An employer sponsors a SEP IRA. An automatic draft had been set up to have funds moved from the employer business account into the SEP IRA. The employer advised the bank to stop the draft, but the bank did not do so timely. As soon as the employer noticed the transfer, the funds were requested to be returned to the employer from the SEP IRA. This was within one week's time. The SEP investment provider is issuing a Form 1099 with a premature distribution code. While I know the employer can look to the bank for redress, I am wondering if anyone has ideas on how to or experience with the Service to request a waiver of the distribution and/or penalty for this "mistaken" contribution which was returned. Is there a correction program which addresses this type of problem? This happened more than 60 days ago. Any help is appreciated.

Does anyone know if interest must be credited to DROP money? Or is based on the plan document/agreement?

now that 5500 is basically over I will stop and post my latest version of

a report writer version for minimum distributions

this can be run globally across the board on all plans.

it will produce a separate report for each plan that has a min distribution

haven't noticed any difference between the results and Relius standard report (except no 0 min distribution show)

but of course that doesn't mean an odd exception might pop up

Min Distributions Report.rpt

Hi Folks,

I've a couple of small business clients that need a TPA but not really a TPA fee. The Solo 401(k) balances are small, perhaps $10K-$20K or so.

I was wondering if we could handle the record keeping for these smaller cases in house, and if so if there we some guidelines with regard to 'how' records should be kept?

The only glaring thing I see is the split between EE/ER contributions when the custodian doesn't track that directly, are there other things that need to be recorded on smaller plans like this, and are there any rules on how things should be recorded?

For example, would a copy of payslips showing the contributions suffice?

Lastly, what qualification or course would prepare someone for scenarios like this if professional training is recommended?

Thanks!

Matt

https://hrlaws.services.xerox.com/2016/10/18/social-security-benefits-and-taxable-wage-base-to-increase-for-2017/

Anyone know why so much? After 117,000, 118,500, 118,500 in 2014, 2015 and 2016 respectively, it jumped to $127,200 in 2017.

There is a participant who took out two loans. Loan 1 was paid off in the spring of this year. The loan payments were never stopped, and thus applied to the second loan. The participant recently noticed and would like the months of extra payments returned. Would this fall under one of the acceptable categories to take money out of the plan and return to the participant?

We had what some would consider the perfect storm for a plan of ours.

Client is a large plan (over 120 participants.) Plan year ended 9/30/15.

An employee of our TPA firm had contacted the auditor regarding the audit for the plan on 4/5/16 to see how the audit was going and if it would be ready for 4/30/16. Auditors asked us to put the plan on extension to 7/15/16. Now, here is where the breakdown begins.

The auditor working on the plan was a newbie. She finished the audit and never provided it either to her supervisor or us, the TPA. The employee in our office responsible for the plan and Form 5500 filing terminates employment and has indicated that all plan work is current. Just last week, we are contacted by the client to see why the 9/30/15 Form 5500 was not filed.

So, we are now trying to decide to either:

1. File the PYE 9/30/15 Form 5500 under DFVC Program and pay the penalty; or

2. File the PYE 9/30/15 Form 5500 with a letter of reasonable cause and hope that the letter is accepted and no penalty is assessed.

Has anyone ever filed with a reasonable cause letter and had success since EFAST came along? And If we file late and it is not accepted, can we then amend and file under DFVC Program or is DFVC no longer on the table.

Any guidance you can provide or experiences you have encountered would be greatly appreciated.

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.