BG5150

My suggestion is to engage an attorney.

Final distribution of 401(k) money, no? If there was a trailing PS, it still goes back to the K money, doesn't it?

Good Doggie!

Actually, I was thinking it was failure to follow the terms of the plan and eligible to self-correct. We would allocate it using 2015 comp. Can you tell me where in the EOB they discuss it? (to save me the time to try to wade through it)

We have a plan for a company that went out of business in 2015. Plan terminated, and final distributions were done in 2016. However, the forfeiture account was never liquidated. There are no more fees to be paid. How do I reallocate the forfeiture account now, being that the date for which annual additions for 2015 has passed on 10/15. I obviously have no comp for 2016. Do I just reallocate it on 2015 comp and move on?

...or when they hire an employee and don't tell you.

Even for the SF's? Pretty steep for 3 pages...

What charges, if any, do you put in the SAR for copies of the paper 5500 for the per page and full copy items? I usually put $0.25/page and $0.75/$3.00 for full copies of SF/5500, respectively. What you you put in your SARs?

I can't find it right now, but there Was a FAB a couple years ago that addressed it. Basically, you don't need it for SDBs, however, it may not be considered prudent to have solely SDBs with no DIAs in the plan at all.

For participant directed plans, certain disclosures are required to participants under 404(a)5. Certain disclosures are to to plan sponsors under 408(b)2. The 404(a)5 notice includes comparing the plan's investment options to industry benchmarks. here is your cite: https://www.law.cornell.edu/cfr/text/29/2550.404a-5 If a plan is conforming to 404©, the plan's fiduciaries are given some protection against participant claims of investment performance and choice. Where 404(a)5 notice shows investment performance and fees, it does not provide the same protections as 404©, as 404© requires other actions to be taken or allowed by the plan sponsor (provide quarterly statements, allow inter-investment exchanges at least once per month...)

If you need to take them out (I am not saying they have to, only IF), you can use the "Additional Test Amounts" under "Compliance" in Census. Use negatives. They will pull out of your testing.

^ true. of all the culpability, i hold the sponsor lowest in this situation

But who is going to pay the penalty, now that's a different matter. Lots of blame to throw around here. I blame the CPA for not having a process (or following it) to see that all audits get through partner review or otherwise finalized. I blame the TPA for not having a process (or following it) to see that the 5500, indeed, was filed. I blame the sponsor/administrator for not having a process (or following it) to see that the 5500, indeed, was filed. Maybe $500 apiece?

Why u mad, bro?

John, where in the 5500 instructions do you see that? The only place I see anything about signing things is in the Electronic Filing section. And further down: The only other signatures the instructions mention are for actuary-related things. But for the 8955-SSA, are we out of luck? The signatures still seem to require both (only one if they are the same)

One of the selling points I've seen with 3(16) Plan Administration services, is that the 3(16) PA will sign and file the 5500, leaving the employer largely uninvolved. In the past, if the PA and the Sponsor were the same, then the 5500 only needed to be signed in the PA spot. If they were different, then two signatures were needed. Is that still the case in the age of e-filing? I couldn't find anything in the instructions. If only on is needed, great! However, if both are needed if PA and Sponsor are different, does the 3(16) administrator still need to get the sponsors signature?

If the plan goes under 80, it MUST file as a small plan (either 5500-SF, or 5500 with Sched I) regardless of what was filed the previous year.. They can get it audited if they want, though.

I thought it was 1 year after the last 401(k) funds left the plan. In this case, there were no 401(k) funds. Can you terminate a plan that was never qualified? What exactly goes into declaring a plan unqualified? Do you fill out a form or something? (I have never had to go through this). That said, I think terminating a plan and starting a new one would be much more costly than just filing a "blank" 5500.

^ yep

1. That is correct. Any ER contribution that would have otherwise been deposited must be offset by the amounts in the "suspense" account. The amounts may not be used to pay fees. 2. These are not forfeitures, even though in most, if not all, r/k systems, the suspense funds are held in the forfeiture account. EPCRS, in this case, does not say the amount is "forfeited." It says "the account balance of an employee who received an Excess Allocation is REDUCED by the Excess Allocation (adjusted for Earnings)." (emphasis, mine) Forfeitures are unvested funds that leave a participant's account for any of several reasons. The are not unvested funds, they are mistaken funds. So, you do not run afoul of the "no forfeitures to fund safe harbor" rules.

Similar discussion here: http://benefitslink.com/boards/index.php/topic/59538-safe-harbor-plan-and-employee-after-tax-contributions/?hl=solely#entry263727

Is this an EACA with a 90-day return window?

Seems ok

What type of entity is it? Corp? Sole-prop?

Only if the plan doc does not use the fail safe option for coverage, no? With fail safe language you have to correct the way the doc says. usually, it is adding people until you are covered and the ABT is not available for coverage.