nancy

He receives a 1099 and is considered an independent contractor.

An attorney changed status to "of counsel" in 2021 when he attained age 70. He attained age 73 in 2024. I think he needed to receive a RMD by April 1, 2025 since he is no longer considered an employee of the law firm. Thoughts?

Does anyone have access to the Relius/Sungard amendment for a Money Purchase Volume Submitter plan? Looking for one for a takeover client.

Does anyone know of a document vendor that has a Money Purchase plan with mandatory employee contributions (not a governmental plan).

I have a law firm that has approximately 25 partners. There are a few that are more than 1% owners but their net earned income is below $150,000 and this makes them non-key. Is the law firm required to fund the top heavy minimum or is this an obligation of the partner who is a non-key employee?

I have several plans that have an extended due date to December 31, 2020 as a result of Hurricane Laura. However, the IRS Fire Website is down for maintenance until after the first of the year. Should I go ahead and file once the site is up knowing they are late and write a cause letter when penalties are assessed?

The sponsor did tell them that they were delivered by hand and provided all the notices. That was not acceptable to the agent. It is a safe harbor match. They are taking them to CAP over this (with threat of disqualification). Of course, the former employees did not remember if they got the notice. One former employee did have a copy of what she received. SInce I am just now getting involved in this situation, I hope there is not information that is being withheld.

I was referred a plan sponsor whose 401(k) plan is under audit. The IRS agent is requiring proof that the Safe Harbor Notices were issued. Other than email, what type of proof are other TPAs recommending to clients? The agent actually called all the employees for the last 4 years to ask if they received the notice!

I have already recommended that the policies be surrendered. This is a law firm and you can only imagine every partner’s opinion. They are currently in the process of moving to our document FTW and it does have this language. Thanks for the input.

I have a 401(k) plan with life insurance policies (ugh!, it was a takeover). One of the participants with a policy is terminated and is age 64. Is it correct that the plan sponsor needs to either distribute the policy to him at age 65 or convert the policy to cash? From what I read, if he were still working for the sponsor and not retired, the policy could stay in force.

The document states that deferrals are returned when there is an excess annual addition. I'm just trying to determine if the refund should be Roth, pre-tax or a combination.

I have a participant who exceeded the $56,000 limit in 2019 due to employer contributions. He made both Roth and pre-tax deferrals for a total of $19,000. Does the refund of the deferrals need to be prorata or can he elect to have the Roth distributed? This is his first Roth year so the earnings would be taxable.

A plan fails the ADP test for 2018 and refunds are made by March 15, 2019. It is later discovered that there was an error in the test and additional refunds need to be processed. Is the excise tax due on the full refunds or only those made after March 15?

We are in the process of taking over a 403(b) Money Purchase Plan from TIAA-CREF. Anyone know of a document vendor that might have this type of plan?

If the plan excludes fringe benefits would you exclude the health insurance from plan compensation?

We recently took over a FICA Replacement plan. The plan has a 7% employee contribution and a 13% employer contribution. The employer contribution account has a vesting schedule that begins at year 5 with 50% vesting. I was under the impression that at least 7.5% had to be 100% vested. Can you have a vesting schedule?

I have a plan that covers the husband and wife and 3 minor children. Would it qualify for an EZ? I know the instruction say owner and spouse and partners. Are the children considered partners for this purpose?

We have a client who thought their CPA had been filing the 5500 for the last 27 years. No one (client or CPA) can find a copy of a form ever prepared. I searched Freeerisa and was unable to find any filings. Any suggestions? Do you think I really need to file 27 returns? I do have the records back to day one and I certainly would not mind the fees.

Is there a deadline for a nonprofit to make an employer contribution?

This is a brick and mortar church, so it is definitely a church plan. I am relying on the sponsor's representation to me that they never made an election.

We took over a non-electing church plan. The previous administrator had been been filing 5500s. Now the plan is at a point where they would need an audit and they want to discontinue filing. I can't really file a final return with zero assets and participants as that is not accurate. Does anyone know of a procedure to discontinue filing?

Many thanks to Doghouse, that's exactly what I was looking for!

I have a plan sponsor who is a non-amender and needs to go through VCP. The last document we found is a "Super Simplified Profit Sharing Plan" Adoption Agreement signed in 2002 provided by Oppenheimer Funds. Does anyone have access to the Basic Plan Document for this Adoption Agreement? I know this is a long shot!

A Safe Harbor 401(k) plan currently has a 3 month eligibility with entry dates of October 1 and April 1 (off calendar plan). The employer would like to amend the entry date to monthly. Would this be acceptable using the rationale of the IRS at the 2012 ASPPA Conference? Or is that rationale only applicable if you have a classifcation of employee that was not previously covered?

We took over a cash balance plan in October, 2010. The prior actuary had converted the plan from traditional DB to Cash Balance. The amendment was effective January 1, 2009 but the Resolution was not signed until January, 2010. The actuary did have the plan sponsor sign a form he called "Election of Plan Amendment Effective Date" which basically stated that the amendment was effective for 412. Can this be done? It seems to me this was a discretionary amendment that was adopted late. What are the ramifications of this late adoption? I was going to file the Cycle C document for a determination letter (on cycle) and I want to be sure I've covered all the possibilities.