Hello. I need help with 2 Solo(k) issues:
First scenario: Client had a Solo(k) at Oppenheimer and utilized their prototype plan document. Advisor moved the plan to Pershing and completed Pershing's retail account paperwork in the name of the Solo(k) (i.e. John Doe Solo(k) plan). Pershing never questioned the registration and opened the account as a retail account. Since the account was opened as a retail account, the paperwork to utilize Pershing's prototype plan document was never completed. Per Pershing, they are acting only in a custodial capacity. That was in 2011. Client has received 1099's from the account for the last 11 years and has never said a word about them. Not sure if he has reported them on his income taxes. Would I be correct to say that the plan really does not exist at this point? No plan document was ever issued by Pershing. I don't think we can consider the Oppenheimer document as a valid plan document any longer, since the plan was moved from Oppenheimer. No restatements have been done in 11 years. To make matters even worse, the plan is over $250k in assets and has never filed a Form 5500. Several issues going on. I specifically need help on 1) Plan document failure - can this be correct? If so, how? 2) Should we request that Pershing re-register this account as a Solo(k)? 3) What do we do about the 1099's? Do we even try to correct those at this point? 4) Failure to file Form 5500 - how should we correct this issue?
Second scenario: Client completed paperwork to open Pershing Solo(k). Plan was to use the Ascensus prototype document service. Paperwork was sent to B/D. B/D sent paperwork to Pershing, who opened the account. Pershing is acting in a custodial capacity only for this plan. B/D failed to transmit paperwork to Ascensus. Ascensus never issued a plan document for this plan. They have no record of the client. Client has been funding the Solo(k) for several years without a plan document. Is there really even a plan in place? Can this be corrected?
I appreciate any guidance that you can give to help me get these clients back on track.
