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Our client is a corporate medical office with five employees. The president (doctor) and 100% owner of the corporation died suddenly in January. He was the sole trustee of the company's profit sharing plan. Unfortunately, no successor trustee was named in the plan document. His wife is named as personal representative of his estate. She is also a VP of the corporation. The wife is trying to liquidate the assets of the Plan and make distributions to the participants. The custodian refuses to allow her authorization over the account, even though they have a copy of the Letter Testamentary and a copy of an amendment executed this month naming her as Successor Trustee. (The document allows the employer to name additional or successor trustees.) The custodian is now saying that we must have a trustee appointed by the DOL. In the meantime, four of the employees are unemployed and need the funds. Any suggestions as to how to proceed?

A client was notified by IRS that no 2011 and 2012 Forms 5500 had been filed for their 401(k) Plan. Due to an employee change within the client's company, the 5500s were not filed, although they had been prepared. Upon receipt of the IRS notice, client filed the delinquent 5500s. Then client calls us asking what can be done about IRS penalties assessed. Is it too late to use the DFVC Program to avoid the IRS penalties? Will the program now only relieve them of DOL penalties?

An employer currently pays advisory fees for all participants in their 401(k) Plan. The plan assets are held at brokerage firm A. The advisory company and the employer have some common ownership so the plan is not allowed to pay the advisory fee expense. Would it be permissible to move the accounts of the terminated participants to brokerage firm B (unrelated to the employer or advisory company) so the employer can discontinue paying the advisory fees for the terminated participants? This may encourage the terminated employees to roll over their accounts to IRAs

Our document provides that the unpaid loan balance will be taxable to the decedent. Should the 20% federal income tax on the loan balance be withheld from the beneficary's distribution?

Here are the facts: Participant rolled over her regular 401(k) (non Roth) balance to a Roth IRA Participant may later this year want to recharacterize her Roth rollover to a regular IRA rollover Is this allowed? Or is it necessary for the funds to go from the 401(k) to a regular IRA then convert to a Roth IRA and then recharacterize back to a regular IRA? Thanks.

Does anyone have recent information on the percentage of Maximum Payment Amount that IRS is using to determine the sanction amount under the Audit CAP? The plan document was not current upon audit but we have since obtained all amendments, etc. This is the only "problem" discovered by the agent. This plan has fewer than 10 participants, one HCE.

A self employed taxpayer with 4 employees made monthly conribuitons to the profit sharing plan during 2010. Now that his schedule C is being prepared, he no longer wants to make/deduct a profit sharing contrib for 2010 (Sch C income less than expected, cost to cover employees more than expected, large amount of tax due, bad economy). Can he withdraw the 2010 contributions plus earnings without a penalty?

Several of my clients have received IRS notices stating that they did not file a 2008 Form 945. For all of these clients, no Form 945 was required for 2008 because no tax with withheld from any distributions. Just wondering if others are having this same problem with the notices.

Management Fees are withdrawn by the broker/dealer directly from the plan assets. The broker/dealer then pays the RIA. What should be reported on the Schedule C?

The U.S. Department of Treasury has announced that employers currently using paper federal deposit coupons must make payroll deposits electronically beginning in 2011. Does this apply to deposits of withheld tax on distributions from retirement plans?

Has anyone successfully transmitted a Form 5500 to DOL using Relius Government Forms but without using Web Client? I get an error message on the DOL site that processing is stopped because the form has not been signed by the plan administrator or plan sponsor. We were under the impresion that we did not need Web Client to use the Relius Government Forms to transmit our client's 5500s to DOL.