austin3515

Can you use the owner's SS# as the employer's EIN if they do not have an EIN? It’s a small solo 401k plan. The 1099 is for the owner and is being issued by the owner. There is no withholding or anything.

Solo plan had an eligible employee for 2010 and 2011 and that's it. Assets currently <250K. 1) I'm marking the s-f as a first return reprot. Anyone think I'll get a letter from the DOL asking where last year's 5500's are? Anythin I can do to prevent it? 2) When I lose the employee, I'll be over $250K, so still need to file the EZ. I think that's a good thing because when the DOL writes me looking for the 2011 filing, I can produce the EZ (I'm assuming the DOL will have no record of that). Anyone have any other tips? I'm srt of resigned to the fact that I will be getting letters from the DOL/IRS on this...

Just to clarify, it's not that I would ever consider such a ridiculous request, but I'm curious to know the rules that are applicable here.

OK, but let's say you're not an ERPA or anyone else enrolled with the IRS. Just a regular Joe TPA. Your client tells you not to disclose a Prohibited Transaction on a schedule G on the 5500 (even though it obviously was a PT). I'm looking for the rule that says as a paid preparer, it's against the rules to comply with suich a request.

I know that all applies to ERPA's (like me ) but I thought there were also rules for even those who were not registered. This seems to refer only registered tax return preparers. I thought that 5500 preparers were exempted from registering now?

Now we're talking So I can amend the plan to reactivate the ADP test for 2011, I have until the end of the year. Still owe the SH Match, although I could probably stop the match "today" with 30 days notice.

Kevion, I'm still stuck on the fact that I'm not failing a test, I have a plan document problem. From the reg: (2) Scope of corrective amendments. For purposes of satisfying the minimum coverage requirements of section 410(b), the nondiscriminatory amount requirement of §1.401(a)(4)–1(b)(2), or the nondiscriminatory plan amendment requirement of §1.401(a)(4)–1(b)(4), a corrective amendment may retroactively increase accruals or allocations for employees who benefited under the plan during the plan year being corrected, or may grant accruals or allocations to individuals who did not benefit under the plan during the plan year being corrected.

So you're saying -11g allows me to amend a defective safe harbor plan back into an ADP tested plan?

I'm not following. I thought that was to correct coverage/nondiscriminatiuon issues, not plan document failures, which is what I think I got...

American Fundds (Recordkeeper Direct) ExpertPlan Ascensus The list goes on...

Takeover plan (we hope ) Prior "data processing" provider made them a Safe Harbor Plan effective January 31 2011, but the Plan was not safe harbor in 2010, so clearly not correct. So now what? The document has been signed, so tehcnically the matching contribuion is due. But now my document does not include the ADP test. It seems to me that I have no means of doign the right thing here. Is VCP the only option?

Is there a write-up somehwre on the paid preparer rules?

I just think thats one more thing to look for in the following year (i.e., next year, before D'ing them, you have to chek to see if you reported them last year). just sounds like more work in the end. But that's just my approach of course!

Let's say there are NO participants required to be reported for 2009. Does anyone have a problem with me voluntarily reporting my 2010 people in the 2009 plan year in this situaiton? I have good reasons for doing it this way, so please don't say "why don't you just report them in 2010?"

The key is a plan funded exclusively by IRA's (so same goes for SIMPLE IRA's)

I'm not certain the trustee needs to be in the US. I know that once upon a time I found that you do not need to be a US citizen to be a trustee. The trust just needs to be organized/domiciled in the US courts can have jurisdiction. But don't quote me on anything

So it sounds you look agree that my two distributions should both be exempt from the 10% penalty? I must have read the same articles as you

I agree with you 100% regarding when the doc does not require. Point of clarification though, my document did require it.

I had a plan that simply required spousal consent to any distribution. I assume it was legal because they had a favorable opinion letter. But it was pretty simple, it didn't involve QJSA or anything. Document just said "spousal consent shall be required before approving any distribtuion" or something like that.

What if the document did not mandate lump-sums, but allowed partial distributions? You're saying a QDRO mandates single lump-sum distributions?

So you're suggesting that there might be a time limit? Say the person waits 4 years to close their account. Are you saying someone might argue that the distribution was not pursuant to a QDRO?

Somoene gets a QDRO of $100K. If they take $30K today, and $70K next year, are both payments exempt from the 10% penalty? Assume they do not rollover (of course). Someone is suggesting that the second distriubion is not exempt, but the code plainly says distibutions pursuant to a QDRO are exempt.

"f the 2011 Form 5500 is not available before the plan or DFE filing use the 2010 Form 5500 and enter the 2011 fiscal year beginning and ending dates on the line provided at the top of the form." From Page 4, top right column of the 5500 instructions for 2010. It's not based on the deadline, it's when the filing is actually made.

Step 1: Run the ADP test without OE's. If the testing passes you are fine. There is no requirement to RUN and ADP test. The requirement is to PASS the ADP test. If the test is passed, the fact that you didn't run it before 12/31/09 is moot. Step 2: If you don't pass the test, now your correct, OE's cannot be included. You need to correct under EPCRS which involves making QNEC's. There's a couple of options available.

When can a contribution be deducted under EPCRS? Correction is to make up missed deferralks due to not implementing an employee's election. Ideally, we could deduct in 2010, because a) the missed deferrals relate to 2010, and b) they will be funded by the due date of the employer's return. Any help appreciated.