Bill Presson

I never could absorb this statement...

Two things: 1. I "liked" your post and got a message that I wasn't allowed. Odd. 2. I spent a lot of time on PIX in my early years. Incredible resource during the early days of the internet. My screeching 2400 baud modem was a welcome sound. Got to know, Larry Starr, Derrin Watson, Jim Norman, Rick Block, Lou Filliger, Rich Bednarski, Doug Jolley, etc, etc. Great group to learn from

It's been awhile since I've run a plan on relius, but I thought that when you choose to run the test, you could enter the prior year amount. If I could wander around the software, I think I could find it. I know this isn't much. Good luck.

She may be worried that this is considered earned income and she is limited or it reduces her SS. We know that's not the case, but she may not.

If the loans are outside the plan, I agree it's an issue. But if it's just money that has been used for premiums, it's not.

Agree with the question of how it rolled in. Could have been from another plan. But I'm not sure the $90k loan is necessarily an issue. It's likely to be a premium loan.

Ask the people that are going to do the solo 401k. They may be better able to help because they may have had the same question. With that being said, why don't you put the money you would put in a SEP into the 401k?

Can you do what you are asking to do? Yes. Can you be successful at it? Less likely. Most CPA firms that do TPA work in house with people that have never worked in a TPA firm are doing a multitude of things wrong. It seems to be an obvious niche, but, for some reason, a great many CPAs just can't understand the way the 400 section of the code works. And I worked for on of the 30 largest CPA firms in the nation for 12+ years. So, I recommend buying a TPA firm or hiring an experienced professional from a TPA firm to start your practice.

TPAJake: Austin asked if you were processing the payroll and you said you were. But I think he meant actually producing the payroll, collecting hours and issuing checks, etc. I don't think you're doing that. What I think you're doing is the same thing that many daily recordkeepers do, which is get (or create) the file/report from accessing the payroll and then "processing" it into the recordkeeper's system and triggering the ACH. So that may answer a couple of his examples, but still doesn't get to the heart of the matter. Most of his issues are dependent on the payroll being correct. For the most part, you don't control that nor do you control whether you get correct information on family relationships, etc. So you're still dependent on correct information. I've wrestled with this for the past few years. Some days, I'm convinced we need to do it and some, I just can't imagine why.

Everyone seems to be focusing on getting a 2848 to allow the IRS to speak with someone. But Peter seems to be asking whether a TPA is governed by Circular 230. " If one sets aside the bit about written advice, a TPA who doesn’t write or speak as a taxpayer’s representative concerning an examination or a correction procedure might not “practice” before the IRS, and so might not be governed by its conduct rules." Peter, can you be more specific as to why you're concerned about this and how that involves a 2848?

Might want to consider amending the plan to allow loans. He might be able to get more money and won't have a taxable situation.

A prior discussion:

If the plan actually covers only NHCEs, you are free to do just about anything. If group C isn't deferring, then I would just exclude them. Other than that, I would use a plan with everyone in their own group. You can always "group" them in the way you have above.

Generally welfare filings would include schedules A for policy years that end with or within the plan year. So the last year it's on a 9/30 year end, that schedule A is included. Your next plan year ended 9/30, you would include the 11/30 policy year end schedule A.

Congratulations, Reed!

Here's a good discussion about it from back in the day:

I vote yes. And I vote to find another TPA firm.

Based on what you've posted, I don't think they are eligible but I don't know if we have enough information. Review page 8 of IRS Publication 503. That should help. If not, you may need to contact a benefits attorney.

Generally all of them do, I'm pretty sure. I don't remember seeing one that didn't. Obviously an employer can negotiate anything. I don't know the number, but I would have to think it would need to be pretty large. With all that being said, why would an employer feel it was necessary to eliminate that provision?

My former employer (an accounting firm) had interns all the time. Our plan excluded interns as a class, but obviously brought them in if they worked a year. It was rare for that to happen, but we did have the occasional intern that would work multiple tax or audit seasons and then have to enter the plan. It was looked at a couple of times by the IRS over the 12+ years I was there (and responsible for it's operation) and the intern exclusion was never an issue. YMMV.

Be prepared for push back from the DOL. I don't think they are just going to accept it.

No cite, but I've never seen it offset the match.

It's also possible there was some kind of entity acquisition and prior service credit was granted that the OP doesn't mention or know about.

Sounds like Mass Mutual and the employer need to have a discussion and get on the same page.

I would also be interested in how the 5500 compares to the participant accounts (assuming it's a DC plan).