Is there a DFVCP fee for a late 5500 filing that has no assets or lives ?

I have a PEP with a Dec 2022 effective date.  However, no plans joined the PEP until 2023.

Thanks!

I have a plan that allows forced cash distributions for balances less than $1,000.  FTW document.

Participant terminated and took a distribution earlier this year, well over $1,000. 

She was entitled to a small profit sharing from 2023.   Her balance is less than $1,000.

Can I force her out?   Even though at one point it was over $1,000.

I really thought i read, i could but i can not find anything definite.

Thank you!

Plan name:  ABC Corp 401k Plan

Employer on plan doc:  DEF Industries, Inc, d/b/a ABC Corp

Plan Sponsor on 5500:  ABC Corp

is it ok to just list the d/b/a as the Employer

Is it possible to designate a beneficiary with a specific dollar amount?  For example, the primary beneficiaries are two children who each get $100,000, then the rest goes to the spouse?  Realizing that spousal consent would be required, but I've never seen anything other than percentages used.  In the instance for which this is being asked the account balance is well beyond the dollar amount alloted.  Thanks very much.

Multiple ER 401(k) with a 1/1 plan year has 8 adopting employers.

• Employers 1, 2, 3 & 4 are all part of the same controlled group and are tested together in what we'll call plan "A".
• Employers 5, 6, 7 & 8 are all part of the same controlled group (and all unrelated to employers 1, 2, 3 & 4) and are tested together in what we'll call plan "B".
• The MEP uses the prior year testing method.
• The 2022 NHCE ADP average for plan "A" was 3.5%
• The 2022 NHCE ADP average for plan "B" was 4.1%

In February of 2023, ownership changes occur and employer 8 moves from plan "B" to plan "A". So as of 2/1/2023, Employer 8 is no longer related to employers 5, 6 & 7. They are, however, now related to employers 1, 2, 3 & 4. Therefore, 1/1/2023 to 12/31/2023 ADP testing looks like this:

• Plan "A" consists of employers 1, 2, 3, 4 & 8
• Plan "B" consists of employers 5, 6 & 7

How does each plan determine the prior year averages on the 2023 test? Am I correct in saying that each plan only has 1 prior year subgroup, and therefore 3.5% will be used as the prior year average for plan "A", and 4.1% would be used for plan "B"? 

For a PEP with less than 100 account balances, they are allowed to file the 5500-SF, correct ?   I am getting push back that they must file Form 5500 with Schedule I.

Thoughts  ?

I'm trying to close out the plan as the company went out of business last year. It has no assets at this time. We normally file a form 5500 and schedule I every year but this year I'm getting an error saying to use the 5500 EZ. I'm assuming it's because the plan as $0 assets so we don't need the schedule I anymore thus a 5500 EZ. Is that correct? 

for example: calculating a 2024 RMD using the accrued benefit on EOY 2023 valuation (small plan)

NRA in plan document is 62

the owner is 74 in 2024 and is active in the plan (still working at the company)

when calculating the APR, 

1. use 2023 mortality table, and

2. post retirement actuarial equivalent interest rate

I'd like to confirm if the 1 and 2 assumptions above are correct, and see if there are any regs about these assumption determinations. another question is if the plan actuarial equivalence mortality table is 94 GAR, do we need to use 94 GAR for all RMD cals or we should use the 2023 mortality table when using the accrued benefit on 2023 valuation? Thanks in advance.

Trust owns s corp.

The pres and sec of the s corp are the beneficiaries of the trust.

Are they therefore considered owners of the s corp and therefore they ate HCEs irregardless of their salaries being only 100K? Thank you!

If forgot to answer the new compliance question number 12 re the preaproved document letter serial number..CAN it be written in ...as EZ are mailed and not scanned? Thank you

The extension applies now to ALL of Florida (all counties). See https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

We have a client that has been chronically late with their contributions in the past few years (all of the interest is being paid in '24).  On Schedule I Question 4a, what would be included:

- Would it be just the contributions for the current year?
- Would it be all contributions for the prior year(s) where interest had not yet been paid?

I believe it's the second one, even though the contributions had been paid in the year.  Since the participants had not yet been made whole, all contributions should be included.  I just wanted to confirm.

Thank you!

Is there anything special to do to file a Form 5500 for a Frozen Cash Balance Plan?  It is fully funded (assets exceed the liabilities)

OR do we just file it with no contribution requirements for the year?

Does anyone know if the "high 25" rule (certain distribution restrictions to HCEs in a DB Plan) applies to a collectively bargained plan? I have an actuary who is suggesting it does not apply but am not finding any authority for that. 

Plan assets transferred from Carrier A to Carrier B in 2023.  Auditor is looking for reportable transactions (those over 5% of assets).  I've never completed that for any transfer between carriers before.  Have you?  I've had several other plans change carriers mid-2023 and none of them were asking for this.

The exception is an individual account where the participant directs the transaction, but the participants in these cases don't direct these transfers.

Do I have to attach a schedule per 4j on the Schedule H?

A client provided a census file and we ran the ADP test and processed 3 corrective distributions By March 15.  The plan auditor discovered in August, there was incorrect compensation on the census file.  The 3 with the refunds ended up with higher wages.  Of course then it meant the the issued refunds were too high. Approximate example: correct refund should have been $5500 but $7500issued.  Two of the 3 are over 59 1/2 and so their excess can be considered in-service under the terms of the plan.  

But then there is the younger HCE.  Do you believe this must be corrected?  We could have the participant return funds and have the record keeper change the 1099-R that will come out in January if that's even possible.  I'd rather avoid that. 

Thoughts - thank you. 

Tom

Can someone please help cite IRS code that states it is unlawful to take in-service withdrawals of elective deferrals and safe harbor funds before age 59.5?

If an active employee has medical coverage but does *not* qualify for coverage when its time for open enrollment, do they qualify for cobra offer?  In this case, the business is using the ACA one year lookback measurement to determine eligibility and the variable rate employee dropped to around 20 hr/week so they will not qualify for 2025 coverage.  But, they do have coverage currently.  Should a Cobra offer be made effective 1/1/25 in this scenario?  Or, is it not a qualifying event that they no longer qualify during open enrollment due to dropping under required number of hours?

Greetings, I am the Executor of an estate.  Immediately post death the wife send in the beneficiary form to her spouses company.  The decedent had been the plans administrator and never send in his beneficiary form for two reasons 1.  He had discussed with his wife he wanted some of the money to go to his mother and the wife (third wife- with a prenuptial agreement) refused to agree to allocate some of th 401K money to her husbands mother.  2) since she wouldn't sign we refused to send it in because his believed his prenuptial agreement would direct all the money to his estate. 

The company is small -only two employees. when the man diet, the other employee. wss then named to Fiduciary for the business.  He inaccurately signed a new distribution form and transfered the money to the wife's 401K.    The Fiduciary has been made aware of this error ( which was conveniently hidden).  Now what do I do to get that money to the decedents estate?

I hope everyone is well.  I work for a TPA Firm, and our main office address is in Atlanta, GA and I'm in Florida and we have others in South Carolina.  The entire state of Georgia, Alabama, North Carolina and South Carolina and parts of Florida were given tax relief for victims of Hurricane Helene under Hurricane Helene Notice IR-2024-253. I would assume our clients could file under the Hurricane Relief extending the due date until May 1, 2025, even if they are not in the states with full relief because we are practitioners in the areas that were impacted.  MOST of our client are in GA, FL, SC & NC. Now with Hurricane Milton I believe the entire state of Florida will now be given the same relief and not just certain counties in Florida impacted by Debby and Helene. Of course, we aren't advising this however, it's the reality that clients don't all have power or capacity to deal with 5500's at the moment.  I'm curious how other TPA firms in the impacted areas are handling this.  Thank you so much for your time and responses.