MaryM

Have a client that is paying two employees on 1099's for cleaning services in addition to their normal w-2 wages. The employer has a simple plan and the employees are participating in the simple plan for their w-2 wages. The work is different than their normal jobs but they use the facilities of the employer and the cleaning is in the same office that they work in during the day. My concern is that the work cleaning after hours should be included with regular wages and thus they should be able to defer on that money as well. I know this may not be the correct area to post this as it is more a contract labor vs employee subject.

Thanks, I had suggested that but wanted to hear others ideas and or experience.

We have a safe harbor 401k plan that has terminated this year. We have paid everyone out in the past few months. We just found out that the employer gave us the wrong compensation for the final compensation to use for the Safe Harbor Non Elective contribution. The brokerage company that held the assets has closed all the accounts. Can the employer just issue checks to the various IRA's of the participants to make them whole. Or do we need to open a new account with said brokerage to pay out of that account to the Participants. There are about 25 Participants that would be due an additional amount.

There are n o family members involved for attribution that I am aware of and I think that he is ok. thanks.

We have a client that owns a proprietorship 100% no employees and has a SEP IRA for that income He is also a doctor and just bought 50% of a practice that has a 401k plan. Can he continue to fund the SEP for the self employed income?

Thanks for the verification.

My brain is not working clearly and wanted to see what you think. We have a new client, and S- Corp(Company A) family owned. They are starting a new 401k plan. The stock ownership for S Corp is as follows: Dad 43% Mom 36% Adult Son 20% As we are working on the adoption agreement for the new plan we found out that the S- Corp also owns 98% of a newly formed LLC that will do the same type of business in different location. The ownership of the LLC is 98% company A 2% unrelated person After typing this out I am pretty sure it is a control group and they should cover the new LLC. Currently the only employees of the LLC also work for the company A and receive w-2 wages from them. So in my mind they are covered already by the new plan. Future employees though will have to be included for coverage testing if they client opts not to cover the LLC. correct? Sorry if this is a stupid question

We have a client that maintains a simple plan and has exceeded the 100 employees for several years while still contributing to the plan They have gone past the grace period so it looks like to me the only correction is through VCP filing. We have told them to cease contributions and deferrals. I can't seem to find any information on if there are sanctions for this error. The fee for filing is 250.00. Does anyone know and have any experience with a situation like this.

The client should have plenty of income from receivables for the period before the sale took place plus he did keep accounts receivable. So he does have self employment income. so that would be my answer, he can defer on that amount. Thanks.

Thanks for the response. I was thinking that he could but wanted to make sure. Appreciate your help

First please overlook how stupid these questions may sound. Not very familiar with Simple plan operation. We have a client(Dentist Schedule C) that has a Simple Plan. The employer just sold his practice to another dentist. The employees with go with the new dentist as of 04/01/2015. The client wants to know if he can continue deferring up to the maximum on the receivables he will be collecting for the remainder of the plan year. We are assuming the employees would only receive employer match for the three months of employment. What if a recent hire achieved the 5000 dollar threshold prior to sell of business in the first three months of the year.

Assuming that the brothers are also sons of Dad & Mom, are they over age 21? Brothers are sons of mom and dad and over age 21.

Okay. What about an affiliated service group? The two companies do similar business and may on occasion share facilites and equipment

Is this a control group for plan purposes? Company #1 is owned by Dad 34.3 %, Mom 34.3%, Brother 1 10.47%, Brother 2 10.47%, and Brother 3 10.47%. company #2 is owned by Brother 1 33.33%, Brother 2 33.33% and Brother 3 33.33%. Current plan covers both businesses. Current TPA wants to change their plan to cover only company #2.

I think you’ve been doing a fabulous job moderating the message boards. The State Retirement System site you put together has been extremely helpful. We have 403(B) software which does MEA (maximum exclusion allowance) calculations and each year I need to update all the different state retirement plans. Thank You!!!