BG5150

But are counted as included but not benefitting for the three coverage tests.

Does the plan document address the issues? Absent that, I would think it's the usual 12 months after PYE. However, be mindful of the 415 deadline which is 10/15 (or is it 10/31?) of the next year.

Are you talking about the Irrevocable Waivers? I didn't think they were allowed any more.

Can the cost of the Fidelity bond be assessed to the plan (from forfeiture) and/or participants?

TPA produces annual 5500s. Client constantly indicates on annual data request that no contributions were submitted late per DOL rules. TPA enters zero on the proper line of 5500/5500-SF. Later it is determined that the client has been depositing weekly payrolls only once per month for years. TPA brings this up with client, they say they don't have any money to pay lost earnings or to pay TPA for calculation. They do not want the item listed on the 5500 either. What is the TPA's exposure for producing the 5500 with no late contributions when in fact there were? The TPA is not signing the 5500.

What about sources that are not 100% vested? Do the funds that go tot he AP come from both vested and non-vested portions of the account? For example, PS only. Participant has $10,000 and is 50% vested. DRO calls for 50% of vested account balance. After the transfer, is the participant left with: A) $2,500 vested and $5,000 unvested? B) $3,750 vested and $3,750 unvested? Choice A would be much harder to record keep, IMO.

I would say no. It is not a plan expense. Plus, the expense is beyond the plan administrator's control, and therefore the PA cannot determine if the fee is reasonable. And the PA cannot control where that advice comes from. Could I ask my broker for advice? My brother's wife who works in finance at her company? My buddy, who's broker is EF Hutton, and EF Hutton says... (Only those of a certain age will get that last reference)

Best would be to contact their support directly, no?

Kinda. For large plan, fee caps at $2,000 for one plan year, and $4,000 for two or more plan years.

I would file both late. Charge the auditor the DFVCP fees for both years.

If everyone is in their own group with no conditions, everyone technically qualifies for a profit sharing. But it's up to the sponsor to allocate it. They can choose to not give it to those not employed on the last day of the year. Or those with less than 1,000 hours. (Or both!) But, say a valued employee who was there for many years "retires" in December at age 62 and the owners want to reward her for her service. If the last day is hard coded, they would have to do an 11-g amendment to give her anything. In the case of individual groups and no conditions, they can choose to give her something. But if they start making arbitrary decisions, I think they lose the ABT to pass coverage. I can count on one hand the number of plans I've had to use the ABT for coverage. (Can still use it for nondiscrimination testing, though). Hope this helps.

When will the audit be done?

I was thinking the other way. Your first post intimated that only the new participant needs a top heavy contribution; you didn't say "all" participants. Rev Rul 2004-13 specifically addressed dual eligibility. The plan loses TH exception if there is dual eligibility for SH match. See Situation 4. rr-04-13.pdf

Out of curiosity, why isn't the 2019 form filed yet? Is it the sponsor's fault? Or the auditor's?

Just out of curiosity, what is the profit sharing formula? Is it grouping method? Pro rata? Integrated? Why not just make it grouping method with everyone in own group. This way you can just do away with stated conditions for a PS and artificially add them in as needed.

I don't understand this. If the new EEs get a TH contribution, then the plan is no longer "solely" funded with deferrals and SH. So TH is due to everyone. What am I missing?

If they are HCE, they get tested as HCE. That simple. Is it advantageous to them to use the top-paid group election? that is have only 2 HCE? And remember, when using the TPG, that is ONLY for the compensation test. So, if you have employees who are earning more than either of the the owners' plan compensation, then you may wind up with more HCE than 2.

Not much help, but...

I looked up "deposit" and "deposited" in the BPD and none of the hits were relevant to the topic. I'll look further.

Side note: If a Plan Sponsor with a large Spanish-speaking employee population offers investments that don't have Spanish prospecti, is there a fiduciary breach somewhere?

Employer has several late remittances of deferrals to the trust. Prohibited transaction. Fix (perhaps) under VFCP. Is it also an operational error? Corrected under SCP? If so, what "operation" under the plan doc did they violate?

It is your discretion whether to use the SHM or not in the ACP test. If VAT contributions are made, then the plan does not consist "solely" of deferrals and a safe harbor contribution. Therefore, the plan is subject to top heavy rules.

The only way I could see them tied into the 5500 is that they are excluded from the plan for some reason and are not int he participant count because of it.

To my knowledge they don't. And, to be honest, I don't trust that they apply the accumulated amount rule properly either. I've never been in a position to check.

I don't think so. Is someone asking for a list of HCE & Key EEs?