goldtpa

Client wants to take a COVID related loan of 100,000 and also take a $100,000 COVID related distribution. I haven't seen anything about a 100,000 loan and a 100,000 distribution. I know that the $100,000 COVID distribution limit is from all plans. But wasn't sure if that includes loans too.

According to an update I received from Transamerica,"Participants who turned age 70½ in 2019 and who did not receive their first RMD for 2019 on or before January 1, 2020 will not have to receive their first (2019) RMD or their 2020 RMD."

I use egnyte. It allows me to send people a link where they can upload a file. I can also send people a link to download forms. I can track the link to see where it was opened and what time. Cost is $8 per month for the lowest plan.

Hi. thanks for the reply. What I am saying is that Sponsor A had a 401k as a single member plan. Sponsor A switches to payroll co services. At some point the 401k assets were moved from the single member plan under A's Sponsorship to the PEO's 401k plan. There were no adoption agreements by A, since A was not a participating employer of the PEO. There were no mergers, terminations resolutions, amendments, or 5500s for A's plan. I am trying to figure out whether A can treat money that was erroneously transferred to PEO as if it were in A's plan all along. Or whether A has to go to VCP to make this correction.

Large Payroll company has both payroll services and PEO. Sponsor A signs up with payroll service in 2016. Sponsor A has its own 401k Plan. Sponsor A's 401k is mistakely moved to PEO 401k plan (don't ask me how). Sponsor's employees have been making contributions to the PEO plan since 2016. 1. I assume this is a VCP Correction under transferred assets. 2. Who makes the application for VCP. Sponsor A, PEO, or both? 3. Assuming it can be self corrected, is the money in the PEO treated as if it were in Sponsor A's 401k plan all along? Or, are the contributions and its earnings taxable as that money didnt belong in PEO plan in the first place? 4. Can the money that is wrongfully in the PEO, be moved to IRAs? Thanks in advance.

Here is a video of Mr. Portman discussing the proposed bill. https://www.youtube.com/watch?time_continue=7&v=XaJDvlbF06I The part about part time employees starts at 9:32. The Senate version of the bill, S1431 , supposedly will exempt these Long Term Part-Time Employees from non-discrim testing and top heavy. However does anyone know or heard whether they would be excluded from the Gateway Test? I can see Congress excluding them from 410(b), ADP/ACP and Top Heavy, but not from the Cross Testing and Gateway Test. Thus part-time employees may have to get a contribution just to pass Cross Testing or Gateway. The other question is why does this only apply to DC plans? Why not DB Plans? I guess employers with PT employees will have to switch to a DBP avoid giving money to PT ees.

You say this plan is a ROBS plan but it has no assets. In order to have a ROBS plan, the 401k has to own some stock of the corporation. You state the business is losing money or realizing less than 10K profit/year. However revenue, or lack thereof, is not the basis of whether a 5500 is required. The 401k has to own a percentage of the corporation and that corporation has to have a value. As ESOP Guy said, It might not be worth very much but it has to have some value.

Thanks for the comments.

On a client who terminates and switches TPA, I am curious as to how many TPAs are charging a deconversion fee or a fee to send copies of prior documents to new TPA.

I had a similar situation. We filed a 5500 for a client. The client then had their former payroll company file a 5500. The 5500 filed by the payroll company did not amend the 5500 that I prepared, it was just a duplicate filing. I called FT Williams and they told me that the DOL would take the last 5500 filed and disregard the 5500s filed before. Hope that helps.

When a 401k generates profits from a business, the net income is subject to payment of tax just like a business outside the 401k to put it on the same playing field as a regular tax-paying entity. So, for example, a 401k that generates net income from investing in a retail store will be subject to UBIT because the retail store is considered an operating company.

Just my two cents here and it is nothing you haven't heard already from others. I have spent over 26 years learning what I need to know to do this job properly; and I am still learning. We all come together on this board because we all recognize that we don't know everything. We ask questions of each other for special circumstances that we come across. We are all competitors, but we all help each other anyway, because the 400 Section of the code is complex. I feel old when I say that, "back in my day the 1994 401k Pension answer book was only 7 chapters." The 2011 version is 22 chapters. (Yes I still have the 1994 edition. Don't ask why.) But to start a TPA business with no prior experience is not a good idea. That is not meant to be mean, but constructive. I doubt very highly, that if I passed my CPA exam or EA exam, you would recommend that I start a tax practice. You would probably point to my lack of experience in taxes and highlight your years of experience. That being said, like every one else here; go hire a QKA to work for you or buy a TPA practice.

Why is it that every President since Bush wants to get rid of 401ks? First it was Bush with his LSA, RSA, and ERSA Plan. Then Obama and his Retirement Annuities. Now its Trump who wants tax S Corporations, REITs, RICs and small business limited liability corporations at a 15% tax. However retirement plan distributions would be taxed at 35%.

Several States now have their own version of FMLA. If an employer is too small to follow Federal FMLA but large enough to follow the state version, what is the general consensus on Break In Service for the State version of FMLA? I called FT William, their response was that one could make a case in either direction and it would depend on who is auditing. The DOL may point to state law while the iRS may only look to Federal law. What is the general consensus? Do you prevent a Break based on state law or say that ERISA law trumps state law.

BG 5150. who else would do that? The client.