AllThingsForGood

I've actually determined my answer, I think, but I'm leaving this post up in hopes that it's useful to someone else. ALL 3 of those addendums I listed are part of a new Document package in FT Williams' system. They are not redundant.

If I am putting a client into a brand new DC prototype Plan Document, what Amendments/Addendums should be in their Document package?? I'm getting myself confused, maybe I'm just tired, ha ha. I'm BRAND NEW to FTWilliam; leaving another software that I've used for almost 3 decades! When I print the Adoption Agreement in the FTWilliam system, the following are part of that: the SECURE 2.0 Addendum 2026, the SECURE 2.0 Addendum 2025, and the SECURE/CARES/CAA Addendum. It seems VERY redundant to send a client each of these 3 Addendums, but is that accurate? Or does just the '2026' version go with a Document package? Again, my brain may just be revolting against the transition tasks, and I have researched this but cannot find a clear (dumbed down!) answer. Thanks guys.

I am considering changing software systems (small DC plans, less than 100 1099-Rs per yr) -- going to FT William from Datair. I also have lost my Distributions clerk, so I'm not totally familiar with the IRIS system of filing 1099-Rs yet, but had to go it alone this past January. Forgive me if my question isn't even relevant. For FT William users does the FT William software integrate somehow with the IRIS system? I might not opt for their "add on" module of 1099-R prep if I have to manually use the IRIS system anyway. Thanks!

I just sent you a PM.

Thank you David! And Thanks to Paul too, for walking through that with me.

Thank you so much for helping me, Paul. I need to ask, though, why is the amount taxable on the 1099-R that the receiving-plan issues? And, if there's a Code G, wouldn't that contradict the Box 2a having any amount in it? Thanks!

The AT money is a contribution to my client's plan. (I said "rollover" in my initial posted question - sorry!) The deposit of $30k is the amount being 'converted' to Roth, inside the 401k plan. It's being considered converting on the date of deposit so there are no gains associated with that basis.

The After Tax money came IN to my client's solo-401k plan. The financial advisor wants record of its basis ($30k), so wants a 1099-R prepared showing the AT money being converted, inside my client's solo-401k plan, to Roth. I have never had this circumstance, and even questioned the necessity of a 1099-R at all. Is a 1099-R necessary? (Might should have been my first question) If NOT, is there any reporting necessary from the solo-k plan?

Good morning. I have a client (1 ee plan) who rolled INTO the Plan aftertax money. To establish basis within his Plan, I'm preparing a 1099-R showing the after-tax amount as being 'converted' to Roth inside the Plan. Can you please tell me if I'm thinking right about the 1099-R? Box 1, the amount that came in is shown ($30k). Box 2a, taxable amount $0. Box 7 - H (what else could this code be? is H right?) Thanks !

Could that sentence be interpreted as "marked as terminated"? There's no way, operationally, to 'remove' anyone quickly.

Excellent points, again. Thank you!

Peter, this is great information - thank you! I have reported the assets as required each year, so all are aware of the investments & their ratios. BUT, I know that's not enough to save my behind, necessarily. Regarding the Code Section 404 -- this plan is not intended to be a 404c plan. Does that declare moot the reference you gave? I am going to highly encourage the client speaking with an ERISA attorney, and I'm making note of the 2 statutes you mention. I'll research those (and other items you mentioned) myself. THANK YOU.

Artie M, thank you. "Clogged stethoscope".... love it! The $2/share was the purchase price. I do NOT think that is a fair value, because the issuing-company (board, I guess) was raising money in 2022 and I'm almost certain the valuation was an independent one (I'll have to double check on that). IF the $17.57/sh was indeed produced independently, that is the best value to use at this time. Fortunately, there is no related party/PII issue. No relationship at all. The shares of this private stock makes up 42% of the total plan value. The other 58% is in a regular investment account (Schwab, with an outside manager). THANK YOU!

I want to add this comment -- the Dr could take 100% of the private stock as his own segregated investment, however, if it does sell at a huge gain, he wants all the participants to share in that! It's a double-edged sword, I guess. If the stock does go to $0 value, they'll all share in that massive loss. At least the Dr's intentions are good!

Thank you both, ESOP guy and Paul I. I will be following both of your advice - GET IT IN WRITING from the Trustee/Plan Sponsor. Thank you so much.