Is there a calculator/spreadsheet available that I can use to calculate the self employment tax and employer contribution for a partnership? I tried the IRS website and couldn't find anything, also tried searching online and came up with nothing. Thought maybe someone on here would know where to find one. thanks.

We provided fee disclosure for a Plan transferring to a new service provider. The Plan offers Target Date funds - although to date no one has selected. We did not include all the Target Date funds in the initial fee disclosure. I know we need to provide disclosure but wonder if this is subject to the 30 day notice requirement? I am wondering if this would qualify as a "special situation" in the DOL guidance?

401k/Profit sharing plan that does not have Annuity as normal form of benefit. A participant that terminates in a prior year (for example 2009) and was properly reported on an SSA receives a partial distribution in 2014. Is that partial payment considered as having "begun receiving benefits" for purposes of reporting them in 2014 as code D?

Plan document excludes anyone who "does not regularly work 20 hours per week."

Now, in a separate note, "Hours of Service" is defined as 195 hours per month if you work at least 1 hour in that month (or whatever the equivalency is).

I believe that the 20 hours per week exclusion does NOT pull in the Hours of Service definition because it does not use the term Hours of Service.

Has this question ever been addressed? I'm using the Hours of Service definition everywhere that it DOES apply. It does not seem to apply to the 20 hours per week exclusion though.

(actually, I never would have drafted the plan this way - I got a question about this from a friend of mine).

We are in the process of preparing PPA restatements for our clients. What should the effective date of the PPA restatement be?

Large plan filer files the 2013 Form 5500 on October 15, 2014 without the audit. Filing is "filing error" but still considered a filing. The auditor now has the 2013 audit ready (many problems which I won't discuss). The auditor is recommending they file an amended return under DFVCP?

Can you file under DFVCP if you have already filed a return (even though the return is incomplete)? They have not received any correspondence from the DOL so that part is not eliminating them yet.

I don't believe they can, but cannot find an answer on the DOL website.

Thank you

Employee was hired after soft freeze date and another employee was hired before the soft freeze, but transferred to another location-not covered by this plan. Employer is saying that both of these members should continue to accrue a benefit in this plan because their contract stated that their pension should continue.

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I had a plan recently that failed Top Heavy testing. This is nothing new for the plan sponsors and they are used to making the 3% top heavy contribution.

The problem that I ran into, was that after allocating a 3% top heavy contribution to all eligible participants, I ran top heavy testing and they were still failing both the ratio percentage test (401a) and the average benefits test.

My question is this, does the plan need to do something beyond simply funding the 3% Top Heavy contribution to all eligible participants?

Thanks,

Andy

Have a great weekend everyone,

and remember to remember.

I am going to soon be buying a small business and will offer a Safe Harbor 401(k) plan.

My question has to do with the 3 owners (2 + myself).

At the end of the year, let's say we are going to give ourselves a $50k bonus ea. (profit sharing), can we do this even though the rest of the 6 or so employees will not be receiving this bonus?

Employees will be getting a merit based bonus, if they "earned" it.

Thank you.

Plan is currently a (New Comp) PS/401(k) plan with no exclusions. Sponsor wants to amend to exclude one class of employees effective 01/01/16.

What happens to an NHCE who is currently a participant in the plan and becomes a member of the excluded class on 01/01/16?

I haven't posted this for a while. I don't know if FT William still has it available - at one time they had pulled this custom report and had it available. I have never had a problem with it as far as pulling data from Relius and then pasting it into the FT William file and then importing it into the SSA file on FT William. (after just running it for a particularly large plan I am thankful for it)

the notes my be a little old, but heck, I'm getting to lazy to post something for nothing. sorry, I can't attach the 8955sample.csv because benefits link doesn't allow a csv attachment..

notes on SSA report.doc

SSA .rpt

Here's the situation:

An employer sponsors a company 401(k) plan, covering collectively bargained and non-collectively bargained employees. The collectively bargained employees also participated in a multiemployer money purchase plan, with an hourly contribution set out in the CBA.

The multiemployer money purchase plan converted to a profit sharing/401(k) plan. The profit sharing component is essentially the former money purchase contribution. The employer does not want to participate in two 401(k) plans for several reasons. It might be open to participating in the newly converted multiemployer plan if it only has to continue the employer contribution (the profit sharing contribution) and its employees will be prevented from making deferrals to the multiemployer plan. They would continue to be able to make elective deferrals to the company 401(k) plan.

Would excluding these employees from the ability to make elective deferrals to the multiemployer plan violate the one-year elgibility requirement? I think it would, but one could argue that a blanket exclusion is different than an eligibility period.

Even if this would otherwise violate the one-year eligibility requirement, the employees will still be able to make deferrals to the company 401(k) plan. Would this be enough to justify prohibiting deferrals to the multiemployer plan?

Finally, if there is a way to do this, is there an advantage to having the prohibition on deferrals to the multiemployer plan included in the CBA and/or adopted by the multiemployer plan's trustees (e.g., "participants who are eligible to make elective deferrals to a company plan shall not be permitted to make elective deferrals to this plan").

Thanks.

A 401(k) Plan that we are the TPA for does not consult is when issuing hardship withdrawals. The auditors for the plan, during their fieldwork, found a hardship withdrawal being granted to pay high school expenses for a student; and have flagged this as an impermissible hardship withdrawal, which is correct.

Two questions:

First, at a recent seminar it was mentioned that there is new (possibly proposed) legislation that deals with this; in essence, if the withdrawal was for a proper amount had the withdrawal been permissible, there is no corrective action or VCP filing required; the auditor should reference this internal control deficiency in their communications to the plan sponsor. Does anybody have a cite for this legislation?

Second, is there a good "template" for submitting this VCP, assuming it comes to that?

Thanks for any replies.

When a plan does a dependent eligibility audit and does not receive supporting documentation it requests for participants it now assumes may not be covered, what are the rules for removing a covered person or their beneficiary? What documentation can a plan request?

Brain Scramble time. An LLC taxed as C Corp acquires an LLC taxed as a partnership. That gives issue one. True or false - Since there is no stock in the LLC-P, it is my understanding that this has to be classified as an asset purchase. (see, I am in trouble already!)

It so happens all of the people in the LLC-P are on the payroll and are now contributing to the LLC-C 401(k) Plan because t he LLC-P is defunct. But wait, it gets better! The LLC-C agreed to take on the 3% non-elective Safe Harbor plan of LLC-P (which LLC-C had to become the sponsor), and so they want to merge the 3% SH plan into to LLC-C matching SH plan.

The 'plan to be merged away' not only has the 3% SH, but it has a different vesting schedule. It was also a spin-off from a PEO plan, but I do not think that presents any issues.

So we now have issue two - Current IRS thinking would require this merger to happen at the end of the year because there will be amendments to the LLC-C document to effectuate the merger mid-year - True or False.

I do not think the merger (and therefore termination) of the LLC-P plan presents a problem as the original sponsor is defunct, even though the LLC-C is the new plan sponsor.

If there is any official guidance I am always happy to learn. Thank you all.

From the instructions:

"The information reported on Forms 8955-SSA is generally
given to the Social Security Administration (SSA). The SSA
provides the reported information to separated participants
when they file for social security benefits."

My question is...if a separated participant is over NRA and already drawing SSN is the SSA information still provided to the Social Security Administration and if so, do they send a letter to those people?

I'm thinking no if the prompt for the SSA is the participant applying for social security benefits.

I have a 401 (k) profit sharing plan, where the forfeitures are reallocated.

For 2013, the forfeitures did not get transferred out of the forfeiture account and into the participants accounts.

The transfer is going to be made now. It's not a lot of money, the top earning participants got about $650.

For 2014, do those amounts have to be included in the 415 test?

3 person PSP where the owner has a life insurance policy within the plan.

She paid the premium of $6500 by moving assets out of the profit sharing pooled account. The life insurance policy is titled under the plan.

Would you put this $6500 on line 8d - benefits paid including direct rollover and insurance premiums to provide benefits, or maybe on line 8g - other expenses?