Bill Presson

I would think having a potentially volatile asset in a DB plan might not be advisable.

We do all the plan termination resolutions and amendments simultaneously and then proceed with distributions. Perhaps it can be done differently.

The plan has to be in compliance with all laws and regs when terminating. If they haven’t signed an up to date termination package, they shouldn’t terminate.

In-plan Roth Conversion (IRC) just means changing pretax money to Roth money. In-plan Roth Rollover (IRR) means the money was available to be distributed before the conversion. Many RKs limit IRCs to this type. In-plan Roth Transfer (IRT) means converting the money but it wasn’t available for distribution and you have to maintain the distribution restrictions of the money source. Many RKs don’t want to do this and have to track that many different sources.

Agree that I would likely bring in an ERISA attorney, but I would expand on Paul's comments regarding the financial institution. Ask them how they intend to make this right. They are the ones at fault here.

No

Because I like this answer, I'm going to assume it is 100% correct.

The deferral election had to be made by 12/31/2023 and the deposits for both sources made by the 2023 tax filing deadline plus extensions

True, but Terry Powers did specifically address this. From his slides: Participating Employer Plan Termination -No distributable event within the PEP -Establish new, single-employer plan -Transfer assets from the PEP to new plan -Terminate the new plan

😬 ETA - if I was the employer, I would want to know the exact reason for the bank’s issue. Because it might warrant additional investigation as to the appropriateness of continued employment.

Assume the termination date is 12/31 and you have a similar situation straddling that date. How would you handle it? Typically the check date controls when pay is considered earned and to what year it applies. Your plan could be different so you have to read it and the termination amendment. But if it was my client, nothing paid after 10/31 would count.

Roll Tide!

+1

Sigh.

Wrong on 5500 or 5558? Either way, I think you’re okay as long as the EIN and PN are correct.

You need to contact your employer/former employer.

https://www.asppa-net.org/news/2021/8/irs-plans-retroactively-adopted-after-end-plan-year-have-no-2020-form-5500-filing/

I would contact your employer’s HR team.

“Missed depositing” meaning it was withheld but not deposited? That’s not a missed deferral opportunity. That’s a fiduciary failure requiring corrected earnings. It would also seem by the amount you give, that the person has already deferred the maximum for 2024. How are they going to continue to defer?

When was the document signed? If before 12/29/22, it meets the exception.

12/31/23 filing deadline is the same as always. Hope you extended. Final 5500 deadline is 7 months after the end of the month in which all assets were distributed (plus extensions).

You can’t merge a 401k into a 403b. But I think that’s the least of the issues. seems like the guy is wanting to use a not for profit entity to pay the wages of the people that actually work for his for-profit business. I would have to imagine there are legal issues with that and I would avoid it. If you can insulate yourself by having his CPA and an ERISA atty drive the decisions, then you should be good.

I don’t know why you would do anything else. Also, was any of it severance pay that they only received because of the termination?

Don't file an amended return for 2022. Just attach the audit report for the 7/1/2022 - 12/31/2023 period to the 2023 filing.

Search for a specialized IRA trustee to hold them.