Lou S.

If I understand your specific fact you have 10 ees so TPG is 2 employees and piggy packing on Bill Preston and BG5150 for the OPs case The Two that have the highest compensation out of 1, 2, 3, 4 are HCE because they are in the TPG Then look at owners 1 and 2 if they are both of the employees in your TPG then you are done and have 2 HCEs, if they are not in your TPG group add them to the HCE pool because 5% owners are always HCEs and you will have 3 or 4 HCEs even though are using the TPG group.

I just sent an e-mail to every one who we filed an extension basically telling them the IRS is way behind, don't worry about the notice you may receive, and to forward a copy to us for our records.

I'd suggest talking to his accountant.

I'm assuming the partner receives a K-1 for his self employment earned income from Partnership and that it's issued to him personally on his SSN not the Trust.

Sounds like a Plan Administrator who took their ERISA duty to retain records required to pay all benefits as merely a suggestion. Does the Employer truly not have the records or do they just not want to search for them? Like are they in some storage they don't want to wade through or were they actually destroyed? Because like someone above mentioned I find it hard to believe there were no W-2s issued for the participants in question.

If you are concerned about it you can file IRS Form 8822-B but like others have said this has never really crossed my mind.

If I understand your question Owner A gets earned income from the XYZ LLC which sponsors a qualified Plan. Owner A has put the LLC in his trust. Can Owner A participate in the Plan based on his earned income in XYZ LLC even though the trust is the holds ownership? If that's the question the answer is absolutely yes. And for plan purposes even tough the Trust holds it, Owner A is more than likely still deemed to own it.

I think threads like this have come up on more occasions than one and that was in non-pandemic years. I believe a number of IRS processing sites including the one that receives and processes 5558s was completely shutdown for a long stretch in 2020.

My bad. I was mixing up the 2 year period for significant failures. Either way, in this case one employee missing a match and being correcting "relatively soon" would seem to qualify for SCP in this case regardless of whether the error is considered significant or insignificant. Though as always the only 100% sure way would be VCP.

pandemic backlog?

If you qualify under self correction (SCP) as having procedures in place, its deemed an insignificant failure, and you are still in the 2 year window for corrections you can make the missing matching contribution along with lost earnings. If the failure was for the 2019 year you'd have until the end of the 2021 year to correct I believe.

What do you mean by not required to adopt? My understanding is you need to comply with SECURE in operation but you have until the end of the 2022 plan to adopt conforming amendments. You can still allow 70 1/2 to 72 withdrawals for folks who come in under new rules, they just are no longer RMDs in the IRS eyes so they would be eligible for rollover.

As to the side note - Family aggravation of comp was the worst. I think it came in with TRA 86 (?) with and went out around 98? I honestly don't recall the laws that brought it in and out. That was where HCE husband and wife (maybe kids too?) had one 401(a)(17) compensation limit. So if the comp limit was $150K and you had a husband and wife owner making $200K each then for plan purposes they each had $75K for allocation and testing but $200K in determining HCE. Good times. Almost as fun as 415(e) calcs. Thank god they got repealed as some point. A google search tells me SBJPA 96 killed family aggregation of comp, shout out to benefits link for still having it back then https://benefitslink.com/cgi-bin/qa.cgi?db=qa_who_is_employer&n=41

For the refund of the amount in excess of 402(g) I would report Box 1 ($1,000), Box 2 ($0), Box 5 ($1,000) and code BP For the gain Box 1, ($200), Box 2 ($200), Box 5 $0, code B8. (Though I'm mot sure the B needs to be attached to the earnings, it may just be code 8).

I don't think legal and appropriate are the same Luke. The waivers I'm sure are perfectly legal, but in a small plan setting they are rarely appropriate.

Yes Luke, thanks for clarifying. I've never done such a submission but I have seen talk of them in other threads over the years on this site.

I think the IRS position is still that "scriveners errors" doesn't exist. If the amendment was adopted you've already granted the service for vesting, it is likely that trying to unwind that would be viewed as a prohibited cutback by the IRS. You might want to check VCP to see if there is a correction for your issue if you can show what the intent was through corporate minutes and that the amendment was a drafting error.

Yes, you compare the 2019 ADP/ACP of the NHCEs in 2019 to the 2020 ADP/ACP of the HCEs.

For 2020, any one who made more than $125,000 in 2019 is an HCE for 2020. This list can be restricted to the top-paid group with an election. In addition, anyone who owns more than 5% of the business at any time in 2019 or 2020 is also and HCE regardless of compensation or TPG status.

You'd need to talk to your 403(b) provider about distribution options and what the implications might be for the investment contract. As I understand it you'd like to take a distribution from your 403(b) account and convert it to a ROTH-IRA while paying any taxes due with funds you have outside of retirement accounts?

You have a demographic failure that is likely to always exist with no good way to correct it that I can see. Either the waivers should not have been allowed or the plan should not have been implemented. I'm not sure what the correction is but it likely involves taxable refunds of deferrals and termination of the plan. Hopefully there haven't been any employer contributions yet.

As Zeller notes he has one 402(g) limit so if he exceeds that limit he'll need to request a 402(g) refund from at least one of the plans. The plan should have procedures for making that request and based on factors such as matching or investment options it may be advantageous for the participant to request the refund from Plan A or Plan B. The plan will probably want some evidence of the 402(g) excess such as W-2s.

I'd title them in the name of the Plan with and FBO attached.

She terminated in 2020 so you only need to add back in the 2020 withdrawals to the TH test. The in-service add back is for active employees.

If the plan adopted CARES provisions and the withdrawal was a CARES withdrawal with signed self-certification we did code 2.