BG5150

No earnings? Even though the match was due by 12/31/12?

Oh.. this threw me off.

Might this be a "Mistake of Fact" candidate?

I'm guessing this DC plan is all in a pooled account, or that the participants do not have investment direction?

And/or have the participant take reduced deductions until it evens out.

FYI, you can charge the cost of locating a participant to his or her account.

Unless a plan document specifically forbids it (I guess), purchase of an ERISA bond is an acceptable expense to pass along to the trust.

This CPC exam looks to be no joke. (Not that I thought it would be; the Modules were sufficiently difficult) At least the study manual is pretty exhaustive, though some of it is reprints from a couple of the modules. 565 pages! I wish there were more practice questions. usually, i study some, do a practice exam, study more on my deficiencies then take another exam or two. But in this case, there's only one previous exam available.

Did you ask the bond-writer what they think?

I'll do it. (in my best Autin Powers voice) For One. Million. Dollars.

You could have immediate eligibility for 401(k), but a year wait for the SH.

^ I'd do the distribution now as a rollover. If the person terminates (retires) before the year is out, then you let her know a portion of the distribution was not eligible for rollover and issue the proper 1099's.

Is it right? No. Illegal? I doubt it.

I would amend. In the couple years before that, were they availing themselves of the abbreviated, under-25 participant small-plan filer rules, too? (Pretty much 5500 + Sched I) You may have to amend back further.

Could they pay him on a 1099?

^ But once you do that, you're suck with it, right? In-service withdrawals (except hardship) are a protected benefit, I think. (Unless you want to start tracking benefits accrued to the date of taking away the benefit, and the accruals after.

Also, if it's a SH Match, EVERYONE needs to get at least 3% ER money.

So, are you going to create basis in the HCE accounts? And they get to keep earnings on those amounts? Just doesn't seem fair--Hey, Mr. HCE, just pay taxes on the amounts now, and we'll let the earnings on it grow tax deferred even though you shouldn't have had these earnings in the first place...

If the money was never taken from the trust, why is the old TPA just reducing the amount on the 5500? The money has to come out, or get redistributed out of the HCE accounts sometime, somehow...

So, you can say, "we might be SH for 2013" (back in Decemeber '12). And then change the PS allocation sometime in 2013 as long as the ER will send out the Dec '13 notice saying "we're not SH for 2013"? But what if they want to actually be SH for '13? The OP is a little confusing. It seems like the year in question is over, but it is asking if the plan can me amended mid-year. Which year?

And change the entry dates to monthly.

I would NOT include them. If the auditor insists on having them in there, put them in there.

Are you straddling the audit/no audit line? If not, I don't think it matters that much. If the plan get audited, and they bring it up, then just tell them why you filled it out the way you did. I doubt they'll give you grief.

The reason for the last 4 digits is that it's less probably that someone with the same or similar name will have the same last 4 digits.

I believe in some states, you aren't allowed to put stuff in the mail with SSNs on it.