Bill Presson

Just because a participant can do something doesn't mean they have to do so. If a participant can direct the investment of their money but chooses not to, then the trustee of the plan has to set up the account and invest the money for the participant. And are you sure the participants are actually trustees of their own account? That would be incredibly unusual and I'm not even sure it can be done.

There used to be decent directions but that was back in the '80's when this was more common. Ask the insurance agent to get something from his home office. That will likely help. If not, I dealt with a lot of them back in the day and will help as I can. we can discuss if you prefer.

You've got a single employer (controlled group) with two plans? Why make it difficult like that? They have to be tested together.

It's still instantaneous. Maybe your browser is handling things differently, like saving it somewhere you aren't expecting.

Probably not.

Definitely use pay.gov. Have the client pay you and get a 2848 and then pay the penalty on their behalf.

I agree with Mike.

Basically just splitting the census into the top 1/3 and bottom 2/3 instead of HCE/NHCE.

1 and 2 are a controlled group. Dad is attributed mom's 50% and, since dad owns more than 50% of 2, he is attributed the 30% from sister, his adult child. This is under Section 1563 attribution. No attribution in 3 because neither owns more than 50%. And no attribution in 4 due to siblings.

Still have money in the trust so you have to file for 2022. In the future, I recommend using cashiers checks or a pay service (like Penchecks or Millennium Trust, etc)

Calavera already gave you the answer: 1, 2 & 5. 3 & 4 are not part of the controlled group.

If there's nothing that needed a 2021 date, why risk it?

You only receive attribution if you own over 50%. You don't attribute to an adult (child or parent) if you own over 50%.

This was my "favorite" and I couldn't come up with aggregation last night. I kept thinking "attribution" and I knew that wasn't right.

Gotta admit, Mike, this confuses me. Why wouldn't someone show a catch-up contribution for someone 50 or over? May not HAVE to do it in a solo plan, but can.

I think a change in control of the assets of the trust is kind of a big deal.

Well the deferral limit for 2021 is $19,500 with $6,500 catchup. So 2021 has a $26,000 limit. The employer contributions don't count against that limit. This thread has me a little concerned.

Merry Christmas and Happy Holidays!

Based on what you just said, I think the IRS is just wrong and you need to escalate to a manager. The plan is still the same plan, just with a different sponsor. That happens pretty regularly.

Under the "facts" you've provided, there is no correct answer. You'll need to go back to the attorneys.

Make sure you address any end of year "true up" issues as well. Might be additional match required.

I don't understand how someone can sell the assets of a company, but not the stock of the company and the buyer gets the EIN. Something is wrong with your information. The EIN and the stock of the company are inseparable. I don't care so much about the name, that's an asset. WCP

After the first couple of paragraphs I was confused by who you meant when you said company and client etc. Can you add names like Old Co and New Co for clarification? Because I've worked on these situations lots of times. Sometimes Old Co keeps the plan going. Sometimes New Co takes over sponsorship. Shouldn't be an issue either way.

I thought this was a political post. 😇

https://www.irs.gov/businesses/small-businesses-self-employed/statutory-employees