hunter001

yes

Sorry, to clarify the relius prototype document reads "under a multiple employer plan if the lead employer will contribute to the plan for its own employees the lead employer should execute a participation agreement.

Is my understanding not correct.

It is my understanding that a multiple employer plan must have a participation agreement in place for all entities including the sponsoring plan. If the sponsoring entity does not have a participation agreement can this be self corrected or must it go through VCP filing.

If a plan uses first day of each payroll period as an entry, does the plan sponsor start withholding deferrals on the pay date associated with that payroll? What if there is an overlapping paycheck? Example: Employee enters plan 10/27 (first day of next payroll period) with a 11/15 paydate. Paycheck on 11/1 for 10/13-10/26 pay period.

Anyone else having issues with the system being able to calculate one year of service eligibility provision correctly? Im on my 4th incident to relius and they keep coming up with reasons on why its not calculating correctly. The reasons they explain to me have not been the way the system has handled the calculation for the last 15+ years.

Under the most recent EPCR rules to correct missed deferrals how is it determined if a QNEC needs to be made if the period missed overlaps a year end. EX. participant elected to defer effective 10/1/15 and was missed and deferrals implemented 3/1/16. Is a QNEC required for 10/1/15-12/31/15 period and because of the brief 3 month exclusion no QNEC required for 1/1/16-3/1/16 period? What does the "rolling 3-month period mean". Under the above circumstances does this mean a QNEC would be required for the entire period 10/1/15-3/1/16?

We have a large plan that we were under the assumption transferred to a new provider 3/1/15. Come to discover the plan termed and merged to a newly formed plan effective 3/1/15 and came to the conclusion we would be responsible to prepare the final 2015 Form 5500. Auditor is telling us and the client that the plan may defer the 2014 audited financial statements and file with the 2015 short plan year utilizing Line 3d on SchedH. My understanding is this maybe used if the first of two consecutive years is a short year end, not the second. Of course our software wont even allow a large filing be submitted without an audit report.

The data collected from recordkeeping vendor is on a cash basis. When using the allocated link to import the data prior year contributions maybe included and depending when the last payroll for the year testing was processed may not be included. They were using receivable sources so the prior year end contributions posted in the prior year in relius needs to get moved from the receivable source so that its not double recorded in the system then any contributions attributable to the testing year are posted as a receivable as well as any year end contributions. They had been reporting the Form 5500 on an accrual basis but will be converting to a cash basis to be consistent with our reporting practice with our other plans - - we will do this by using the cash report from the recordkeeping vendor. What we have done for this year end to avoid this work is post contributions attributable to the testing year reported on the year end census from the client by using a takeover transaction. This works but are unable to use the top heavy test in relius if not importing account balances and distribution activity with the allocated link. There is the option to do the top heavy testing outside the system but sometimes that requires work in regards to researching inservice distributions and other distributions, etc. Also, if we don't use the allocated link there is no earnings data in the system, therefore, corrections for adp testing do not include earnings.

Our firm has been a full service provider. From recordkeeping to the trustee holding the plan assets to compliance documents, testing and reporting services. We recently acquired a TPA company where a majority of their services is documents, testing and Form 5500. Prior to the acquisition the process to complete year end testing for this product included using allocated link to import recordkeeping data from the vendor but on a cash basis. This seems to be very time consuming as we are backing out prior year contributions and a lot of reconciling plan participants accounts as well as plan level, they believed by doing this they were finding payroll errors and such which after reviewing the service agreement we really are not getting paid for this service. My question is does anyone else have this type of structure and how do you handle year ends? For 2014 year end we imported contributions provided by clients on the census but are having problems with not being able to utilize top heavy testing and corrections reports for ADPACP testing do not reflect earnings. Any opinions on the most efficient way to handle these are appreciated.

In response to My2cents - the deemed loan was never tax reported in 2003, thus another issue. Masteff - -the DOL notices states - Congress is enacting ERISA, added section 4975 to the Internal Revenue Code of 1954, which imposes an excise tax on disqualified persons (generally, the same as parties in interest under Title I of ERISA) who engage in prohibited transactions with employee retirement benefit plans. As a company employee the participant with the improper loan is a party in interest to the plan.

There were two active participants that have deemed loans as they stopped paying on around 2003. One participant's loan was issued before 2000 and this one was issued after the removal of the loans. This is why the DOL investigator started looking into the issue because currently the plan does not allow loans. Not sure of the circumstances of why they removed the loans, but Im assuming the recordkeeper was unaware that the loan policy was removed a month before the improper loan was made. Ive come across the mention of statute of limitations for the Form 5330 filing but not exactly sure of the timing?

A plan went through DOL investigation and found that the plan allowed loans up through 1/1/2000. A participant was issued a loan as of 2/2/2000. Loans were not allowed at that time, therefore, creating a prohibited transaction. During the audit (2013) a 1099R form was issued in order for the participant to tax report on the outstanding loan amount. Furthermore, the IRS will be notified of this matter and a Form 5330 should be filed to also correct this. The instructions for the Form 5330 are a nighmare and when I called the IRS on their helpline they told me no one there is trained to give any feedback on preparing the form.. . . . that's very frustrating. So Im hoping someone has a little advice or direction in this matter. What is considered the amount involved? Is it the outstanding loan value or the interest that would have accrued if the dollars were part of the plan? Also, file a Form for every year 00-13? Any help would be appreciated.

Including the audited financial report?

I will be filing an amended 2011 return for a large plan filer in respect to an incorrect participant count. Must all schedules and audit report accompany the amended form OR just the Form 5500?

Have discovered a plan that has employer securities has been filing using the 5500sf. Our firm had not prepared the prior year filings. Should we recommend amended filings going back to 2009 when the SF began, or start using the 5500 going forward. Thoughts?

Any 2012 form that has been published to webclient our clients have been reporting back to us that when they go in to efile their UserID is saved but not their PIN, as they have elected to save their credentials for future years. This is not the case for 2011 forms that we have recently published. Is anyone else encountering this problem? Relius has not been of much help. And of course I would hate to see some of our less tech savy clients have to go to the DOL website to retrieve their PIN as it was a tough job in itself to have to obtain them initially!

I have been using code 2 and no withholdings. When they go to file their taxes they would be taxed on this then? Also, for corrective ADPACP distributions I don't withhold fed taxes unless its past the 2 1/2 mo deadline. Do you know if this still holds true?

Does a 10% federal withholding apply for corrective distributions on ineligible deferrals. Such as participant made deferrals without being eligible.

I have a plan that transitioned to our company and in preparing the 2011 Form 5500 discovered that the prior preparer did not report the loan values as assets on the financial part of the form. I realize that the plan should be amended to include the loan values but how far back would you go. My thinking is to adjust the form to include the value on the 2011 reporting and make it right going forward. Any thoughts on this.

What is your opinion if we reported $500,000 as that is the max and then we would not have to figure 10% of assets from year to year.

Can anyone recommend how to report a fidelity bond that is set to fluctuate for 10% of the plan assets up to $500,000.

What are common reportable transactions for this line?

A ppt is notified of eligibility and does not return an election before their entry date, lets say two weeks later. Does the employer start deducting immediately? Is this considered a missed deferral? What if there is a match involved?

The instructions to the draft Form 8955-SSA specifically states "The 2009 plan year information cannot be combined with the 2010 plan year information and filied on the 2010 Form. You must use a different form for each year." Before the draft was released we decided we would report any 2009 on 2010 form. I really dont see a problem with this and it will save us on having to mail paper copies of these as it is anticipated that these forms will be filed electronically for 2010, but that is even quite questionable. Any opinions would be appreciated.