Poje?!?!?

One of the selling points I've seen with 3(16) Plan Administration services, is that the 3(16) PA will sign and file the 5500, leaving the employer largely uninvolved.

In the past, if the PA and the Sponsor were the same, then the 5500 only needed to be signed in the PA spot. If they were different, then two signatures were needed.

Is that still the case in the age of e-filing? I couldn't find anything in the instructions.

If only on is needed, great! However, if both are needed if PA and Sponsor are different, does the 3(16) administrator still need to get the sponsors signature?

Company started in May 2016. Owner is only employee until September.

Is it ok to design plan excluding employee?

I seem to remember something (that I can't find) about applying most liberal eligibility requirements in first year for the/a coverage test. And since the only NHCE would be excluded I would have a problem.

Any basis in fact or did I dream that one up?

Thanks

Is it even possible that I terminate my 457b plan while still working (I am only 52 yrs old and want to keep working at my current job) and collect the money that i have already contributed to my account and just pay the normal 10% penalty (plus taxes) that I would incur as if i was to terminate a regular 401 type of plan and put my money somewhere else? Not really pleased with having my money in the 457b. Thanks!

A small plan form 5500 (exempt from audit) was filed with DOL for a newly established plan.

But later a client internal auditor found out there were misreporting on the employee/participant payroll data.

As a result, the participant count for this new plan found to be more than 100.

Can this error simply be corrected by amending & filing a large plan form 5500 with audit report?

I would like to hear the opinion of anyone who had the similar issue.

Hi all,

Total newbie here wondering why Turbo Tax is limiting my contributions for myself.

I am self-employed with a safe harbor qualified plan in place for myself and employees; not a SEP or SIMPLE plan. I thought I should be able to contribute at least the maximum $18,000 salary deferral plus the $6,000 catch-up amount (yes, I'm old). But Turbo Tax runs some calculations on a worksheet that decrease the amount somewhat.

I checked the IRS Pub 560. It refers to a "Deduction Worksheet for Self-Employed" and states it is "only supposed to be used for self-employed". Do I fit that definition? I'm afraid I'm lost.

Any suggestions would be appreciated.

What is everyone's position about doing this? Pretty commonly accepted process. See the attached link from an ASPPA article:
https://www.asppa.org/News/Article/ArticleID/5554

The audit will be done soon, just not by Monday.

It appears that extra vacation time can be purchased on a pre-tax basis via a cafeteria plan (subject to rules about use of non-elective vacation days first, no rollover of unused purchased days, etc).

However, can vacation be purchased on a pre-tax basis outside of a cafeteria plan? If it can be, what's the point of doing so inside a cafeteria plan?

I tried to read as much as I can on this forum about what to do when the audit report is not available to attach.

Some practitioner, mentioned about attaching a pdf file with a statement stating 'audit report is not available at the time of filing'. Later, they will go back and amend the filing. I even heard someone saying you are allowed to do so but needs to amend the plan within 45 days and attache the audit report.

I also know that on Form 5500 Schedule H there is an option that states

"d The opinion of an independent qualified public accountant is not attached because:

(2) It will be attached to the next Form 5500 pursuant to 29 CFR 2520.104-50"

Can I use this option If Audit report is not ready for initial plan year?

What are the things I need to know about using this option.

I would appreciate if anyone share me their opinions.

If Audit report is not ready for initial plan year, can I use the option

On Form 5500 Schedule H there is an option that states

"d The opinion of an independent qualified public accountant is not attached because:

(2) It will be attached to the next Form 5500 pursuant to 29 CFR 2520.104-50"

Takeover plan. Plan effective 12/1/1956. However, the 5500's have always listed the effective date as 5/1/1956. Should this be corrected going forward? Will correcting this cause the IRS to request that all of the past 5500's be amended?

Thanks for any responses!

A plan's administrator is pulling together its disclosure under 29 C.F.R. 2550.404a-5. Looking toward the plan year that begins with January 2017, the administrator will send a set of plan communications (some of which meet a 30 days' notice condition) by November 2016, and include in that set a 404a-5 disclosure.

In that disclosure, must the investment alternatives' past-performance information be for the 1-, 5-, and 10-calendar-year periods ended December 31, 2015?

Or may the past-performance information be for the 1-, 5-, and 10-year periods ended September 30, 2016?

What's the deadline for making a profit sharing plan contribution for a calendar year plan for a nonprofit org? Is it the same as for profits?