ombskid

We have 2 clients who received late filing penalties in January. We sent copies of the 5558 filed timely. Yesterday both clients received the CP 220 notice stating changes were made to the 2012 5500, and a new penalty bill. Now I'm wondering if anyone who got these in January has any insight into what they are about and maybe what they did.

Rather than 4.25% I mean prime rate plus 1%

Is 4.25% still considered reasonable for a participant loan from a 401(k) plan?

Thanks all. 90% of pay just seemed too high!

New plan one owner no employees Age 52. NRA 62. 8 years past service max accrual 1st year = lesser of 1 /10 x 17,500 or 8/10 x 100% of pay Is that correct?

Employer sponsors both 401(k0 and 403(b) plans Employee derred more than $23,000 in 2013. W2 showed two separate defrred amounts that added up to $23,700 401(k) is a fiscal year plan (why it wasn't picked up earlier) What is the correction? Any choices which plan?

The maximum accrual in a year is 1/10 of the 415 dollar limit. For a person well below the 17,500/mo 415 dollar limit, are they limited to 1/10 x 17,500 or 1/10 x 100% of their pay?

Are an owner/participant's benefits protected from the sponsor's as well as the participant's creditors?

I believe that a plan that covers employees is generally called an ERISA plan and is safe from creditors. Can anyone point me to where that is explained in regs? Thanks

From the instructions to the 5500 SF: "Information filed on Form 5500-EZ is required to be made available to the public. Form 5500-SF is open to public inspection and the contents are public information subject to publication on the Internet. However, the information on Form 5500-SF will not be subject to publication on the internet for a “one-participant plan” that is electronically filed using a Form 5500-SF with EFAST2 in lieu of filing a Form 5500-EZ on paper with the IRS." 1st sentence - I thought the information on the EZ was NOT available to the public. The above would lead me to think LESS is potentially available to the public if the SF is filed. Anyone else read it this way?

We have been using the 5500EZ for single participant plans. We are thinking of using the 5500SF now for these plans. Other than the obvious differences in filing, client's computer savvy etc, is there any compelling reason for using one vs the other?

Thanks

First RMD year is 2013. Participant takes an amount less than the RMD by 12/31/2013. Can he take the balance by 4/1/2014 and be ok?

Thanks. I thought so, glad to have corroboration.

Is there a deadline for starting a 401(k) plan other than a safe harbor plan?

We recently had a plan where 9 participants chose annuities - some deferred. We could not find an insurance company to take them - mostly because of the lump sum provision. 2 that quoted without the lump sum were 60% higher than the current lump sum rate. Ir ain't pretty out there for annuities.

The assets of Corp A were bought by LLC B. Corp A sponsored a profit sharing plan for man years. One of the shareholders of Corp A is a memeber of LLC B One option is for LLC B to adopt the existing plan and keep it going. One new owner suggests terminating the old plan and starting a new one to prevent LLc B from having any liability for any problems (not are expected) that might crop up for the previous years. Any thoughts on what liabilities the LLC B might have? If a problem was found in any previous year, would sanctions be against the defunct former owner? Would the new owner have any responsibilities for mistakes made by the previous sponsor?

Employer has a particularly difficult employee whose English is spotty, and who is determined to take "all of my money" from the profit sharing plan when he leaves the company next month. Does anyone know of an explanation of the mandatory withholding rules in Spanish?

Thanks. Good to have backup

An accountant called asking if sub s profit can be used as compensation in any pension calculations. I don't believe it can, but someone else is claiming that it can. I believe that only w2 income from a sub s corporation is compensation. Is that correct?

Thanks - that is a big help

In general, is there ever a requirement that an IRA holder's spouse approve the designation of a beneficiary that is not to the IRA holder's spouse?

In the current case we are TPA for a 32 person db plan. We also do in house recordkeeping for a small number of plans. We have never been asked for SSAE or SAS 70 before.

We were asked by the auditors of a client for an SSAE 16 letter Does anyone have experience with this? Is it requested often? A search of the forums comes up empty.

Regarding the previous post: Company sponsors one plan for the owner. That plan is trustee directed. Company sponsors another plan for all other employees. This plan allow participants to self direct on a mutual fund platform. Since the employees plan allows an "increased" right - self direction - over the owners plan - trustee direction - there is no discrimination in favor of the owner. Any comments?