What would you say is the "best" and "easiest" way to accomplish this:

Corporation "A" with two owners is dissolving, possibly with some bad blood involved. They will each form new corporations. They will essentially each take half of the existing employees. Each wants a plan.

1. Would you just terminate the existing plan and establish a new plan for each employer?

2. Would you have one employer assume the assets and liabilities of the plan previously sponsored by corporation "A" and just have one of the new employers set up a new plan?

3. Other?

I don't know that it ultimately makes a lot of difference, but somewhat cheaper administratively not to go the route of #1. However, I don't know if either employer would be willing to assume the assets and liabilities of the plan currently sponsored by "A" or not. Let's also assume no controlled group or affiliated service group will exist, so shouldn't be any "successor plan" problems, since new employers won't be the same or related employers.

part of my 'tradition' is to send goodies this time of year (Thanksgiving or Christmas) to my co-workers in the other office. I greatly appreciate their help, and my way of saying thanks (This is on my own, would never dream of being reimbursed) well, this started a running gag about cows over the last few years, because the candy is cow themed. I placed an order yesterday, and asked 'Homer' the Holstein to write the people's name on the gift boxes. of course, I forgot to include the names on the order form, so had to send a follow up e-mail with that info, and I included a 'picture' of the animal that makes the horse apple candy. so today out on their face book page, lo an behold the picture shows up. too funny.

it can be found here:

https://www.facebook.com/pages/Baraboo-Candy-Company/262846608798

if interested their actual website is

http://www.baraboocandy.com/

I like the gift boxes that include a sampling of many of the different items. they come in cute white boxes with cow spots and everything. cow pies and moo chews and udder fingers. what more could anyone ask for?

In reviewing a draft 990 for a retiree welfare plan, I learned that the prior year 990 was filed on cash basis. For 2015, we received a copy of the Financial Statement for the 5500 audit along with a cash reconciliation worksheet. On the cash reconciliation schedule, there was an account named “benefits payment redeposits” in the amount of over $4mil. I’m not sure if it should be entered on the 990 as revenue under cash method? Or it is related to any benefits accrued in prior years? Upon initial research, I learned that other organizations have listed the benefits payment redeposits as part of the plan's opening balance on the portfolio statements attached to the 990s, but I'm not sure if this amount actually entered on the Form 990 itself. The instructions to the Form 990 did not shed any light. Any help or direction is greatly appreciated!

Suppose you have corporation A, where the stock is 100% owned by Mr. Big. It manufactures fishhooks for vegetarians.

Mr. Little, who is the Controller of Corporation A, owns 100% of the stock of Corporation B. It manufactures very large frozen drink glasses for TPA's.

These are not in any way service organizations, (even though manufacturing very large frozen drink glasses for TPA's is a valuable service in my book) or related in any manner whatsoever, so there is no ASG issue.

Mr. Little has an option to buy 100% of the stock of Corporation A, if the stock price reaches $100.00 per share. Currently it is at $10.00 per share.

Due to option attribution, Mr. Little is considered as owning 100% of both corporations, so there is a controlled group. (discussion of what really constitutes an "option" is scarce, but there are a couple of old Revenue Rulings - 89-64 and 68-801)

So, finally, here's my question - just looking for opinions. If Mr. Little applies for a Private Letter Ruling, arguing that the ability to ever exercise the "option" is vanishingly small for the foreseeable future, and that he otherwise has no control, so that this ownership situation should NOT be considered a controlled group, do you have any guess or opinion on the likelihood of the success of that argument?

My guess, and obviously it is a guess only, is that it would be unsuccessful. Just trying to think outside the box.

Thoughts?

Traditional private sector DB plan. Currently QJSA is defined as J&100%S. Can the QJSA be amended to J&50%S? Or, is the QJSA an optional form subject to 411(d)(6) protection?

My non-deductible IRA has a balance of $200,000. I wish to do a Direct Rollover as follows: The $70,000 of non-deductible contributions will go into a Roth IRA and the $130,000 of earnings will go into a Traditional IRA. Is this permissible?

Thanks,

JOEL

Anyone gone through an IRS audit around PCORI fees? If so, any idea what sparked it and how broad of a review of other issues the IRS generally covers with these?

Is it possible for the termination liability in a cash balance plan to be lower than the sum of the individual hypothetical accounts?

Thanks for any responses!

Plan started termination in 2015. Owner and spouse. Could not/did not finish rollovers until well into 2016. The 2016 RMD was not taken before plan assets were finally distributed.

Can a distribution of the RMD amount that should have come out of the plan in 2016 be taken from IRA accounts to makeup the amount that should have come out of plan assets?

I have a 3% nonelective safe harbor 401(k) Plan that is terminating effective 10/31/2016. The safe harbor is to be calculated based upon compensation from January - October. This is due to a business acquisition, so safe harbor status is maintained.

There is one owner who receives Schedule C income. Safe Harbor has been deposited for the 3 non-owner employees throughout the year. The owner has taken $10,000 distributions periodically and the bookkeeper has made 3% safe harbor deposits based upon these amounts to the owner's account.

The owner's actual earned income for the year will not be determined until sometime in the first quarter of 2017, but we would like to have all assets paid by 12/31/2016 to prevent another plan year. So...how do I calculate the owner's safe harbor contribution from 1/1/2016 through 10/31/2016?

1) Treat him as having earned $0. This would be a problem because, not only did he have safe harbor deposits, but he also deferred during the year.

2) Have the CPA estimate his earned income from 1/1/2016 through 10/31/2016 and calculate the safe harbor for the owner based upon this estimate.

Any other options? Has anyone dealt with this conundrum? Thank you!

In a plan that we have recently took over, we have discovered a participant (born in 1937) died in 2005 and was not paid out by the 5th year (2010) and still has an account balance. In addition there is no beneficiary on file.

Any suggestions on how to correct this? Can someone point me in the right direction?

Thank you!

With the objective of increasing advisor relationships, we are thinking to offer the following type of promotion. Anyone done anything similar?

• $1,000 off first year tpa services for a new client which is the first client brought by a new advisor for retirement plan services to our firm

I am working with a small (under 50 FTEs) with company that sponsors a fully insured group medical plan. I was reviewing the insurance booklet and was told that is the summary plan description, but it does not contain much of what I believe would normally go into an SPD. Is a fully insured group health plan (no matter the size) required to have a plan document and/or SPD? I say no matter the size as I understand the value of a wrap plan document with 100 plus participants. If so, what is required to be contained in this plan? Thank you.

Does anyone know enough about the ADP "system" to know how to get ownership into it? I was sitting down with a prospect yesterday and sure enough, all tests show the owner and his wife as NHCEs since they haven't been over the comp threshold. I tried to explain to him that the tests were all wrong and he should at least get the info into the system so it would at least be right for this year before we take over and do it right (I got a blank stare and then 5 minutes later he asked if he should increase his contributions).

Anyway, while you expect that result when a novice is "running" their own plan, you would think that someone with 25+ years of experience could find the place to enter that info, but it all appears to be grayed out in "view only" fields.

I'm actually just whining and not expecting an answer, sorry. It's just so frustrating to see the level of questions posted here with the strong (sometime overzealous and silly!) desire to get things right, and then you think of the...thousands?...of plans with bogus reports saying "The plan PASSES the ADP test" and whatnot.

When running an amortization schedule in Relius, is there a way to specify the payment amount instead of the number of payments? I thought there used to be a way to do this, but the payment amount is grayed out. I have a participant who wants to pay $50/week. I can get close, but would like it to be exact.

The employer has an ACA. They changed payroll providers and for two payrolls the wrong definition of compensation was used when computing the elective deferrals. The payroll company did not properly take deferrals from the overtime compensation. I know this is a missed deferral opportunity correction, but would it fall under the ACA rules or the non-ACA rules? I'm referring to the correction methods in the Revenue Procedure 2015-28. I question it becuase the error wasn't directly related to the implementation of a new enrollee for ACA purposes.

2 participant plan paid out early in 2016. Valuation is end of year. Is a Sch SB needed for this year?

A client is being told that a 404© disclosure must be distributed annually. I don't think this is technically correct.

I hasten to say that I can see how procedurally, this might be done routinely, since the 404a-5 disclosures go out routinely anyway, and QDIA disclosures go out anyway, so it may just be easier to throw every disclosure into one document or package. But I don't think the 404© disclosure itself, separate from the otherwise required items, is an annual REQUIREMENT.

Am I missing something?

Plan withheld 401(k) for pay period prior to the plan document being signed due to miscommunication between the client and their broker and the TPA preparing the plan document. Is there any remedy for this other than refunding the ineligible deferrals? Is there an SCP or VCP option?

401(k) plan terminating 12/31/16. They have a Volume submitter document based on 2010 Cumulative list. We will update for everything on 2015 cumulative list, but of course there will be no 2016 Cumulative list. Can anyone think of amendments that might be required as of Termination Date that are not on the 2015 list?

Thanks.