Bill Presson

Since it was a rollover, you don't use code 1. It's strictly a G.

The form is to report taxes withheld during the year regardless of when they are due to be deposited.

You can't change the plan year after the end of the plan year. So you're stuck with the 9/30/20 and 9/30/21 year ends. Then you can have a short plan year from 10/1/21-12/31/21. WCP

Also, to utilize "early retirement", one must actually retire and stop working for the employer.

And I would just like to mention that something allowed is not necessarily the smart move due to the administrative difficulties and potential for error.

The non elective version, of course. Here's a good article by Groom: https://www.groom.com/resources/irs-guidance-on-secure-act-changes-to-safe-harbor-plans/

Plan numbers are used and connected to the EIN of the sponsor of the plan. Ultimate parent, etc isn't relevant.

Usually when the plan is set up with a recordkeeper (either a brand new plan or a takeover from another RK), the RK provides a form for the plan sponsor to sign. It lists everyone that gets access from the sponsor to the TPA to the advisor. It also lists what level of access they get. If you weren't on that original list, you'll need to talk to the sponsor and/or their contact at the RK to get the approval.

It's all based on the document. Does the plan exclude partners? Why would you think he wouldn't be eligible?

Allowing access to see participant transactions is quite common. Allowing the advisor to execute transactions (other than investment trading) would be very uncommon, I would imagine.

Most documents have an option on this. We typically allow for prepayment but ONLY to pay it off entirely. No extra principal payments to deal with.

How does someone ask for a 90% deferral and not notice for 3 months?

Maybe I'm asking a silly question, but if the trust is the beneficiary, why is the money still in the plan? Why hasn't the money been distributed to the trust and then the issues are trust's.?

We've done the same on occasion, especially if we're talking about a few days or weeks in to the new year. But what if the check gets lost or if the participant never cashs it?

Don't confuse a couple of issues here. If a participant gets a check in December of 2020, then he gets a 1099 for that money representing a 2020 distribution. Regardless of when he cashes the check. A plan can't shut down until all the money is gone. So money in an account because the check hasn't been cashed IS still a plan asset. That's why wire/ach/certified checks should all be used for a plan termination.

I have always recommended having the employer pay any fees to anyone that is related to the employer (stockholder, family member, etc), just to be safe. WCP

Here are my general rules (because there are always exceptions): 1. If a 401(k) plan is going to be deferral only, I recommend against it or prefer they go somewhere else. Past experience shows that they almost never work out successfully. 2. If an employer qualifies and the limits are acceptable. a SIMPLE IRA is quite often the best choice instead of a 401(k). I know that doesn't work here because of the employer contributions, but I still often recommend it. 3. While our industry exists because of "state" supplied rules, I'm generally opposed to state run programs.

I understand it was terminated. Were all of the accounts distributed as well? That's possible but could be they are still in place. If not, I would recommend re-opening them or opening new ones. It's gotta be fixed.

The deferrals need to go to the SIMPLE. The 401(k) didn't exist when they were withheld.

I still don't understand the "why" of having one spouse have a 401(k) and the other have a SIMPLE IRA. Even if they actually aren't a controlled group (which I'm still skeptical about), it's easy enough to make them a CG and it wouldn't be a multiple employer plan. It would just be a single employer plan with a husband and wife.

This calls for professional tax advice. The Owner needs to hire someone to help solve this problem.

Happy Holidays, Jak! WCP

If it's a controlled group, then the group can't sponsor a plan other than the SIMPLE (edited to say SIMPLE instead of 401(k)). https://www.irs.gov/retirement-plans/fixing-common-plan-mistakes-simple-ira-sponsor-with-a-related-business And if it's a controlled group and the spouses are the only employees in their businesses, it would be silly to not have them covered by a single 401(k).

If it's a QDRO, you have to do whatever the QDRO says, so that might limit the choices. If you are the alternate payee, many times you can just take a complete distribution and set up your own payment schedule. But if the QDRO awarded you installment payments, that's what you'll likely have to do. Too many variables for advice here, I think.

Open an account at a US Bank. Have the direct deposit go there. Then arrange a wire transfer between your banks. This is not an ERISA or retirement plan issue.