Cynchbeast

I am helping my former employer (TPA) do a DFVC filing for a client with several years 5500 filings due. Rather than signing an E-signature authorization for each year, what they want to do is get a form 2848 giving me the POA to sign and file all the years. I would have to of course get the EFAST credentials to do this. Q: If I have POA and e-sign all the 5500 filings on EFAST, am I opening myself to any liability?

The DFVC is for 5500 filings on EFAST. We will be signing on EFAST for our client and so will be preparing e-file authorizations. Do we need one per year or can we use one covering all years. I know in the past the IRS required one per year and I am trying to find out if that has changed.

We have a client needing to do a DFVC filing for multiple years and we need to sing the return on their behalf. Will the IRS allow on signed E-File Authorization for multiple filing years?

Our client has a PS 401(k) plan with 3% SH non-elective. They have a new employee with a Visa; she is from Germany. She has chosen to defer, but does not want to open an account (TD Ameritrade). They have her first deferrals, which have been held for a couple weeks, as well as her 3% SH. But there is presently no account for them to deposit the money to. Can participant continue to defer if she refuses to open an account? How long can ER hold the money before it becomes a problem? Even if she does not defer, what do they do with her SH? (Plan excludes "non-resident aliens" - she is here legally as a resident alien. All thoughts and suggestions welcome.

What if participant who has been taking RMD for several years died in December, 2021 and the 2021 RMD was not taken (by anyone) before the end of the year? We have been trying to find out if the RMD was taken and the wife had told us he was ill but didn't notify us of his death until just now.

We have client with 401(k) plan and separate PS plan. They want to satisfy ADP testing for the 401(k) by making SH contributions to the PS plan. Both plans use the same prototype document. The document DOES allow for the 401(k) testing to be satisfied with SH contributions to ANOTHER plan. However, nowhere in the document does it have anyplace to state the SH contributions made to the PS are intended to satisfy testing to another plan. Does this satisfy all requirements, or does the PS have to specifically state that it's SH contributions are intended to satisfy another plan?

In California, are there penalties for a sponsor with existing qualified plan but failed to opt out by the applicable deadline?

We have a client who is a dentist selling his practice and terminating his plan. All 7 participants are rolling their money over to IRAs. I expect this should be complete by the end of the week. Is there any way to issue the 1099-Rs now rather than waiting until January?

We have a DB plan for a Sole Proprietor. His net Schedule C after FICA deductions but before deduction for contribution was $10,000. The contribution for 2019 was $9,293. Is this okay?

Wow. As clear as mud!

Client wants $100,000 loan, per CARES Act. This is the first for us and not sure how the mechanics work: 1 - My main question is if participant chooses to defer payments and the first payment would normally be due in October, 2020, are payments deferred only until January, 2021, or do we defer all repayments til a year from October (ie October, 2021)? 2 - I understand the Act allows for deferment of payments for 12 months, but I am not sure what that means because I believe you can also extend the term. Do they make double payments after the 12 months until all the deferred payments are paid, or do we just tack them on to the end of the loan? 3 - Do I prepare an amortization schedule as I would normally, starting in October, 2020, and re-amortize when they begin payments, or do I start the amortization schedule with the date they are to start payments? 4 - I understand interest accrues while the repayments are deferred. Is this then added to prinicpal before amortizing/re-amortizing the loan and spread over the entire 5 years? As you may be able to see, I am extremely unclear on the actual mechanics of the loan repayment - how do we write the note and how do we amortize the loan?

Odd situation - We did 2018 valuation and now when we get data for 2019 we find out that the sponsor did not actually deposit the full Profit Sharing contribution/deduction. We could amend 5500 filing and tell him to amend tax return, but plan is aggregated with DB so this would cause serious problems. If he makes up the money now (it was due by 09/15/19), how do we make that work?

I know in-service withdrawals of deferrals may not be made prior to age 59 1/2, but is there any requirement that they must be allowed after age 59 1/2? We have a PS 401(k) plan that allows in-service withdrawals from all accounts only after NRA - NRA being age 65 and 5 years of eligibility service. So I was wondering if participants would have to wait until NRA or if there was a rule regarding deferrals that would supersede that.

Does anyone know of a phone number to call to see if a 5500-EZ was filed?

We have a client (CA corporation) who's employees are only his wife and himself. They are in real estate investment. Wife owns 100% of a second company who's employees do work for the husband's company. They were told by their accountant that in this way the employees wouldn't have to be covered by the plan. Is this a controlled group or not? I believe CA is community property state and therefore each would be attributed direct ownership of the other's company. And would this also be considered an affiliated service group? Second related question: We have another set of clients where the husband is 100% owner of a construction company and the wife is 100% owner of a property management company. The two companies are totally separate and unrelated to each other. Do we have a controlled group>

I believe any returns due after 04/01/20 and before 07/15/20 are automatically extended to 07/15/20, and that this includes 5500s. Hence a plan with 06/30/19 Year-End already on extension to 04/15/20 is now due 07/15/20. Is this correct?

Does the temporary $100,000 loan limit (from the CARES act) apply to Defined Benefit plans?

I am unclear when repayments must begin for a new COVID-19 related loan. In other discussions: Per EBECatty said, the Act says '"In the case of a qualified individual with an outstanding loan (on or after the date of the enactment of this ACT)" which SUGGESTS that this applies to even new loans (since they would be outstanding after 03/27/20). Is this specifically addressed, or just one person's interpretation? When writing a new loan, when do we make the first payment due - Same as normal, 1 year later, or perhaps some other date (at participant's choosing?) up to a year later?

Are penalty-free COVID-19 related withdrawals allowed for DB plans?

Sorry for my typo, and any lack of clarity. Owners are excluded from SH match, and so get none. Owners are the only HCEs. Owners tell us that all NHCEs have been presented with 401(k) & SH Match and have elected not to defer. They say they have that in writing (do we ever believe everything the client tells us?) I feel this is very suspect, and I know that technically it works. But I was wondering if anyone has had experience with the IRS questionning such a case.

David - are you questioning the veracity of our clients when I say they "assure" us they have negative elections? Why would a sponsor ever lie ? [a bit of sarcasm]

We have more than one small plan with SH match where only the owners defer and so only the owners get SH Match. They assure us that HCEs have been given the opportunity to defer. While technically okay, what position are other TPAs taking? Also, for one of these clients, they have a DB, PS and 401(k); of about 8 participants only the 2 owners (H&W) defer. The 401(k) excludes HCEs from SH Match, so effectively this allows only the owners to defer with no ADP testing whatsoever. Again, technically acceptable but..... Thoughts? Any adverse experience with IRS running plans this way?

Has the deadline been extended for PPA Restatement of DB plans?

Thank you. That is crystal clear.

Sponsor initially reported EE as hired in 07/2018, but turns out actual hire date was 06/13/18. This means she entered plan 07/01/19 rather than 01/01/20, so we have lost opportunity to defer for 07/01/19 through 12/31/19. Plan has only owner and this new EE, so there is no ADP for NHCEs other than her. She probably won't be deferring, but I know that doesn't erase the lost opportunity when she might have deferred. Plan has Deferrals and SH match. Since we have no average deferral rate for NHCEs, it seems it would be best to assume 5% deferrals (minimum rate to get maximum SH Match), and 4% SH match. Does this sound right? What should QNEC be? 50% of deferrals plus all of SH match missed (total 6.5%), 50% of all contributions (total 4.5%), or what? I know this probably sounds elementary, but it has been quite awhile since I had this situation.