Rai401k

We have a plan that requires and audit the plan has the Met life Stable Value Fund, it is considered a Collective Investment Trust so I know we are required to file the schedule D. My confusion is whether we have to file a schedule A and where to enter the balance on the schedule H. I believe we have to enter the fund's balance under line 1©(9) for CCT under assets and not line ©14 for insurance co. as I originally had thought? I also believe we are required to file a schedule A along with the D. Any advice would be helpful. Thank you!

Great thank you - this is exactly what I was looking for.

This is actually a follow up question to my last post but I thought it would be easier to start a new topic The background is that the employer failed to withhold on Group Term Life Insurance Premiums which is on the participants W-2. The plan is an enhanced safe harbor match 100% up to 5%. The real problem is that this has been going on for 7 years. We have calculated the correction based on EPCRS, which is the 50% of the missed deferral opp and the full sh match. The issue we have now is how to calculate the interest. We have read that using the DOL Calculator is acceptable however the client is unwilling to go back to their payroll records for the past 7 years to let us know every payroll the GTL was attributable to - in order for us to us the DOL calculator. Is there another "easy" way of calculating interest on missed deferral opportunity?

Employer failed to withhold on Group Term Life Insurance Premiums. The definition of compensation under the plan is W-2 and the client has stated that these amounts are included in each persons W-2. The plan is an enhanced safe harbor match 100% up to 5% 1. Based on our understanding of EPCRS the employer is required to fund a QNEC for 50% of each participant's election percentage. However the safe harbor match for the missed deferral amount should be based on their entire election percentage and not on the corrective QNEC amount. Is this correct? 2. The client has not included this compensation for 7 years going back to 2007, based on our research you can only self correct going back 2 years. However there is a section that we read that states if the mistake is insignificant you can go back more years. The GTL amounts that the client wasn't including as part of comp were very small amounts. The most would be $300 for a participant, therefore the QNEC and match that would be funded would be minimal amounts. Do you agree that this is considered an insignificant error and the plan could self correct all 7 years and not go to VCP?

i think so. FYI - spoke to someone at sungard they said just to send in the EGTRRA restatement and all following amendments (415,PPA, HEART, WRERA). They said all the previous amends are part of the restatement so there is no need to send them in with the VCP submission. However it all depends on the agent but that is where we should start. Thanks for your response!

Yes the DL states that it is applicable for the amendment executed December 4, 2001. This amendment include the EGTRRA good faith and 401(a)(9) provision - however the 401(a)(9) amendment is for code section 401(a)(9) that were proposed on January 17, 2001. I was just starting out in the industry during the GUST submission period and I'm not an expert in this at all--- but I remember there was a 401(a)(9) amendment in accordance with Rev Proc 2002-29. that had to be signed by the end of 2003. Do you believe we would have to include the 401(a)(9) amendment for 2002-29 as well?

We just took over a profit sharing plan (no deferrals). The last plan document they have was signed in 1994. However they did send me an EGTRRA amendment signed in 2001 and a determination letter in the name of the plan dated May 2002. We need some guidance on how to get this plan in compliance. It's my understanding we can submit to VCP - I found a kit on the IRS website but wasn't sure exactly what to send to them. Am I correct in assuming since the plan has a determination letter dated May 2002 in the plans name I wouldn't have to submit any plan documents before this date? The documents we would send in to the VCP would include (note: we use sungard vs pre-approved plans): 1. The 2002 Determination letter 2. Automatic Rollover Amend (adopted currently) 3. The 415 Amendment (adopted currently) 4. PPA Amendment (adopted currently) 5. The EGTRRA Plan Document (adopted currently) 6. HEART/WRERA Amendment (adopted currently) The company has less than 20 EEs so I believe the VCP fee is $750 but we are trying to figure out if that includes the missing amendments? Any responses are appreciated!

We took over a plan in 2012 and restated their plan on to our document. The prior plan document stated that "discretionary bonuses" were excluded from the definition of compensation for ER contributions only. When we restated we misread stated "bonus" compensation was excluded from ER cont (not specifying discretionary bonuses) Now that we are calculating the ER contribution for 2012 the client has informed us us that they have a "contract bonuses" that should be included. Is there a way we can do a retroactive amendment for 2012 to fix the document for 2012 only. (We have corrected going forward) The amendment is not decreasing benefits and the ER contribution has not been funded yet. Is it too late since the plan year is closed?

I'm sorry, i agree with your calculation of $900 as far as the 33% up to 6%. Unfortunately we can't find anywhere in the plan document where it states specifically that match is on deferral "while on eligible for match". That is why I agree with your answer of it being $900. I believe if were based payroll instead it would $500

The document states that match is to be calculated on plan year. Yes I have a determination letter on the plan. Yes it is legal to have a 2 year wait as long as the vesting schedule is immediate.

Yes we have had a quite a few clients add roth recently...may have something to do with allowing the new "in plan roth transfer". When they allowed "in plan roth rollover" we didn't have alot of clients add roth back then since the in plan roth rollover limited the rollover to an otherwise distributable event.

- Plan has a no wait for deferrals - 2 year wait for the match - definition of compensation excludes compensation prior to plan entry. - Match is based on annual. - The match formula is 33% up to 6%. Example: Participants Total Compensation was $90k -Plan Entry Date was 7/1/2012 and Comp from plan entry was $45,000 Deferrals totaled $3,000 for 2012.-----> However deferrals from 7/1/2012 totaled $1,500. My understanding is the total match should be $1,000 however we are being told that is should total $500? Based on the information above, if a participant entered the match portion of the plan 7/1/2012, is there anyway you can exclude the deferrals prior to 7/1? Is there any way to do this if it's based on annual or would this only work if match was based on payroll.

Does anyone know what the late filing penalty would be for a large plan, we published an audit at 7pm and i don't think there is anyway the plan book will show up before midnight. I thought it was $25 a day so if they file tomorrow that woudl be it. However is it true that the extensio is not counted when a filing is late? Therfore this client will receive a late penalty from 7/31 not 10/15? i feel like i'm loosing my mind!

ugh! unbeleivable! our clients are actually trying to efile this late at night after they have waited all day to get the cleint invitation and now the website is down with less than an hour to midnight!

same exact response, probably using that to respond to everyone.

i thought it was just us! We are slowly getting forms that we published early this morning..now! Still plenty of forms we published that are not out there This is the response we received from them when we submitted the incident: Web Client is currently experiencing slow publishing and transmission times due to today’s 5500 deadline. Currently the publishing wait time is about 3 hours, but should improve as the volume of plans published dies down. We will continue to make low impact changes that will improve publishing speed throughout the day. Please do not try republishing the plan if you have already submitted it for publishing, it will eventually go through. Once plans are published, signed by you or your client, and Submitted, we will closely monitor it so that it makes the deadline. We expect every plan that will be signed and submitted by 12 am EST to make the deadline. We apologize for the inconvenience 3 hours more like 8 hours!

That is my understanding as well. We requested for a TCC code from the IRS and therefore are able to efile the form

I think that is the way to go - thanks for the reply!

I'm pretty sure the answer is "no" if we are putting our 8955-SSA on extension and we still having our clients file them on paper. Do you we have the client attach a copy of the 5558 to the 8955-SSA when filing on paper?

We use relius web client for efiling the 5500 form, I wanted to see what everyone else was doing now that you can efile the 8955-SSA through web client. I know other people may not agree but we are finding it difficult to explain to clients that once they file the 5500 they have to drop down the "form set" to 8955-SSA and file that next (if applicable). A lot of our clients are getting confused as to why they have to file the 8955 form separatly .... i know we can explain that the SSA goes to the IRS and 5500 to the DOL. But i wanted to see what other people were doing. Maybe our directions aren't clear Another option we were thinking about is sending the clients an email (password protected) with a copy of the SSA to review and then efiling ourselves since it has our TCC code anyway. Any feedback would be great!

I'm not sure if we understand QDROs all that well. It's my understanding that if the QDRO doesn't specifically state that the AP is to take out their share of the money right away then the AP must follow the terms of the plan and can only take it out. 1. when the ex-spouse (the participant) is terminated or otherwise eligible to receive a distribution or (2) upon AP attainment of age 59 1/2 or NRA. This is what our document states about QDRO's: All rights and benefits, including elections, provided to a Participant in this Plan shall be subject to the rights afforded to any alternate payee under a qualified domestic relations order. Furthermore, a distribution to an alternate payee shall be permitted if such distribution is authorized by a qualified domestic relations order, even if the affected Participant has not separated from service and has not reached the earliest retirement age. For the purposes of this Section, the terms "alternate payee," "qualified domestic relations order" and "earliest retirement age" shall have the meaning set forth under Code Section 414(p). They way i understand the paragraph above is if the QDRO doesn't say that the AP can take the money out right away - the AP must follow the terms of the plan. That being said my questions are: 1. Are we correct in assuming this? 2. If this is the case is an AP eligible to take a Hardship distribution?

Ok this is a stupid question but i can't seem to get a hold of anyone at the number that's on the 8554-EP form. I am trying to renew since now since my ss# ends in 7-8-9. I'm doing it on pay.gov but when you fill out the 8554 online it gives giving me a message that says to double check my enrollment number. i am using the one that is on the enrollment card that i received. 0000** (4 zeros and your number) however when i look on the irs website under the list of approved ERPAs it's 6 zeros 000000**. Which one is correct, it gives me the same message for whichever one i put in so i think i am just paranoid and can use either one Just want to know what everyone else is using. Thanks

Thanks Tom, That is very helpful!

Company is an LLC - all employees are being laid off prior to the end of the plan year but LLC will remain open with partners until 12.31. This will cause a partial plan termination and all current employees will become 100% vested. Current plan is a Discretionary New Comp Profit Sharing and Plan is Top Heavy. Allocation requirements for New Comp profit sharing are 1000 hours and last day. If the plan is not officially being terminated until 12.31 does the top heavy contribution need to be given to the employees since they terminated prior to 12.31? What if they decide to terminate prior to 12.31 (Let say 9/30) but all employees are already gone - does the plan termination date become the last day of the plan year? We already know it will cause problems with testing, but what about the NC Contribution? If all the employees are gone prior to the last day of the plan year are they required to get a NC contribution. Partners are trying to maximize themselves before they close the doors but don't want to provide a contribution to the employees that will be leaving!!!

Thank you both for the replies, very helpful. I will need to find out if they were defined benefit plans pre-conversion. If that is the case i will make sure we submit now. I feel like they weren't so we may have to go the route of submitting during the next cycle. Thanks so much!