Chippy

I have a plan that terminated as of 6/30/2013. I'm filing the final 5500 now, but since the FIRE site is down till February, can I file for an extension for the final 8955?

Plan has quarterly entry dates and compensation prior to entry date is excluded. Plan is top heavy, so participant needed an additional top heavy minimum based on annual comp. Can I still use the 414s compensation for the average benefits and general test? thanks

If a plan is filing under the DFVCP for a 5500 that was not filed, does the 8955 come under that too, or will that penalty be separate? Seems like it is separate, but just wanted to ask. Would it be worse just to not file an 8955 this year, and file it for 2013 instead?

Can a township sponsor more than one 457 plan? They currently have one with MetLife that one participant contributes too. They would like to open another 457 plan with Nationwide. is that allowed?

The officers that I mentioned above are the CFO and CIO of a Law Firm. Both earn over 165,000 and have for years, and were never included as key in the top heavy test. I would think they should be included as key for top heavy. Agreed?

I have recently worked on two different plans for the first time, and in previous years, neither one included the officers earning over the comp limit as key. Am I missing something? For the top paid group calculation, are the officers earning over 165,000 considered highly compensated employees if their comp does not fall into the top 20%? More than 1% owners are considered HCE's if their comp isn't in the top 20%, but are officers treated the same for the top paid group? That would make them Key but not HCE? Is that possible?

Yes, it was a non-safe harbor match and it was for 5 shareholders of the company.

So are you saying they should just make the deposit now, no additonal earnings or penalty due? it was only $771 split between 5 people . 415 shouldn't be an issue

Plan makes matching contributions each payroll and then does a true up at the end of the plan year. The 2011 true up deposit was not made. They are going to make the deposit now, but is there a penalty due for this missed deposit? Do I file form 5330? I guess i'm asking is what all needs to be done to properly correct this? I'm guessing it's not as easy as just making the deposit now.

A golf pro would like to take a hardship for "professional development". It's a class to further his golf career. Would this be considered under education for the hardship rules?

Sounds like you both agree that the 5500's should not be amended? They go ahead and pay that payment now, and pay the excise tax or go through VCP. The participant will have to ask his accountant about the taxes on the personal side. I think they would have just left this go since it's been so long, but since the prior recordkeeper has been accruing for this missed payment, the assets are off and it does need to be corrected.

We recently received a take over plan with a problem, imagine that! In 2006, an RMD was accrued for but was never taken. It has been carried every year since. To add to it, , the participant claimed the distribution on his tax return in 2006, even through he never received the money. So, it appears that in the eyes of the IRS the participant is in the clear. (?) To correct the problem for the plan, what do I do now, 6 years later. 1 - do I amend the 2006 5500 and all subsequent years 2 - can I somehow adjust the 2012 return , probably not, but it's a thought. 3 - have the custodian issue the distribution now but date the 1099 R for 2006? Is that even possible? 3 - some other suggestion? any suggestions appreciated. thanks

Thanks everyone!

Do i have to report the ACP refund on the 5330 even if the deposit is not yet made to the plan?

Sorry, it's been so long since i've had to do adp/acp refunds, but are gap earnings still required?

If they have until the end of the plan year to make the top heavy minimum, do they have to include earnings if they make the 2012 top heavy minimum by June 30, 2013? I didn't think this was considered late even though they filed their taxes already.

thank you Tom. So there is no late penalty due at this time or a gains adjustment? (as long as the deposit is made by the end of the plan year) thanks so much

One of my clients, a partnership, filed their tax return on 3/15 without the 2012 top heavy minimum contribution. I understand that for 2013, i'll need to include that in my annual additions testing and for the 25% company deduction. My question is.....what is the due date for this deposit since the tax return has been file? Is there a penalty due since it wasn't made by the due date of the tax return?

thank you, Company B owns the other 10% of Company C.

I have a 401(k) profit sharing plan that uses an age weighted formula. Plan has deferrals and Profit Sharing. If I understand it correctly, I do not have to pass the gateway test because of the age-based allocation rates. The profit sharing requires 1,000 and LDR, I am passing coverage at 103%, so is it correct that I do not need to do the average benefits test? Under 401a4, the plan is passing under rate group testing. Is the plan passing non-discrimination testing as long as it passes the rate group testing under 401a4? When I run the average benefit test in Relius it is failing becasue of including the deferrals. Just would like confirmation that I am thinking correctly, or totally missing the boat! Thank you

One of my clients restructured their company as of 1/1/2012 and divived it into four different companies. There is an administrative company, which has all the administrative employees that does work for all the companies. Company A does insurance investments, Company B does realty invesmtents and Company C does personal investments. I don't think this is a controlled group, but one of the companies ownes 85% of another, so i'm not sure about that. COuld just Company B and D be a controlled group? here is the ownership: Company A COmpany B Company C Company D Richard 39.50 David 5.56% 15% 8.5% Morey 22.22% 2.5% William 22.22% 70% 33.5% Richard 5.56% 15% 8.5% Paul 22.22% 2.5% mark 22.22% Gary 10% Company B 85% I'm treating them as all unrelated companies and testing them separately for adp/acp, coverage and top heavy. Just would like confirmation that I'm on the right track. If they are unrelated, and the plan would elect to go with a safe harbor match, would all of the plans have to contribute the SHMAC or do they have a choice? Currentey the plan has a match that is 50% up to 6%. No nonelective contribution.

One of my clients reorganized in 2012 and as a result now have 4 unrelated employers in the plan. there is not enough common ownership to be considered a controlled group but I think they could be a ASG. These are all companies that handle investments. Company A is considered a Management company. They have all the administrative employees under them. Company B handes the insurance investments, Company C handles private investments Company D handles real estate investments. Could this possibly be an ASG?

I have two companies, Company A has 48 NHCE and 0 HCE, deferral and match Company B has 167 NHCE and 49 HCE Am I thinking correctly that Company A will pass 410b since no HCE benefits? Company B is passing as well for match since no HCE benefits. Correct? for the profit sharing part, there are 215 total NHCEs and out of that 148 are benefiting. 68.83% for the HCE's 46 out of 49 are benefiting = 93.88% So it is passing at 73.32% Since the plan is passing the coverage test, can all other testing be done separately? Company B is a New Comparability Plan. Do they have the option of doing the adp/acp test together if it helps the plans to pass? thank you, just want to make sure I am thinking correctly of I am missing something that I am not aware of.

I haven't had this in a long long time, so I just need to verify that I am thinking correctly. Plan has deferral and Safe Harbor basic match only for 2012 and is top heavy. Since there are no additional employer contribuitons, the plan is deemed to be not top heavy for this plan year. The SHMAC is based on entry date compensation, so does this still satify the THM and no additional contribution is due to the participants? Even the ones that do not defer? Thank you

When preparing the 404a-5 notice, do I have to list the exact amount of fees that can be charged to the plan? My client is currently paying all the fees outside of the plan so when I list the fees can I just say "The plan may incur certain administrative and operating expenses each year. These expenses are for the following services: Legal Accounting Recordkeeping or does it have to be Legal - $5,000 Accounting - $3,000 Recordkeeping - $2,500 Thanks