Calavera

I am not aware of post-PPA model language regarding “missed quarterly payments” and “the corrective action”. However here is the pre-PPA language supported by PBGC at that time: Your plan was required to receive a payment from the employer on <list applicable due date(s)>. That payment <has not been made><was made on <list applicable payment date(s)> https://www.pbgc.gov/prac/other-guidance/tu/technical-update-06-3-2006-participant-notice

The lump sum will be $2.9m. In addition, note that the owner should have received a suspension of benefits notice, since somewhere around age 68 he would reach the 415 salary limit and his accrued benefit will not increase. And if he didn't receive the notice, you have a qualification issue.

In addition, if eligible for a lump sum distribution, full lump sum amount will not be allowable for a rollover. Not allowable amount will need to be calculated for two years, 2020 and 2021. If termination will be postponed until next year, then only amount for 2021 will need to be calculated.

If auditor's report is not available, you should file your Form 5500 without attaching anything in place of this report. You will leave 3(a), 3(b), and 3(d) blank, but still fill out 3(c). I would also suggest attaching explanation why the report is not available as the Other attachment. See Q25 here: https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/efast2-form-5500-processing.pdf The current answer is short, but back in 2014 it looked like this: Q25: Will the EFAST2 system still receive my filing if I do not attach the IQPA report with my Form 5500 annual return/report when it is required? The EFAST2 system will receive your filing, but submitting the annual return/report without the required IQPA report is an incomplete filing, and the incomplete filing may be subject to further review, correspondence, rejection, and assessment of civil penalties. Also, if you do not submit the required IQPA report, you must still correctly answer the IQPA questions on Schedule H, line 3. This means you must leave lines 3a and 3b blank because the IQPA report is not attached and must also leave line 3d blank because the reason the IQPA reports is not attached (i.e., was not completed on time) is not a reason listed in any of the available check boxes. You should still complete line 3c if you can identify the plan’s IQPA. Please note that failing to include the required IQPA report and leaving parts of line 3 blank will result in the system status indicating that there is an error with your filing because, as noted above, submitting your annual return/report without a required IQPA report is an incomplete filing, and may be subject to further review, correspondence, rejection, and assessment of civil penalties. Thus, if you find it necessary to file a Form 5500 without the required IQPA report, you must correct that error as soon as possible. And yes, after this filing the plan sponsor will receive letter granting either 30 or 45 days to complete filing with the report attached. Obviously it is even better to file amended form with the auditor's report before DOL issues the letter.

I would probably answer "No other" and provide explanation.

What I was trying to say that if a sole proprietor, decided to continue his business as a corporation, I would treat it as a continuation of the same business and add earnings together. However if a sole-proprietor created a corporation for a different line of business, I would account for income separately and use 0 if there is a loss.

Just be sure your client really has a SIMPLE plan. Sometimes they have SIMPLIFIED, i.e. SEP, and they just call it SIMPLE.

From the original post it is not clear if there are two separate line of businesses, or if Sole-Proprietorship essentially got incorporated. If it is the continuation of the same business, I would vote for $95K. If this would be a clear case of two different businesses, I would vote for $100K. Sal Tripodi in his ERISA Outline book discussed Earned Income under Important Definitions, covering the change in the form of entity during year as well. See if you have access to it for more details.

If husband was an active employee, and earned more pension benefits after divorce, new spouse may be entitled to death benefits on portion of the total husband's benefits that was earned after divorce. Knowing the employment history, and having a copy of the QDRO may help. New spouse should contact the plan sponsor and inquire in writing.

1. I believe that the plan document language, as presented, does not support giving SOB notice at all. 2. If plan will be amended to add SOB notice language, it would only apply to benefits accrued after amendment. 3. The late retirement actuarial adjustment as described, may be acceptable. However the IRS really doesn't like the "one-shot" method, and would prefer to see the "year-by-year" approach (see Sellarsian description above)

Old 404 regs supported three different ways: (1) The deductible limit determined for the plan year commencing within the taxable year, (2) The deductible limit determined for the plan year ending within the taxable year, or (3) A weighted average of alternatives (1) and (2) It appears that under the new law only second option is supported. There are no new regs yet. Some assume that when new regs will be issued, all 3 ways will be supported. Some prefer to be conservative, which in your case means that 2020 plan year contributions will be deducted in FYE 6/30/2021.

Wouldn't you use the 2019 effective interest rate for the 2019 plan year contributions and the 2020 effective interest rate for the 2020 plan year contributions?

You are right. Sorry, have no other ideas.

I recall you can change lump sum interest rates, but have to protect it for a year providing greater of. See Rev. Proc. 99-23 and prior discussion https://benefitslink.com/boards/index.php?/topic/5458-transition-to-gatt-lump-sums/

This is actully related to NRA and not NRD (see 1.411(a)-7(b)) I think it is the opposite. On NRA, a participant has to be 100% vested, but it doesn't have to get 100% of his benefit. For example NRA could be 65, NRD = Social Security Retirement Age, and an early retirement reduction would apply from NRD to NRA.

As long as plan is not a top-heavy plan, and it is not aggregated with any other plan to enable the other plan to satisfy section 401(a)(4) or 410(b).

If this is a self-employment income subject to FICA tax, they may have all kind of retirement plans. I suggest starting here: https://www.irs.gov/pub/irs-pdf/p560.pdf

Any participant, if supported by plan document, can opt-out of DB plan accruals. I am not aware of any reason why opt-out upon rehire after commencing benefits would be prohibited.

This is why it is called "shared interest". The Alternate Payee will get her benefits only when a participant retires or dies before retirement (subject to proper election). If you want to segregate the AP's benefits and allow AP to retire at earliest retirement date, you should use the Separate Interest model.

Certifications is based on the actuarial assumption of expected retirement age, and if the ERA is 64, whether they will issue the suspension of benefits notice at 62. So if your ERA is 62, certify plan as underfunded. However if your ERA is 64 and they are planning to issue the suspension of benefit notice, then certify plan as overfunded.

They should think about setting a defined benefit plan for 2019.

I just love this.

If this is a BOY valuation, the actual 2017 net income should not impact the 2017 minimum calculations that were based on the expected 2017 net income.

The application of offset should be spelled out in the DB plan document. For example, it may say to project the DC account to age 65, convert to annuity at age 65 and offset your DB benefit.

The reason I asked for the valuation date is that the beginning of the year valuation is based on the estimated 2018 W2. The fact that the actual 2018 W2 is 0 is irrelevant for the 2018 calculations. For the 2019, your 1/1/2019 Target liability would be smaller or even $0, depending on the plan design.