BG5150

Also, the plan had an operational error, so they should put in procedures to avoid this in the future.

I have a SH plan that terminated in 2015. All assets are paid out. All participants received their 3%. The 100% owner did not. What would be the ramification if he did not give himself the SH? There is a company in name only now. All company assets were sold.

Is there a last day rule in the plan for PS?

I disagree with it on philosophical grounds. Most people make their decision on what type of deferrals to make based on their tax situation and perceived tax situation come retirement time. Why should my choice of taxation of my deferrals affect whether or not the company matches my contributions?

Remember, SH match determined on a payroll basis does not have to be remitted to the plan until the end of the quarter following the quarter the deferrals were made. So, if the ER wants to better manage cash flow, they could make 4 deposits a year.

If not 7/1/15, then the next quarterly entry date of 10/1 I would think.

Could you reallocate the forfs as a discretionary match? Eliminates the need for creating new accounts.

Why wouldn't someone who only took SOME of his or her benefit not be reported?

I agree with chc93. It will probably be easier to still file the 5500-SF (with the 1 ppt box checked) than risk filing an EZ, or no filing at all. Unless there are wacky investments, the 10-15 minutes a year you'll use preparing the form will be a lot less frustrating that tryin to deal with the IRS or DOL trying to explain why there was no filing.

Would it be difficult to get something in writing from the motel stating that?

Upon closer inspection: He put in $10,000 in 2015. He put in $25,000 for 2015 in February of 2016. I think he is okay for 2015 and we will book the other $10,000 as a 2016 contribution. He will have $25,000 left in 2016, assuming he has income levels that could support it.

He deposited about $25,000 in early 2016 for 2015. So I guess I can treat the "extra" as a 2016 contribution. let's say he put it in in 2015. Is there just a tax? The money doesn't come out at all? Do we pay the tax with a 5330?

White Out.

Did you post it here? I do not see it.

Sole prop 401(k) plan. Owner is sole participant. He makes $100,000. Defers $18,000. Deposits $30,000 in PS. He's $5,000 over 404(a)3 deduction limit. What is the remedy?

I have a plan who's 414(s) test is failing by 5.27% because the one and only HCE (the owner) has no bonus. It's a 3% SH plan. Do I give everybody 3% of their full pay now?

Be sure to apportion the staff's contribution to all the partners, not just the one with positive income. That is, if it's a 25% per man split, and the staff contribution is $10,000, the partner in the black only absorbs $2,500 of it. The other three will all have losses that are $2,500 greater each. (I try to draft my document to exclude all HCEs from the SH. The company can make it up by making a profit sharing instead. Well, for all my New Comp plans, anyway.)

Or, you could wait more than 1 year to correct the failed test and make a QNEC under EPCRS.

No you may not. You must have a year with NHCE only getting matches. Or, you can swtich to current year testing for ACP-only for 5 years. You do not have to test ADP and ACP on the same basis.

Was the Notice given out? Did the Sponsor not see the part in the Notice about deferrals and speak up?

Why not just buy a TPA firm?

This way, the HCEs are getting a bigger SH than the rank and file. What about that DOESN'T scream discrimination?

QSLOB?

What kind of loan doesn't need to be repaid? Did the insurance company issue any sort of tax form on the withdrawal?

Can you do component plans for 401(k)/(m) testing? Or is that just a(4)?