12AX7

A number of providers are now using alternative reporting on their Schedule C reports. If alternative reporting is used and assuming all indirect compensation is eligible indirect compensation (and properly disclosed), do I still need to complete Part 1, Line 3 for each source of indirect compensation? The provider is reporting 31 sources with all information except either the EIN or address of the source so the information is incomplete. If I do have to report this information, I would need to obtain the prospectus for all funds in the plan to get either the EIN or address. I don't do many of these, so I appreciate the guidance.

Does the plan just exlclude noresident aliens or employees who are nonresident aliens and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States (within the meaning of section 861(a)(3))? Please be specific so we can try to help you.

Some vendors platforms had earlier deadlines. Got mine done and earned new gray hairs.

Now that's advanced planning !

For 2015, we'll have to give back the excess contributions by 3/13. We are getting shorted by 2 days for the calendar year testing season ! I wish they all could be EACAs...maybe not.

ETK - this is perhaps getting off-topic a bit, but for tax and other information returns, you would get to file on the first business day following the filing due date if on a weekend or national holiday. Don't have a city right now, but it may be in the 5500 instructions. I'll have to look later.

Show me where it says that in the regs. I would say no.

No too unusual on my end. I'm always asked for GUST docs and forward.

Another twist is where the annual match contribution is made after the deadline to refund excess contributions and the ADP and ACP tests fail.

An employer would typically choose to sponsor a qualified plan where they see the benefit of doing so. Choosing a myRA or other goverment sponsored option would have no effect on that decision in the same manner as a current IRA option does today. Any SIMPLE IRA or SEP sponsor is a potential client for me tomorrow. Once they get their feet wet, they will jump into the pool sooner or later.

You can now understand that this is one of the reasons why I took over this plan very recently. The adoption agreement also has the provision to "offset", and I am amending the plan for 2014 to include this provision in the hierarchy of forfeiture use. This is a matter of $1,500 and conservatively, the employer should deposit to the accounts of the participants. I have a tendency to sometimes read narrowly plan provisions and and didn't want to leave out the possibility of the forfeiture use for this situation.

Not sure if I'm splitting hairs or not. Plan authorizes forfeiture to be "added to the Employer's contribution under the Plan." Other than a SH Nonelective, the employer contributes 5% PS during the plan year. At the end of the year, the employer missed allocating the 5% PS for bonuses. Since the employer resolved to contribute 5% for the year, could I use some of the forfeiture for a true-up of the PS? In a strict sense of the plan language, it seems that the employer would have to contribute the amount for the true-up, then allocate the remaining forfeiture. What do others think?

You need to look at your Plan Document that defines the Eligibility Computation Period (ECP) and the Eligibility Provisions. Since you reference 1,000 hours, I will assume for now that the Service Requirement is 1 Year of Service and the employee has satisfied the Age Requirement of the Plan. If the ECP shifts to a Plan Year after the initial ECP, then the entry date would be 1/1/2014, Again, I urge you to refer to the elibility provisions of this Plan, because I am making certain assumptions as you have left out important information.

You may also have a controlled group in a community property state without regard to the spousal non-involvement exception. I do however think that the IRS does review and enforce controlled group matters during an audit. I've had to answer that question properly on the pre-audit questionnaire in the past.

You beat me to reporting on the features that went online this year. Maybe they used the same guys from the Healthcare.gov webiste to build the new interface?

Tom, would not this language have to be a part of the current plan document to be effective for 2013? Based on the date of the LRM, would this seem more mandatory for PPA?

You're correct that DFVC does not cover Form 8955-SSA. I'm not sure how deficiencies or late filings of that form get enforced. Nothing on the form indicates the year a participant separates from service.

I prefer plan language to be clear and concise and this is one of the reasons that I have participants in their own allocation group. Is it too late to amend the plan for 2013 to incorporate this provision? Otherwise, the Plan Administrator will have to interpret the current provision, but it could be reasonable to assume a participant is in a particular group as of the date the contribution is accrued.

I don't have a problem with it either . The idea seemed to stick in mind that if services had not yet occured, but were billed to the plan in advance, then there would be a cutback issue because any remaining forfeiture balance would normally get reallocated.

Also anticipate the plan becoming Top Heavy in the first year, if few or no other non-key employees defer.

Plan has recently been terminated. Forfeiture allows for the payment of expenses. If 2014 expenses are currently billed, can the trust pay these expenses in advance of the performance of these services?

ETK, it's not a QACA because the SH match is only up to the first 4% of deferral (enhanced SHMAC). Makes no sense, but doesn't seem wrong for now. I have to amend the plan for other reasons, effective 1/1/14 and will likely change this provision.

SH Match plan has an initial auto deferral of 0%. The autoescalation is 2% each year. Other than defying the logic of having an ACA in the first year of participation, can the autodefrral rate be 0%? Thanks.

415©(3) definition gets used - entire plan year for any TH minimum.

There is the possibility of an Affiliated Service Group, and you would need to get all the relevant facts in order to determine that if they are related in that manner.