BG5150

I don't think so. But you can start a Profit Sharing Plan with no 401(k) feature for 1/1. Then add the 401(k) and SH features on 2/4. If there is no k feature in a plan, you can add it and a SH as long as there is at least 3 months left in the plan year.

Yep.

On January 4, who was able to make financial transactions on the funds? Trustee/Administrator for A or B?

[discussion of specific problems] With all due respect, there is a clear pattern of late, missing and incorrect information. Therefore, effective immediately, we are resigning as your pension service provider. You are an idiot and a jerk.* [More discussion of suggestions - in this case, some of the problems were due to distribution and withholding problems b/c they were using a pooled account, and I suggested they go to a turn-key provider who would handle that stuff in their system.] Our sincere best wishes to you and your business. *Just kidding on this! But I thought it... Add a PS: C'ya. Wouldn't want to be ya!

If a participant pays the distribution back after the close of the tax year, does that create basis in the account, with only earnings on the returned amount subject to tax on subsequent (ostensibly correctly-timed this time) distribution?

I think you are right. Did you submit a ticket to Relius? I find their support to be pretty good. I submit mine right on their site.

^^ Nope

Were these people ever "Active" before? And then "Inactive"? If so, I think they get automatically reset to Active. I don't think it has logic to properly account for someone who satisfied the eligibility requirements but quit before the entry date and then came back.

Use the check date.

Be careful about the plan specifics. If the plan says all participants get a top heavy minimum (instead of non-key), and 401(k) contributions are made, the owner may need to give herself a up to 3% contribution regardless if she wants to make a profit sharing contribution.

for the record, he counts in coverage as not benefiting.

I think you would also have a deduction issue. The money already in the plan was probably deducted for 2009.

And have a procedure in place to help ensure it doesn't happen again.

Have the person pay it back. W/ interest. No harm, no foul.

Was it done this year?

Then what IS the purpose of the 30-day "extension" for 415? Why not just make it last day of the next plan year?

Ours is "hourly rate based on the complexity of the order." You can do the math using your firm's ad hoc pricing. One that says "pay $20,000" is easier than "pay 1/2 of acct balance as of January 8, 2009" which is easier than "pay 1/2 of account balance plus investment experience thereon as of October 23, 2003."

I would refund the money to the participants. Not eligible for rollover. No withholding required. From the IRS site on fixing plan mistakes http://www.irs.gov/Retirement-Plans/Fixing...tribution-Plans

No it's not. The participant should have changed his or her address with either the plan administrator or the asset provider.

FWIW, I believe you can charge back the participant's account the fee.

Don't you need someone's permission to do a credit check?

Boy, if I had a nickel for every time I said that about a retirement plan issue, I could probably retire...

Do you even have the records to do all the old 5500's?

I couldn't find it in EPCRS now, wither. But it is in the "Fixing Common Plan Mistakes on the IRS website: http://www.irs.gov/Retirement-Plans/Fixing...tribution-Plans

One of the corrections is to distribute the inadmissible deferrals to the participant (plus earnings). Taxable, not eligible for rollover treatment. I do not think the 59 1/2 penalty applies.