http://www.irs.gov/pub/irs-drop/rp-14-28.pdf

I have a Safe Harbor 401(k) Plan where the principals are looking to use their money for a real estate investment. Generally I would have no issue with this, but the plan for the property is to use it as a retreat to send clients.

Anyone have any experience with this type of thing? Would it be allowed, in theory?

Thanks in advance!

We are a privately held S-Corporation based out of Illinois. Our Board of Directors each have a benefit package that are outrageous which no other employee receives. Beside the benefits they now have set up a SAR for the Board of Directors. Is there anything that we as employees can do to modify or eliminate some of the benefits and the SAR?

I just got a question from a colleague of mine asking if I knew the default tax withholding on an ADP refund from a Puerto Rico qualified plan. My recollection was that 10% withholding is correct on virtually all distributions from a Puerto Rico plan (except for certain lump sum distributions). Can anyone confirm this? Does anyone have a cite?

Thanks in advance.

Medical practice has a deferred compensation plan. When a Dr. leaves the practice they are entitled to a deferred compensation payment which is almost entirely derived from the collection of receivables.

Is this payment for services rendered (subject of course to 2.5 months/last day of plan year) or ineligible deferred compensation, because it only becomes payable after severance from employment?

Or is the answer, you really need to dig into the particulars of the contract? This must come up often, so I'm hoping someone can offer a rule of thumb!

Hi,

An employer deposited more money than necessary into the plan for a profit sharing contribution, and then decided to simply take the money out of the plan. It was money in the holding account, and had not been allocated to the participants. However, it still shouldn't have come out of the plan. Does anyone know what the penalty is for this?

Thanks!

Employer had signed a directive for the 2012 plan year to contribute $70,000. Due to confusion about $30,000 in salary deferral contributions, only $40,000 was made in 2013.

Can the company make the $30,000 now in 2014 and still count it for the 2012 plan year? Assume the plan document does not have any language that otherwise indicates when a contribution must be made for the plan year. For example, it does not state that the contribution must be made by the due date of the employer's tax year.

The allocations will be considered part of the 2014 limitation year so will not exceed the 2014 maximum limitations.

I know that the amount deductible for 2012 is only $40,000. But I don't see anything that prevents this from being allocated to the 2012 plan year as long as the 2014 deduction and 415 limits are not being exceeded otherwise.

Thanks,

Craig Schiller

Ladies and Gentlemen, here is the Northern Cali solution by the Blues to a nationwide problem:

The healthcare client whose employees are immediately subject to the individual mandate is offered a choice between a High ($3,000 max per member) Dental PPO (90%/60%) and a Low ($1,500 max per member)Dental PPO (80%/50%). In addition, a choice of Pediatric Dental PPOs is offered to subscribers and dependents under age 19 with the proviso that one of the Pediatric Dental PPO options must be elected by the employer.

Hence, members and subscribers under age 19 have two premiums offered, one of which (the Pediatric Dental PPO) must be selected and paid in order to satisfy the individual (and ultimately employer) mandate.

Does anybody (certainly not the regulators nor Speaker Pelosi) have a simpler solution?

Regards,

Ira

P.S. The same situation applies to the essential vision benefit. Trust me, the Delta Dentals and VSPs of the world won't touch these issues with a 10' pole.

3 years ago, I had a DRO for a municipal gov't deferred compensation plan approved by the plan administrator. For whatever reason, my ex refused to agree to it. Now he is agreeable, but the plan administrator told me there may not be enough to cover my share after the gains/losses are figured in because my ex's child support obligation was paid from it. She even went so far as to blame me that the child support was coming from his deferred comp account and that I shouldn't have waited this long!. When I asked her if she knew this for sure if there would be a deficiency, she said she didn't know and that the record keeper would not continue to figure gains/losses if there were no funds left in the account, so we may not know the total of my marital share of his account. It was all speculation on her part. She wants me to add a provision to the DRO that if there isn't enough to cover the lump sum plus gains/losses, that my share would be 100% of the fund. That means that she is trying to get me to take less than what is stated in my stip. just because my ex's child support obligation had reduced the amount in his fund. Also, my stip would have to be amended to include this provision. Anyone have any ideas what I should I do?

Seeking advice. In 2013, I received W2 severance from past employer. Also received 1099-MISC consulting income via my 1-person LLC.

Am I able to set up and contribute to a SEP IRA from my 1099 income as per IRS Pub 560, or does my W2 severance income affect situation.

Thank you in advance!

Since the 15th fell on a Saturday, can Monday the 17th be used as the deadline for issuing refunds?

Thanks!

Employer sponsors both 401(k0 and 403(b) plans

Employee derred more than $23,000 in 2013. W2 showed two separate defrred amounts that added up to $23,700

401(k) is a fiscal year plan (why it wasn't picked up earlier)

What is the correction? Any choices which plan?

Quick post to see if people agree with my viewpoint here:

1) The plan sponsor wishes to replace 3 funds in the 401k plan because a new share class with lower expenses is available

2) The plan has 6000 total participants but only 550 have balances

3) 404a5 requires that the 6000 participants receive the 30 day notice indicating the change

4) Once the change occurs no follow up with a fully updated 404a5 disclosure is required (outside of when the 12 month period ends from when we last sent a full disclosure to all 6000 people)

So - to minimize the cost of providing all these notices and disclosures would we want to time the fund change and 30 day notice to when the 12 month period is up to resend the full 404a5 disclosures (which will actually not reference the change in the 30 day notice because it hasn't happened yet). We are also tying to when we send the Summary Annual Report which goes to the same audience. 3 Birds, 1 Stone - Right?

The quandary, you have a fund that should be replaced for a better fund immediately, but the cost of providing the 30 day notice is prohibitive on a plan with many more total participants than participants with balances. Seems like taking the risk of not sending the 30 day notice to all 6000, outweighs waiting to make the change.

I think it clearly does not apply in the following situation, but I thought I'd solicit opinions in case I'm being overly conservative.

LLC A is owned by 3 people - 1/3 each. LLC B is formed, owned 100% by LLC A. So there's a controlled group, or common control group depending upon tax structure. Doesn't matter for purposes of this question.

I believe the transition period does not apply - it isn't any sort of a merger or acquisition under either the code or regs. as far as I'm concerned.

Any other thoughts?

February is the second month in a row that the 417(e) segment rates have gone down. Can anyone suggest 1) a cause for this recent trend, 2) if the trend is expected to continue, and 3) where they might be in May 2014?

Hi, all:

We have a plan that spun off from a MEP and 2013 is their first year to file. My colleague asked me if there is any data she needs to obtain from the MEP that could affect our 2013 work for it. I could not answer her with certainty, so I thought I'd cast a net out for input. Do we need Top Heavy data from the MEP or no? Any other think-outside-the-box-holy-cow-I-wish-I-knew-that things to keep in mind?

It appears the current adoption agreement that was drafted retained the MEP's efective date and lists the current restatement date and Plan No. 001 One more tid-bit of info, it seems they made no new contributions to the plan for 2013.

Advanced thanks for anyone's input!

The employer had a Simple IRA Plan that was terminated.. The participants want to roll the funds into their new 401(k) Plan.

Normally a participant is prevented from rolling the funds to the an IRA or Qualified Plan, unless the participant was in the simple plan for 2 years.

Does the termination of the plan negate the 2 year period, allowing the participant with less than 2 years to roll to a traditional IRA or Qualified Plan?

If not, what happens to the accounts for the participants with less than 2 years? Do they remain under the Simple IRA even though the plan is terminated?

Thanks

We took over a client that has a profit sharing and cash balance plan. The owner wanted to take an in-service withdrawal from the p/s plan, but there was not enough cash in the account, so he transferred securities to the cash balance plan (which as substantial cash) and had the value of the securities transferred back to the profit sharing plan in cash. He then took his in-service. My thoughts are that this is a prohibited transaction in that he did the transaction only to allow him to take the in-service without having to liquidate the securities. Thoughts?

A one-man plan has always had an AFTAP over 100%. However, the 2013 AFTAP wasn't certified and, shortly thereafter, the plan was terminated and the one-man received a lump sum distribution. Was that lump sum in violation of 436, since the AFTAP was deemed to be less than 60%, or is a plan termination different?

Thanks!

Do I need a PTIN to draw up a 5330 for a client?

I am not specifically paid to produce it. It is part of our general administration services for the plan.

I know I don't need one for 5500's, but 5330's involve actual taxes and IRS revenue, so I'm a little hesitant.