12AX7

Why would a client not want to sign a 5500? I can understand if they don't want to E-File and instead allow their practitioner to have all the fun. I've never had a client request this before.

Would you still show the accrual if the plan assets are reported on a cash basis? I would check with the DOL if the 5330 is still required (I'm not sure why not). I don't see how penalties are paid to the plan per the OP.

From time to time, including this afternoon, I'm getting a Submission Failed status when transmitting the 2009 5500 for a client. When I check back on the status the next morning, the status changes to Filing Received. Is this situation unique to Relius, or are others seeing this condition with the alternate vendors?

I appreciate the thoughtful and thorough response you crafted and can understand the nuances between the partner/sole prop as ER and EE. In either event, for partnership plans, I 'm currently not creating separate allocation groups so as to not risk a potential deemed CODA. I have yet to hear of the IRS "disqualifying" such an arrangement, but I was told by an ERISA attorney that the IRS will not issue a DL for a partnership plan with this provision.

I understand. Now wouldn't the Sole Prop have the same issue since all the deduction (for the Sole Prop) would be taken on the 1040?

I meant "unaccepted filing". You may have 2 planbooks for 2010 after this is done, but that's the least of your worries.

Had that same issue about a week or so ago. Relius has been a dissapointment of sorts in many ways this year, but this could also be a DOL problem as well.

I assume you are referring to Relius? Where did you hear ths information?

I'm jumping back into this a little late. Could you please explain how this works on the accounting side of things?

You may have to contact Relius to delete the unfiled plan book. I don't think users have that ability.

I can't put my finger on it right now, but I recall reading that you can't use a 2009 form for a 2010 filing. Do you have other filings accepted under the same circumstances?

When we terminate a plan, we incorporate into the resolution, definitions of compensation for purposes of testing, top heavy, etc., which is typically for the short period. Testing failures become more difficult to deal with if assets have since been distributed for HCEs.

Wouldn't Notice 2009-75 allow for the direct rollover to a Roth IRA for non-roth accounts, where you would otherwise have a distributable event? I think the intent of the HR 5297 is to allow for in-plan conversions, but that's not particularly clear from reading the Legislative Text.

VCP is the way to go.

That amendment for Salary Deferral sources may not be possible if the plan is on a Proto or VS. What other sources of contribution other than Salary Deferral does the participant have in their account? Where feasible, the plan could be amended for in-service distribution of employer contribution or rollover sources.

I think the DOL allowing the preparer to E-File for a plan sponsor is as good as it gets for now.

Well, it turns out the prospective client is an S-Corp (I was given bad info by the client) and the Deemed CODA would become perhaps a nonexistent issue. I will propose a plan that creates an allocation group for each eligible participant. Our Volume Submitter plan has that language. Thanks Jim and Bird for the input.

That's a good way to give more to the only partner that contributes for a year. My concern is where the contributing partner decides that he wants to put in only $15,000 for the year. I would have to split that amount between 401 (k) and the other fixed components of the stacked match, while taking into consideration the circular calculation. Is there a spreadsheet around that does this?

I'm not sure how the decision making could be separated from either partner's discretion in the matter. It was brought to my attention that Jim Holland had comments about this issue at an ASPPA conference.

I'm sure this has been discussed before. Two partners, no other employees. Each partner would like to control their profit sharing contribution to the plan. If the partnership prepares a resolution to the effect that governs the allocation, would this avoid a possible deemed CODA?

We've gone through similar discussions on the board. What is the plan year end for 2008? Assuming that you do not have a late filing for the 2008 plan year, I would file with $0.00 assets, but you may get a letter from the DOL questioning the $0.00 balance the client has reported. I would terminate the plan through a formal process, but in this case, I would probably not submit for a determination letter. I hear what TPAman is saying, but I would not put myself in the position to advise against filing a 5500 etc.

I would argue that you would not have the deemed CODA issue if the doctors are W-2 waged employees. Also, I have seen amendments done by ERISA attorneys after the end of the year that decrease (and in one case increased) benefits after the end of the plan year. This may be considered somewhat aggressive, but I've seen these amendments prepared by more than one attorney.

What credential does a TPA need to file for a client?

And Top Heavy minimums, if applicable.

Kevin, that's what I saw as well. As far as I know the exceptions do not apply to this client.