Bill Presson

Excellent.

That's not what shERPA said. The PLAN was supposed to be the owner and the check payable to the Trustee of the plan. If the owner of the policy was the participant, that means the policy was never actually part of the plan. That is an issue.

I'm still confused. Multiple times you've said the ESOP holds no stock but also multiple times you've mentioned the stock traded on a monthly basis. Either the ESOP holds stock today or it doesn't.

Retired.

Correct. It's not the same $550. It's just the one is eligible for catch up and the other isn't.

If you make changes to the document that aren't allowed by the document, it eliminates the preapproved status. You don't want to do that. You should hire a TPA to help you. Let me know generally where you're located and I'll see if I can recommend someone. But you don't want to jeopardize the tax status of your retirement. Spend a little money and get it done correctly.

It's legal. They just don't know what to do.

@Bird I think you meant to type this.

The accounts should be in the name of the plan and with the plan TIN. Also, you mentioned transferring balances in excess of $250k. For filing purposes, all accounts are aggregated.

Yes. Assuming no stock attribution any other way. That would be an interesting discussion.

Still might need to consider it a partial termination and vest 100%. If not, might be able to use it to pay fees. And, if there's no employees, might want to terminate the plan.

Correct. And it doesn't matter that they are brothers.

Will there not be any future contributions for the owner?

Whatever the plan document says.

SOL without a w-2 for this company. Any chance there is some sole proprietor comp out there?

Shouldn't each plan have their own TIN?

I would love to see an actual opinion of someone that says "s corp employee contributions do not need to be withheld from payroll."

+1 to EBEC's post.

Agree with CB. Also look at just having the fees paid by the plan and deducted from participant accounts. Likely won't be deducted exactly like they were allocated, but might be close enough. And save a lot of heartache.

Only pension and profit sharing plans can be set up in a prior year. Not 401(k) plans for anyone.

You are correct and the CPA is wrong.

Are you talking about when you enter a thread with new posts? If you click the title, you go to the first post in the thread. If you click the little circle in front of the title, you go to the first unread post in the thread.

Well, if they terminate the plan in the very near future, it will cause a limitation on the 415 allocation amounts. There are also some who argue that a sole proprietor doesn't have earned income until the last day of the year, so it would probably cause a $0 allocation eligibility. Also, there are timing restrictions on terminating a 401(k) and starting a new one. So, I would highly recommend they not terminate the plan in 2021. They should hire a TPA and then decide where they want the money to go.

They already have a 401(k). Closing the plan and starting a new one with a new provider is silly. Just find the new provider. If the new provider knows what they are doing, it will be simple.

Line 4 says total deposits for 2020. It doesn't say total deposits in 2020. It would show what you deposited. Why would you do a 945 in 2021?