Does $25 per day late penalty include weekends?

My boss gave me an adoption agreement to review for a possible new client. This was an individually designed document. I don't believe that a determination letter was ever acquired. The document was done in 2009 with an amendment to add safe harbor in 2010.

There was stuff in this adoption agreement that made me want to run away. I was not comfortable with some of the language. I asked if there was a new adoption agreement that was restated to the PPA,etc.

The response was he added in the PPA language when he amended the plan for safe harbor in 2010. He stated that since it was only a few sentences, the TPA would have a hard time finding the PPA provisions within the document unless the TPA actually drafts documents and knew where to look.Hence,

That was 6 years ago. Shouldn't the document have been restated again? Should I have reason to worry other than it makes me want to run away?

Please confirm the compensation earned from all members of a controlled group of businesses is aggregated for purposes of allocation, coverage, ABT and General Testing.

Facts:

LLC (single member, taxed as S-Corp) sponsors a Safe Harbor 401k with Discret PS features. The LLC controls all plan provisions. There are several nonHCE covered by the Plan in addition to the "owner"

C-Corp (owned by same person who is Member of LLC) adopted the LLC's Plan, follows the LLC's provisions as stipulated, is a "participating employer."

Suppose for this question the LLC Member's elig compensation is $50,000 and his/her C-Corp is $100,000. Total earnings $150,000.

1. Is compensation for purposes of SHM $150,000, irrespective of which source of income (LLC or Corp) it was deferred from, meaning if the 401k deferral is deferred from the LLC source, wouldnt you still determine the SHM on the aggregate of both compensation sources? In this instance, the SHM w b $6,000...
2. Further if the Corp fails to contribute its proportionate share of the SHM, the LLC will (be forced to contribute it to satisfy the SH) and can deduct it?
3. Is compensation for purposes of the PS allocation $150,000? Deducted by entity who contributes it, correct (Same as above)?
4. Further if the Corp fails to contribute its proportionate share of the PS, the LLC will (be forced to do so) and can deduct it (subj to 25% limitation)?
5. For purposes of the ABT and Rate Group testing, the aggregate compensation is used for the Accrual Rates, correct?
6. For determination of HCE status, aggreg is used?
7. Each entity tests based on its compensation for 25% deduction limitation?

Thank you

If an individual has exhausted FMLA leave but remains out on an unpaid leave of absence as a reasonable accommodation under the ADA, is the individual legally entitled to continued coverage under the employer's group health plan?

I know that under the FMLA an employee is entitled to continued group health plan coverage for the FMLA period under the FMLA / COBRA rules. I have not found clear guidance, however, whether a similar legal requirement exists for those out on leave as a reasonable accommodation under the ADA. I see discussions suggesting that once FMLA has been exhausted, the right to guaranteed or protected health coverage generally ends suggesting that ADA leave is not necessarily protected. There are, however, other references to EEOC guidance that say health coverage should continue to be provided during ADA leave if the employer normally provides continued health coverage in other similar leave situations. In this case the employer does not have other similar leaves or generally provide continued health plan coverage but it's unclear to me whether the EEOC thinks the ADA requires continued plan coverage or not.

I understand that group health plans might provide for continued coverage for individuals out on ADA leave or on STD or LTD following exhaustion of FMLA but our question is whether there is a strict legal obligation / requirement for providing such coverage beyond the FMLA (rather than merely whether an employer might negotiate and arrange for such continued coverage as a policy matter).

CFO has been W2 for years & has a loan outstanding, now he's switching to 1099. Company wants to withhold & keep making his repayments, but 1099 Employees aren't eligible for the Plan. What would your answer be?

Non QJSA 403(b) spousal waiver for beneficiary - Participant found on line where she does not need spousal waiver if Husband is 50% beneficiary. Is this correct? If this is not right, where can I find in writing the rest of the story?

Non QJSA 401(k) spousal waiver for beneficiary - Participant found on line where she does not need spousal waiver if Husband is 50% beneficiary. Is this correct? If this is not right, where can I find in writing the rest of the story?

I have a plan who uses their accountant to do all payroll functions, including the 401k deposits. In 2014, he reduced a participant's deferral amount so he wouldn't go over the limit. In 2015, he forgot to raise it. In 2016, the participant noticed that he had only deferred $2,400 in 2015 instead of $18,000. The participant never checked his paystub, his investment house statements, or his bank account. Is this a situation where the participant is owed a QNEC? The argument could be made it was on him to notice that the deferrals were never raised.The accountant never notified the participant he was going to do this in the first place. It also affected his Safe Harbor match amount, of course.

Thanks in advance!

We have mostly plans on platforms where distributions and withholding are taken care of for the client. However, I have one client who is with a broker, who does none of that for him. He recently had a terminated participant request a cash distribution. I instructed them to withhold the 20% - now he is asking me what he does with it.

Am I correct in telling him to go to a bank, get a deposit coupon and mark 945 on the coupon and make the deposit (much like a 941 deposit).

Thanks for input.

If the due date for a Summary Annual Report falls on a weekend does the due date bump to Monday after the due date? Not having much luck finding an answer on this. Thanks.

I have a terminated calendar plan with the final short plan year ending October 31, 2016 and the plan needs an audit report. The Accountant who will perform the audit has asked that I file an extension to give him until August 15, 2017.

My question is...can I file a 5558 now? Will it create a "flag" in the IRS system because the plan year end would normally be 12/31/2016?

There is a place on the 5558 to mark if it is for the first return filing, but I'm seeing nothing if it is for the final filing.

thanks in advance!

this post has been deleted.

Q. How many people work at your company.

A. About half.

I've talked to a particular client so much about their automatic enrollment errors that I'm not sure which way is up any more. Eligibility is age 18 with 1 month of service. Plan entry is immediately upon completion of the eligibility requirements.

The client's payroll service is telling them that means the first pay period that ends after one month of employment. (example, DOH 9/10, pay period end 10/22, first eligible paycheck date 10/28)

I always understood it was the first paycheck that occurs after one month of employment. (example, DOH 9/10, pay period end 10/8, first eligible paycheck date 10/14)

Is there some flexibility in which way it is calculated so long as they are consistent?Is there a reference that I can provide to settle it?

Under 404(o), the cushion can include increases in FT due to expected increases in comp. If a first-year DB owner-only plan sponsor tells me that his 2016 compensation will be 100,000 but is certain that he/she will earn more in 2017 and later years, is it unreasonable to assume a higher comp limit and thus value a benefit greater than 10,000/yr comp limit for the tax max cushion? Say he's age 45 and NRA is 62. I'm thinking a reasonable approach is to assume 3% salary scale and use 100,000 * 1.03^17 / 10 / 12 =~ 1650 benefit adding 650 to the cushion benefit. Of course, warn the sponsor of the risk of overfunding. What if he's age 62 and starting a DB...how aggressive can we be with the sponsor's assurance of higher comp? Is there any other discussion or guidance I can lean on here?

I have an employer who insists on maintaining a one year wait for eligibility in his plan, but in order to attract an incredible salesman who wants to defer, he would like to waive the requirement for him .... saying it would be a one time exception. Does anyone have a good list of reasons not to do this (other than water cooler talk)? He wants to just let him in to defer and not receive the employer contributions until he is otherwise eligible.

Thanks.

I happened to find the following item that I posted in a "Humor" conversation back in 2014. How could I have foreseen the horror that awaited (actually, since the Red Sox choked in the playoffs this year, I'm glad the long-suffering Cubbies won).

But just wait 'till next year!!!

"What's a Cubs fan? I thought the last big asteroid strike made them extinct."

Currently we have a PPO H&W Plan with fairly generous H&W benefits. We are thinking about offering a new consumer directed high deductible health plan with an HSA but just for new hires.

Does anyone see any issues with this?

Thanks

Lexy

Hello all,

I am hoping you can settle a disagreement I am having with a few people inside my office. We have a client that is a Safe Harbor 3% for 2016, and has distributed the SH Notice for the 2017 plan year (they did so by November 30, 2016).

However, now the client would like to change to a Safe Harbor Match for 2017. Can the plan be amended for 2017 now, even though the 2017 safe harbor notice has been distributed?

Part 2 to that question, suppose a notice had NOT been distributed for 2017. Aside from an operational failure, does that change the answer above?

Thanks

An employer has a large amount of heath FSA forfeitures on its books. Can it use these forfeitures to pay for TPA expenses for the health FSA that were incurred in years prior to the year in which the forfeiture relates. For instance, can it use 2016 forfeitures to pay (in effect, reimbursing itself) for administrative expenses incurred in, for example 2010?