SundanceKid

There is an agreement subject to 409A that provides that a bonus is earned upon a sale of the company. However, it does not provide when or how that bonus is to be paid, is there anyway to correct under 409A? There is going to be a sale of the company, but the plan provisions don't state when payment is to be made (i.e. lump sum, installments...)

Thank you @Brian Gilmore!

Hello all, Due to an administrative mix-up a client did not file Forms 1095-C for 2023, but their insurer did file 1095-Bs. Client has not received a 5699. Do we just go ahead and file the delinquent 1095-Cs? What to do with the 1095-Bs? Any grace given there? Thanks!

Hello All, We currently cover 100% of the insurance premiums for our group health plan for individuals and families. We would like to reimburse the out-of-pocket cost of the group medical insurance premium cost, for an employee and their family, if they should choose to stay or move to the spouse’s employer’s group medical insurance program. We would make the reimbursements on a post-tax basis. Our thought is that this would not create a plan under current regulations. Are there an ACA issues with reimbursing employees in this manner? Thanks

Has anyone tried filing an administrative waiver for undue hardship? The instructions on the form state "On a year-by-year and form-by-form basis, the IRS may waive the requirement to file Form 5330 electronically in cases of undue hardship. In certain circumstances, a filer may be administratively exempt from the requirement to file electronically. If the IRS's systems do not support electronic filing, the filer will not be required to file electronically. The filer should maintain documentation supporting their undue hardship or other applicable reason for not filing electronically in the filer's records. For more information about mandatory electronic filing based on the 10-return threshold, waivers, and exemptions, see Regulations section 54.6011-3."

Yes, the treasurer fills out the ACH forms for both employer and employee contributions. The intent was for the Employee to contribute $10k and the employer to contribute $6k. The new treasurer made a mistake and only submitted a 10k employer contribution in 2023. The company just caught the mistake and would like to reclassify/ recharacterize the either the whole or part of the 2023 $10k employer contribution to be an employee contribution.

I have an issue where a 2023 contribution that was intended to be made as an employee contribution was erroneously made as an employer contribution (due to a new employee being unaware of the correct forms to use). Can this contribution be recharacterized as an employee contribution? If so, would we use ECPRS or VCP? Thanks!

Do I need to withhold 401k contributions on a retention bonus after the employee terminates? The bonus is for staying until the sale was complete. The agreement states that we have 2 weeks to pay the bonus after the close of the sale (close of the sale= termination date in payroll).