We have an auditor asking information for information on the VALIC Fixed Interest account that is being offered through a bank custodian. Anyone know where I can get the financial statements for this fund? It does not have a ticker, but it does have a CUSIP?

http://rps.troweprice.com/mc/sites/florida/pdf/VFIXF.pdf

He wants to know if the contract is benefits responsive and whether it is Level 1, 2 or 3 for those crazy new disclosures.

Anyone have a document or can point us in the right direction?

I've heard many times that all plan loan errors have to be corrected through VCP. I just looked at 2013-04, though, and it really only says you have to use VCP if your loan didn't comply with 72(p)(2).

I have more of a defaulted loan situation that I don't plan on treating as a deemed distribution. Can I use SCP???

I thought I recall seeing a post from Tom Poje with the "estimates" for 2015, but can't find it. I know it's only 10/06 - but anyone know when they might be out or can connect me to that recent post?

Seemed like they came out alittle later last year (closer to Nov.1st).

thanks in advance.

If someone makes their contribution to his HSA for 2014 for the full 6550 but only had family HDHP for 6 months, and then changes in 2015 from family to individual HDHP coverage, do they have to go back and recalculate what was eligible?

Also, is there something about the adult child who is on the parents HDHP being able to contribute to their own HSA? How does this affect the parents contribution amounts and can someone direct me to where this is written that it is allowed (if it is).

Thanks!

The IRS returned the 5558 and indicated that it was rejected because it was filed after the due date of the return. The TPA who filed the 5558 claims that it was postmarked no later than July 31st (PY is 12/31), but cannot provide proof of their claim. The client also recalls the TPA mentioning months ago that the return wasn't due until 8/31, so it seems pretty obvious that the TPA filed the 5558 late.

It seems inevitable that the client will receive correspondence from the IRS after they file the return stating they must pay penalties, etc. because the return wasn't filed by 7/31 now that the 5558 is invalid. Is there a good chance that the IRS will waive the penalties, etc. if the client writes to the IRS when he receives the "penalty" letter and explains that he was reliant on the TPA who filed the 5558 late? Should he wait until the IRS contacts him, or send such an explanation now with his return? What recourse does the client have? The TPA did not have the client sign a service agreement - hopefully that will not give the TPA an "out" if the penalties can't be waived. All help is greatly appreciated.

A participant in a 403(b) plan has been notified that they have had excess deferrals made to their account for years dating all the way back to 1998. The plan has entered into an agreement with the IRS, and now each affected participant is receving a distribution in 2014 for the amount of the accumulated excess, plus applicable earnings on the account. Each participant is being advised to properly report the distributions in the appropriate tax year affected by the excess deferrals.

The question here is whether this participant, who had excess deferrals in 1998 (and beyond), must amend personal returns for tax years in which the statute of limitations has been met, or only for tax years that are still open to examination.

Thanks for any replies.

Let's say Owner A owns 40% of 5 different Companies (each separate LLC's which own separate franchises). The remaining 60% is owned by the operator and is always an individual unrelated to Owner A. Owner A owns 100% of "Back Office Co." Back Office Co handles the accounting, payroll, advertising, human resources, and other services that are required for each of the 5 Companies. Each of the 5 Companies pays a servicing fee to Back Office Co.

Back Office Co. employs about 12 people to do all of this work, almost all of whom are NHCE's.

Would this be considered a Management Group? Are these Management Functions? Couldn't a case be made that the principal purpose of this entity is NOT management? It's really overhead. Note that hiring/firing decisions are made at the franchise level, and the operations are managed by the 60% owner. Granted, Owner A does play a big role, but he is just one employee of many at Back Office Co. Each LLC has between 50 to 100 of its own employees.

DOes the answer change if the ownership exceeds 50% (i.e., because they would be considered related)? I suppose the answer is "if this entity provides management services" the answer is yes.

There must be a PLR or something on this stuff...

Plan sponsor did not submit census data to prepare 2012 testing until 2014. We are the financial advisors. The plan is bundled with Fidelity, who is not responsive to our questions and has not mentioned any of these issues to the client. I think I know the answers to these questions, but I want to double check before we meet next week.

1. Although the document calls for the discretionary match to be calculated on a plan year basis, they deposited it each pay period. As a result several people are due a true-up. Because it is so far after the due date for 2012 contributions, I suspect it will need to be counted in the 2014 415 limit, with all of the attendant issues of those who may have left in the interim. Is that correct?

2. Should the ACP test use the match amounts actually deposited on a timely basis, or the after true-up amounts?

3. The plan fails ADP. So far no one has mentioned anything about needing to do a one-to-one QNEC. Has that requirement changed?

And finally (for my own curiosity, not the client's) is this sort of laissez faire approach typical of how Fidelity operates?

I (taxpayer filing on my own) have multiple 403 (b) plans (and am not a beneficiary on any). In 2013 I totaled up all my [(12/31/2012 balance)/divisor] amounts, for 403 (b) plans only, and then took the same total but from only some of the 403 (b) plans. From several reputable sources I understand this is OK w/ the IRS. I am listing those all distributions on my 1040 line 16b.

Question is how to best avoid an audit to explain what I did. Would you recommend:

• That I add an attachment showing the figures? (If so, an attachment to what line of what form?)
• That I fill out some form the IRS has (of which I am ignorant) for demonstrating that I "did right? What form?
• OR That I trust the IRS algorithms to look at the same numbers, figure out my various RMD's, total them, and draw the conclusion that i "did right" on its own?

Client was supposed to fund Safe Harbor Non-Elective for 2012. Small Plan, form 5500SF. Apparently doesn't have the funds to do so. listed the SHNE contribution on 2012 Form 5500 that should have been made. Now filing 5500-SF for 2013. Do I have to amend 2012 to remove the SHNE contribution or leave it as is? I know there are many other issues since it hasn't been funded but I'm just worried about the 5500 for the moment.

If an employee changes status to part time and has an outstanding loan, is there any rule concerning the loan repayment exceeding a certain percentage of the employee's salary? I would think if there is such a state law that it would be pre-empted by ERISA, but the advisor thinks is could be an issue.

Any thoughts are appreciated!

QDRO was presented to the Plan Sponsor. This was valid QDRO and was submitted to the platform to segregate the account for the alternate payee. The alternate payee then took a distribution and rolled the funds to an IRA.

The participant is stating there is a law that the ex's attorney needs proof of how he (alternate payee) took the monies and present this to the court and to the participant's attorney.

I have never heard of such a requirement. Once the QDRO is issued by the court, no proof of payment must be provided to the court.

Am I missing something here? The alternate payee could print the transaction information from website if necessary, but the plan has no right to release this info do they???

I have a plan that missed a group of employee's deferrals. They have now deposit the missed deferrals - the principal amount. Is there a deadline to deposit the earnings? I know that earnings must be calculated and contributed on the late deposit, but don't earnings continue to accrue on earnings until the final payment is made?

Thanks!

Anyone see a qualification problem with the following in a profit sharing plan document?

Plan has two tiers of employer profit sharing contributions. The Company can declare a contribution under one of the two, separate contributions under both, or none. The annual Board resolution or other written declaration will be very specific as to what is being declared.

1. Contribution allocated uniformly to all participants based on their compensation.

2. Contribution allocated in a uniform flat dollar amount for each participant.

Plan sponsor decided (without service provider knowledge) to contribute the 3% safe harbor throughout the plan year. Safe harbor is based on full year's compensation, including wages prior to date of entry.

For new entrants, the plan sponsor contributions made during the year were based only on wages paid after date of entry.

After the plan year-end, the service provider calculates the full SH amount due. Plan sponsor contributes the remaining amount due well before the safe harbor contribution deadline (before the end of the plan year following the SH year).

The plan sponsor feels that they short-changed the new entrants, so they want to contribute an amount to make up for "missed earnings" on their safe harbor contributions that were made after the end of the plan year.

Since no contribution is actually late, is there any justification for a "corrective contribution" to be made to the plan as described?

Two Companies are part of a Controlled Group, but they maintain separate Plans, and the plans will be combined for testing, is it necessary for the plans to be "mirrors" of each other?

If they are not mirrors of each other, do they still need to be combined for testing because they are part of a Control Group?

If the Plans are able to pass testing without being combined, do I still need to combine because they are part of a Control Group?

Any help and guidance is greatly appreciated.

ALEX

For those of you misguided individuals who are fans of other teams, I just want to say that in spite of the 2014 debacle, our enthusiasm and loyalty remain intact.

Can a Sole Proprietor make a contribution to a defined benefit equal to his entire Schedule C before deduction of s/e taxes and pension contribution? He will end up with a final Net Schedule C of $0

PArtnership filed partnership returns on 9/15/2014. We are doing 2013 profit sharing today for just the owners (employees already received a 2013 PS of 7%), which is before the 415 grace period ends on 10/15. We are then going to do profit sharing again for 2014 and deduct them both in 2014 (and be cognizant of the 25% deduction limit).

Anything I am missing?

At the end of 2012, a plan participant with a $50,000 loan had outstanding principal of $34,702 and all loan payments had been made as required. In 2013, no loan payments were made. At the time of the default (June 2013) her outstanding principal was $29,927. This amount, plus interest, resulted in a deemed distribution of $31,228 which was reported as taxable income on her 2013 1099-R. Assuming I did the interest calculation correctly, was the deemed distribution based on her June 2013 outstanding principal the correct amount?

She does not plan on making further loan payments. I understand that the loan should still be part of the plan assets. What amount should be used? Should it be the $34,701 at the end of 2012 (paid up amount), or the $29,112.87 that remained as the principal outstanding after the deemed distribution date of June 2013?

Any help would be appreciated.