Lou S.

They are correcting it like he never deferred due to the clerical error. You need to amend the W-2 since he didn't actually defer the 100% of pay previously reported on his W-2. If this didn't cross reporting years you could probably just fix in the next payroll cycle.

Does the 5500 even allow cents? Would $0.06 round down to $0?

Basis recovery is tax free. Distribution is NOT eligible ROTH distribution because part is not 59 1/2 so the earnings are taxed as ordinary income + 10% penalty (unless one of the exceptions to 10% penalty applies).

That said, file the form and pay the tax to avoid the hassle.

Audit case or non audit case? Many late deposits or just a "few"? Large amounts involved or not? The reality is the magnitude will likely impact whether or not the IRS (and or DOL) pursue any action. If IRS does pursue you'd be looking at the original excise tax plus penalties and interest.

BG, maybe I'm reading it wrong but I understood it that they we working out the details and were going to give information to participants on or about 2/9 and is they did that the OP wanted to know if a transfer date approximately 3 weeks later was good enough.

I wouldn't feel comfortable unless participants had at least 30 days and no more than 90 days notice.

I think if you always deducted the contribution for the Plan Year Ending in the Taxable year you don't have any problem. The PS contrib is deducted for the Taxable year 7/1/13 - 6/30/14 and the MRC for the DB is deducted in the Taxable year 7/1/14 - 12/13/14. I think you would run into issues if you tried to deduct the DB MRC on the 6/30/14 Taxable year. Am I missing something obvious?

I would think if you could perfect the QDRO quickly you should be able to self correct and issue 1099-Rs like you had a valid QDRO all along. If you can't as ETA mentions, the Plan has problems.

Though I will say in the past we have always do it the way ESOP Guy describes above.

If he passed away in 2014 and assuming he is not a 5% owner, isn't the the Required beginning date 4/1/15? Therefore don't the distribution rules fall under the "death before required beginning date rule"? see 1.401(a)(9)-5 http://www.law.cornell.edu/cfr/text/26/1.401%28a%29%289%29-5 and 1.401(a)(9)-3 http://www.law.cornell.edu/cfr/text/26/1.401%28a%29%289%29-3 I think beneficiaries need to satisfy either the "5 year rule" or "1 year rule" described in the regs.

Can you redo the 2013 allocation or are all participants in 2013 at the 415 limit? I'm assuming the deposit was made timely for 2013 415 limit which may or may not be a good assumption on my part.

Assuming your document allows for it and most do, I don't see why you can't have an excluded class of employees equal to H-2B workers. It is definitely determinable and would appear to be for a valid business reason. As long as you pass 410(b) and 401(a)(4) testing you shouldn't have a problem.

Assuming both entities have adopted the plan then yes, not a problem. In fact you probably have to aggregate the comp. That should be spelled out in the plan document though under definition of compensation or some such similar provision.

don't think so. while 403(b) gets a free pass on ADP, I'm pretty sure ACP still applies but I don't work with 403(b)s so haven't checked the rules in a while.

ACP still applies. Works great in 1 man plan though. I think a few thread on here go into it in detail.

The Plan Document will spell out whether or not HCEs are eligible for the 3% non-elective or not. If they are not eligible they get 0%; if they are eligible they get 3%. If you are asking about additional discretionary employer contributions over and above any required non-elective contributions granted by the plan document and address in the annual safe harbor notice, those additional contributions, if any, would also be governed by the plan document and any potential IRS non-discrimination testing.

What does the plan document say?

When someone tries to defer 100% of pay how do you withhold OASDI taxes? Generally I've seen plans allow 100% but administratively limit it to 100% after any required deductions. That is certain required deductions take precedence over the deferral election.

Short of declaring bankruptcy? Hopefully they were maybe for 2014 and said no or amended out of 2014 near the end of 2013 when they realized problems. It is highly doubtful that the IRS will take a retro elimination of the safe harbor contribution. Could be time to get an ERISA attorney with a lot of EPCRS experience involved.

Good question but I think the withholding is a separate distribution subject to taxation and would need it's own 1099-R since it is not going to a ROTH-IRA.

I guess you have to determine if is insignificant or not. Some questions in making that determination might include - Has it failed all 5 years or just once 5 years ago? Is 1 HCE an insignificant number for this plan? What is the dollar amount amount involved for all failures over the 5 year period and is it sufficiently small to be considered insignificant? I don't think the IRS defines specifically "insignificant", isn't it more of a facts and circumstances test.

Correct me if I'm wrong but I thought to use self correction you had to fix within 2 years of the end of the plan year with the defect. Am I missing something?

Depends how competent and diligent you are. If you are willing to educate yourself enough to know when amendments are needed, understand how law changes effect your plan, stay on top of tax filings and will never have employees other than yourself you can probably do it without a TPA. But I think you'll also hear some horror stories from folks on this board about folks who came to them after things blewup on them trying to do it themselves. As the saying goes, you generally get what you pay for.

No. You are increasing the match for some or all but none will have match cut.