We took over a retirement plan last year and never received the Roth basis information to calculate if a distribution was qualified or not.  The plan is now terminating.  I know that a termination does not make the roth distribution qualified, but what do any of you do if you do not have the 5-year information from a prior TPA or client? 

Suppose you have a 1-person plan with over 250k in assets, so subject to filing a 5500-EZ. Suppose a 5500-SF is filed instead. Is there a PENALTY for filing the SF? Are you considered to have not filed? I'm not 100% sure on this.

if a plan has been frozen from 1/1/2024 (both accrual and participation are frozen), a participant met all eligibility requirements and should enter the plan on 1/1/2024 if the plan is not frozen. we don't need to test 401a26 test due to SECURE act 401a26 relief; there is no accrual so no 410(b) test. but I'm just curious - in this case, should he/she be included in non-discrimination testing due to meeting all eligibility requirements? or he/she should not be included in tests due to 1/1/2024 freeze date? thanks!

First time filing under DFVC for an EZ.

I recall with regular 5500's, you file the 5500 first, then file the DFVC request.

Seems unclear with the instructions, other than that you cannot do an electronic filing to get DFVC relief.

Mailing address for 5500: 

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0020

Mailing address for 5500 under DFVC: 

Department of the Treasury
1973 Rulon White Blvd.
Ogden, UT 84201

So unclear to me if there should be just the 1 DFVC filing, or a 5500 filing as well?

Can a participant have a racehorse as an alternative investment in a 401(k) Plan?

A participant would like to purchase part of a racehorse using their 401(k) account and then hold the ownership in the Plan as an asset. Other than keeping all of it "at arm's length" and watching for obvious prohibited transactions and possible Unrelated Business Income, is there anything preventing this type of alternative investment from being held in a 401(k) Plan?

1. Harry inherited his Mom’s IRA in 2019 

2. Harry is using the stretch IRA and taking payments based on his life expectancy.

3. Harry is married

In the event of the Harry’s death what happens to his inherited IRA.

1.      Can his wife roll the funds to her IRA?

2.      Can the wife take payments based on her life expectancy?

3.      Is the wife deemed a Designated Beneficiary and eligible to continue taking advantage of  the stretch provisions.

Thanks

I know that if a Plan qualifies for a Form 5500-EZ, you don't have to file if the assets are less than $250,000.  I believe you do have to file a Form 5500 or Form 5500-SF, even if the Plan is less than $250,000 but I just wanted to confirm.

The Plan in question covers:

1) A 40% owner
2) The spouse of the 60% owner

Reading the EZ directions, I do believe they fall under the 5500-EZ.  I'm just trying to cover my bases

Thanks in advance!

Question about mergers/acquisitions and successor plan rules.  Company A and Company B are a parent subsidiary controlled group and both participate in A's 401(k) plan. Company C buys the stock of Company B.  Company B immediately ceases participation in the A's plan and becomes a participating employer in C's 401(k) plan.

Company C refuses to accept a trustee to trustee transfer of assets and liabilities for B's employees from A's 401(k) plan, nor will C agree to a spinoff and merger on behalf of B's employees.

I wouldn't think B's employees would be eligible for termination distributions from A's plan until they terminate from Company B, right?

Can Company A spin off the portion of the plan that holds B's employee's balances, terminate it, and pay out the balances even though B is now a participating employer in another 401(k) plan (C's plan)? 

Hello, 

I don't deal with any other TSA plans but I have a plan sponsor looking for help. The TSA plan has employees and former employees with different record-keepers than where new money is going. Can they eliminate those other record-keepers, or are they stuck with the money there? What are some possibilities to simplify this for the PS?

Hello. The DOL template for the SAR for welfare and pension plans includes the two-paragraph blurb on the Paperwork Reduction Act. However, in another location on the DOL website, there is instruction not to include the blurb. I called the DOL Office of the Chief Accountant to confirm which way to approach and they have to do research. Does anyone have advice on which way to approach? Many thanks! 

Traditional 401k plan has an ACA feature with auto escalation (not EACA nor QACA). Plan is a calendar year plan but auto escalation occurs on July 1 to coincide with pay raises. Plan provides annual ACA and escalation notice between 30 - 90 days before the beginning of the plan year. 

Question - since the escalation takes effective later than 90 days after the annual notice is given, is a second notice required to be given later in the year?

I have searched the EOB and these boards, but can only find notice references when the escalation occurs on the first day of the plan year. I am thinking a second notice should be given, but am getting push back to prove it. 

Thanks

I am 67 and retired but have not begun withdrawals from my well-funded traditional IRA. We own our home outright – no mortgage. We need a new car, but don’t have the cash for it. What’s the best strategy for buying this car? I have considered a home equity loan and car loans. But those would be paid back with IRA withdrawals anyway. Why not withdraw the full purchase price of the car from the IRA? I would the buy the car, then sell our old car on my own and return the proceeds from that sale to the IRA. If I sold our old car first we would be without a car and under pressure at the dealership to move faster than I am comfortable doing.

1. Is this my best strategy versus some type of loan?
2. Can I deposit the used car proceeds into the IRA?

Do I need to file a Petition for Contempt if my ex-husband refuses to sign a QDRO?

Helpfully expound upon the restrictions for distributions of rollover amounts. Particularly, if rollover amounts remain subject to in-service distribution restrictions. The provenance of the rollover amounts perforce might affect the situation, if the rollovers proceeded from elective deferrals, Roth amounts, after-tax distributions, amongst perhaps further items. 

https://www.kiplinger.com/taxes/supreme-court-strikes-down-chevron

Worth a read.  This will change our world dramatically. For the better or for the worse I do not know.  My guess is some of both.

Feel like I remember this coming up before but now I can't find anything. 

Bonuses not excluded comp.

Employer pays a bonus, NOT off-cycle (i.e., paid with a regular paycheck, so EE just gets a larger paycheck for that pay period). 

Say Employee A has a $100/paycheck deferral election. Employer should just withhold "Normal" election correct? Since it is being paid in a regular paycheck, there would not be an increase in deferrals withheld?

Hi folks! 

Scenario:

• Parent owns 100% of Company A. 
• Parent/Adult Child are 50/50 partners in Company B. 
• Unrelated entities. 

Am I correct in that there is no controlled group here? It is my understanding that ownership is only attributed from/to Parent/Adult Child if they own over 50%, not 50% exactly. 

Or am I not reading the rules correctly?

Thank you!

Donnie

Lets assume employer has 100K in Health FSA forfeitures fro the applicable year. As I understand it, to the extent forfeitures represent "experience gains," the section 125 rules and ERISA would regulate what an employer can do with the forfeitures (i.e, defray plan expenses, reduce EE salary reductions for the following PY or refund). Lets assume now that the loss experience (i.e., the amounts the employer ate in overspent accounts relating to mid-year terms) is 95K resulting in net experience gains of 5K. lets assume further that the admin expenses for the Heath FSA for the applicable year are 5K.

5K out of the 100K in gross forfeitures is eaten up by the admin expenses leaving gross forfeitures of 95K, which after applying the the experience loss results in 0 net experience gain for the applicable year. Does that mean that the employer can use the 95K in forfeitures (i.e, net forfeitures after deducting the 5k in admin expenses) as its sees fit (even for paying expenses for unrelated benefit plans) since there are no experience gains? Brian, thoughts?

There is a new audit client that did not attach the accountant's review of the 5500 upon filing.  Would anyone be able to cite the potential ramifications and penalties for an error like this?  I believe this would have to be corrected through VCP or DFVC, but I'm pretty sure the penalty would be under DOL/IRS discretion.

We have a situation where a client has won a judgment against a defendant.  Instead of taking the settlement money directly, the client would like the defendant to fund a NQDC Plan.

Because the client is not a service provider to the defendant, I don't think 409A applies.  Is that accurate?

If so, what, then, governs the NQDC Plan?  Is this based entirely on the "constructive receipt" doctrine?  Do we still have to follow the 409A restrictions regarding distribution events, or can we be a bit more creative (e.g. if the client has a "down year" where their profits are below $____ it would trigger a payment)?

I appreciate any advice, even if it is just spit-balling.