gregburst

Sometimes it is "as good as" safe harbor. If owner earns $245,000 and spouse earns $100, then owner can defer $16,500. The HCE average ADP will only be 3.37%. And if the company declares a 148% match, then the owner can get a $24,500 match. The HCE average ACP will be 5% exactly.

YouSendIt.com works for me.

My understanding is that the due date of the 5500 is the end of the month seven months after the last check was sent; so if the employer sends the checks out in the same month as the investment company, then your question becomes moot. But if the employer issues their checks in the following month, then I don't know the answer to your question.

I always understood that that a 402(g) excess deferral could not be withdrawn after 4/15. For example, if a 30-year-old participant deferred $18,000 during 2010, then the excess $1,500 must be refunded by 4/15/11. Otherwise, it stays in the plan and gets taxed again when it is withdrawn due to some future distributable event. Regardless of whether the excess is withdrawn by 4/15/11, the participant will be taxed on the $1,500 in 2010 since his personal tax return can only allow a $16,500 deduction.

I don't know the specific answer. But, let's assume that you can do it. What are you going to do with the money in the meantime? Hold it in a plan bank account? Which will mean you will end up with a 2012 5500 filing on top of the 2011 filing? If I had a 2011 form, I'd send it in right now along with a check for $1,125.

If a terminated plan pays all participants in 2011, and total withholdings are only $1,125, can the withholdings be remitted using form 945 (since the total will not exceed $2,500)? I know this was allowed in 2010, but not sure if it applies to future years as well. If it's allowed, can someone tell me where to find a 2011 form? I can only find 2010 online.

Relius (Corbel) has a great volume submitter with a multiple employer agreement which can accomodate your need. Do they sell single-use documents, or does one have to subscribe to their document system?

CompanyX has about 20 full-time employees that it covers in its 401k plan. It also has about 20 part-time employees which have been kept at under 950 hours per year so that they don't ever become plan eligible. CompanyX has recently been it talks with Assante PEO. Assante says it will take the part-timers and make them Assante employees; then they won't be employees of CompanyX, and they'll be able to work over 1000 hours (in CompanyX's service) without becoming eligible for CompanyX's plan (or being factored into its 401b test). Assante might also assign these employees to other companies in order to get them 40 hours per week. I've done some reading on this, and I find as many questions as answers. Has a definitive answer been given yet by the IRS/DOL? How should CompanyX treat these employees if they are transferred to Assante? Also, some full-time employees (over 1500 hours) might be transferred to Assante also. Should they be treated differently than the part-timers? TIA, Greg

Two partners each: husband and wife. Yes, they have employees. Otherwise, they wouldn't have adopted a safe harbor plan.

A DB plan is co-sponsored by two partnerships with identical ownership; so it's a controlled group. The high-three-year average comp that's been established came partly from partnership A and partly from partnership B. How is the deduction split? Does it matter what portion of the deduction is taken by company A versus company B? These partnerships also sponsor a 401k plan. Does it matter which partnership takes the deduction for the safe harbor and profit sharing contributions? Or in what ratios? Thanks, Greg

A 401k client recently received a $1,818.33 "refund" check from the IRS. Their note just says F-5500 REF. Neither the client nor I have any idea what this is about. Has anyone else seen something similar?

401k client is just now ready to file the 5500 for calendar 2009 (past due since 10/15/10). At this point, what is the recommended (official and unofficial) course of action?

Client made one $350 deferral deposit a little late during 2009 and deposited makeup/lost earnings of $8 during 2009. And then we reported the late deposit on the 2009 form 5500-SF. The client has now received a notice from the DOL instructing/encouraging them to file under VFCP. The last client I had that did that in this situation got audited by the IRS the next year. What does wisdom dictate here? File or not? Thx, Greg

Maybe the AICPA lobbies on behalf of its members. And maybe ASPPA is happy for this twist since it will be a cash cow for them since they administer ERPA?

If the plan allows for multiple loans and/or replacement loans, must the first $1,000 received be in the form of a loan rather than hardship?

In his self-directed account, the owner of a company is invested in his company stock (about $120,000 worth). He gradually wants to buy back these shares. Under what conditions may he purchase the stock from the plan?

I'm taking over a 10-person 401k plan that was effective and funded in 2008. No 2008 5500 was filed, so late fees are up to about $7,000 at this point. What is the best/cheapest way for this company to rectify the situation?