J Simmons

I'm looking for contact info for the plan administrator(s) of Fedex portable pension, Fedex pension and Fedex 401k, specifically for QDRO purposes. Any info would be helpful.

What amendments, if any, in the current remedial amendment period are needed before terminating a plan?

Pathology practice LLC owned by 4 doctors, had 12 other (NHCE) employees, operated a lab and sponsored a 401k safe harbor, cross-tested plan. Effective 5.1.2024, the practice LLC sold its business to Hospital, which employed all 12 staff people that had worked for practice LLC. The doctors remain employed by the practice LLC, which contracts their services to Hospital. I have little to no doubt that the practice LLC/doctors meet the IRS definition of 'hospital-based physicians'. One of the doctors bought 1 share of Hospital. So, there is likewise no doubt that an affiliated service group now exists. Hospital sponsors a plan that now benefits the 12 staff employees. It provides a 5%-of-pay profit sharing contribution to all Hospital employees, and sports a 401k safe harbor feature with a safe harbor match. Here are some of my questions: 1-The practice LLC's plan can aggregate/is aggregated with the Hospital plan, right? 2-That permits the doctors to make 401k deferrals to the practice LLC's plan, to the 402g maximums, right? 3-Can the practice LLC make cross-tested profit sharing contributions to its plan for the doctors, since the employees of Hospital are receiving an amount from Hospital that serves as a gateway minimum? 4-For 2024, can the practice LLC plan compute profit sharing contributions and apply nondiscrimination rules just to the period of 1.1.2024-4.30.2024 for the 12 employees AND THE DOCTORS?

Pathology practice LLC owned by 4 doctors, had 12 other (NHCE) employees, operated a lab and sponsored a 401k safe harbor, cross-tested plan. Effective 5.1.2024, the practice LLC sold its business to Hospital, which employed all 12 staff people that had worked for practice LLC. The doctors remain employed by the practice LLC, which contracts their services to Hospital. I have little to no doubt that the practice LLC/doctors meet the IRS definition of 'hospital-based physicians'. One of the doctors bought 1 share of Hospital. So, there is likewise no doubt that an affiliated service group now exists. Hospital sponsors a plan that now benefits the 12 staff employees. It provides a 5%-of-pay profit sharing contribution to all Hospital employees, and sports a 401k safe harbor feature with a safe harbor match. Here are some of my questions: 1-The practice LLC's plan can aggregate/is aggregated with the Hospital plan, right? 2-That permits the doctors to make 401k deferrals to the practice LLC's plan, to the 402g maximums, right? 3-Can the practice LLC make cross-tested profit sharing contributions to its plan for the doctors, since the employees of Hospital are receiving an amount from Hospital that serves as a gateway minimum? 4-For 2024, can the practice LLC plan compute profit sharing contributions and apply nondiscrimination rules just to the period of 1.1.2024-4.30.2024 for the 12 employees AND THE DOCTORS?

X had benefits in a former employer’s 401k plan. X wanted to direct the benefits to make loans to local construction contractors (no familial, no other business relationship), with promissory notes with stated interest rate and with collateral to secure repayment. X sets up an account at a local bank to roll the $$$ into the account. Between X, the bank and his accountant, there was a miscommunication; rather than an IRA, the bank simply opened a regular business account for X. The 401k plan sent the $$$ to the bank and reported it as a direct rollover distribution from the 401k plan. The bank placed the $$$ in the account (not an IRA). Now that the problem has been discovered, X has sought my assistance to remedy the situation. Any suggestions will be appreciated

IRA funds were drained by the owner's son hacking into her IRA account online. Son took the money, a police report was filed, and son is facing felony theft charges under state law. The money is gone; used to pay off gambling debts. The IRA custodial institutions were notified. They are investigating. The IRA owner has now received from those institutions Forms 1099-R reporting the funds taken by the son as taxable income to the IRA owner (the parent). It would be adding insult to injury if the IRA owner has to pay the income taxes due on the stolen funds. Any suggestions on how to handle these Forms 1099-R with the IRS?

Small employer group health policies have, since ACA, been allowed to impose no more than a 90-day waiting period on new employees before they must be offered coverage. 42 U.S.C. 300gg-7. Can a small employer offer coverage in that time frame to a new employee, but it would require the employee to pay all of the premium expense until say 1 or 2 years of employment have passed?

High earner under age 50 works for two employers. For 2023, he electively deferred $22,500 into one employer's 401k plan as Roth. In the other, he electively deferred $7,500 as tax deferred. He will have to have $7500 returned to him. Is there any ordering of such, i.e., Roth before tax deferred or tax deferred before Roth, that must be followed or can he choose whichever?

I am tasked by a client with getting the ACA 1095 (and 1094) filings done (way late) for years 2017-2020. I am looking software suggestions. Thanks in advance.

For 30+ years, I drafted plan documents for clients and consulted them when issues arised. Most of my clients (small professional practices) used a local investment adviser/broker to invest plan assets, and a local accounting firm to perform allocation/testing computations and Forms 5500 and SARs. Some time ago I notified my plan document/consulting clients that I would no longer be a provider of plan documents, though am yet available for design, operations and fix-it consultations. Since July 1, I've been contacted by a few 'procrastinators' looking for a source of just plan documents for Cycle 3 restatements and later updates. If you so provide documents separate and apart from other services, and would be interested in either referrals from me or providing a document with me involved in the design, please e-mail me at johnsimmonslaw@gmail.com. Thank you

Happy holidays! The situation I am posting about involves a professional practice that is composed of an LLC that employees the staff and separate S-corporations, one each for the professionals who also collectively own the staff LLC. The staff LLC has a safe harbor 401k; in addition to a 3%-of-pay safe harbor contribution, the LLC pops in another 2%, establishing a 5% gateway minimum for cross-testing. Each of the professionals' S-corporations has an identically drawn up 401k plan that permissively aggreates with the staff LLC's 401k, to allow the S-corporation to make a cross-testing determined contribution to its plan for its only employee, the professional that owns the S-corporation. One of the new professionals did not coordinate into this situation, but was convinced by an investment adviser to have her S-corporation instead set up a SEP-IRA to which she then make contribution for 2020 and 2021. We're hoping to get the 2021 contribution, and investment earnings, paid out to the S corporation (and hopefully the financial institution won't report either the 2021 contribution nor its return to her. If so, her S corporation will simply include that amount in its taxable income for 2021). 2020 might not be so easy. Because of the affiliated service group rules, the staff LLC employees would be included as benefiting employees in that professional's S-corporation's SEP-IRA. If the contribution for the professional was say, 8%, of her 2020 W-2 wages from her S Corporation. There might be a contribution due from the staff LLC to that SEP-IRA of 8% of their pay. I am hoping that we can simply undo the 2020 contribution, have the financial institution regurgitate the 2020 contribution, the S-corporation and professional amend the 2020 Forms 1120-S, W-2 and 1040 to reflect the additional income. Is that possible? If it is not, rather than 8% for all the staff LLC employees having to be contributed, can the dollars that make up that 8% be re-allocated among that professional and all staff in proportion to their considered compensations?

The situation is this: Calendar year plan is sponsored by calendar year company A. An affiliated service group member, company B, has a fiscal year end June 30, with tax return due Sept 15. My understanding is that company B may make a contribution to the plan for, say, plan calendar year 2020 as late as Sept 15, 2021 and deduct it because part of the plan year (July 1-Dec 31, 2020) fell within company B's fiscal tax year (July 1, 2020-June 30, 2021). Is this your understanding? Is there a specific IRS ruling to this effect? (Obviously, company A's contribution for plan calendar year 2020 would have been due by Mar 15, 2021.)

Employee A quit the day before PY 2020 began. It was not until a week into PY 2020 that the company paid A for his unused vacation pay. The plan has a 401k safe harbor 3%-of-pay featyre. Does A accrue 3% on his unused vacation pay paid in 2020?

New client spaced off both EGTRRA and PPA '06 restatements. Does it take two or just one VCP application/fee to correct?

I have been asked to assist in a situation where a solo 401k plan had loans taken from the plan without promissory notes, pledges of account balances, etc. The loans at one time years ago exceeded $50,000. Repayments have not been made. The sole participant now wants to withdraw what benefits there are and close the plan. It has been a couple of years since I prepared any corrections under EPCRS for any plan failing, much less one like this. Any insights and suggestions will be greatly appreciated to get me started off in the right direction.