We have just acquired a client that has a safe harbor retirement plan.

We were told that one of the doctors elected to "opt out" of the plan back in 2008.

The doctor is now wanting to participate in the plan. The plan administrator has changed and cannot find a signed copy of the election form reflecting the "opt out".

The prior TPA and prior investment advisor do not have copies of the signed "opt out".

What would your thoughts be on allowing him to participate if a signed document cannot be provided showing his election to "Opt Out"?

At the same time, the plan is a safe harbor plan with a non-elective contribution.

If the doctor were allowed to participate at this time, would the employer be responsible for going back and giving him his share of the safe harbor non-elective contributions for the past years?

I would appreciate your input on this issue. Thank You

Don't have all the facts yet, so certain assumptions are being made.

A new one to me - plan restated for PPA, and included a provision for Roth deferrals. SPD's, etc., apparently were properly distributed to employees.

The Employer, without telling the TPA or anyone as far as known at this point, decided, a couple of months after adopting the document, that they didn't want to offer Roth after all. So they apparently did a corporate resolution to this effect, but didn't amend plan, nor did they inform participants.

Not known yet if the deferral election forms said Roth was permitted - haven't seen one yet.

Assuming the deferral election forms DID offer Roth, and no one elected Roth, then no worries, just amend the plan currently.

If the election forms did NOT offer Roth, how does one correct? I don't see any reasonable option other than to submit a VCP application with a retroactive amendment to conform the document to actual plan operation.

Any other thoughts? Anyone run into this before? Thanks.

Question... In recording a plan receivable for a 09/30 plan, do you use payroll period ending or paydate as cut off for plan receivable? I,e. We have a payroll period ending 9/25 but paid to employees (withheld) 10/2. Would that be considered receivable at 9/30 because the period ended within the plan year or not considered receivable since it wasn't withheld until 10/2?

I see on 5500 Schedule H instructions that receivable is based on withheld but is that the same for GAAP purposes?

Thanks so much!!

E.

I have a plan with two participating employers. I have one employee who gets a check from both employers and recently began deferring. He has since told me he does not want the 3% withheld from his check from both employers - just one.

First- can this be done? Does it simply need to be stated on the enrollment forms?

Second - compensation should be considered from both employers to determine his total comp correct? If this is the case, if his pay from company 1 is 1400.00 and from employer 2 is 400.00, and he only wants 3% from company 1 check withheld, that means he would not be eligible for a 3% match of that amount since his deferral would actually be 2.33% of his total income under the plan?

Can someone offer guidance here?

Thanks!

I am working on a plan that requires 1950 hours for a year of credited service. I thought that it couldn't exceed 1000 hours. Can it? Can someone point me to the right section of the IRC?

Thanks for any responses!

For 2014, a plan's definition of 415 compensation was W-2 wages. The plan was restated 1/1/2015, and elected 3401(a) for 415 compensation.

To determine HCEs for 2015, which year's definition of 415 compensation is applied to the lookback year?

I believe it is the 2015 definition. 414(q)(4) simply states 415©(3) compensation is used to determine HCEs, and Notice 97-45 clarifies the determination year & lookback year periods, but I find nothing that addresses the effect of a change in the definition of 415 comp.

If I think about a new, start-up plan, HCEs would be determined based on the plan's "new" definition of 415 compensation, applied to the lookback year preceding the adoption of the plan.

Can anyone confirm/clarify?

Thank you in advance!

Hi,

Does anyone know if this webinar (link below), Practicing Before the IRS - Circular 230 A to Z Rebroadcast, would meet ERPA Ethics CE requirement?

In the past, IRS Webinars did state if it qualified for the ERPA credit. But it appears they do not state that anymore.... now it just says "Tax Practitioners"....

I think there are some webinars that could qualify for ERPA CE requirements, but since they do not specifically state ERPA, I am not sure......

I wonder how other ERPAs keep their CE requirements, especially those who would like to utilize all free webinars.......

https://www.irs.gov/businesses/small-businesses-self-employed/webinars-for-tax-practitioners-1#practicing

Thanks!

Ok, I know this one has been covered before, but I am not certain it has been addressed in the following manner.

Regarding mid-year amendments to SIMPLE IRAs, the IRS has provided some guidance in the form of an LRM (2005 LRM) and a 2012 Newsletter suggesting that a mid-year amendment is not permitted. However, what isn't clearly addressed is what portion of the code/regulations the IRS is relying on to come to their conclusion as well as what the consequences would be.

My thoughts are as follows:

Since SIMPLE IRAs are governed solely by IRC 408(p) and Notice 98-4 (the LRM and Newsletter to not qualify as code/regulations), and Notice 98-4 clearly states that an employee must be provided with annual notices (e.g. summary description and right to defer, including right to select financial institution if applicable) prior to November 2 of each year; a mid year amendment affecting the information required to be in such notices would result incorrect notices having been provided and thus, not meeting the notice requirements.

That being said, my understanding is that the consequence would be a $50/day penalty (pursuant to Notice 98-4, Q&A section G). Beyond that, I am not aware of any additional consequences formally provided in the code/notice. The SIMPLE IRA fix it guide addresses the situation and simply provides that a reasonable correction should be made.

As a result, it would seem to me that if a sponsor was willing to accept a $50/day penalty and make reasonable corrections (depending on the situation), a mid-year amendment could be made.

Is there anything I am missing or any other portion of the code/notice for SIMPLE IRAs that I haven't considered that prohibits mid-year amendments?

Thoughts are greatly appreciated.

I'm in the process of filing Form 501, post distribution certification for standard termination, with PBGC for one of my client.

PBGC instructions calls for attaching a copy of the cancelled check or bank statement with the individual's name and distribution amount when filing Form 501.

Unfortunately, one of the plan participant distribution check is not cashed. I called the investment provider for his employer retirement plan where the check was sent as a direct rollover for the benefit of the participant based on his election. I have learned the said plan asset was liquidated over a two month ago. I reached out to the participant to follow-up and the participant promised to get the check cleared/cash, which didn't happen still. Is there any other options?

Clock is ticking and 45 days passed since the proposed plan asset distribution date that we listed on the Form 500. Although it appears PBGC will not assess penalty as long as the Form 501 filed not more than 90 days.

Highly appreciated to hear your experience of filing Form 501 and associated attachments.

I'm interested in learning from BenefitsLink mavens' practical experiences.

In handling a Form 5300 application for the IRS's written determination that an individually-designed retirement plan document states provisions that, in form, state a 401(a)-qualified plan (I'm thinking about the cycle that ends this winter), does an IRS employee ever ask about operational compliance?

Plan A was merged into Plan B. Plan A no longer exists. Plan B has an ERISA Budget Account. Can part of Plan B EBA be used to pay for the final audit of Plan A?

A CPA called me and said Solo has adopted a SEP in Jan, 2016 and immediately funded it.

Now wants to do a CB Plan.

I called my brainy Tax lawyer and he immediately responded that the code says that the adoption of the CB plan will disqualify the SEP and the $53,000 will be disgorged by the IRA….No implications…he said that the adoption of the CB plan disqualifies the SEP not the other way around.

While I am thrilled by this, I am interested in hearing any comments….

If the Plan Administrator and the Employer are not the same, must both e-sign the Form 5500/5500-SF?

What if the TPA gets their own credentials to file on their behalf with written authorization (because the employer can't find "internet" on their computer), must the pdf attached to the e-signed 5500 have both a PA and ER signature if they are different entities/people?

Oh. My. God.

You have to guess how many pages it is before you actually open It. It will be more fun that way!

https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-14893.pdf

We just took over a 401(k) plan that we found out had land as part of its assets. Client has provided the county assessed value as a determination of the land value as of 12/31/15. The land is parcel of a mountain.

Is assessed value a reasonable value for the land? If not, what should be used to determine the value of the land for plan asset reporting purposes?

Thanks for your input in advance.

I have a participant due to receive a distribution from their 457(f) plan in August. they also participate in a 457(b) plan.

The 457(b) plan does not exclude "distributions from an unfunded deferred compensation plan" from the definition of compensation.

If the participant makes a timely election (by the end of July), could they defer from the 457(f) distribution (which they will receive via payroll) into the 457(b) plan. Or should that compensation not be allowed to be deferred into the 457(b) plan?

If it's the latter, I would so appreciate a reg cite :-)

The instructions for this item read:

[quote[special rule for certain participant-directed transactions.
Transactions under an individual account plan that a participant
or beneficiary directed with respect to assets allocated to his or
her account (including a negative election authorized under the
terms of the plan) should not be treated for purposes of line 4j
as reportable transactions. The current value of all assets of the
plan, including these participant-directed transactions, should be
included in determining the 5% figure for all other transactions.

I take this to mean you ignore the transaction if it is merely more than 5% than the participant's own account balance.

But what if a single transaction is greater than 5% of the plan assets as a whole?

For example, an owner with 70% of the assets of the plan, all invested in one fund. Then he transfers 50% of his stake in that one fund to another fund. That is obviously more than 5% of plan assets. Does that get reported?

Or, does the above mean that you ignore ALL transaction in participant directed accounts, but you include their assets to see if any transaction in a pooled portion of the plan is more than 5% in total?

For example, plan has 50% of funds in participant directed deferral accounts and 50% in ER directed PS account. A transaction would have to be more than 5% of the combined assets in order to be reportable?

This is only indirectly about 409A, but I'm looking for guidance when both section 83 and 409A apply to a plan.

Has anyone thought about whether an employee can voluntarily delay the lapse of a substantial risk of forfeiture under section 83? Regulations under 409A and 457(f) deal with this issue, but I can find nothing under section 83.

Example: Jane is given restricted stock as part of her compensation. She must forfeit the stock unless she remains with the employer for at least five years. She does not make an 83(b) election.

When the end of the five-year period is nearing, she decides that she would rather take the risk of forfeiting the stock rather than paying the income tax right now. She therefore agrees with her employer that the stock will be forfeitable unless she remains with the employer for at least another two years beyond the five-year period originally provided for.

Does this work to defer the taxation? Obviously, if you did this, you'd want also to comply with the 409A rules governing second deferrals, but I'm just trying to figure out whether it's even possible under section 83.

Has anyone thought about whether an employee can voluntarily delay the lapse of a substantial risk of forfeiture under section 83? Regulations under 409A and 457(f) deal with this issue, but I can find nothing under section 83.

Example: Jane is given restricted stock as part of her compensation. She must forfeit the stock unless she remains with the employer for at least five years. She does not make an 83(b) election.

When the end of the five-year period is nearing, she decides that she would rather take the risk of forfeiting the stock rather than paying the income tax right now. She therefore agrees with her employer that the stock will be forfeitable unless she remains with the employer for at least another two years beyond the five-year period originally provided for.

Does this work to defer the taxation? Obviously, if you did this, you'd want also to comply with the 409A rules governing second deferrals, but I'm just trying to figure out whether it's even possible under section 83.

Hi,

I'm interested in offering several additional services to my financial planning practice, notably:

• Benefits Administration (for things like section 105, section 125 plans)
• Retirement/Pension Administration (including 401(k), cash balance, and other retirement solutions.

I'd like to know what education or qualifications would be best advised to be able to competently manage such plans. I'm currently acquiring the Enrolled Agent designation, and feel that I need some more niche specific training/certs.

Additionally, I'd really like the chance to see what software solutions are out there in a conference/expo format so that I could get a grasp for they are capable of. Are there any recommended conferences like this?

Best

Matt