BG5150

Sec 1.413 is for union plans, though.

Yeah, I think the OLD rules were that you had to say in 2021 we may do it and in 2022 you had to say yes/no and then say we may do it in 2023... Did PPA change that? Now only a 'yes' notice is needed?

Participant terms with a loan balance. He takes his money, taxes taken and loan offset at the record keeper. A month later he's rehired and wants to start repaying his loan. is that an option? The R/K said they could "convert" a loan using the prior balance (plus any interest, etc) and go from there. But is that w/in the rules? My question is, what if he terms again in 6 months and the loan gets defaulted/offset again? He'll be paying taxes on it again.

I have a plan that is a MEP and the assets are all in one big account at the recordkeeper. From time to time there are forfeitures from participant accounts due to distributions. Those forfs go to the forfeiture account. But it is also just one account for the plan, not broken out by company. How can/must those forfeitures be used? That is, can the forfs from one company be used to cover the contribution or fees of another? From my limited research on the issue, people suggest the forfeitures from each of the companies be used only for the respective entities. However, the regs are silent on the issue. It seems the IRS did not contemplate this situation.

Was there a notice sent last November stating there MIGHT be a 3% SH for 2022? if so, they can certainly opt out by sending a 'nope, not gonna do it" notice.

And we will have an answer that the records needed to file were in the affected area.

If it's on a pre-approved document, you may want to check with the document provider. If it is individually designed, check with the attorney who drafted it.

Does the IRS ever question a Special Extension?

We sign 5500's as the Plan Administrator. Our designated signer lives in NC. Do we get the relief?

What about PEPs? Are those the ones that should start with 3? And further along in the section in the instrux says that 8a is filled out (pension codes), and a number 333 or higher is used, you should use that in 1b. So 333 was contemplated somewhere.

I have more a concern for -SF and 5500's Here's the situation: Plan 001 sponsor plus several other members of controlled group/ASG. On 1/1/21 several affiliated companies adopted the plan. The affiliation does not rise to CG/ASG levels, making it a closed MEP. They created a NEW plan for the MEP with IRS PN 333. No one thought to term plan 001. And at the carrier, nothing moved. Same accounts, it's just some of hte other entities had their former plans merged in. So the auditors, seeing a NEW plan, want to have the assets at zero. But I don't think it should be a NEW plan, just a plan that went from single-ER to MEP and the PN should have remained at 001. There is no mechanism on the 5500 to indicate a change of PN, just name, EIN. My solution was to just correct the plan document and call it restated with plan 001. That led to my question: does a MEP have to have a PN of 3XX? Could we have a MEP of 001? Or, MUST you have a new plan when something like this arises? I don't think so, because you can have to members of CG in one plan and the relationship ceases to be a CG. You don't creat a brand new plan for that. Int hat case, do you change the PN to 300 or 333 or whatever?

If my TPA business is in North Carolina, or if I have employees working from home there, can I use the Ida extension for my clients who are nationwide?

Is there a codified rubric that says how IRS PNs must be assigned? I have a MEP, do I have to have a PN that starts with a 3? Where is the written guidance?

Any idea what the Business Code needs to be? I have 5 very different businesses int he plan. Do I use the business code for the sponsoring entity, ie, my company? (My company does, indeed, sponsor the PEP.)

First time filing for a PEP. Small plan filer. Am I right that they can't use a 5500-SF and have to use 5500 w/ Schedule I? And all we need to do is provide the same attachment as a MEP, with listing the companies and the contribution percentages? And mark 5500 as Multiple Employer Plan?

So that single employer can still file only 1 5500 and I will only have to do 5 filings.

I have a plan that was a controlled group/ASG in the same plan. This year (2021) four other companies joined the plan that aren't part of the CG/ASG, and no other business ties, so we have an open MEP. As I understand it, in an open MEP, each plan has it's own 5500, and in a closed MEP, they only file one. So, in this case, can I treat that CG as one closed MEP and file a single 5500 for those plans, and stand alone 5500's for the four new ones? Or do I have to file 14 seperate ones?

Not to be glib about it, but will the companies based in Florida get an extension of the 5500 extension for 2021 filings?

Thanks @Peter Gulia. That's a great link!

As I understand it, if an Employer choses to utilize the Top Paid Group (TPG) for it's benefit plans, it must be used on all benefit plans, retirement and non-retirement plans. So, this would include 401(k) and an HSA, right? if an employer wants to use TPG for HSA, they have to use it for the 401(k) right? But what happens if you have conflicting choices? The HSA says TPG and the 401(k) plan says standard?

The first correction window is 12 months after the plan year end. During that time, you can either refund certain amounts or do a QNEC (if it is current year testing). If prior year testing, you can only do refunds. (Well, technically, you can use QNECs deposited during the testing year, but who makes those kinds of contributions other than when they have to for a correction of some sort) After that 12 month window, you are in EPCRS territory, and the methods are spelt out there. (Note, you can no do a QNEC, even if you have prior year testing.) basically, the corrections are: QNEC to pass the test OR do refunds and THEN the employer must provide a QNEC int he amount of the gross refunds. Another note: You can no longer test otherwise excludable separately. I think now under EPCRS you have 3 years after the end of the plan year to correct it. After that, you have to submit under VCP. If I'm wrong, then it's two years.

How much pay are we talking? How much of a QNEC would it be? They are gonna have to file an SF regardless.

Say I have 5 companies that all adopted a plan: A, B, C, D, E, F The CG's are: A B & C are one CG D & E are another A B & D also C & E too F is not part of any CG or ASG, so I have a MEP. Do I need to do 5 separate tests?

I never saw that the spouse had to consent to a contingent beneficiary before. is that common? Plus, it doesn't make sense. If the spouse is the primary beneficiary, then the only time the benefit goes to the contingent bene is if the spouse is deceased. Why would you need spousal consent for in a case where the spouse has no claim to the benefit (he/she is dead!)?

I really dislike bad actors in our industry. Seems like every couple years or so some guy who thinks he's outsmarted the system starts sending these letters trying to scare up business.