Bill Presson

True.

It might be aggressive but I think it's doable. Will the after tax contributions pass the ACP test?

This was actually fascinating. Thanks to you both for an excellent discussion.

Yes, after the first two.

Assume you're talking about a 403(b) plan? I wouldn't show them as eligible for 2019 if they have no ability to defer.

Yeah. I wanted to say that too.

In addition to the above, you should also make sure you have access to all the w-2 forms for the years in question. And find any statement if any money ever went in. Is it possible that you THOUGHT you elected to make a contribution but never actually did? If there are no deferrals showing on the w-2 forms, the employer didn't fail to deposit anything.

Since the document they used likely had a 2017 effective date, then I would definitely file it under DFVC.

What is the S Corporation doing? Where does the money come from? The current partnership is having to file a 5500SF anyway since the kids participate. There is always attribution under 1563 between a child and parent until the age of 21 and then there are exceptions. I'm assuming they are trying to slide by something here, but would appreciate additional details on the goal of this weird plan.

Banks create money when they loan. They aren't loaning their own money or their customers money. But they do have regulatory capital requirements that they have to meet if their loan balances grow.

That's almost a direct quote from what I say. But some are still convinced it will mean more work. Not many, but a few.

I tell clients this all the time and some refuse to believe me.

We file it with the parent company as the employer. Then on lines 11 & 12 we list each QSLOB. Your client will be one QSLOB and the new entity will be another. They both have to qualify.

It's so tiring telling people that we could have provided options if they had only consulted us prior to the transaction. The M&A attorneys should be sued for malpractice.

Well, I left off a long part of what I had in my head: ", but often the bonuses are in excess of the maximum compensation limit." (edited to add after comma since I forgot to include)

Also, might want to do a preliminary 414(s) test and make sure the client will actually be allowed to exclude the bonuses. Typically bonuses are paid to the HCEs more frequently and in higher amounts than to NHCEs ", but often the bonuses are in excess of the maximum compensation limit." (edited to add after comma since I forgot to include) I've never heard a good rationale for a company to exclude bonuses and about as rarely seen them able to do so.

Who are you asking?

Agree with Belgarath as well.

Since our firm does do actuarial work, I say we are "actuarial and benefit consultants". As a description, I say "we do everything that needs to be done for a retirement plan except handle the investments." That usually gets things started.

Yep. Don't let them off easy. Charge what you would have charged.

I recommend contacting Ms Kirsten Curry, the owner of Leading Retirement Solutions. She has her JD and they've done a lot of work in this area. https://www.leadingretirement.com/solutions/cannabis-401k-plan

I would correct the things for the period you were hired to work on. And give them a letter advising them of the issues and your concerns. Since you haven't reviewed the prior years, you don't really "know" there's an issue. Our engagement says we're under no obligation to audit or review prior years. If they want to fix it, they can hire you to do so. If not, it's not on you. Don't make their problem your problem.

And then hire a professional TPA to do all your 401(k) compliance work.

Well, there is that.

Why would someone use Roth money in a plan to pay life insurance premiums?