BG5150

Sorry, the question was meant for Becky...

Catty, is the plan set up as everyone in their own group or design based safe harbor via pro rata allocation?

Anyone try to file a 5500-SF with 2 participants? Mine keeps getting rejected. I get a warning in Relius saying that if I qualify to use the EZ I now have to use that form. But this is plan is not a 'one participant plan.' It's an owner and an employee. Relius says it's probably a DOL problem, but they didn't seem to know anything about it. A co-worker saw a posting on Datair's forums about a similar issue.

But shouldn't the trust accounts be set up under the Plan's EIN and not the sponsor's?

We have some plans done by a former administrator that have individual brokerage type accounts. I believe these accounts were set up using the ER's EIN instead of a Trust EIN. What are the ramifications of this, if any? I always get a separate TIN when the accounts are either in a pooled account or individual brokerage accounts. The former admin ceased doing that because he got tired of the pushback when the TIN was retired due to inactivity. I was setting up a new plan, and was told it was OK to just have the sponsor's EIN as the Trust EIN in the doc.

I used to have a chart that listed a bunch or retirement plans and which could be had in the same year and which couldn't Anyone have anything like that? I've been looking through everything I have and cannot seen to locate it.

And remember, the expenses have to be reasonable. Not gonna pay someone $5,000 to put together census data for a 50 person plan. (and if they really want to pay that much, send them my contact info. I'm free on weekends to help out.)

Do not adjust the W2.

It's on the IRS website. All three, I think... I'll even help https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds

Attribution doesn't count in those cases. But in the case of husband and wife, it says that the owner/partners AND their spouses, so, in your case, the wife is automatically included--it doesn't matter how much she directly owns, if anything.

And, for 2016, you'd use the 2016 ADP (or one of the alternatives CB suggested) and multiply by the comp thru 2/15/16. If THAT'S no known, you could probably use 2016 comp times 87.5% (or 10.5/12 months).

Basically, it's saying if you have to make a corrective contribution and it's $300, and there's a loss of $20, you can either deposit $300 or $280. However, if there is a corrective distribution of $300 with a $20 loss, you distribute $280. Just my take.

That describes a 415 excess.

And what is the fix under EPCRS? The only section I see that addresses it is in Appendix B in .07 about correction by amendment. The ER does not want to correct it by amendment. I don't see anything about not including this person and removing their money.. (I searched EPCRS for 'inclusion'. This was the only section other than instances of things "included" in VCP filings. Do we look to Section 6 on Excess allocations? What 1099-R code do you use? Can't use 1--if the person is under 59.5 otherwise that would trigger a penalty tax, I think.

I should know better than to argue w/ attorneys (and/or former attorneys), but: 415(c)(3): (I left out disability and two more items as they aren't relevant to my thinking ro the discussion) I don't believe this person is a participant, therefore they cannot have "participant's compensation." Is there a different definition of "participant" that I'm missing? Is a participant anyone who, rightly or not, has an account under the plan?

Getting into semantics, but 415 excess are EPCRS issues nowadays...

No she wasn't. Just b/c someone puts funds into a plan doesn't "technically" make you a participant.

Old Actuarial Outpost forums can be found here. Currently up and running. You have to put in the url directly: http://204.232.242.165/actuarial_discussion_forum/index.php

I'd say 415 excess. Zero plan compensation from which to defer.

Generally, I take what the accountant calculates on the K-1 as net Self Employment Earnings and start there. As mentioned above, I believe some guaranteed payments are included in that figure, some are not.

The AO has been semi-replaced with goactuary.org. The Outpost is up and running again, but with a much pared-down forum section. Though there is a back-door somewhere so that people can get into the legacy forum and still post. Not sure if any new exam questions would be answered, but the old stuff is probably there.

Could the employer open an account solely for the use of these funds and institute a policy that within a certain time of the account being funded, a wire will be issued to the reserve fund?

Same goes for a "1% owner."

never mind, just re-read an earlier post that said the EE notified the ER in mid-December. However, they mus start the deferrals before the end of this month and adhere to the notification requirements in EPCRS.

In order for the sponsor to be eligible for the safe harbor relief: [quote](i) Correct deferrals begin no later than the earlier of the first payment of compensation made on or after the last day of the three-month period that begins when the failure first occurred for the affected eligible employee or, if the Plan Sponsor was notified of the failure by the affected eligible employee, the first payment of compensation made on or after the end of the month after the month of notification;[/quote] When did the participant notify the employer? They may still have time to correct this. But nothing will be in/for 2020. It'll all be QNEC & earnings plus deferrals starting in 2021.