BG5150

Get the payroll report. Don't use W2s.

Or, if you quit or get fired, you are exempt from the penalty, too!

Now that we know your DOB, can I get your SSN and mother's maiden name? A PM will do. No need to publicly just throw it out there...

Who's going to look at past years? Get your VCP pencils sharpened.

Plan at one time offered an annuity product as an investment to all. After a while, they stopped offering to participants. At the moment, the owner is the only one in the investment and he is making contributions therein. Is this a BRF issue in that he's the only one allowed in the investment? Or is it ok, because at one time it was offered to everyone and is now, for the plan, closed to new investors?

Then I wouldn't think that Roth IRA money to a 401(k) plan would be an issue in this case. I would process it as a transfer in.

Is a "buyback" a rollover into the plan? What if the plan does not allow rollovers in?

I'm using Relius. Eligible participant terms with 256 hours during plan year. She does NOT show up in my 401(a)4 testing, however she shows up in the Average Benefit Testing. Should that be? I thought term < 500 hours and you are excluded from all general testing...

I'm with Larry. If this is an Adoption Agreement plan, check the BPD section on comp. Unless the doc was drafted by an incompetent party, then, undoubtedly SE comp will be in there.

What if prior comp is less than zero? And what about the daughter? She should have her K-1 and W2's combined. (Though I don't think partners are supposed to get K-1s and W2's in a partnership. They do in an S-Corp.)

With maybe eligible comp to defer from if they want.

I wouldn't. Especially if you know he's going to be an HCE.

Flip a coin: Heads, they're in, tails out.

So, if there were fewer than $250,000 at EOY 2015, then I wouldn't file it. File 2016 as a first return/report.

Why not just file a 2015 AND 2016 form? I would do them on SFs as a one-participant plan. It'll take 5 extra minutes to do the 2015 one. Side note: gotta love that gain! Even with a $60,000 contribution, that's over a $110,000 gain, 137%!

Plan is 3% nonelective Safe Harbor plan. Only SH & deferrals. TH ratio is 80%. Is this plan exempt from Top Heavy?

They are going to release a "Cheaters" edition this fall: https://www.bloomberg.com/news/articles/2018-02-02/there-s-now-a-monopoly-made-specifically-for-cheating

Yes, it looks like the instructions say to use code E for 415 violations.

The only people who have to get a gateway are those already getting an allocation. So, if the commission-only people are excluded, they do not have to get a gateway.

The payroll system directly generates the W2, I would think. Therefore, if the payroll report is incorrect, chances are your W2's aren't right either...

Use the payroll report. I only use the W2 to double check the deferrals and sometimes SSNs.

Chip, I agree with you that it's the PS that is causing the 415 failure. But the correction states that any deferrals are removed first. It doesn't make sense.

Go conservative and let him in? Maybe ask him personally about his past work experience? Just tell him it's to make sure the records straight.

Another new one: Plan year 7/1 to 6/30 PS plan only. no age, 1 YOS (1,000 hrs). Entry date: "last day of the month" ... "nearest to the satisfaction of minimum age and service requirements."

I still think it is a 415 violation and he gets a refund.