austin3515

CP-283, penalty was $18,250. Letter dated May 16, ie. 30 days after filing.

yes 100% on the same page. Sort of annoyed it was a 6/30 because it was a population of just 1...

We had a 6/30/2021 filing sent in without the audit report around April 15, 2022 and within 45 days the IRS had sent a penalty assessment letter (around $20,000) which appeared to us be a significant change in approach. Can others indicate whether or not they had similar experiences? We used to just file without the audit and amend when it was available. But now I'm wondering if a change in approach would be to not file at all and use the DFVC. Has anyone else had to deal with this?

I was definitely having a tough time reading that!

Wow I was not expecting this! No 5500 for 2021. Checking the box is for when I do the 2022 5500! https://www.planadviser.com/form-5500-can-skipped-effective-year-plans-adopted-retroactively/

Retirement Plan set up for the first time today effective 2021. Therefore no extension was filed. I have checked the box indicating that the plan was adopted retroactively under SECURE Act. Should I indicate in the "Special Extension" box "SECURE Act Section 201"? Seems like the most practical approach. Perhaps the IRS has even already issued something about this?

Executive spends 6 months in US an 6 months in foreign country. Paid for part of the year in each country. US comp is just under $130,000. If the Chinese comp for the work done in China counts towards being an HCE, then he would be an HCE. Does it count? My definition of comp for 415 is w-2 wages...

I have multiple clients a client who give 10% profit sharing. Another who did 15% for decades (until they got bought out). Clients want what they want, our job is to help the get it if it's legal.

Yes sir!

In this case its the other explanation. The people making the decisions, it's not their money, LOL...

Correct, this is my actual Safe HArbor Match. Not the basic SH Match, but 200% of 6%. So based on that do you agree that my ADP and ACP Safe Harbors are met? For example if my Safe Harbor Match was 100% of 7%, that meets the ADP Safe Harbor but not the ACP Safe Harbor and I'd be running on ACP test on my Safe Harbor Match. i couldn't have asked for a better audience here, so please confirm you agree!

Nothing wrogn with this right, ADP and ACP Safe Harbors still apply? Yes I know about the 415 limits and will caveat about that.

"Ask for forgiveness not permission." Not sure if that's the right analogy but it's what comes to mind... At some point logic and reason do need to play a role, and this seems to me to be one of those times.

Pooled seperte accounts are availalbe under annuity contracts - that's what they are. If you see an insurance company selling mutual funds, it's through seperate accounts.

Interesting point about the date of term fixing the default. Typically the severance I see is a couple weeks to a month, but I have of course seen the 6 to 12 month ones as well where that would be an important consideration...

Was having a discussion with another consultant in the office. In my opinion, loan payment deductions from severance pay is perfectly fine and perhaps even required? The 415 regulations in my opinion disallow using severance towards contributions. But allowing severance pay to be used towards loan payments is perfectly fine. I am curious to know if others agree with that? I googled for a nice article that mentioned this, but was not able to find one.

OMG I never even knew I had this! i only pay for the regs/rev procs, not the text books (well that plus the Q&A service which is incredible). Sure enough, this question was answered, and you do have to aggregate both periods of service!

PArtcipant hired February 1, 2021 and worked 2 months before quitting. They are rehired tooday, which is more than 12 months after their termination date so they had a break in service. Plan uses elapsed time. When would this participant satisfy a 6 month eligibility? Does their 2 months pre-break count is really the question? My Basic Plan Document only says "If any Eligible Employee who had not satisfied the Plan's eligibility requirements is rehired after severance from employment, then such Eligible Employee shall become a Participant in the Plan in accordance with the eligibility requirements set forth in the Adoption Agreement and the Plan." I'm inclined to say the 2 months pre-break counts but I cannot find anything straight on point, including the EOB...

I've been saying for a while, 2 reasons all my clients don;t have eligiblity at 90 days: audit and top-heavy. Seems to me if you want to see eligiblity expanded you'd fix/address those 2 things.

Well it came from this: https://www.federalregister.gov/documents/2021/09/15/2021-19714/proposed-revision-of-annual-information-returnreports Not sure what that means but it was never part of a Bill, but rather a change in a regulation I think.

Kinda landing in the same place. I told the advisor it can be done and they'r working with their wealth management side who lives in the IRA space. Thanks All!

Excellent thanks! (3) Rollover contribution An amount is described in this paragraph as a rollover contribution if it meets the requirements of subparagraphs (A) and (B). (A) In general Paragraph (1) [Which states ALL distributions from IRAs are taxable] does not apply to any amount paid or distributed out of an individual retirement account or individual retirement annuity to the individual for whose benefit the account or annuity is maintained if— (i) the entire amount received (including money and any other property) is paid into an individual retirement account or individual retirement annuity (other than an endowment contract) for the benefit of such individual not later than the 60th day after the day on which he receives the payment or distribution; or (ii) the entire amount received (including money and any other property) is paid into an eligible retirement plan for the benefit of such individual not later than the 60th day after the date on which the payment or distribution is received, except that the maximum amount which may be paid into such plan may not exceed the portion of the amount received which is includible in gross income (determined without regard to this paragraph).

I just read a really cool suggestion - do a Roth covnersion - roll the basis to a Roth IRA and the gains portion to a pre-tax IRA. I dont follow the mechanics but if someon else does and can it explain it I would be grateful! https://www.lordabbett.com/en-us/financial-advisor/insights/retirement-planning/when-the-reverse-makes-sense--benefits-of-a-reverse-rollover.html#:~:text=A regular rollover is when,your employer or plan administrator. EXAMPLE: Ben has a $100,00 traditional IRA of which $30,000 consists of basis (after-tax funds), and the remaining $70,000 is pre-tax. Since a 401(k) can only accept pre-tax funds, the basis can’t be rolled over and must remain in his IRA. After Ben rolls over the $70,000 to his 401(k), what’s left in his IRA ($30,000) is all after-tax dollars, which can now be converted to a Roth IRA, free of taxes. Why? Because taxes had previously been paid on these funds, there is no tax bill for the Roth conversion.

Is there a rule that says that an IRA including nondeductible contributions cannot be rolled over to a 401(k) plan? Ordinarily I would say forget it but in this case it is the owner who wants to consolidate. If the answer was no, wouldn't that be indicated on this chart? I don't see any mention of any such restriction. https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

What gets me going is that they did not indicate WHERE to get them. That was great. But for ASP we just have to do the global update. Whether or not that works for the standalone / network versions I can't say... Hopefully it does though.