drakecohen

I greatly appreciate the feedback but past dealings with post-billing have been overwhelmingly positive especially with small plans with recurring annual work. This particular TPA was a reasonably good payer for 10 years and contacts at the TPA were diligent and compentent. Assuming they had business issues that I eventually picked up on but don't regret doing the work, if only for the experience. CCA is having an ethics webinar tomorrow where I hope to be able to bring this up.

Have been the EA for about 25 DB plans (mostly stand alone) for a TPA where we billed the TPA after we did the valuation which was a mutual understanding though nothing in writing. For 10 years payments came but early 2024 they stopped and have been sporadic since though valuation work done and forms submitted through 2024 plan year. Last partial payment was in July and outstanding fees are up to $30k, most for 2 plan years. What would be ethical ways to proceed to get paid (assuming will not be doing any further work for this TPA and not suing based on past experience): a) contact plan sponsors directly regarding the situation, b) provide names of plans to another TPA with the expectation they would contact the plan sponsors, c) amend 5500 fililngs for unpaid years (since we have filing authorizations) removing the SB, d) 1099 the TPA for the $30k, e) publicly name the TPA (like on this message board) as a warning to others? Are none, some, or all of these worth a try or are there better options?

Numbes look fine in you want to maximize A, B, and C though the plans I have typically only look to maximize A. The cost of maximizing in additional money going to NHCEs is 6.24% - 1.72% and since C is relatively young new compararability might not work better if a prime objective is maximizing C.

Is it possible that the DOL could hire the old TPA to do clean up work that would be easier for them to farm out? Does this happen and does anyone know how well DOL pays?

It will cost $1,000 in user fee but DFVCP has worked several times for me in the past. https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers

I would do DFVCP first. Probably as $2,000 large plan but wondering if $750 small plan would be accepted. In any case, it would be a minor expense compared to the cost of an accountant's opinion.

Can anyone out there share their experiences with a 211 whistleblower filing regarding Employee Plans, specifically the timeline. Process described in 5251: https://www.irs.gov/pub/irs-pdf/p5251.pdf Case number has been assigned. What can be expected these days?

irs.gov still has 4.86: https://www.irs.gov/retirement-plans/pension-plan-funding-segment-rates but they do not have the January, 2024 rates up yet so maybe it will go to 4.97% when this link is updated.

15 looks like IRS is fishiing for non-amenders. 14a I left blank since answer no has two meanings: 1) Only one plan sponsored so no permissive aggregation; or 2) Used permissive aggregation but did not pass the test. For those who do not use the test would it be safer to leave question blank or answer no? ftwilliam does not give you an error either way.

Asked the same question on another board and answer was that the "PRI-2012 went to 5 decimal places."

We got one recently and also have an ACK number and the filing was listed as FILING RECEIVED on www.efast.dol.gov though in blue. In our case it was the SB attachment missing and we supplied that in response to the penalty notice and hoping for the best.

Company A with a 401(k) plan with a nondiscretionary SH is being acquired in a stock sale this coming week by company B which wants A to terminate their 401(k) plan B's lawyer insists that the plan can be terminated right away before the sale date but according to this IRS webpage on Participant Notices: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-notices There is this that says 60 to 90 days notice of plan termination is required: Notice that the employer is terminating the plan When a plan is to be terminated, participants should receive a written notice of the company's intention to terminate the plan and a notice of plan benefits. See Terminating a Retirement Plan. Notice of intent to terminate: The Notice of Intent to Terminate should contain sufficient information to notify the participant of the termination of the plan. The notice might include identifying information such as: the plan name and number; the proposed termination date; a statement concerning the cessation of accruals (benefit accruals are ceasing); and a statement that there are sufficient plan assets to meet the accruals provided under the plan. The notice must be provided to all affected plan participants and/or beneficiaries at least 60 days and no more than 90 days before the proposed date of termination. I have had another situation where an actuary for a DB plan not covered by the PBGC and where benefit accruals had already been frozen did a retroactive termination (ie. doing the termination paperwork in February, 2023 with a date of termination of June 30, 2022) believing that the 60-90 day notice rule only applied to PBGC-covered plans since that was in the PBGCs website instructions for terminating a DB plan. Their argument was that since the DB plan here was not subject to PBGC coverage it was not subject to the 60-90 notice requirement.

Following up on this issue on the irs.gov page on Participant Notices (not separating DB and DC): https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-notices There is this that says 60 to 90 days notice of plan termination is required: Notice that the employer is terminating the plan When a plan is to be terminated, participants should receive a written notice of the company's intention to terminate the plan and a notice of plan benefits. See Terminating a Retirement Plan. Notice of intent to terminate: The Notice of Intent to Terminate should contain sufficient information to notify the participant of the termination of the plan. The notice might include identifying information such as: the plan name and number; the proposed termination date; a statement concerning the cessation of accruals (benefit accruals are ceasing); and a statement that there are sufficient plan assets to meet the accruals provided under the plan. The notice must be provided to all affected plan participants and/or beneficiaries at least 60 days and no more than 90 days before the proposed date of termination.

If the rank and file employee terminates and gets paid out during 2022 leaving only the owner/sponsor as a plan participant as of 12/31/22 would the filing for 2022 be a 5500-SF or 5500-EZ? Would it matter if the terminated participant got a contribution for 2022 thus benefiting under the plan for 2022?

We are setting up a plan effective 1/1/23. Only HCEs in the plan (doctors). About 25 participants, 15 of whom are partners. Issue is with an employee for 10 years who terminated in April, 2022, making a salary of under $135,000 for 2022. That employee was rehired mid-January 2023 and would need to be classified as NHCE for 2023 if eligible since not a partner. To get around including them can we have a single entry date (January 1) with a six-month wait? Since the rehire was not employed as of 1/1/23 then would they come in as of 1/1/24 or is there an issue with service spanning?