Which form to file for a self-employed solo 401k plan with one participant (assets over the limit) - Form 5500-SF online OR Paper Form 5500-EZ to avoid public inspection?

Previously it was thought that Form 5500-EZ avoided public inspection. But instructions for Form 5500-EZ states that this form is open for public inspection.

Would prefer that contact information does not get public. What are my options?

Have looked at several posts but have yet to see a definitive answer.

Thanks for your help.

For a solo or self employed 401k plan with only 1 participant (sole proprietor), what are the Plan Characteristic Codes that need to be entered in the form?

Seems out of - 2E, 2J, 3B, 3D, 3E

Any thoughts?

Thanks,

I just took over a plan and noticed that there is a note to a non participant who has not made any payments. When does it go in default and who would receive the 1099 on the defaulted loan?

Assume employer awarded restricted stock units (RSUs) that by their terms required the shares to be awarded immediately upon vesting of the RSUs. Ordinarily this would be a short-term deferral program exempt from 409A. Suppose, however, that in fact the employer never transferred the shares, not even before the end of the 2-1/2 stub period. Is there any way to "fix" the 409A problem? Assume the statute of limitations for the tax year in which the RSUs vested is still open.

Two of the "conditions" established in 1.401(a)(4)-11(g)(3)(vi) for doing a correcitve amendment are:

(A) that it not be part of a pattern of amendments to correct repeated failures; and

(B) that the correction remain in effect until the end of the first plan year after "the date of the amendment."

With respect to (A), at what point does it become a pattern?

With respect to (B), what is the date of the amendment - its effective date or the adoption date? It seems to me that depending on how you answer that, the amendment would remain in effect for either 2 years or 3 years (e.g., in 2013, a corrective amendment is timely adopted with respect to the 2012 plan year; if that "date of the amendment" is the date it is effective, it would have to remain in effect for 2012 and 2013, and if it's the date adopted, it would have to remain in effect for 2012, 2013 and 2014).

One of the plans that I have is a sole prop and his extension is tomorrow. the plan is a 401k Profit Sharing plan with a SHNEC feature also. Today he is asking me the following:

Is there a big penalty if the [profit sharing] money goes in a bit late? We have a big chunk of change coming in at the end of the month.

I had told him that if he's going to deduct the PS on his 2013 return, then it needs to be deposited by tomorrow. I did find something in the EOB that talks about mailing the deposit and having it postmarked tomorrow.

I don't think he is going to go this route, but what are the penalties if he makes this deposit late? I am assuming that this would come to light in an audit. The plan consists of himself and 2 staff members.

An HCE (currently a participant) desires to be permanently excluded by name from the PSP. He was a key employee up until this current year; now is a non-key employee. The Plan is top-heavy.

Is this exclusion permitted, and may the amendment be effective for this current year or must it be prospective?

Thanks.

The CEO of a company is owed $100,000 per year. In 2012 and 2013 the company was struggling so the CEO didn't take compensation. He didn't waive it either, he just didn't take it those years thinking he'd take it later when the company was doing better.

In 2014 the CEO waived his right to the $200,000 salary for 2012 and 2013 in exchange for a $1 million loan from the company.

1) It seems to me the CEO impermissibly deferred his 2012 and 2013 compensation to 2014. There was no agreement deferring it to a permissible trigger date under 409A. Is there any way to categorize this as anything other than a deferral under 409A?

2) The company was struggling but probably not to the extent that paying the CEO would have risked the company's ability to continue as a going concern, so I can't get out of 409A that way. Is there any other argument to get out of 409A?

3) Since this only dates back to 2012, I can use the correction procedure under Notice 2008-113. Part of that correction procedure says the company must pay the distribution to the employee and cannot compensate him (interest, etc.) for the late payment. So are we going to have issues since we traded the $200,000 for a $1 million loan?

Any help is appreciated.

Wow, it has been a long time since I've looked at one of these. Trying to refresh my memory. They want to amend/restate MP plan to a PS plan.

Calendar year MP plan, with a 1,000 hour AND last day requirement.

The 204(h) notice has to be given (large plan) at least 45 days prior to the effective date of the amendment.

So, let's say they want to avoid a MP contribution for 2015. As long as the "effective date" of the amendment is, say, March 1, so that no one can have reached 1,000 hours, is there any problem? They haven't "accrued" anything under the MP plan at that point. (Actually, as far as that goes, the amendment should be allowable up to December 30, 2015, as long as the Notice is provided at least 45 days prior to that, right?)

Hi - I have not been able to find any source that affirmatively states that make up 401k deferrals for the period of military service must come from current year compensation. So for example - employee is on military duty in 2012 and 2013 and returns in 2014, He would like to make up $50,000. So his compensation for 2014 will be $40,000. Can he submit a check for $50,000 OR does the $50,000 have to come from current compensation, which in effect will equate to 100% of compensation and he can only defer $40,000.

I have heard there was a technical correction to USERRA that requires the missed deferrals come from current compensation - so that the employer is not on the hook for huge amounts of match from prior years.

Any help would be great!!

What happens if (intended) employer contribution to SEP IRA account was listed by broker as "Regular Contribution Tax Year 14" (appears to be a mistake on their part)? The account is set up for a sole proprietorship. Previous years contributions were correctly listed as "SEP Employer Contribution".

Can I simply indicate this amount as employer contribution on 2014 tax return? Or should I get the brokerage to reclassify it correctly?

We have thousands of participants invested in TIAA contracts. They are starting to receive checks from TIAA as a result of the settlement in Bauer-Ramazani v TIAA-CREF. We were not aware that this had been settled and the participant questions are taking us by surprise.

TIAA clients, were you aware of the settlement? In cases where asset transfers were made from one account to another in the same 403(b) plan, or rolled over into an IRA, who is the check payable to? The participant or the plan? How are the amounts being calculated--based on the actual damages incurred by the participant or some arbitrary amount? Are there any financial reporting implications for plan financials or the 5500?

Maybe I should have been bugging my relationship manager for status updates but I am annoyed that I am being told about this by my Faculty and not by TIAA.

401(k) Plan - Profit Sharing vesting is 100% immediate and Match is 6-Year Graded. Client wants to amend both PS and Match to a 5-Year Graded Schedule. While the Match vesting will be more liberal, obviously the PS will not.

I have read several items and I am still confused as to how a 5-Year Graded
Schedule will apply. Can we apply the 5-Year Graded to all future PS contributions and their earnings? Or, will the 5-Year Graded only apply to new participants going forward?

An employer makes a contribution for participants that were incorrectly excluded from a profit sharing plan for several years under self-correction. The total contribution for the current year and the make up for prior years in which the employees were improperly excluded exceeds the 25% deduction limit for the current year. The deduction for the current year is within the 25% limit. Can the employer deduct the amounts above the 25% limit as a Section 162 business expense. If so, does that reduce a Schedule C?

Intuitively I think not but can't put my hands on a cite.

Thanks

What is the penalty for not (timely or at all) obtaining an HPID?

We're looking at a potential takeover in which HCEs have been allowed to defer but none of the eligible NHCEs were offered the opportunity to defer. As a result, the NHCE's ADP is 0%

Appendix A Section .05(2) of Rev Proc 2013-12 calls for a contribution equal to the "missed deferral opportunity"; defined as 50% of the actual deferral percentage.

The employer can argue that the ADP is 0%, and therefore 50% of 0% is 0. However, in this case, the employer created the 0% ADP. It seems he should not be allowed to benefit from the wholesale exclusion

What is a reliable correction under these facts? Should we assume there is a minimum 3% ADP?

Your feedback is much appreciated.

Has anyone with a large plan ever had an auditor ask for the cost basis of all the mutual funds? We are going through this with a new auditor this year and have never been asked this before. Does this make sense to anyone?

I have always been under the impression that in an exempt leveraged ESOP where the proceeds were used to purchase the stock from the owners, in order to avoid the prohibited transaction rules there must be a release from encumbrance EACH plan year based upon the loan repayment schedule. The repayment schedule must be at least as rapid as either the principal only or the principal plus interest method, as per 54.4975-7(b)(8).

Is there any legitimate circumstance whereby such a leveraged ESOP can NOT release shares for a given plan year? (Not talking about plan termination or bankruptcy/insolvency situations either, just "normal" ongoing plans.)

For a final filing for the year where assets are distributed when the Plan was terminated in the Prior plan year --

how is question 11a - Is this a DB plan subject to minimum funding? I believe the answer is NO since the plan was terminated in the prior plan year and no SB is prepared.

how is question 11b answered? BLANK or $0?

I think the answers are NO and BLANK but would like to confirm before I file and DOL kicks it out.