BG5150

How is it any different that a "regular" plan. In those, the plan still owns the assets, though they are earmarked as benefits for Mr. & Mrs. Jones later. What if the sole investment is 1200 shares of the ABC fund? Who is the owner of those shares?

Won't a lot of these plans be 1-participant plans, and thus no bond needed?

^ That was my first thought.

Certainly has been a while!

My question is an operational one. In Relius, say, she will have an account balance of $1,200 at zero percent vested, even though $200 of that needed to be vested b/c of the 11(g) amendment. Who is going to remember 3 months later when she asks for a distributoin? Do you put that $200 in as a QNEC? It's not, and, to me, it should have the same restrictions as PS money.

[sarcastic]put it anywhere and let the auditor tell where to move it to[/sarcastic]

If it was 20 years ago, I don't think the loan could even be made. When did they change the rules to allow owners of S-Corps to even take loans?

Nice. Seven bucks for a $10,000 investment for a year.

The DoL is getting better at checking those "note" attachments. Be prepared for a letter saying the revised form and audit needs to be filed in 30-45 days (from the date of the letter)

Is it a 1-participant plan? If so, and they prepared EZ's, you won't find them online.

^ so If I had a $10,000 balance included in the TH calculation for 12/31/16 and I had a SH receivable of $3,000 and a PS receivable of $1,402, my account balance for the TH test would be $13,000?

I think Relius lets you get away with 4.402% or a 1.402 gateway after 3% SH.

Open with 2015 5500 closing balance and put the difference in 'Other Income'

If more than 15% it's more than 1/3 for gateway. You are probably thinking of a SH plan, where everyone is getting 3%. If owner gets more than 9% total, the staff will get more, up to 1/3 of the owner's % for gateway. If owner is more than 15%, you stop at 5%. Again, just for gateway.

Sure. As long as you are passing coverage using the 70% ratio test. PS: What percentage is the owner getting? If more than 15%, then you have to give just 5%, not necessarily 1/3 for the gateway. (Side note: if you are passing rate groups for the contributions, you do not need the ABT)

Qualified plans have to stand on their own when calculating and distributing RMDs (as opposed to IRAs which can be aggregated). Was the distribution done in 2017? If so, the plan should have paid the RMD first, then rolled the balance to the IRA. My thoughts: technically, the RMD (and any accrued earnings thereupon from the IRA) should be returned to the plan, and the plan should make the RMD and issue the proper (at least) two 1099-Rs. Could the IRA pay it out? I don't see why not, as long as the participant receives the total amount she has coming to her. Keep in mind, she has until 4/1/18 to take any and all RMDs.

They are independent tests, and you can do they any way you want.

Yes.

Plan is prior year tested. Last year, no NCHE contribs, no HCE. 2016 1 HCE and some NHCEs. HCE is over 50, deferred $2,500. ADP test fails, but no refund, re-characterized as catch-up. He received a $600 match. ACP test obviously fails. BUT: do I forfeit the match b/c the ADP test failed and all the match is attributable to deferrals anathema to the ADP test? Or, do I refund the money, as the ACP test fails?

When calculating the covered comp for the 25% deductibility, do you use pay as a participant or full year pay for mid-year entrants and when benefits are calculated on partial year pay? For example, participant paid $50,000 in 2016, but entered the plan on 7/1 and made $25,000 thereafter. PS is 5% of $25,000. Am I using $50k or $25k when calculating the max deductible tot he ER?

But is the vested amount in the amendment only to the contribution, or the entire sources. Say Sheila has $1,000 in her PS account and is 0% vested. She leaves in '16 and the plan has a last day rule. The plan is forced to give her a (100% vested) $200 contribution via an 11-g amendment. So, in March, she now has $1,200 in her account (let's ignore any earnings). How much does she get in April when she asks for a distribution?

This si the way it is in our document software. No indication of BOY date. PLAN/LIMITATION YEAR (1.44/1.34). Plan Year and Limitation Year mean the 12 consecutive month period (except for a short Plan/Limitation Year) ending every: Plan Year (Choose one of (a) or (b). Choose (c) if applicable.): a. December 31. b. Fiscal Plan Year: ending: ____________________.

So when DO you have to do the ADP test in an ostensibly safe harbor plan?

^ What did the document say the plan year end was? "Last Saturday in Sep"?

^ that would make sense.