Lou S.

As Effen correctly points out it is the 415 limit driving it. Specifically the lump sum limits on paying out the 415(b) limit, often at age 62.

See FAQ - Q2 https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/faqs/temporary-implementing-faqs-lifetime-income-interim-final-rule.pdf For calendar year plans you would potentially have up until 10/15/2022 to distribute for 12/31/2021.

Send an annual illustration to the client with the year end work.

Refunds of excess contributions (deferrals) and excess aggregate contributions (matching) after March 15 are subject to the 10% excise tax.

Yes, the 402(g) excess is taxable in the year deferred and the gain is taxable in the year distributed. So if you have a 402(g) excess for 2021 and make the refund with earnings between 1/1/2022 and 4/15/2022 you would issue 2 Form 1099-Rs for 2022 by January 31, 2023, one with code P for the excess (taxable in 2021) and the other Code 8 (taxable in 2022). Had you caught the excess in 2021 and made the refund by 12/31/2021 you could have done just 1 Form 1099-R for 2021 with code 8. I think if you have a loss instead of a gain it gets a little more complicated but it's addressed in the 1099-R instructions.

Have you tried e-mailing Coverage@pbgc.gov? They should be able to help you out. I don't know if you have to file for a coverage determination.

She has a year of service on 1/20/2021 and enters the Plan on the Plan's next entry date (or 1/1/2021 if the Plan has retroactive entry). Since she has not terminated as of 12/31/2021 she would receive an allocation for the 2021 as she meets the "OR employed on the last day of the year" condition.

Not covered, assuming you are your wife are the only employees of B as you own 100% of B indirectly by virtue of your 100% ownership of A. From PBGC website...

If they are not excluded, then yes you have a failure to follow the terms of the Plan Document if they don't make the match.

The 50% limit is applicable to the time the loan is issued, not for the full life of the loan. And yes this is correctable under EPCRS in many cases. Some record keepers accrue the interest but but don't "post it" unless a payment is made or distribution made.

Sounds like he received a distribution while he was a terminated employee, do I understand that correct? Was this a cash out? Did he make an election? Now he wants to roll the money back into the Plan (presumably he's in the 60 day rollover window), he can do so but he needs to come up with the withholding if he wants to roll back the full amount and will presumably get a refund when he files his taxes. Or am I confused on the facts?

I'm not sure I follow your question. A 401(k) plan has to pass the Average Deferral Percentage test (ADP) on 401(k) deferrals and the Average Contribution Percentage Test (ACP), if there are matching contributions. A safe harbor plan is exempt from the ADP (and ACP) tests if it meets certain requirements spelled out in the code. Are you the Sponsor, Financial Advisor or TPA?

Solo 401(k) is just a marketing term for a 401(k) plan that is supposed to cover just owner and spouse. Safe Harbor 401(k) is just a 401(k) with Safe Harbor provisions of either matching or non-elective contributions that meet certain conditions to get out of 401(k) testing and possibly top-heavy. Both are simply subsets of regular 401(k) Plans. There is no reason why the "Solo (k)" and be restated on to a different document and you could possibly restate it to a safe harbor 401(k) Plan for 2022 is they are OK with a non-elective safe harbor; the matching safe harbor you could not do until 2023 at this point.

Well the "best way" to handle it is to get the carrier to issue corrected 1099-Rs in the name of the participant instead of the company.

Interesting, so maybe you can do it. The question I have though is if you do fail BRF how could you possible correct? It's not like you can go back and give people the right to make ROTH retro actively.

The only Schedule I've attached to a Form 5500-SF is schedule SB. With the Plans that file an SF that have insurance I just report the commissions in the appropriate field on the SF.

Once had someone who was reported as D on the SSA, then still got the SSA letter, and questioned her benefit from the Plan even after we sent her a copy of her notarized signed election form and 1099-R claiming "I don't remember getting that." Mind you this was years after the Plan went through a PBGC Plan Termination and had paid out all assets. Though I think the DOL/IRS is better about removing "D coded participants" since electronic filing of forms.

https://www.irs.gov/retirement-plans/penalties-related-to-the-filing-of-forms-8955-ssa You may not use it and the IRS may not catch it but the penalties for not filing are rather steep and there is no "small plan exception" to filing the form.

Is your plan year 12 months long? If not you have a short plan year. No new business exception that I'm aware of at any rate.

I agree with Bri. Also check the master text for definition of period of service it's probably in there.

You can not offer ROTH to a select group.

I have no idea what those assets are but do they fall under this definition from the 5500-SF instructions?

See instructions for Form 1099-R. On the 2022 instructions it's on page 7 under the heading "Failing the ADP or ACP Test after a Total Distribution" but it's been the same for quite some time, though it may be on different pages of the instructions in earlier years. https://www.irs.gov/pub/irs-pdf/i1099r.pdf

Yes the penalty is from 7/31 even if you had an extension to 10/15. If you know you are filing late file under DFVC for $750 and piece of mind. If it's your client's fault (late data) have them pay, if it's your fault because you are short staffed, consider biting the bullet and paying yourself.

Don't be late?