Monica Barnard

But what if the US based employer wants to include the Canadian employee? Does the Canadian employee have to have US income? If they don't have US income, how would they even be able to make an election to have salary deferrals?

Office manager has just voluntarily left her job. I just completed testing calculations for 2017, and the employer was horrified at what office manager's pay was last year (why he didn't pay attention through the year is a different issue). If her pay was incorrect, then her safe harbor match was also incorrect. Assuming that it can be proven that she falsified payroll, can her safe harbor match contribution be corrected? The money has already been allocated to her account. Thanks in advance!

Bob had a SOLOK, and died. He was not married and had no children. He had designated his Living Trust as his beneficiary. It is my understanding that the benefit due to be paid into his Living Trust is not an eligible rollover distribution, and the executor of the trust can submit a W-4P to elect no FIT. Then the benefit would be paid directly to the Living Trust, and from there, paid out according to the terms of that trust. Is that correct?

That's what I thought...thank you both

Mr. Smith had a one-participant DB Plan which was over funded. The DB Plan was terminated in 2014; all assets were transferred into a 401(k) Plan as a qualified replacement plan. The over-funded amount was credited to a suspense account. In 2015, a portion of the suspense account was allocated to Mr. Smith with the intent of allocating all of the suspense account within 7 plan years. Mr. Smith only paid himself each year on 12/31. Contributions and suspense account allocations were based on that single pay date. Mr. Smith dies in 2016. He had not taken any pay, therefore no allocation from the suspense account could be made. Therefore any remaining amounts in the suspense account will now be subject to the 50% Reversion Tax. Is this correct? Thanks for your help.

I have had a client ask if they can invest in Bitcoins. My initial reaction was "no way". However, there is a Bitcoin Investment Trust on the OTC market. What do ya'll think? Do you see this as being an allowable investment in the near future? BTW, I have let my client know that I do not give investment advice, but I can try to keep them out of trouble

Profit Sharing Plan holds real estate. Trustee wants to subdivide and sell lots. Jurisdiction requires that a Home Owner's Association be set up before the real estate can be subdivided. Interests in the HOA will be conveyed to each buyer. Trustee's real estate attorney asks if the Plan can own interest in the HOA? At some point the Plan would no longer have any ownership interest, even possibly before all of the lots are sold. The plan document, of course, does not address this specific issue, and I've not found any prohibited transaction addressing HOAs. Where should I look? Thanks in advance!

Thanks, David. That's been my experience as well. Maybe something like "we've had a really good year" if the contribution is larger than in previous years.

What, if anything, do companies tell their employees about the profitability of the company as it relates to discretionary profit sharing contributions? New client wants to know what to tell her employees each year. Thanks,

Thanks to everyone who responded. I appreciate the source. I was hoping this would be the answer. The kids of wife A are contesting everything.

Participant is married to wife A for 15 years, divorces and marries wife B. Wife B signs prenup that all assets up to marriage will go to other beneficiaries upon Participant's death. Participant and Wife B married for 20+ year. Participant dies. Is Wife B the beneficiary of Participant's DC account balance, or does the prenup rule? Participant did not sign a beneficiary designation form for the plan.

CPA has asked the following: Mr A is a 401k participant with his wife as beneficiary Mr. A dies unexpectedly 2 months later Mrs. A dies after a long illness Mrs. A does not re-designate with the 401k her beneficiaries His estate beneficiaries are different than hers ( I don't think this matters. I believe at this point, the account balance belongs to her beneficiaries) The 401k plan as currently written will only allow for either a lump sum distribution to her estate or for distributions to be made to her estate over 5 years. That would leave us the alternative of her beneficiaries reporting the 401k all in one year or keeping the estate open (with a 1041 each year) for 5 years. It also complicates the form 1041 (I have not researched this yet) in that we would need to allocate the 401k income passed to the estate to her 3 beneficiaries while allocating the other estate income to his family. Can the 401k be amended now so that it could be rolled over into 3 IRAs- Estate of Mrs. A fbo beneficiary 1,2,3? If not can it be amended to allow the 401k to be rolled over into one IRA Estate of Mrs. A which could be subsequently split into 3 Estate of Mrs. A fbo beneficiary 1,2,3? Thanks for your help on this.

I have a similar situation. Client deposited too much in 2014, so investment company "opened" a SIMPLE IRA for her and deposited $15,500 for 2015. She doesn't have employees. SOLOK was opened prior to knowing about SIMPLE IRA situation. Would Client be able to defer $5500 plus $3000 catchup? And make employer contributions of $35,000 to put her at $59K in both plans? Cost to file under VCP of $250 + 1550 may be worth it for the additional tax savings and the extra retirement savings. Or would ya'll recommend not to fund the SOLOK this year.

401k Plan using age 21 and 1 YOS (1000 hours). Truck driver is paid 25 cents per mile, reported on W-2. How the heck do we figure his hours out?

I am the TPA for the plan. The motion of contempt was against Dr. B. I appreciate your replies, which confirmed my thoughts. Hopefully, this will be a non-issue for my firm.

Dr. A and Dr. B are married and jointly own practice, and both are trustees of Dr.A & B 401(k) Plan. Dr. B advises that he no longer works in practice and will not be returning even though he is still a partner in practice. CPA for the practice advised that Dr. B had not received pay in a couple of months. Dr. B requests a partial distribution from his account balance, which I submitted to Insurance Company on his behalf. Confirmation of distribution is mailed to practice. Dr. A's attorney files an emergency motion of contempt due to pending divorce. Based on this, I know that no other distributions can be made to Dr. B. Insurance Company has also been notified. Attorney has requested that I provide (under threat of subpoena) evidence that Dr. B was terminated from employment and therefore able to take a distribution. What proof do I need other than the good doctor's word? What else should I be aware of?

Company sponsors Safe Harbor 401k plan and has executive who wants to make catchup contribution for 2012. I advised that it must be from pay. Company is about to pay bonuses, and plan does allow for separate election for bonuses. I also advised that in order for catchup contribution to be credited to 2012, the bonus would have to be included in 2012 pay. Is this correct? Is there a way for bonus to be included in 2013 pay but catchup credited for 2012? Apparently Company has already finalized W-2s and all tax report, and doesn't want to redo everything. Thanks for your help.

I have a life & health license and have to take ethics for that as well as for ERPA. Can I count the one ethics class for both?

And I'm making the assumption that this would need to be documented and provided to the participants prior to the start of the plan year. Otherwise, couldn't Dr. D amend plan now (calendar year plan) to add fixed match for this calendar year?

TPAlien, I am interested. Even though I am an old-timer, I have not been in the position to need to increase business until the past few years. I am just now learning how to market my business, and want to become more efficient.

Client sponsors 401k Plan, and has since 1999. Has never had another plan. Client received IRS letter in January stating that Form 5500 had not been received for Plan Number 002 for plan year 2009. I responded that there had never been PN 002, and sent copy of filing for PN 001. Client just received second letter stating that since PN 001 was terminated in 2002, PN 001 cannot be reused. I called the toll free number listed on the letter and was told: 1. These letters do not come from this area and they cannot resolve this issue by phone (Why is this toll free number listed if that is the case?) 2. The DOL sometimes changes the plan numbers. (WHAT THE HECK?) 3. I should respond in writing and request a written response. Otherwise, there would be no response. I hope someone from the IRS knows that letters are going out with a number that is not helpful. I hope someone from DOL finds out the problem in their system that changes plan numbers at random. Does anyone from either agency read any of these messages? Thanks for letting me rant.

I couldn't imagine why anyone would want one of these any more. Thanks

Just out of curiosity, has anyone established a new MP or TB plan recently? Or have these plans gone the way of the platypus?

Is an HRA similar to a FSA? Where do I get a document? I am assuming that a Form 5500 has to be filed. Is that correct?

health reimbursement arrangement