jkharvey

The 2009 Form 5500SF was filed, but one of the assets in the plan did not actually meet the definition of "eligible", so we should have filed 5500. Do we need to amend the 2009 Form? Is there a penalty for this?

My gut tells me it won't and I have to consider that this plan is now top heavy for the 2008 year. Thoughts?

Bird...I like how you think. I would not hesitate if this were PS only. The fact that deferrals were withheld from pay under terms of this plan in 2010, makes me say they have to file a return. Doesn't that give the plan an asset in and of itself? Now, I also understand the cash vs accrual argument. I think I will call DOL and see what they tell me. Not sure why I didn't think of that in the first place.

I think this plan needs to file a 5500, but I'm hoping someone tells me differently. First year plan is effective was 2009. The only contributions for that year were elective deferrals made at the end of 2009 and not deposited until first few days of 2010. The CPA did not file a 5500 for 2009 under the theory that there was no money in the plan, so no need to file. I want to say that there is an asset and that is the deferrals receivable and a 5500 should be filed. Which is it?

If the plan is part of a controlled group during the year but by the end of the year they are no longer a member of the group, would the Control Group feature code still be used. I'm thinking it would apply if available at any time during the year, but maybe it is only what is available at plan year end?

Two employers of a controlled group. One participant is a partner in one entity and is an employee of the other. The partnership K1 is a large negative amount. The W2 from the other entity includes $22k in deferrals. When the two compensation amounts are combined, there is a negative number, so no plan compensation. Can some of the deferrals stay as a catch up contribution?

We've been notified by one of the investment companies with insurance products that the information for schedule A is delayed YET again. Is there some legal requirement (DOL?) that requires this information be provided by a certain date? Something along the lines of deadlines for providing W2 or 1099 to employees and participants. TIA

I know this topic has been discussed over and over, but I'm not finding my exact answer. The plan is cross tested, so to pass gateway and general test, the Self Employed owner can receive a contribution that exceeds 25% of his Net Earnings from Self Employment. The total contribution to the plan is less than 25% of compensation when considering compensation for the SE owner and 2 other employees/participants. Is the Self Employed owner limited to a 404 deduction of just 25% of his Net Self employed income (this would be the same as 20% of his Schedule C minus 1/2 SE tax but not his contribution)? Thank you.

401k plan with directed investment. The two owners (naturally) purchased investment in Canadian gold maple leaf coins. Does anyone know if this meets the exception provided in 408m (I think that's the section). If not, this would be a distribution, correct?

The partners have K1s with heavy loss. The CPA has also issued them W2 for some compensatoin paid to them. I think that the W2 is incorrect and is really just guaranteed payments that should have been reported on K1, but that isn't my question. Am I correct (I hope not) that the loss on K1 gets added to these W2 to determine if these partners have any plan compensation?

The employer is going to move from individually directed accounts into a pooled account with trustee direction. Is blackout notice required? Is there something else that participants need to be able to do for this to happen?

The plan has moved assets to a platform and the employer is having to have the payroll file "rewritten" to make the adjustments to meet the platform's reporting/submission requirement. Aside from is this a reasonable amount, is this an expense that can be paid from plan assets? Thoughts?

I'm not sure this is the right forum. I'm curious how you are handling this. Since 5500s are exempt from PTIN requirements, but 945 is not, who in your office did you require to get the PTIN? Who is the actual "preparer"? Is it the administrator who got all the information then passed it along to the clerk who prepared the return or is it the clerk who simply typed on a form what she was told? Thanks

Our plan document provides that if the Plan's vesting schedule is amended, then each Participant with at least 3 years of service has the option of keeping the old vesting schedule. I have been asked if this would apply even if no money has been contributed to the account subject to vesting. In other words, the plan right now only has 401k and SH money in it and no PS. The ER wants to amend to change the vesting from 100% and then start making PS contributions. Based on this plan language, I don't see how we can make new PS contributions subject to a different vesting schedule for those with at least 3 years of service. Am I misunderstanding the language? Thanks

A potential new client is telling us that TIAA/CREF set them up with a 403b plan for deferrals (to avoid ADP test) and a 401k plan for the match. I'm not familiar enough with the new 403b regs (or anything 403b for that matter) to understand how a 401k plan can exist to make contributions for deferrals made into another plan. Is this possible?

I find an EPCRS correction using a retroactive amendment if a plan allows a person to make elective deferrals before they have met the service requirement. I'd rather correct by refunding. Is it permissible to do this?

Last week I searched the forums and found an answer to this question, but now I can't find that thread again. Here are the facts. I have a 401k plan with a PYE of 9/30. I am trying to determine if the plan is Top Heavy for 9/30/2010. I have one person who is an officer and during the PYE 9/30/2009 she earned 151,000. During PYE 9/30/2008 she earned well below any limit at 85,000. When I generate a TH report at 9/30/2009 out of Relius Administration, the system identifies this officer as a Key EE because her compensation is in excess of the calendar year 2008 limit of 150,000. My research seems to indicate that the compensation for determination of TH status for the officer is for the "calendar year in which the plan year ends". This comes from Treasury Regulation 1.416-1 T-14Q. Relius, however, is using "logic" in their system that uses the limit in effect at the beginning of the plan year and they are extremely insistent that this is correct. My bottom line question is this. To determine TH status for 9/30/2010, do I look at the officer's compensation in 9/30/2009? If so, what limit is used? Thank you

Is a distribution of the full account balance (401k deferrals and SH) to an Owner considered a PT if there is no distributable event?

They are a controlled group but going to adopt another plan. That plan is a MEP. I'm really confused now. Is vesting subject to BRF or not? In reading the regulation referred to above, it sounds like vesting is not subject to BRF testing. Thank you.

So, each member of the controlled group can use any of the statutory vesting schedules and be "deemed" nondiscriminatory? Is that a correct interpretation?

A controlled group is going to become adopting employers of a MEP. Can each member of the controlled group provide a different vesting schedule? I know about testing for nondiscrimination in the aggregate for the controlled group, but is vesting a BRF to be tested or some other prohibition for the different vesting schedules?

I just had this same error. I tried republishing and it didn't change the results. My scenario is a bit "odd". I have 2 delinquent returns to file for a 403b plan. Has anyone done this yet? Could the problem be related to the lines that are not filled out on F5500 for a 2007 and 2008 403b? Any suggestions are appreciated.

If a plan makes corrective contributions under SCP, do those count toward TH minimum?

I've read all the discussions I can find and saw several threads dealing w/ the subject but not this specific question. For a 401k plan are those employees who are eligible but choose not to defer so they have no account balance counted as participating employees for determining the turnover ratio?

How long after issuing the SMM to participant can the plan start actually deducting the fees?