Spencer

I have a prospective client who asked me to review their plan. The QACA match formula is 200% up to 5% of pay. Current TPA (bundled provider) is not capping. Everyone is getting 200% of deferrals. One person is receiving a 10% match. How would you fix this since the match exceeds 6%? And they aren't complying with the plan doc?

I have a client who just received the VFCP invite letter. Who usually prepares the filing? TPA? I've never done one. 😬

Thank you all so much for the replies and for pointing out that participation is not a protected a benefit.

I have a prospective client who established a Solo 401k for him and his wife last year. He did not fund it. Turns out he has a part-time employee who was eligible. There is no hours or service requirement. Document preparer said that is their default when completing documents. He doesn't mind paying a safe match contribution to the employee, but the issue is that she was not offered the opportunity to defer. But how do we correct for the missed deferral opportunity when nobody deferred? is it possible to correct the original plan document to align with the client's intention? Retroactive amendment? Can we just pretend the plan never happened since it was funded or filed with the IRS? (just kidding)

We have used FTW for documents, administration/compliance and 5500's for several years now and we have been very pleased too.

yes, the 06/30 PYE is limiting options. Thanks for your thoughts.

Client has FSA that includes dependent care reimbursement, health insurance premium conversion, and the medical expense reimbursements. Two questions: One employee has $1210 left in Daycare balance, but day care was closed and now summer camps have been canceled. Is there any way to convert back to taxable income? Other employee's insurance premium has increased. She wants to use the amount designated for medical expense reimbursement to pay the premium difference. She doesn't have enough expenses and she doesn't want her pay decreased to cover the premium when this money is sitting there. I'm not very familiar with cafeteria plans, but both asks seem untenable. Any other suggestions on how to remedy?

We have an employee who used to be full time and qualified for and took our employer sponsored group health, dental and vision insurance. Those premiums were run through the cafeteria plan as pre-tax. He is now part time and no longer qualifies for our employer-sponsored insurance. He wants to know if we can run his outside individual insurance premiums through the plan. We only have one other part time employee. She does not qualify for our group insurance either, but she is covered under her spouse's plan and has no interest in additional insurance. Can we do this? how do we do this?

I am a 401k TPA. I have a client asking about setting up a cafeteria plan for medical expense and dependent care reimbursement. Do the employee contributions have to be in a segregated account and payments made from it? thanks!

We attach the entire audit report when filing large 5500s. We have a client who's TPA only attached the accountant's opinion (the letter) to the filing. So I'm wondering what others do. p.s. we attach the Schedule of Assets Held and Reportable Transaction also even if they were included in the audit report.

We are a CPA/TPA firm. We have just taken over a tax new client. They asked us to prepare the Form 5500-EZ for their solo 401k. It turns out they should have filed for 2013 and 2014 as the assets exceeded $250,000 in 2013. Typically, we would prepare and e-file the Form 5500-SF and mark one participant plan. However, I believe the penalty relief for the EZ form requires a paper filing. Should we paper file the 2015 Form 5500-EZ? or use the one-participant Form 5500-SF and e-file? All thoughts and suggestions appreciated.

I have an accounting client who seems to have received some bad advice from his financial advisor. He had a SIMPLE plan for a few years. His advisor recommended moving to a SH 401k. He only has 4 employees and he does not defer the maximum. He was not informed of the Form 5500 filing requirement. So now he has to go through DFVCP and file future forms. Can he terminate the SH 401k and just go back to a SIMPLE plan? Thanks!

Thanks!! HCEs of ABC do own more than 10% of XYZ.

I have a prospective client that wants to do one plan for two employers. There is common ownership, but it is not a controlled group. ABC is an engineering firm. XYZ is a mechanical, electrical and plumbing contractor. ABC provides traditional engineering services for XYZ and XYZ provides design for constructability and budgeting services for ABC (in addition to selling work for ABC). Any thoughts are whether this is an Affiliated Service Group?

He purchased it from an unrelated party. It is not publicly traded. The purchase was determined through negotiations between a willing buyer and a willing seller. He is on the payroll of the company.