chc93

Filing accepted, no errors. Yes... accepted by EFAST2. But isn't it the IRS that eventually "looks" for an extension if the box is checked? After all, the extension is filed only with the IRS...

If the original filed 5500 didn't have an extension, I don't think we've marked the extension box for an amendment to that 5500. And I think we did this in FTWilliam... and I don't recall any problems.

We've had this situation with a volume submitter document. The document wasn't very specific, only that deferrals can begin July 1. The attorney told us that since participants become eligible for salary deferrals on July 1, only compensation from July 1 should be used for the 3% safe harbor. In addition, any participant who terminated before July 1 was never eligible to defer, so doesn't need to get the 3% safe harbor. FWIW

Also, a 5500 filed without the required independent audit is considered to be "incomplete", even if filed timely without the audit. This was after electronic filing started. This from the EFAST2 FAQ: ********************* Q25: Will the EFAST2 system still receive my filing if I do not attach the IQPA report with my Form 5500 annual return/report when it is required? The EFAST2 system will receive your filing, but submitting the annual return/report without the required IQPA report is an incomplete filing, and the incomplete filing may be subject to further review, correspondence, rejection, and assessment of civil penalties. Also, if you do not submit the required IQPA report, you must still correctly answer the IQPA questions on Schedule H, line 3. This means you must leave lines 3a and 3b blank because the IQPA report is not attached and must also leave line 3d blank because the reason the IQPA reports is not attached (i.e., was not completed on time) is not a reason listed in any of the available check boxes. You should still complete line 3c if you can identify the plan’s IQPA. Please note that failing to include the required IQPA report and leaving parts of line 3 blank, however, will result in the system status indicating that there is an error with your filing because, as noted above, submitting your annual return/report without a required IQPA report is an incomplete filing, and the incomplete filing may be subject to further review, correspondence, rejection, and assessment of civil penalties. Thus, if you find it necessary to file a Form 5500 without the required IQPA report, you must correct that error as soon as possible. ********************* Probably more the equivalent of non-filing rather than filed 5500-SF "on time" without the audit...

We have generally used what's reported on the W-2's, since, presumably, the W-2's, payroll, tax accounting, etc all coincide. We've had plans with semi-monthly payroll, but "pay date" is 5 days after the 15th or end-of-month. The company included the Dec 31 pay period (paid on Jan 5) in the next year's payroll. So the "plan year" compensation that we've used goes from Dec 31 to Dec 15 pay periods. We've also had bi-weekly payrolls and have followed the same reasoning. Most important to being consistent year-to-year.

I think she can be excluded by class as long as 410b passes. I don't see this as being any different than a participant transferring to an excluded class while employed.

We've called the Public Disclosure office once, and got good results in finding a "missing" Form 5500. We did one a couple of years ago, and used electronic filing for all 8 years or so. For another case, we were told by the IRS to make sure that the most recent 3 years are accurate, and the older years can be estimates. FWIW...

1. I don't think the disclosure applies to pooled accounts since the pooled account is paying the fees, and the participants do not have the ability to direct investments in the pooled account. 2. The DOL FAB 2012-2, Q&A-7 appears to say that if forfeitures/suspense/holding account is paying fees, these do not need to be disclosed. 3. I think the DOL FAB references a model "comparative chart", which should show all investments available along with their performance and fee/expense structure. This is for the annual disclosure. For the quarterly disclosure, the dollar amount of fees need to be disclosed on the participant statements. I hope this helps...

A quick comment... doesn't a company contribution that is dependent (conditioned) on salary deferrals become an "employer match", and then subject to 401(m) and ACP testing, and is disaggregated from discretionary nonelective contributions testing? If so, would the group that gets a company contribution dependent on having salary deferrals get tested as $0 in the 401a4 test? Maybe a reasonable result in this case?

Sounds like you want 9 hce's? I was under the impression that for ties, all employees with the same compensation are in the top-paid group... regardless of whether you end up with more than 20%. So, in your case, employees 8 and 9 are both the "eight" person.

As far as I know, the first annual disclosure is due by the later Aug 30, 2012, or 60 days after the plan year beginning on or after Nov 1, 2011.

I thought that the average rate for other members would apply to employees who the employer missed their eligibility date. In this case, there appears to have been deferral elections, since there were deferrals for a few months. So, I think it's probable that the "missed deferrals" would be based on the actual deferral elections for those that elected deferrals... which may end up being more or less that the average rate for all members in the group whether they deferred or not (assuming those that didn't defer had the opportunity to elect zero).

Note, it is clear that the AFN is to be distributed before the 5500 is e-filed. Also, note that the above is only for the small plan exception (less than 100 participants). Large plans, the AFN is due April 30 (assuming calendar year).

Our understanding is that whatever method is used should be consistent year-to-year. But, changing in one year is OK, as long what's changed remains consistent. In the past, we've changed contributions from cash basis to accrual. What we did was to show 2 year's contributions as "contributions" on the 5500 in the year of switch from cash basis to accrual, then stayed on accrual after that. Only thing is to alert the client that the "contributions" shown on the 5500 represents 2 years (prior year deposit in current year, current year accrual). We didn't note it anywhere on the 5500, and never had any problem.

This is what we've been hearing lately. In one case, it looks like the broker is not getting paid, but that's because his fee is shifted to another "category" (I really don't understand all of these kinds of fees).

Couple of concerns I have... What is "end of July 2012"? Is it July 20? July 31? Would I mail the 5558 without signature, before the regs are issued, and *hope* they are issued by July 31? Will there be retroactive relief if the regs are issued after July 31? I guess I don't know what I'm doing yet...

I would say yes, since the plan actually covers "Key" employees that are part of the required aggregation group (who actually benefited from the other plans in addition to the Safe Harbor 401(k) plan). Good Luck! But, doesn't the key employee have to actually "benefit" for the plan year in the 401k "non-top-heavy" plan to trigger a top-heavy minimum. For example, an associates 401k plan, where an associate becomes a key employee and stops benefiting in the associates plan but now benefits in the "main" 401k PS plan... this doesn't trigger a top-heavy minimum in the associates plan just because he has an account balance.

Just as a note... many years ago, we had a volume submitter plan document(s) from an attorney that had contribution allocation groups, and the document specifically required passing general test on a cross-tested benefits basis. One of the sponsors of one of the plans looked at providing a uniform percentage of comp, and in such a case, would have failed cross-testing on a benefits basis. However, it was a uniform safe-harbor, and so also passed general test on a contributions basis. The attorney amended the plans to provide that if the the contribution allocation was a uniform safe-harbor, cross-testing on a benefits basis was not necessary (and passed on a contributions basis).

This is interesting... I guess I didn't look carefully at the instructions. On the 2011 SB form itself, Line 11a says to enter "line 38 from prior year". So, that's what I've been doing.

Salary deferrals can only be classified as catch-up if a limit is exceeded... 402g, 415, plan provision. Otherwise, no catch-up when doing the ADP test. For example, if $16,500 deferral, and no other limits are exceeded, $16,500 has to be in ADP test.

This always bothers me. If the terminated participant continued to receive quarterly statements (at least 8 of them), he had to have known that he had money in the plan. Not only that, but the amount too. All he had to do was make a phone call to get the distribution package... and not wait 2+ years. Amazing.

I still think you need the -11g amendment to remove the 1000 hours requirement first. Then, with each in own group, you can do anything that is non-discriminatory. But, I think there's still the concern that the -11g amendment provides a "vested" benefit... so giving a benefit to a 0% vested participant, who will never be expected to be more than 0% vested, is not good. And, Kathy's comment above eliminates ever having to do -11g amendments.

When you say "specific allocation amounts", I assume you mean the same percentage as other eligible participants. If so, an -11g amendment to "remove" the 1000 hours requirement for 2011 only but keeping the last day requirement will work. And, you can do this for only the 2011 plan year. We've done a similar thing, but instead of removing the 1000 hours requirement, we removed the last day requirement for the one plan year only.

I looked through the IRS website this morning. The 2011 Form 8955-SSA and instructions are now available. However, all of the links still say 2010, but clicking on the 2010 links brings up the 2011 form and instructions. [edit] I just heard from FTWilliam that the 2011 form will be available on their system by the end of this week.

I looked through the IRS website this morning, and found the 2011 Form 5500-EZ with instructions. I contacted FTWilliam and they said the form should be available on their system by the end of next week.