EBDI

I have a similar problem. This is a safe harbor plan that has a terminated employee who gave a false social security number. When the employer tried to deposit the funds, the financial institution rejected it because of the false ssn. The funds were returned to the employer. What should the employer do with the funds? They do not have a current address for the employee. The amount is under $500.

The whole topic gives me a headache! I am with you on this. The signature on the extension form is a waste of everyone's time.

I had one client get a notice that they had filed late when in fact they were on extension. The 5558 instructions state that a computer generated notice is mailed approving the extension. A few of our clients notified me that they received an approval for the extension. We sent the 5558's return receipt requested and sent the IRS proof that it was received before the deadline. That seemed to solve the problem.

No I didn't run the average benefits percentage test because the plan document wasn't set up to allow for that. You are correct, it failed the 70% ratio test. The plan document states that the only way to correct is by bringing in enough employees to pass.

Dr. A is an Affiliated Service Group with Co. B. Dr. A. has a 401k safe harbor plan. Co. B does not have a retirement plan. I aggregated the two groups for 410b testing. The test did not pass. What happens at this point? How can an employee from Co. B be brought into the plan to pass testing when that company has not adopted the plan? All of the employees with Dr. A are benefiting so there isn't anyone to include from his group.

Peggy, If you get an answer, can you post it here? I have the same situation and haven't found an answer either.

I work for a TPA firm and we have used OneAmerica. We were happy with the client service, the website and the reports. Can't speak to the fees as that isn't my area of expertise. I agree with other posts that you should take another month to review other options. The variable group annuity isn't the same as an individual variable annuity. You are correct that it is a pooling of all funds before investing in the selected mutual funds. Working with a good TPA firm can help you ferret out the expenses and insure the right type of plan is selected.

Holly, Did you ever find an answer? I have a similar situation with a >than 2% s corp owner.

Impressive spreadsheet.

My guess and this is only a gut reaction is that the participant did a rollover when the annuity was purchased. I would use the code for a rollover.

I started using them a couple of months ago. So far so good. I haven't mastered it yet, but they have been terrific about answering my questions promptly.

Thanks for passing on the good news!

For what it is worth, I changed the EIN for clients in the past and never marked the prior year as the final return. I did enter the prior EIN on line 4 as suggested. It worked for me, but maybe the rules have changed.

What type of preparation did you do to pass the ERPA test? I am weighing my options between passing ERPA or applying for a PTIN.

Do you think the IRS is sending the proposed penalty because the 5500 was not received timely in 2008? You may want to have the client call the IRS or write to them providing proof that it was signed and mailed on time. Also, did you electronically file using a 2007 form? When one of my clients electronically filed a late 2007, I used a 2009 form and entered the 2007 plan year dates.

I would republish it with the correct attachment.

Last client filed yesterday! Relius web client has been unbelievably slow this week.

The HCE's can only be excluded if the plan document allows it. You can not retroactively amend the plan document to exclude HCE's.

Thanks for the opinion on FT Williams. I will look at them for next year.

I am also wishing we hadn't bought Relius web client. I would be interested in hearing if anyone using a different software is having a better experience. Several of my clients have complained about the Relius password having key strokes that they can't find. I agree it is difficult to explain the copy & paste process.

Let me amend my answer. I was looking at an older version of 5330. I should have said answer questions number 1 and 4 on page 4. Enter the date of correction in section 5, page 5.

I agree that the date of the transaction is the due date. I put the deposit date in part V of the 5330 under "date of correction". When I have more late deposits then the number of spaces on the form, I attach an excel spreadsheet in the same format as part IV and V with the client name, plan name, EIN etc. at the top of the attachment. Be sure to answer questions 25a and 26.

I found that the codes have changed. You need to manually change them.

I read that the 2010 forms are scheduled for release on July 23. I found this information on the Relius website under "product news".

I agree with your method except that I don't subtract the partners own safe harbor and profit share allocation. After I subtract the partners share of the Common Law employees employer contribution, I calculate the self employment tax and the result is the net pension income. You are correct that you don't subtract the partners 401k deferrals.