drakecohen

If for 2025 a participant age 50 made 401(k) deferrals of $7,500 can they make a profit sharing contribution of $70,000 (assuming salary supports it) to get to the maximum annual addition by characterizing the $7,500 401(k) deferral as catch-up?

Lawyer gets 1099-R income of about $1 million from a partnership in which he has no equity and wants to set up a solo DB plan. Twist is that the law firm principal partner also owns a Title search company that employs the lawyer who gets a W-2 from it and makes 401(k) deferrals. Leaving aside any link between the partnership and the title company (don't know what exact ownership percentages are) would there be any issues with the lawyer setting up a solo DB plan with the Schedule C he gets with that 1099-R income?

$40,000 is maximum and not mandatory since 430 is much less. I agree it would be 25% in the PS and nothing in DB but wondering if anyone doing anything different or if a combination of $40,000 in the DB plus $55,000 as PS would be ok (though I don't see anyone wanting to do that considering the overfunding issue in the DB).

Husband/wife DB plan 404 limited in 2024 so set up a Profit Sharing plan where they maximized at 25% of pay. W-2 salaries for 2025: $280,000 and $100,000 In 2025 DB 404 limit came to $40,000. Would they be able to do the 25% of pay ($95,000) to the PS for 2025 or have to do something less?

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.