BG5150

In the Who Must File section: Sponsors and administrators of government, church, and other plans that are not subject to the vesting standards of section 203 of ERISA (including plans that cover only owners and their spouses or cover only partners and their spouses) may elect to file Form 8955-SSA voluntarily. See the instructions for Part I, line A.

And what if you 'amend' w/in 45 days and don't attach the audit again? Do you get another 45 days? Are they smart enough to figure it out?

When you do these, do you attach a page that says 'audit coming' or just leave the required attachments left out?

There was no late deposit, because there was nothing withheld.

See EPCRS: (5) Failure to implement an employee election. (a) Missed opportunity for elective deferrals. For eligible employees who filed elections to make elective deferrals Page 88 of 140 under the Plan which the Plan Sponsor failed to implement on a timely basis, the Plan Sponsor must make a QNEC to the plan on behalf of the employee to replace the “missed deferral opportunity.” The missed deferral opportunity is equal to 50 percent of the employee’s “missed deferral.” The missed deferral is determined by multiplying the employee’s elected deferral percentage by the employee’s compensation. If the employee elected a dollar amount for an elective deferral, the missed deferral would be the specified dollar amount. The employee’s missed deferral amount is reduced further to the extent necessary to ensure that the missed deferral does not exceed applicable plan limits, including the annual deferral limit under § 402(g) for the calendar year in which the failure occurred. The QNEC must be adjusted for Earnings to the date the corrective QNEC is made on behalf of the affected employee.

50% QNEC for missed amount. Earnings. Plus full match on missed amount, if any.

I agree, RBG. I don't think I've ever had a 'repeat customer' when it came to a late audit. Just one-timers. Mostly they are either first year audits where the engagement only entered into in like September, or off-calendar plans where the audits were supposed to be done during income tax season.

It says right in the reg: An annual report which is rejected under section 104(a)(4) for a failure to provide material information [the audit] shall be treated as a failure to file an annual report when a revised report satisfactory to the Department is not filed within 45 days of the date of the Department's notice of rejection.

But why not file the EZ electronically, too, this year instead of mailing it?

We may do one, maybe two "the audit is pending" filings a year. And over the past 5 years, maybe two have gone even into November.

And remember, you get 45 days after the letter from the IRS or DOL (I forget which) is issued. So in practice, it's more than 45 days after 10/15...

Yes.

Why not continue to file? To me, it's easier to prepare an EZ than to sit around and await the inevitable letter from the IRS looking for the filing, then taking the time to respond.

I find it odd that there wasn't an IRS letter somewhere. Maybe they didn't pick it up b/c the first and only filing was under DFVCP?

Keep in mind what Bill said: If the plan was filing as a small plan (either on an SF or Schedule I), they can continue to do so until the participant count is MORE THAN 120 on the first day of the Plan Year. Still, I would send letters to those affected gently reminding them they can move their money. Include either the paper form and the Special Tax Notice, or explain in the letter who to contact the provider to begin the withdrawal (a lot of platforms are going electronic-only, or at least electronic-preferred).

Is a loan "another source"? Does a participant have to utilize all credit avenues first? Say they have $10,000 in the bank. And $12,000 available across three credit cards. If they get a medical bill for $20,000, how much of an hardship can they ask for? Do they have to draw down the cash? Cash they need for mortgage payments, maybe high school tuition, car payments, bills, etc? Must they max out their credit cards first? Maybe just a little cash and a little credit? Should they apply for a HELOC? Do the hardship regs still state the participant need not take counter-productive steps in obtaining alternate financing other than the hardship?

This is one of the URL's. It is not using my view. https://benefitslink.com/boards/ I am attaching a screen grab that IS from my personal view. Screen grab.pdf

Participant was supposed to have her first RMD in 2020, but that was suspended. Had it not been suspended, her RBD would have been 4/1/21. But since it was suspended, did she really have an RBD? By when must her 2021 be taken? 21/31/21 or 4/1/22?

Thanks

After the update, when I am in my personal view, there is a pane with recommended jobs. Is there a way to get rid of that? It takes up too much real estate on my screen.

Plan is failing 2020 ADP. We were thinking of retroactively amending the plan for 2020 to be a 4% SHNEC, depending on the cost-benefit analysis. (Plan is TH, too, so it'll probably be worth it.) We can still exclude HCEs from that, right? The main question is if we amend for 2020, will that automatically be in effect for 2021, too? Or do we need to to another amendment for 2021 to be 4% SHNEC? We will then amend the plan for 2022 to either be SHNEC or SHM, and talk to the owners to see if they want to exempt themselves from the SH.

I jsut find it odd that all that comes under the ERISA umbrella which is ostensibly a retirement income law.

The question then becomes whether the extra 1% over the TH is less costly than the tax savings due to the refund. The refund has to be $19,500 (plus earnings) if no one else deferred.

ERISA is the Employee RETIREMENT Income Security Act. What do Health Plans have to do with Retirement? Just something I've always wondered about. I don't deal with Health Plans, so I can't figure out why there is overlap.

Wouldn't just "Hurricane Ida" work? Would it get kicked back for some reason?