austin3515

My plan document seems only to have distributions for the situation where the participant make 401k contributions in more than one plan. And EPCRS seems only to address missing the 4/15 deadline. So where do I turn for correction in this situation?

Anyone?

Let me get this straight, you would take the position that, as the situation has been described, there is a chance in "H E double hockey stick" that the DOL will conclude this is timely? I thought it was very clear that thou shall ignore the outside window in the regulations.

6 months ago I would have said "calculate lost interest and call it a day." But since then I have receive 3 letters from the DOL pressing clietns about 3 miniscule late deposits reported on their Schedule H. So at least until Trump takes office ( ) and changes the policy, I would say talk to a professional about doing a Voluntary Fiduciary Correction Program filing, which is the DOL's program to fix just the sort of thing. It's really not THAT bad, although it is definitely disproportionate to the error (and bigly!).

I have a client who set up a ROBS (don't worry, I have disclaimers all over the place in my engagement letter, and lengthy emails each year about how risky it is) and I need to know the easiest way to get a cheap valuation to enable them to check the box that all assets were determined by an independent third-party appraiser. I know there are internet services out there for a few hundred dollars. Anyone had any direct experiences on this?

PenChecks of course is different then PayChex. And PenChecks can do JUST the whithhodling deposit. They will also do the 1099. If you have pooled or FBO distibutions and you're struggling with all of this, this will "change your life." The process is: Have the investment holder send a check to PenChecks and reference your clients Plan Number (which you would have from setting them up on PenChecks). Enter the payee's elections on the website and the payment amount. PenChecks will match up the distribution you entered with the funds received and sends out the check to the participant, remits the withholding and does the 1099, all for $35. And I do not work on commission!

I have a very very very simple solution: PenChecks. Call them. All of this will go away. So easy... http://www.penchecks.com/

Who's in the Doghouse!! He made a very interesting observation, which is that if his "business' " primary purpose is providing management services to 1 other business, then it is an Affiliated Service Group (the Management Company variety) and he would be employed. Of course no one has mentioned it, but if this CFO is earning his paycheck exclusively from providing CFO services to this one "client" (aka his employer) then he is a w-2 employee and they could be in hot water if challenged. For example, why the sudden change in status? But that is really the CPA's call, but I always mention to clients in these situations.

My document (and I presume almost all pre-approved documents) include this provision in the ADP testing language. Are you sure the basic plan document doesn't include this language? On mine it is buried in the Basic Plan Document.

There is nothing preventing you from establishing compliance with 410(b) by way of the Average Benefits Test. [Full disclosure: This response was plagiarized].

I am assuming taxed as a partnership although never explicitly stated. If a w-2 bonus it is obviously comp in year paid. As someone already suggested, there is no such thing as a "bonus" to partners. They get guaranteed payments. If the CPA counts the January payment as a guaranteed payment for the applicable plan year (even though it wasn't paid) then that's not your concern. It is Self Employment income (Box 14A on K-1) and so it is eligible wages. Just make sure the deferral election was (will be?) signed BEFORE 12/31. With respect to the accrual of GP's paid after 12/31: https://ttlc.intuit.com/questions/2892389-multi-member-partnership-guaranteed-payment-questions-with-an-accrual-accounting-do-they-have-to-add-the-last-two-weeks-of-2014-as-money-paid-to-the-k-1-but-paid-in-2015 Note that this assumes the partnership is on the accrual basis of accounting.

https://www.irs.gov/pub/irs-drop/n-16-16.pdf Well no one really addressed the question. I skimmed through this and there several prohibitions and requirements for MID YEAR changes. I see nothing at all regarding any restrictions whatsoever regarding changes before beginning of the Plan Year. I would be curious to see if others have a different take on it? And 12/1 is definitely NOT a deadline for distributing the notice - not in the same way that the 5500 is due by 7/31 or 10/15. Not saying it is the best practice but $#!t happens sometimes and I'm not afraid to go there! [edited this last paragraph]

Please let me know what options are out there, what you are happy with. FT does not have a 457f option. I am already familiar with Sungard Corbel, looking for others. Thanks in advance!

Solo 401k Business Owner owns 100% of his business and has no employees. He's been maxing out his SEP for years. Now, he acquires the assets of another business and as part of the transaction agrees to sponsor their 401k Plan. I am resigned to the fact that 414a requires that the new owner must recognize all service with the acquired business because it adopted their plan. Based on the wording in 414a that requirement is not limited to just the acquired plan, and also clearly applies to SEPs. So the question is, are there any 410b6c like provisions in a SEP that would allow me to exclude ALL of the acquired employees for a period of time? Assume they used the max 3 year eligibility period.

(a) Service for predecessor employer For purposes of this part— (1) in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and So they figured out my scheming mind and wanted to make sure that just setting up a new plan would not allow you to circumvent the rules. I thought perhaps the rule to recognize the service was limited to just the plan in question.

Company A buys 100% of the ASSETS of Company B on 10/1/2016. Owner of Company A is the sole employee of Company A and has 10 years of service. Company A assumed sponsorship of Company B's 401k Plan. But now the Owner of Company A wants to maximize his contributions for 2016 and 2017 without giving a contribution to the acquired employees. Can he establish a new Money Purchase Plan with a year of service so he is the only eligible employee for 2016 and 2017, and then freeze the Plan 1/1/18 when the other employees would be eligible. Perhaps terminate "a few years" after that to satisfy permanency. Look forward to hearing thoughts.

Come to think of it, I actually think it was the 3% SHNEC design (again excluding HCEs), where they were doing the 9% of pay in both plans for the owners. Same logic applies.

Let me be clear - I was not the author. The person who was is probably a name you recognize (not quite a Tom Poje but your closer in terms of notoriety). I was in awe of the pension genius when I heard it.

I have heard of professional firms that set up Plan A for the NHCE managers and Plan B for the NHCE Staff (both SH Match). They then exclude the non-partner HCE's from BOTH plans (I think just for the match, because not top-heavy?), and cover the Owners under BOTH plans. Both plans pass coverage on their own because of all of the excluded HCE's. The partners get the full $10,600 match from BOTH plans (assume they are over 50 and split their 401k down the middle. I couldn't sleep at night with this plan design, but it is pretty cool for demonstrating the points discussed above when taken to the extreme. Obviously I doubt the excluded HCE's are loving their employer, but who knows maybe they are happy with their big fat paychecks and the choice of contributing the max.

How do I get the 1 ASPPA free one and how do I get the IRS ones for people? Thanks you both!

Anyone have any suggestions? We've got a few people "behind" on CPE and need to get some in before 12/31/16.

Outstanding. Spot-on. https://www.irs.gov/pub/irs-irbs/irb98-02.pdf Q. E–1: When must an employee be given the right to enter into a salary reduction agreement? A. E–1: During the 60-day period immediately preceding January 1 of a calendar year (i.e., November 2 to December 31 of the preceding calendar year), an eligible employee must be given the right to enter into a salary reduction agreement for the calendar year, or to modify a prior agreement (including reducing the amount subject to this agreement to $0). However, for the year in which the employee becomes eligible to make salary reduction contributions, the period during which the employee may enter into a salary reduction agreement or modify a prior agreement is a 60-day period that includes either the date the employee becomes eligible or the day before that date. For example, if an employer establishes a SIMPLE IRA Plan effective as of July 1, 1997, each eligible employee becomes eligible to make salary reduction contributions on that date and the 60-day period must begin no later than July 1 and cannot end before June 30, 1997.

https://www.usps.com/ship/custom-mail-stamps.htm See this link which does indeed point you to Click2mail! THANKS! I was definitely leary of uploading a ton of addresses to a 3rd party but the fact that it's USPS affiliated makes me 100% comfortable.

There's 100 of them out there, where you upload a pdf and an address file and the company will mail out hardcopies of the pdf to everyone on the list. Anyone have any recommendations?

We use FT as well, and we just can't finalize the submission. So of course for the 1099's it's not such a big deal. But I mean c'mon. It's the equivalent of the DOL saying EFAST is going to be down from January to June!