12AX7

From the facts you have provided, I don't see a partial termination occurring unless the plan is perhaps amended to reduce participant benefits when spun-off, but that doesn't seem to be an issue here. I would transfer the accounts. If both plans pass coverage separately, you could do ADP testing for each plan if that provides better results. For Top Heavy, you would need to determine if you have a required aggregation group. This question is up Tom's alley, and he may cover something I'm not thinking of at the moment.

Scuba, there is still the General Rule that applies to timely plan deposits. The 7 business days is a safe harbor only. I've had several recent DOL investigations regarding the timeliness of deposits and have successfully argued that contributions were made as soon as assets of the plan could be segratated from company funds, even though it was more than 7 business days from the payroll date. It's a matter of facts and circumstances and must be proven. 12 calendar days is not unreasonable provided that contributions were not consistantly "late".

Tom, this is perhaps getting away from the main question, but aren't comp exclusions for 401 (k) contributions not subject to 414(s) testing? I seem to remember reading that in the Regs. I'm nowhere near the regs at the moment so can't give you the cite, or you can correct me if I'm wrong about this. With regard to the main question, I've seen plan documents that allow participants to exclude bonuses from 401 (k) deferrals. I also think that where the plan allows, a participant can change their deferral election with respect to any payroll that includes a bonus.

The DOL's FAQ on DFVCP does not make it very clear about mailing in a check and sending in a signed copy of the 5500, in lieu of online payment for late filing of a MP plan's 2008 and 2009 5500. It appears I can still do it this way. The client mailed me a check for $1,500. Would I just send signed copies of the signed return, plus the check to: DFVCP P.O. Box 71361 Philadelphia, PA 19176-1361 I want to avoid having to return the check to the client. Thanks !

I hear ya brother ! I once told a client about all the things we learn at ASPPA. Another mistake, because she 's been making fun of me for the past 10 years and doesn't let it go.

I learned many years ago not to talk about what I do for a living at a party. If the discussion at a party should turn to the subject of 401 (k), I have to bite my tongue. It is not an invitation to discuss Code and Regs.

VCP for EGTRRA non-amender is relatively painless. How far back were late contributions made to the plan? Technically, they should all be corrected. You may also have multiple 5330 forms to complete as well. This part is not relatively painless. The client should not be too concerned with expense if they are serious about correcting the defects. If the prior TPA (assuming if they are still in business) made an error, perhaps client can settle with them on some of these issues.

You lose a bet or something?

I scan everything. Yes, it does take time, or hire someone short-term for the project. I don't throw anything away before I have twice backed up the scanned documents. I occasionally get requests to look up something from past clients. I know where to find the information and can charge for look-up and copying.

In similar situations, I have used the applicable year's form. Since the forms are not part of the EFAST2 filing program, it would appear to be less confusing for the entity that will eventually review the filings.

Only for filers in declared disaster areas.

I'm looking at the asset spreadsheet done by accountant and he is showing premium as a "debit" from the assets. I need to clarify that amount as expense paid by the trust. Sorry for the confusion at the moment !

In a situation where the PS contribution is otherwise $0.00 in addition to the premiums, then it seems there would be no allocation to participants. Does this sound reasonable because that is what the other admins did.

I've taken over a plan that has 3 key man policies. The policies are not part of the account balances of the participant for whom the life insurance was purchased. Are the premium payments considered to be a profit sharing source allocation to participants? The prior administrator did not consider these amounts as an allocable contribution.

The match is discretionary according to your post. In simple terms the employer may contribute according to the terms of the plan, or decide not to contribute for a plan year.

I'm not seeing why this has to go to VCP. Why not allow all participants the ability to currently change their deferral election and/or increase amounts of deferrals to make up retroactively for the "lost" deferrals. VCP seems a little extreme after considering that very few if any participants may have wanted to changed their deferral election at the the same time the HCE made their increase. At worst, could you not consider that there was a lost deferral to be made up (self-correction)? It's only been one month since any other participant could have elected the change in deferral.

I can answer my own question ! According to the Sungard Relius Technical Update from 7/7/11, I can upload the 2010 form with the 2011 plan year dates if the 2011 form is not available at the plan filing deadline.

It appears the DOL is not yet accepting filings for the 2011 plan year. Looks like I would have to put a short plan year (terminated plan) on extension?

What you are describing sounds correct, but I would not make make that amendment retroactive for the current plan year. If you put in the amendment with a current date, any amounts over the $ or % limit after the amendment date, I would treat as catch-up contributions. Tom: Are you dressed as a Jedi Master or Elvis in that picture?

You could always create a separate plan to accomplish the same task, nothwithstaning coverage and other issues. I don't see necessarily why you can't do the same thing within one plan.

Now I have a similar situation as BG, except that the plan is terminating. I don't see how 4975(d) (10) would allow for the reimbursement of expenses incurred by the employer. It seems this would allow for payment of expenses incurred by the disqualified person for services rendered to the plan. Is anyone reading this differently?

The client will EFile today an amended return. I know that the 5500-SF was transmitted without Filing Signer credentials. We all understand this is not a correct procedure. The disturbing issue is that the DOL accepted the filing without the electronic signature, whereas in the past, I had never seen this occur or thought it was possible.

The signature line is blank.

My client just EFiled their 2010 Form 5500-SF. Relius Web Client sends me a status update email for the filing indicating that the User ID and PIN are missing and that processing has stopped. When I check on the EFAST website, the filing is there ! Is the DOL now accepting a filing under these conditions? I've not seen something like this before.

Sieve, that's good info. It would be helpful in the next edition of EPCRS if the IRS would cite the appendices for additional info. Thanks !