Bill Presson

Also, most firms have published privacy policies. Was the sharing in violation of your privacy policy?

The instructions specifically exclude payments directly from the plan sponsor that are not reimbursed from the plan. The auditor is wrong. WCP

Thanks guys. They're using Relius to do the calculation and I believe it was accurate. Just thought it might be nice for a double check outside the system.

Mike/Tom, Just saw this thread and haven't opened the spreadsheet yet. What are the odds it would work for a 140 partner LLC? WCP

Just an FYI, rollovers aren't considered contributions when performing the incidental test.

To do a simple 5500 for one year might not be much of a burden. But what about the intervening years? And the DOL/IRS correspondence that would result? No telling what kind of black hole that might be.

If the plan doesn't allow loans, then the participant can't borrow from the plan. The insurance policy is an asset of the plan so it's covered under that rule. The insurance loan provision would allow the trustees to borrow money out of the insurance policy and put it in the participants "cash" account to invest.

Sign a new document.

Charles, remember that you will have to get a CPA firm to agree to whatever audit adjustments are decided upon. Just because the CAO says something doesn't mean a CPA firm will agree that it meets AICPA standards. And they will likely want some kind of indemnification.

If you missed it, so did I. And I don't think we both did.

There was an update to the EPCRS this year that covered this. I think it's Rev Proc 2015-27.

I haven't seen it on 401(k) plans, but I've seen employers do it on health insurance. Since they have monthly premiums, they want the 24 pay periods so it matches up. The two pay periods they skip are for the two months that have three pay dates each year. I would be uncomfortable to do it if someone has chosen a percentage though. Just thinking out loud.

We generally just provide a summary of the test results (ADP/ACP, 416, 415, a(4), etc) and don't provide the backup. In the rare situation where a client wants to see it, we've provided it, but it's not a standard.

Our parent firm, Warren Averett, does 200+ EB audits per year. I just spoke with our audit partner and he said that about 5% of them are unqualified and the rest are disclaimer (because of the limited scope). He said he didn't recall issuing a qualified opinion and in all the discussions they've had with the DOL that would likely generate a pretty quick contact from EBSA. FWIW.

I really think it depends on what the paperwork that was signed says. If it says it's an IRA account, I think you're out of luck.

It's a lot like wedding vows.

I have an idea what you're talking about, but I'm not gonna guess. You'll need to provide more details. Please be specific and describe the entire situation.

No.

This is how we've always done it. Treat it like a transfer into a "fund" and then post a gain/loss to get back to the ending cash value.

Peter, I haven't seen it and, frankly, don't expect to. This just has the feel of the 419 plans where the sales people always swore there was tons of legal backing and if you would only sign a 20 inch stack of agreements, they would be happy to provide it to you.

I've seen lots of discussions on this issue and it appears that Zane Benefits and TASC are the only two groups advocating this reimbursement program. @zbenefits with all the discussions over the last year, is any other group or accounting firm or law firm agreeing with your position? I'm all for fighting the IRS when they're wrong (like the safe harbor plan amendment prohibition debacle for example), but I'm cautious about recommending something to a client when the professional community is almost unanimously on the other side of the fence.

No. Show the old information in Question 4 of the 5500.

More plans should be worded like this.

We don't use a Trust EIN if the plan is a daily valued plan and the assets are held by a custodian (eg TDA Trust, MG Trust, etc). If the plan uses brokerage accounts, we always apply for a trust EIN. I would think it's pretty rare for a plan to have multiple trusts (though we have a couple) and typically a brokerage account isn't going to use the custodial EIN.

Our plan excludes interns this way: "interns hired for a period not expected to exceed 180 days" If they become full time employees or if they work 1000 hours in a 12 month period, they enter the plan. As a large CPA firm, we have a lot of intern turnover/transition.