Bill Presson

I can't see us getting involved without an ERISA attorney being included. We want to help a client do everything possible to keep a plan in (or return it to) compliance. But don't ever let the client's liability become your liability.

Of course. A final 5500 is just a 5500. The due date is 7 months after the end of the plan year (date last assets were distributed) and the extension would be 2.5 months after that.

https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers Updated FAQ on the Notice

I would think it's an issue for the outside asset company that processes everything for you.

What was the actual transaction? Did XYZ buy the stock or the assets? How did XYZ take over as plan sponsor? Was an amendment done? What else did the amendment say? Did the plan year change? Or did it remain the same?

Thanks. I'm betting we'll all be very familiar with these rules in the next few months. WCP

My interpretation of the transition rule is that you leave each plan alone in order to utilize the transition period. If you amend the plan to change the definition of HCE, I do think it eliminates the protection. Perhaps I'm too conservative on this as well, but I think the mutual fund company is wrong.

RBG, that third way is the way we do the vast majority now. Wasn't an option early on, but is quite convenient now.

Not sure this is exactly what you mean, but I'll relate a story. Back when eFast first came out, the 5500 provider we used wanted the process to be: 1. TPA prepares 5500 2. TPA uploads the file to TPA website provided by 5500 software company 3. Client signs on to TPA website and signs 5500 with DOL credentials 4. TPA processes 5500 and sends to DOL We decided not to do that because it would require many clients to obtain DOL credentials AND get logins to the TPA website that they hadn't had to do before. So, instead we did this: 1. TPA prepares 5500 and exports file. 2. TPA uploads the file to DOL eFast site 3. Client signs on to DOL eFast website and signs 5500 with DOL credentials 4. Done Worked like a charm and when lots of the 5500 providers were struggling with the web integration, we had 0 issues. I think it's been quite awhile and i haven't seen the providers have those issues recently, so I'm not sure it's worth doing differently. But it can work. Maybe that helps some?

No maam.

Rollover. Prior to that year, only SIMPLE IRA money could be rolled into a SIMPLE IRA account. https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

Not quite enough info to be sure, but it is highly likely that the two companies constitute a controlled group. A SIMPLE IRA is required to cover all members of the controlled group. So when you offered the SIMPLE IRA, it should have been to everyone.

To get the EACA tax credit under SECURE, it does have to be added the first of the year. It can't be added later.

Interesting. Thanks. WCP

Wait. Let's say the account balance is $10k or more. Are you saying I would have to request an $1,100 distribution to get $1,000? I've never seen that. If I request a complete distribution, it's quite common for the fee to be deducted and then the balance distributed. But if I requested $1,000, I would expect the fee to be deducted from the account and then the $1,000 distributed (approporiate w/h, etc). WCP

In a pooled investment environment where the TPA is also the recordkeeper, this is easily done. In a daily valued environment, where there is a recordkeeper allocating every penny? Not so easily done.

Agreed.

Okay. Thank you, ma'am.

Ms Liz, this link already shows it later than that. https://www.irs.gov/retirement-plans/determination-opinion-and-advisory-letters-6-year-cycle-for-pre-approved-plans

Perfect. Thanks RBG!

It got pushed back. According to this link: https://www.irs.gov/retirement-plans/determination-opinion-and-advisory-letters-6-year-cycle-for-pre-approved-plans the next DC cycle will end 1/31/23 meaning it begins 2/1/21. Someone correct me if I'm wrong. WCP

They're SOL. What they're likely trying to do is get out of paying FICA, etc.

Don't have enough info, but possibly what we call a "true up" contribution after the end of the year.

RBR, I understand that the HCEs don't want refunds. We get that as well. But I tell them (as BG mentioned) that the worst part of getting refunds is that they deferred some taxes until the next year. The worst part of NOT getting refunds is that they left contributions on the table. I tell them that when they get a refund, they know that they deferred the maximum amount they were allowed by law. If they don't get a refund, then they were short. Usually works. It's actually one of the rare times we encourage clients to "prefund" and we have the ability to adjust to the perfect number after the end of the year.

JAA, I asked Ms Ilene to clarify. She was just talking about the credit. Here's her response. Section 45E of the Code (which controls the Credit) says: (1) In general The term "eligible employer" has the meaning given such term by section 408(p)(2)(C)(i). BUT: Section 45E(c)(d)(1)(B) (which discusses the definition of Qualified startup costs) says: (B) Plan must have at least 1 participant Such term shall not include any expense in connection with a plan that does not have at least 1 employee eligible to participate who is not a highly compensated employee. So, while a plan covering just an owner or just HCEs is technically eligible for the credit, there are no expenses that qualify for the credit. This provision was in the law before SECURE. Sorry ….