PensionPro

Have you considered VCP? RP 2008-50, Sections 6.02(6), 6.07, 12.02(3).

Codes starting with 1 pertain to DB plans and should not be used for DC plans.

The plan's advisors need to timely and proactively communicate on this issue. http://www.reish.com/publications/article_...m?ARTICLEID=429

Courtesy of the EOB: 1.a.Examples illustrating the 415 crediting deadline. 1.a.1)Example - return not on extension. Corporation X maintains a profit sharing plan. The limitation year is the calendar year. X's tax year also is the calendar year. The IRC §404(a)(6) period for the 2010 tax year ends March 15, 2011. The 415 crediting deadline for the 2010 limitation year is April 14, 2011 (i.e., 30 days after the IRC §404(a)(6) period for the 2010 tax year). Employer contributions made by April 14, 2011, that are allocated as of a date in the 2010 limitation year are annual additions for the 2010 limitation year. But employer contributions made after April 14, 2011, that are allocated as of a date in the 2010 limitation year would be treated as annual additions in the year made (i.e., for the 2011 limitation year), not as annual additions for 2010.

From the 1996 ASPA meeting: ASPA: What is the deposit due date for a top-heavy contribution to a profit sharing plan? (For example, where a DB plan also exists and the profit-sharing plan provides the top heavy minimum.) IRS: This is not a 412 issue, but it is a qualification issue. Therefore, probably need to fund the contribution by the 404(a)(6) due date (include extensions).

Our experience with the Datair Pension Reporter software and support has been top-notch. No complaints. All our 5500s were e-filed by 10/11/10.

Check out this prior discussion: http://benefitslink.com/boards/index.php?showtopic=43314

I stay awake at night wondering why there are so many safe harbor match plans with only the owners participating ...

Since we are trading war stories, we had a so-called one-participant plan, a doctor. One year suddenly the client says after the work is completed I hired a few employees last year, but I did not tell you because they did not work long enough. Come to find out these were rehired employees who were immediately eligible upon rehire. Not the first or last time we had to redo work because of client's decision to provide selective information.

I agree that for about 34 participants, the count should be exactly accurate.

Yes, it is much more difficult than you could ever imagine. Had a large takeover multiple employer plan with 1000s of participants. Same participants had multiple accounts (some had wrong SSNs), multiple accounts were set up for beneficiaries, alternate payees had separate accounts, several were on LOA, etc. Needless to say, various adjustments had to be made.

Datair 1, Boss 0

Just asking. What happens if someone accidentally attaches the 2008 audit report instead of the 2009?

Also see prior discussions here: http://benefitslink.com/boards/index.php?showtopic=46501 http://benefitslink.com/boards/index.php?showtopic=11640

The 5500 instructions state that "one or more ... administrative penalties may be assessed or imposed in the event of incomplete filings or filings received after the due date unless it is determined that your failure to file properly is for reasonable cause." With the electronic filing requirement with its edit checks, it makes it difficult for practitioners to argue reasonable cause that the dog ate the homework or the Schedule SB or the accountant's opinion. The filer may be liable for the penalties for incomplete filings.

After careful review, the details of the particular situation point towards an ASG. The law firm calls him a "junior partner." Most likely the clients of the law firm see Attorney C as one of the attorneys of the firm, and not as as an outside consultant or of counsel. Attorney C's only income on his individual Form 1040 is the 1099 income from the law firm. He seems to be [sort of like] a non-equity partner, but instead of paying him on K-1, they are issuing a 1099. Thank you for the extremely helpful responses. I am still open-minded to any other perspectives on the subject.

Final boarding call ... any opinions out there? Thanks.

Attorneys A and B are 50/50 partners in a law firm. Attorney C is a "junior partner," who gets a 1099, which he reports on his individual Schedule C. Is Attorney C an independent contractor (and not an employee) of the law firm? Or is the sole proprietorship likely to be considered an affiliated service group with the law firm? Thanks for any insights!

Wonder how many CE credits for watching that show ...

The regs say that if a plan uses contributions allocated to employees other than key employees on the basis of employee contributions or elective contributions to satisfy the minimum contribution requirement, these contributions are not treated as matching contributions for purposes of applying the requirements of sections 401(k) and 401(m) for plan years beginning after December 31, 1988. Thus these contributions must meet the nondiscrimination requirements of section 401(a)(4) without regard to section 401(m). See §1.401(m)-1(f)(12) (iii).

Is the match being made on an annual (or applicable period) basis or on a payroll basis? What dates were the 401(k) deferrals made? Were services performed by the partner throughout the year?

No.

Here is a prior discussion: http://benefitslink.com/boards/index.php?showtopic=42680

Do you need a high school diploma (or something similar) to go to the massage therapy certification program?

There is an exception from the 10% penalty for distributions made to an employee after separation from service after attainment of age 55. This may or may not be relevant in this scenario.