notapensiongeek

I haven’t filed a Form 5330 in decades and now need to file one for the 2024 year. From what I understand, paper filing is still allowed for 2024, but e-filing will be required beginning in 2025. Is this correct? A couple of related questions: Since the IRS will no longer accept paper checks after 9/30 (or will they?), what’s the best method to make an electronic payment, and under what “tax form” should it be submitted (I don’t see Form 5330 specifically listed)? If paper checks are still allowed for now, what is the correct mailing address? The Form 5330 instructions list Ogden, UT, but I’ve also seen a North Carolina address. I also understand there will be penalties since the payment wasn’t submitted by 7/31. Thanks in advance for any guidance!

I don't see an issue with them taking the enhanced startup credits and tax credits for 2022, given their participation in the PEP, since 2.0 clarified participation in a PEP was treated the same as a single employer establishing a plan. To answer your question, the ER's participation in the PEP was in fact identified by name, EIN, plan number, etc. and their identifying information is the same in the newly established single employer plan, so I agree, it's "the same plan". Along these lines, it seems reasonable they would remain eligible to take the enhanced startup and tax credits for 2023+. The fact that their payroll company recommended they become an adopting employer in a PEP, which turned out to be a really bad idea, and now they have to incur additional costs to set up a new individual 401(k) plan to make things right, may be irrelevant. But I agree with you, I will recommend they defer to their CPA for final interpretation on this. Thanks for your input and any additional input on this.

An employer became an adopting / participating employer in a PEP effective 1/1/2022. They have 10 eligible NHCE's. In 2023 they established a new single employer 401(k) plan and did a spinoff from the PEP. For purposes of the plan startup credits, would they qualify under the Secure 2.0 provisions for administrative expenses under both plans (PEP and single employer 401(k) plan) or are they limited in some way in the 401(k) plan?