What determines whether a self employed is still in business if the employees have terminated?

Is filing a Schedule C with no income or expenses?

That is, when does the plan have to be terminated or can the plan remain "frozen" and if so, for how long??

I have a relatively unique question. I work for an employer who has a SIMPLE IRA plan and I also have a side business and generate around $30K per year in income.

My first question, which will affect the second, is can I participate in both. Can I have the SIMPLE (under my employer....I am only an employee, not an owner) and also a 401K?

If yes, what are my contribution limits? For example, could I make SIMPLE contributions and my full $18,000 in elective deferrals with the 401K?

Thanks in advance...I really appreciate it.

The Trustees mandate only a fixed dollar monthly payout option.

Q.: Under ERISA Is the Board of Trustees required to make available other payout options?

The plan has automatic enrollment with a 90 day opt out period. Employee was automatically enrolled either before or during her maternity leave. The 90 days have since passed. Employee wants to opt out and get her money back. Client wants to know if there is any extension for the 90 period. She says she "forgot" to let the employee know about the auto enrollment coming up.

The client has a defined benefit plan and is a S-Corp. So the calculated maximum deductible contribution is $300,000, the minimum required contribution is $100,000, and the net profit for 2014 is $200,000. So he made $300,000 into the plan and claimed a $100,000 in loss.

Is it allowed as a S-Corp to make the contribution more than the net profit?

it seems like this should be an easy question to answer, but I am having trouble finding anything. If employer failed ADP/ACP in 2012 and doesn't get it corrected until 2015, does the 5330 have to be filed for multiple years? I THINK the answer is that only 1 5330 is filed but because it is late, the IRS will probably assess penalties for late filing, but I can't find anything definitive on this.

Unlike the 5330s for late deferrals, which must be filed for each year until the deposit is made.... correct?

Thanks!!

Key employee wanted to take new loan ($50,000) in November 2014. He had a previously loan ($50,000) which he paid off in April 2014. When asked of the TPA the maximum loan amount, the prior 12 month loan balance was taken into consideration and the eligible loan amount was determined to be $10,000. When the year end work was done, it was determined that the plan sponsor approved a loan for $50,000.

What options does the participant/client now have other than defaulitng the loan, resulting in a deemed distribution? Under VCP, we can ask to default the loan in 2015, but the money is still due back to the plan. Is that correct?

A 75 year old, >5% owner took a partial in-service distribution from a balance forward profit sharing plan. The distribution was made during the last week of December 2014 and he deposited the check in an existing rollover IRA in January 2015. So it was basically in limbo as of 12/31/14 and not included in his balance of the plan or his IRA. Since the deposit wasn't in his IRA before 12/31/14 and therefore the rollover institution is not going to include it in his RMD calculation, should I include it in my calculation of his balance as of 12/31/14 even though my allocation report reflects that it had been distributed?

Participant defaulted on a loan in 2014. Never made a single payment to the loan. A 1099-R was issued in 2014. Plan allows for one loan. Only source of money in plan is Salary Deferral.

Participant took a new loan in 2015. Is this allowed?

FYI: Partcipant has not met any requirements for a distributable event.

I'm a bit rusty on the separate Plans issue...

company has 365 nHces and 38 Hces

division 1 has 208 nHces and 30 Hces

division 2 has 157 nHces and 8 Hces

division 1 = 208/365 / 30/38 = 72.18%

division 2 = 157/365 / 8/38 = 204.32%

so looks like they pass RPT -- can each company have a completely different 401k Plan [with no non-elective]...e.g., division 1 have a 100% 1st 6% SH

and division 2 have non-SH 100% first 3%

my recall says yes...but if they add NEC, then ABT must be passed...

The headcounts are after 1 yr/age 21 application -- I assume that's OK.

I'd appreciate any thoughts...

Employer A is selling (stock sale) a number of subsidiaries to an unrelated buyer. The buyer will assume sponsorship of the 401(k) plan in place for employees of the subsidiaries. Employer A typically makes a discretionary contribution based on a % of compensation for participants who are employed on the last day of the plan year. the plan has a calendar-year plan year. The sale is expected to close on 9/30.

Due to the sale, Employer A would like to amend the Plan prior to the sale to provide the discretionary contribution to participants who are employed as of the closing date of the sale (9/30). The employees are being hired by the Buyer and will continue to participate in the 401(k) plan after the sale. The employer would like to make the contribution based on 100% compensation earned through the first 9 months of the plan year.

Under Treas. Reg. Section 1.401(a)(4)-2(b)(2), employer A can satisfy a safe harbor under an allocation formula that allocates to each participant the same percentage of "plan year compensation". Under Treas.Reg. Section 1.401(a)(4)-2(b)(4)(iv), the allocation formula will not fail to be a safe harbor allocation formula if the allocation formula is limited to a "maximum percentage of plan year compensation."

Question: Can the employer make the contribution based on 100% of compensation for the first 8 months of the plan year? Or must the employer make a contribution based on 75% of compensation for the first 8 months?

The concern is that an employee who terminates right after the closing date would receive an allocation based on 100% of his/her plan year compensation, whereas an employee who works until year-end will only receive an allocation based on 75% of his/her plan year compensation.

Any thoughts are welcome!

A 401(k) plan has audit issues going back several years. DOL suggested terminating current plan and starting clean with a new 401(k). We feel the successor plan rules would require deferrals to be transferred/merged into new 401(k) and not distributed.

Would the problems associated with the old plan also transfer/merge to the new plan? These are not problems with the deferrals themselves but rather other plan issues.

Thanks.

Participants have been making Roth deferrals for several years, but document provider was never advised to add the provision. Is there any way to correct?

Thank you for any thoughts.

We have rehired some retirees on a part-time basis. The retirees are receiving an annuity from our defined benefit plan but are no longer eligible to accrue additional benefits under that plan. These employees also will not have deductions taken out of their pay for social security.

Must we take the mandatory 7.5% out of their pay or can we exclude these rehired retirees from our FICA Alternative plan.

Thank you.

We have a large plan that we were under the assumption transferred to a new provider 3/1/15. Come to discover the plan termed and merged to a newly formed plan effective 3/1/15 and came to the conclusion we would be responsible to prepare the final 2015 Form 5500. Auditor is telling us and the client that the plan may defer the 2014 audited financial statements and file with the 2015 short plan year utilizing Line 3d on SchedH. My understanding is this maybe used if the first of two consecutive years is a short year end, not the second. Of course our software wont even allow a large filing be submitted without an audit report.

Does any one have a recommendation? The only one I have is so old I'm looking for something more current for someone just getting into the business.

I used to have a handy-dandy spreadsheet that helped calcuate self-employment comp given net sched c or k-1 income and the rest of the ER cotnributions.

Does anyone have one handy for 2015 they would like to share?

Participant wants to purchase rental property as an investment in his self-directed 401(k) account.

Just throwing this out there, but does anyone suggest any good sources that cover the issues related to this sort of transaction? Any books, articles, IRS guidance, etc., that talk about the aspects of this transaction as the property is brought in the trust, issues while it is held in the Plan trust, issues that arise when the property is disposed by the trust, how the property is valued for ERISA and 5500 purposes, how the property can/cannot be used by the participant, etc.?

Thanks in advance.

Plan sponsor is a government contractor with 2 contracts in different states requiring 300 employees/participants each.

Sponsor loses one contract and terminates those 300 participants on 8/1/2015, easy conclusion that we have a partial plan termination.

Current IRS position seems to be we have to vest all participants who terminated (or will terminate) in 2015 whether they terminated voluntarily or not and whether they were associated with the lost contract or not.

Seems to be a gross expansion of the rationale behind the partial termination rule.

Anybody support a position that in addition to the 300 participants who terminated 8/1/2015 we only have to vest the participants that worked on the lost contract and were involuntarily terminated this year?

Planning pointer: if you have large government contracts that are subject to being lost maybe put in separate plans for each contract?

I have a solo 401k and a SEP IRA with a prototype plan with schwab (so I can use both at the same time) - I'm a sole proprietor so no employees.

I read a lot about there being no advantage to having both but isn't it the case that if I wanted roth contributions I could contribute to a sep IRA and then roll it over into a roth IRA? Sure I could have a roth 401k but that has more restrictions - mainly the inability to withdraw contributions early unless a very small number of scenarios are met.

Is there anything stopping me putting my employer contributions into the SEP IRA and rolling over to a Roth IRA each year (or less frequently) and then contributing the employee portion to the solo 401k?

Thank you