Bill Presson

A very smart person told me today, "The regs tell you what you can't do and what you must do. They don't tell you what you can do." And that is where this lies, I believe.

Not sure we have enough info, but looks like two separate businesses to me. Who owns the other 97.75% of the LLC? Also, not likely to be an affiliated service group.

Looks like you got what you needed on the info. If there are other ASPPA items you would like to see changed, let me know. I've got a couple more years on the Leadership Council. WCP

ASPPA is in contact with the IRS ASPPA Seeks IRS Action on Form 5558 Acknowledgments BY KIZZY GAUL OCTOBER 2, 2019 34 GOVERNMENT AFFAIRS ASPPA has received several reports of incorrect Form 5558 acknowledgments or extension denials being received by plans that had timely filed to extend the filing deadline for their 2018 Form 5500. In some instances, the acknowledgments are reflecting the extension deadline of Oct. 15, 2019 for off-calendar plan years. In other cases, the extension is being denied as not being timely filed. ASPPA’s Government Affairs Committee has been in contact with the IRS to receive guidance on the most efficient resolution. It is important that plan sponsors read their Form 5558 acknowledgment letters (i.e., CP 216 or CP 232) closely to make sure they are correct. If an incorrect acknowledgment letter or extension denial is received, the plan sponsor should write a letter requesting reconsideration and providing an explanation regarding the incorrect acknowledgment letter. The letter should be sent to the IRS address listed on the acknowledgment letter, and a copy of the incorrect letter should be included with the correspondence. The IRS will review the request and provide a corrected acknowledgment letter. In no instance should Form 5558 be refiled after the filing deadline. ASPPA’s Government Affairs Committee will continue follow up with the IRS to determine the cause as well as continue to advocate for electronic filing for Form 5558 to assist in eliminating these issues. Kizzy Gaul, JD, CPC, QPA, QKA, TGPC, is Manager, Regulatory Supervision, at Prudential Retirement. She also is a member of the ASPPA Leadership Council.

I don't think you're going to find a specific cite, but the limit is a limit on compensation. The bonus isn't compensation, according to the plan. So you wouldn't limit comp and then reduce comp. Because of this, the 414(s) test gets harder to pass. Since you aren't actually impacting this HCE, the exclusion doesn't apply. If it's the only HCE and the staff have any bonuses excluded, you're very likely to fail that test. I hate compensation exclusions for this reason.

Since it's a controlled group, I would think this (from the instructions) would apply: "A one-participant plan sponsor must file a Form 5500-EZ (or a Form 5500-SF with the one-participant plan box checked) when the plan’s total assets and the assets of all their other one-participant plans at the end of the plan year are greater than $250,000."

I'm shocked, shocked I tell you! ?

He has a plan for each company?? It's a combined 415 limit, so what's the advantage?

There's an Ethics in Recordkeeping session. Maybe it will be covered there? ?

Welcome to the forum, DJ! We should get together for lunch and gossip about people we don't like anymore. ? WCP

I think the question is whether you can amend it in the middle of the year to not provide that SH contribution, not whether you can set a plan up that way. I think the sponsor is stuck for this year and would need to amend it for the next. I wouldn't want to be that aggressive.

Yes, you would need to amend the plan to give credit for prior service with the other employer.

For most of us, this would be accurate. WCP

I would be very interested in this.

And I'll be there. I'm co-chairman of the conference this year. This is my fifth and final year on the committee. I rotate off after this year.

No, the in person meeting at the Gaylord National Harbor. The specific session is the last session of the conference on October 23rd from 10:15 to noon eastern.

Agree with all the advice. Need to find a new RK or choose a pooled investment plan for the start and switch to participant directed at some point in the future.

Thanks Austin. It will be in the Ask the Experts session at ASPPA Annual this year.

Austin, can you take the original question and modify it with whatever clarifying comments, etc that you think are appropriate and email it to me at bpresson@egps.com? Thanks. WCP

I'll see what I can do.

Thanks Larry. I edited to clarify that I was answering no exceptions.

Generally, no, there are no exceptions. It's an employer decision. (edited because it looked like I was answering the wrong thing. Thanks Larry)

I've used Penchecks for a lot of years and been very happy with their services. WCP

Thanks. I'm not opposed to it, but almost everything comes back to the payroll data. If a 3(16) isn't actually doing the payroll and controlling an employer checking account, I don't see how they are relying any less on the assumption and timing of good data than we are.

Austin, what about the corollary to "getting plenty of new business without having to mention it."?? Are you losing any business to a firm doing it? Either in a competitive situation or losing existing clients? We've debated this for a long time at my existing firm and at my prior firm. I keep thinking it's going to be huge, but it just never seems to really take off.