BG5150

Does anyone put the true reason some audit firms are fired: "The guy was a moron." "They had no idea what they were doing!" They wanted to stop deferrals when people went over $265,000 in comp" We usually put: Business or decision or firm merger.

Where do you show distribution processing fees on your 5500's? A thought came up here to include them on the Distributions line so the amount of distribs match the distributions report from the r/k system (even though the fees are not included in the 1099-Rs). I've always included them in the Other Fees category. Your thoughts are appreciated.

Why not just allow for deferrals for everyone and a New Comp, everyone in their own group, PS? Can offer PS to a select group and zero to all others, including themselves.

Penchecks?

Does the rate change right away? Or the beginning of the next calendar quarter?

Here is a link to the announcement: www.irs.gov/pub/irs-drop/a-14-16.pdf It's IRS Announcement 2014-16 if you want to search for it.

Great! I was treating the "nondiscriminatory classification" and “reasonable classification" tests the same. I am copying and pasting that into a doc and keeping it with my other compliance related shortcut docs. Happy Holidays!

If everyone is in their own group, you fail the reasonable classification test. So does that mean I must pass rate group testing with 70%? Do I also lose the ABT for coverage? I forget how that affects things. Seems like everyone is just loving the own group thing, but I know it has drawbacks.

I think there should be a cutoff: if you filed your taxes for a particular year and you did not notice the error, then tough.

Does the participant have any proof that her enrollment form was definitely received by the HR dept? Just because she has a copy, doesn't mean the HR dept received it in good order.

No offense, AdKu, but in post # 6, you are saying it's a sole prop. But in #12, you are saying it's an S-Corp. You can understand our confusion, I hope. That said: If it's an S-Corp, he cannot just write a personal check. It must run through payroll and be part of his W2. It cannot be part of the dividend income. If sole prop he can, and the deferral is noted on the Schedule C. This is assuming he generates enough net income. If he is the only participant he should be ok. But once you start adding employees to the mix, Top Heavy will be of concern. If there are EE's for 2015, the ADP becomes an issue.

I'm not sure if this matters, but did the company deduct the amount on its taxes?

So, if everyone is in their own group, do you have to specify who gets what in the resolution?

Find a new document.

Why not just have 2 different discretionary matches? One with a last day rule and one without.

When is TH actually due? I thought the regs were curiously silent on that issue.

I say no audit. They are still two separate plans. Just b/c some r/k puts everything under one "plan number" doesn't make it one.

Is everyone going to have their own account? If so, I see no problem with it. R/K has on its system a group of individual accounts called the ABC, Inc. Retirement Plan. Plan #12345. Under the plan #, there are 6 accounts, 3 of which belong to the non-union plan, and three that belong to the union plan. The r/k system can make a distiction between them by assigning the individual account a sub code, the "division" or, rather which true plan they belong to. While reports might not be the cleanest, it would be easy to see how much and what transactions happened in each division to properly administer the plan. Just becasue a r/k culls a bunch of accounts under a plan # doesn't mean they all belong to the same plan. (I mean they COULD do that, not that they do.) We have the exact same setup, wherein two plans of the same employer are in a single "account" with the custodian. Record keeping can be difficult at times, but doable. Side note: the plans are separate plan #'s on our r/k system. Its jsut all the funds are in acct # Ab6789T at the custodain.

Will an $18,000 deferral, probably leading to a high ADP, adversely affect the plan's ADP testing?

I think would/should only work once. Part of the correction process is to take steps to prevent the error from re-occurring. Maybe once or twice, but relying on that method of dodging 415 year after year is contrary to the SCP principles.

Well, the 2010 exam certainly didn't have any PPA material on it. The current exam probably will. Check the syllabus.

In that particular case, entry on DOH is definitely earlier than BOY. But any longer wait than that, there can be a scenario where BOY could pass, thus violating 410(a)4(A)

This is 410(a)4 (4) Time of participation A plan shall be treated as not meeting the requirements of paragraph (1) unless it provides that any employee who has satisfied the minimum age and service requirements specified in such paragraph, and who is otherwise entitled to participate in the plan, commences participation in the plan no later than the earlier of— (A) the first day of the first plan year beginning after the date on which such employee satisfied such requirements, or (B) the date 6 months after the date on which he satisfied such requirements, unless such employee was separated from the service before the date referred to in subparagraph (A) or (B), whichever is applicable. But these are minimum standards. Could you have a calendar year plan with entry dates of 4/1 and 10/1? Probably not, as you would pass the first condition of minimum entry.

Will your company not pay for the study materials? Does your company not have access to reference materials you can borrow? Is this your second ERPA exam? (You do know there are 2 exams, right?) If so, what did you use to study the first time. There is an awful lot of material to cover, so I don't think you will find a comprehensive source to use for free. At least not specificially for the ERPA tests. [lastly, I always caution people to not post their e-mail addresses on public forums like these for fear of spam.]

Is seem to remember that the first day of a plan year must be an entry date. is that true? Can I get a cite? My problem is that I have a plan with a PY of 10/1 to 9/30. Entry requirements are 21/1, with entry dates of 10/1 and 4/1. But for the first year, for whatever reason, they made it a short PY of 1/1 to 9/30. So 1/1 isn't a plan entry date. Or is it? First day of the plan year.