Lou S.

https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/pension-benefit-statements-lifetime-income-illustrations

The Act allows you to set up a new plan it does not allow you to make post year end amendments to an existing plan. It's kind of a pain, but in your case you could set up a new (second plan) plan in 2021 for 2020 and then merge it into the old plan in 2021. Kind of a hassle but it is an option.

If you could show it was a commercially available loan rate at the time. Otherwise it would probably be deemed an unreasonable rate of interest. As an example, perhaps if they had an offer for 0.9% financing on a new car loan but instead chose to borrow the money from the Plan for 1% instead the IRS might view that as a reasonable rate of interest.

Yes, you have a first and final Form 5500 return. Form was due April 30, 2021 if distributions were in September.

Is the employer running 2 tests for 2 short plan years? one for PYE 1/1 - 9/30 and one for PYE 10/1 - 12/31? Either way the particiant is going to have 1 catch-up for the calendar year. So if you fail the 9/30 test and recharaterize say the full $6,500 catch-up on the 9-30 plan year then you would include all of the $6,500 deferred in the 4th quarter in that test. If you pass for 9/30 and don't recharaterize, then all of the 4th quarter is catch-up since it is now over the 402(g) limit and not in your test.

Maybe they applied for social security disability? Maybe the Plan Sponsor has bad dates of birth? But yeah seems odd.

If it's the same employer isn't there only one test for the full year?

Are the plans related employers or unrelated?

If you have old terminated participants who were previously reported on SSA you'll want to remove them from t he old plan and report them on the new plan. But if they are active employees, I agree with Bill Presson. Doesn't seem to be anything to report unless they separate from service with vested benefits.

With respect to profit sharing set up everyone in their own group you shouldn't have any issues. The match I'm not sure. I honestly don't know if you can set up a truly discretionary match were you pick and choose what match you give by individual. I'm not sure why I feel the match might be an issue while the profit sharing isn't but for some reason I can't put my finger on it just doesn't feel definitly determinable. Maybe someone has some more insight on it.

20 years late it looks like.

As long as you can write it into a document and administer it, it looks like it would be non-discriminatory. Unless you had a lot of low paid 5% owners but doesn't sound like that would be an issue in a 400 life 403(b).

How would an IRA work? You'd have to set it up in the dead participant's name which I don't think you can do after death. If the estate is the beneficiary, why not send a check payable to "The Estate of enter deceased participant name". You could send it by certified mail or or some other delivery service with signature required. If you're concerned about them holding the check, why not send them a cashier's check to close the trust?

https://employer.calsavers.com/home/employers/program-details.html?gclid=CjwKCAjwieuGBhAsEiwA1Ly_nXE7Ra9sR0bx02GErhzJflOQ0y6Zg9pcTGDfK5Emhus97HoNYDO1WhoCLJ0QAvD_BwE I don't believe there is any penalty if you sponsor a qualified plan whether you opt out or not. And for those that are supposed to sign up but are late, I don't think the penalty starts until 90 days after you are noticed. That may change in the future but for now seems fairly easy to avoid the penalties unless you willfully ignore notices.

I believe the assets have to be subject to US jurisdiction so the Canadian brokerage may be problematic.

As long as you are under the deduction limit for 2021 (and it sounds like you are), I don't see a problem.

One way or another, whoever ultimately does the admin will need a copy of the current document to administer the plan, even if they will be amending it on to their document as they will need to make sure any changes don't violate 411 cutback provisions. whether they get that document from you or the client I'll leave to you. But you are under no obligation to explain the document to the new group. The new group is not your client, you don't have a service agreement with them. You could certainly send anything directly to the client and let them decide what to send to new group.

Bobby Bonilla Day is coming up, July 1. These deferred payments for professional sports contracts are nothing new. And as others have siad, I'm sure they have plenty of lawyers to dot the is and cross the ts to make sure it's all legal.

I assume you've previously provided the document to the client so you could just direct him there. If the client doesn't have it you can charge reasonable fees for providing another copy. That said what comes around goes around and it's a pretty small industry. In days when it's pretty easy to just e-mail a copy of the Plan Document I typically just do so unless there are outstanding fees unpaid fees I'm trying to collect from the old client.

You can have two plans, but you'll still only have one 415 limit as you are describing a controlled group.

If he has $0 or negative earnings from self-employment his 415(c) limit is $0. The $17K in deferrals is an excess annual addition correctable EPCRS - usually involves a refund plus earnings and code E on the 1099-R. Check your document for 415 overage corrections. Since the deferrals need to be refunded, the related match of $7,500 (plus earnings) needs to be forfeited to the Plan. Since it was rolled out, the Plan is supposed to recover those funds. But with the Plan terminated that might be difficult. The fact that the Plan has been terminated and assets rolled out complicates things, especially with respect to the match that can't be forfeited back to the plan that I assume the trust is no longer in existence. I'm honestly not 100% sure on the correction but at minimum the $17K and $7.5K are NOT ELIGIBLE for rollover so you have excess IRA contributions that need to be corrected. Maybe someone else can add some thoughts or has come across this particular fact pattern in the past. It might be a situation where you might consider a VCP filing with the proposed correction being withdrawing the $24.5K plus earnings from the IRA as a taxable distribution to the partner.

If we have a client with SH 401(k) Plan selling his practice in an asset sale. He will terminate all employees effective with sale and those employees will be hired by the acquiring company. His corporation will retain the Plan and he wishes to terminate the Plan and the corporation as a result of the asset sale. The corporation will only exist for wrapping up any accounts receivables, the 401(k) Plan, and other administrative items. At this time he does not wish to make any additional employer contributions - other than the required ones for deferral and SH match through date of sale. Does this generally meet the exception to the 12 month rule where the plan can be less than 12 months as a result of the business transaction and retain it's status as a SH 401(k) plan? Does the answer change if the termination is done before, concurrent with, or after the transaction? Assuming it is done contingent on the sale going through if done before or concurrent with. I know he can clearly retain SH status if the plan runs through 12/31 for a full 12 months but he would like the option to terminate sooner without ADP/ACP testing and this would seem to me at least to be on account of a business transaction.

Different parts of the plan can have different eligibility conditions. It can create some of the issues you discus in your original post. But if someone wanted to they could have something crazy like immediate eligibility for deferral, 3 month eligibility for safe harbor match, 6 month eligibility for non safe harbor match and 1 year of service for profit sharing. As long as the document was drafted correctly. I mean I'm not sure the added complexity would be worth it but if you aren't top-heavy and don't have owners with less than a year of service it's likely to pass all discrimination tests without a problem. There are some issues if you have a very high paid employee who becomes an HCE the 2nd year because they made over the limit in just a couple of months, you hire someone who immediately is a more than 5% owner in the first year (usually an owner's kid or spouse). But generally speaking everyone in your under 1 year of service group is going to be all NHCEs which will automatically pass for that group. If you are top-heavy, you'll lose the "deemed not-top-heavy" exemption with this kind of design so probably not ideal in the very small plan market in most cases.

Form 8955-SSA. It was called something else once upon a time but that's the current form to report terminated employees with deferred vested benefits. When participant applies for Social Security they get that notice if they were reported to SSA unless they were later removed. But in my experience it's been hit or miss that they actually get removed when you report code D. maybe it's got better in recent years but the old days it seemed like over half the folks who were "removed" still got the letter.

If the loan is offset, there is no asset to roll to the new plan. If the new plan directly accepts the loan note as a rollover to the new plan, that is different. The QPLO rules allow you extra time to come up with the cash needed to rollover the outstanding balance of the loan, I don't see anything that would lead me to believe you could roll the actual loan note to a new plan by the extended tax filing deadline if it was offset or defaulted and if defaulted instead of offset I don't think you can roll it over at all. That is if the loan has code 1L, 2L or 7L it is ineligible for rollover. If it has code 1, 2, or 7 it falls under the 60 day rollover rule. If it has 1M, 2M or 7M it qualifies for the October 15th (or next business day of weekend or holiday) of the year following offset timeline for paying off as rollover. If it has code G it was directly rolled from one plan to another. I think that covers the various scenarios.