Bill Presson

Why would the fees be so much larger because of universal availabilty and how much more will be the cost in $. Wouldn't the saving in not having to do ADP testing offset the any costs due to universal availability? I'm assuming the additional costs are for the plan audit.

I'm guessing they are getting a safe harbor contribution, since he mentioned that.

I would recommend he go back to his legal counsel.

I didn't word my reply very well. The requirement for filing the schedule F for cafeteria plans has been eliminated. In the situation presented, one 5500 is still all that is needed.

Just one (if required to file) for the welfare. Cafeteria plans aren't required to file anymore.

What version of Relius are you using?

We have suggested (and have had the plan's attorney agree) to have the plan forfeit the extra $500 (or share equivalent) in the plan and have the employer make the employee whole outside of the plan.

The insurance remains a welfare plan. In order to deduct premiums on a pretax basis, you need a cafeteria plan document, so you would have both.

You posted in another thread that you were being told that you weren't the beneficiary. This might be part of the answer. If the QDRO was filed (even if you weren't aware of it), then his first wife might be the beneficiary and that's why you can't get any specifics. Definitely time to contact an attorney and quickly.

We always have them moved to the money market/stable value option. Since they'll be moved soon anyway, no sense in risking a loss.

The deduction limit for money purchase plans is 25% of covered payroll; the same as profit sharing or paired plans.

Refund what?

You need a new accountant.

I'll take a shot: I'm going to say that a retirement plan consultant can't perform the audit, unless he/she was also an accountant.

You can find them here: ERPA materials

It let's you run a projected ADP/ACP test late in the year and see what is happening. If you pass or are very close, you might not do the SHNEC. It just gives you some planning options.

Do refunds and use the "QNEC" money to pay bonuses to the HCE's to let them defer back in to the plan.

Yes. Dental and vision both qualify as accident and health.

Well done, Boris!

The only "last day" requirement that I've seen in a cash balance plan is used to be in a specific allocation group. For example if Physician A is employed on the last day he is in Group A. If not, he moves to Group C which receives the required minimums.

I'd make Shemp do it. hahahaha Seriously, though. Is there any kind of contract between the employer and the ins co? That might spell out who is responsible for what. If you can do a DFVC filing, I believe $1,500 would be the total penalty because it's capped at two years, no matter how many you file. I don't remember what the DFVC program says about 5500's that far back, but you (the ER) definitely needs to use it.

I think what you are doing (have done) is usefull. I run a benefit consulting practice within a CPA firm and we do something similar on many of the benefit audits. The problem is going to be getting someone to pay you to do it. I don't think many CPA firms are going to be willing to pay you for the work. While it can be very useful to the client, it isn't required for the audit and fees are squeezed tremendously now as it is. Adding an extra $1,000 or so to the audit, probably won't be very well received. I don't mean to discourage you, but you'll have to be able to answer the questions from the CPA side: 1. Why should I do this? 2. How can I pass through this cost to the client? 3. How is the client going to see the benefit? Hope this helps some. Good luck.

Does the same to me. I just right click and have it open in a different tab.

But in this case he said he got emails and was asked to attend meetings and ignored them all. I think it's time for him to put on his big boy pants and start paying attention.