I believe that for purposes of qualified plans, in determining whether or not a brother sister control group exists, the shareholders of the two or more organizations being analyzed need to be individuals, defined as individuals, trusts or estates.

If the direct sharholders are partnerships, not individuals, does the inquiry stop there.

Or do you look to see who the owners of the partnerships are and attribute ownership through the partnership to them and see if a brother sister controlled group exists through organizational attributions.

Thanks

We have a plan that did not issue their corrective distributions by 12/31/14 and now a QNEC needs to be made. The option that is being chosen is resulting in no corrective distributions needing to be made (i.e. not the one-to-one correction). Since no corrective distributions are now being made, could the plan now file an amended 5330 and get a refund of the excise taxes that were paid in? If so, has anyone done this? Our thought is this could possibly be an audit flag that may not be worth the risk.

I've researched the issue of "related income" until I'm blue in the face. Hopefully, someone can help.

Please provide any source material so that I may read, absorb, and learn.

My clients are partners in a large controlled group. They individually own what we will call the parent company ("Co. X") and Co X owns controlling interests in other affiliated companies. For years they took their Co X K-1 income personally, applying it directly on their individual 1040s. Recently, LLCs were set up for each of the partners and the LLCs now hold their interests in CO X. Now the K-1 income filters down into the individual LLCs, allowing for additional deductions on the income.

There is a Safe Harbor 401k for the benefit of the employees in the affiliated companies, under which the partners may contribute up to $18k per year.

Can individual SEPs be set up for each individual LLC, but the individual LLCs only?

If so, may the partners contribute the max amount of 25% or $53k?

I express my sincerest gratitude in advance for any help on this matter!

Thanks!

Has anyone ever had to report a merger in the Summary Plan Information notice under ERISA Section 104(d)(1)(G)? Does one just list the actuarial value of assets and liabilities for each plan from the 5500 from the year preceding the merger? Any help would be appreciated.

It is my understanding that a sole prop's or a partners earned income is determined as of the last day of their tax year - does his/her deferral $$$$ have to be in by that last day or do they get any kind of a grace period (beyond 7 business days) is it just the election that has to be made by 12/31 (or whatever) and then $$$ can go in as soon as possible or is there a hard and fast guideline on the deposit date.

Does a tested 401K have to be amended by October 1st to be a safe harbor plan for that year?

I have a non profit school for special needs children that currently has a 401-k plan and are wanting to switch it to a 403-B. Is there any benefit to doing this? Are all 403 B plans required to file a 5500 each year and maintain a legal plan document. If there is an advantage what are the rules with regard to when can it be done and what kind of notification has to be provided to participants, IRS, etc.? Any help is appreciated....

Hello!

Plan has a minimum deferral limit of 3% based on plan year compensation (just a plain-Jane 401(k) PSP, not a QACA or EACA).

I am currently reviewing the 2015 census (10/31 pye) and there are multiple participants deferring less than 3%. Some are close but are not hitting 3% because they did not have deferrals taken from a bonus (even though plan does not exclude bonus compensation). Others are deferring a set dollar amount every pay, and on a plan year basis these amounts are not adding up to 3% of comp.

And if I am interpreting the terms of the plan document correctly, the participants entering during the year, while they may be deferring 3% or more on a per-pay basis once they start, they are not technically at 3% because of the plan year compensation provision.

Does anyone have any experience with this issue and how to address? This would be an operational failure, correct (plan operations not conforming to plan document)? And so would need to be corrected?

Is retroactive amendment an option at this point? Either to eliminate/reduce the minimum deferral percentage and/or change to per-pay basis? (Although that still leaves the folks who are putting in a set $/pay.)

Any advice would be appreciated...I've scoured the boards here and researched elsewhere without a light to shine on this.

Thanks!

I have a client with 3 seperate companies. I won't get into the weeds but here are the facts:

Company A is FSO with Company C as the A-Org

Company B is FSO with Company C as the A-Org

Company A & B are not related through ownership, however employees for both A & B do the billing for A & B making them B-Orgs for eachother

My question is, since A if affiliated with C (A-Org), B is affiliated with C (A-Org) and A is affiliated with B (B-Org), Are all three related or...

Should A be tested with C, B tested with C, and A tested with B?

Is it possible to combine all three for testing?

Anyone know of a cheap way to get some ethics CPE? I am aware of ASPPA's webinars but I am thinking there must be someone else out there? I am looking for something for the QPA/QKA ethics CPE requirements.

Saw the blurb in Friday's BenefitsLink and looked at their web site, a company called Custodia Financial. Does anyone know how this product works and what exactly it is? Just curious. Web site didn't have any details.

Hello,

If the employee is 65 and enrolled in Medicare Part A and can't any longer contribute to his HSA, can his younger non-employee spouse who is covered by the HDHP now open and fund her own separate HSA?

If yes, can she only contribute the individual maximum if the HDHP covers both spouses or is the family contribution an option (no dependents are covered, just the two spouses)?

Thank you!

Frank

Is there any rule that prevents a 401k plan from having a discretionary escalating match? If not, do I need to simply pass the ACP test? Or do I also need to pass 401(a)(4) nondiscrimination testing?

Plan with about 700 participants had a 404a5 disclosure go to participants and has since realized that some information was incorrect. The plan has managed models and in the performance section the Since Inception date was incorrect, the performance was correct.

What would corrective action need to be? Re-mail to everyone? Email to active employee's and mail to termed?

I know the plan has to allow for in-service distributions and the participant has to eligible. lets say they are over 701/2 but a non owner. can they do an in-plan roth transfer?

Happy 11/13/15.

It's the last "consecutive odd number" date this century.

[i agree that I'm straining to make something significant out of the date. Kind of like the useless statistics that announcers and commentators now spout before, during, and after sporting events.]

Have a great day, and May the oddness be with you.

Client informs me payroll company took out too many deductions from employees' pay so employer has been calculating co. match on incorrect salaries for about 6 months. Company contribution made at the same time employee contribution.

If I am reading the IRS methods of correction correctly, there would be no corrective contribution of 50%, but obvious the company must recalculate the match on the correct incomes and make the contributions to the employees' accounts plus missed investment income from date match was actually made?

As far as rate of earnings, is there some sort of "safe harbor" like 5%??

And, the payroll company is marketing 401K administration!!

recently, we have received two types of notices from the DOL. One states: hey, no audit was attached. Amend the plan and get us the audit post haste or bad stuff will ahppen.

The other is a bit odder. It's "Tips for Selecting and Mnitoring a Plan Auditor" and starts off with:

I am sending you this email because you may be in the process of selecting or working with a CPA firm to audit the XYZ 401(k) Plan's 2015 financial satements that will be submitted to the DOL as part fo the Plan's Form 5500 filing.

The notice goes on to talk about the importance of getting an good audit and choosing a good auditor. It seems to be merely informational and no futher action or penalties will ensue.

The form was filed in early October and included the audited financials.

So, why did we get this? Is this something that maybe should have gone out in the summer but was sent out late?

Anyone else get these?

Did the Age 70.5 Required Minimum Distribution count as the in-service distributions when we are doing the top heavy testing?

Also, what kind of distributions we treated as the in-service distributions?